REPORT TO COUNCIL
SUBJECT
Title
Action on the Santa Clara Convention Center 2nd Quarter Financial Status Report
Report
BACKGROUND
The Santa Clara Convention Center Financial Status Report for the second quarter ending December 31, 2018 provides current information on the business activities of the Santa Clara Convention Center (SCCC) under the management of the Chamber.
Staff is transmitting to the City Council the Chamber's SCCC status report for compliance with agreement terms and has not separately audited or validated the information.
DISCUSSION
Submitted for City Council consideration is the SCCC Financial Status Report for the second quarter ending December 31, 2018, as submitted by the Santa Clara Convention Center. This report is unaudited and therefore, subject to change. The delay in submitting this second quarterly report is due to working with the Convention Center staff to correct clerical errors in the submitted Financial Status Report.
It is important to note that during the second quarter of the current fiscal year, the financial performance at the Convention Center declined in comparison to the second quarter of the prior fiscal year. The current second quarter ended with a year to date (YTD) net operating income of $550,321 compared to net income of $825,888 in the prior year.
It should be noted that information included in prior quarterly reports such as room rental nights, convention attendees, and estimated revenues for convention center rental and Transient Occupancy Tax associated with CVB bookings is not included in this report. Further, this will be final report from the current operator as its contract ends on March 17, 2019. The first quarterly report from Spectra, the operator of the Convention Center, will be scheduled for Council review in August or September 2019.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" within the meaning of the California Environmental Quality Act ("CEQA") purs...
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