REPORT TO COUNCIL
SUBJECT
Title
Action on the Santa Clara Convention Center FY 2024/25 2nd Quarter Financial Status Report
Report
COUNCIL PILLARS
Promote and Enhance Economic, Housing and Transportation Development
Enhance Community Engagement and Transparency
Promote Sustainability and Environmental Protection
BACKGROUND
On February 5, 2019, the City of Santa Clara approved an agreement with Global Spectrum L.P. dba Spectra Venue Management (Spectra) to operate the Santa Clara Convention Center (SCCC). Spectra began management of the SCCC on March 18, 2019. In November 2021, Spectra merged with Oak View Group (OVG) but continues to operate under the same legal entity.
Staff is transmitting OVG's SCCC status report to City Council for compliance with agreement terms.
DISCUSSION
This Report to Council transmits OVG's SCCC Financial Status Report for the 2nd quarter ending December 31, 2024 (attached). This report is unaudited and, therefore, subject to change.
OVG's report provides an overview of the SCCC's financial, operational, and strategic performance for the second quarter for FY 2024/25.
The financial summary of the report indicates that OVG exceeded net income goals by $104,911, netting $282,117 rather than the projected gain of $177,206. This was a result of implementing operational cost control measures. Gross revenues and total events hosted were lower than projected due to the postponement or cancelation of eight events since the start of FY 2024/25. This decreased revenue was offset by lower expenses.
The rolling forecast included in the report is the Q2 estimate of financial results for the fiscal year based on the number of 'definite' events and events in the pipeline. Definite events are booked events with an executed license agreement for use of the SCCC (inclusive of services such as food & beverage, IT support, audio/video [AV], etc.) and an executed hotel agreement for room nights, as applicable. Events in the sales pipeline are the...
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