REPORT TO COUNCIL
SUBJECT
Title
Action on the Santa Clara Convention Center FY 2022/23 1st 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 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, formerly known as Spectra, SCCC status report to Council for compliance with agreement terms.
DISCUSSION
This report transmits for Council information, the SCCC Financial Status Report for the 1st quarter ending September 30, 2022, as submitted by OVG. This report is unaudited and, therefore, subject to change.
As OVG's 1st quarter report indicates, there were 51 events hosted at the SCCC. There were 12 events in July 2022, 16 events in August 2022, and 23 events in September 2022.
Historically, the 1st quarter Convention Center activity is slow. However, due to rescheduling cancelations or postponements of events, the 1st quarter results were better than anticipated. Based on event needs, OVG staffing levels varied from 21 to 25 throughout the quarter.
As discussed in the Quarterly report, budget to actual financial results are as follows:
Financial Summary - 1st Quarter Ended September 30, 2022
Projected in Budget
Actual
Budgeted Overage
(Underage)
Gross Revenue
$2,122,598
$2,757,861
$635,263
Total Expense
$2,829,062
$2,405,344
($423,718)
Net Income
($706,464)
$352,517
$1,058,981
For the 1st quarter ending September 30, 2022, OVG reported a net operating gain of $352,517. Total revenues were $2,757,861, or $635,263 more than the budgeted revenues of $2,122...
Click here for full text