COBB GALLERIA CENTRE COBB ENERGY PERFORMING ARTS CENTRE ARTSBRIDGE FOUNDATION ANNUAL REPORT / 2020
ANNUAL REPORT / 2020 / 3
2020
INTRODUCTION “It was the best of times, it was the worst of times.” This quote
“IT WAS THE BEST OF TIMES, IT WAS THE WORST OF TIMES.”
by Charles Dickens from the
CHARLES DICKENS
From October 2019 until
beginning of the classic novel, “A Tale of Two Cities,” is a perfect summation of the 2019-2020 fiscal year for the Cobb-Marietta Coliseum & Exhibit Hall Authority. mid-March 2020, the Cobb Galleria Centre, Cobb Energy Performing Arts Centre and ArtsBridge Foundation were on track to have one of their best years ever. Then on March 15, 2020, the trajectory shifted, and we closed our doors due to the COVID-19 pandemic.
4 / COBB GALLERIA CENTRE • COBB ENERGY PERFORMING ARTS CENTRE • ARTSBRIDGE FOUNDATION
REMEMBERING
JOHNNY GR ESHAM It has been our tradition to dedicate our annual report to former members of the Authority in recognition of their exceptional leadership and contributions to our mission. This Annual Report is dedicated to the memory of Johnny Gresham, former Secretary and long-serving member of the Cobb-Marietta Coliseum & Exhibit Hall Authority. We are grateful to Johnny for the positive spirit he brought to this Authority and for the never-ending support he demonstrated through his leadership on the Personnel Committee.
ANNUAL REPORT / 2020 / 5
THE AUTHORITY The seven-member Cobb-Marietta Coliseum & Exhibit Hall Authority is a body corporate and politic
COBB-MARIETTA COLISEUM & EXHIBIT HALL AUTHORITY
created by the Georgia General Assembly in 1980 for the purpose of acquiring, constructing, operating and maintaining facilities for the general purpose of promoting cultural growth, education and welfare. The Authority owns and operates the Cobb Galleria Centre, Cobb Energy Performing Arts Centre, ArtsBridge Foundation and Galleria Specialty Shops.
Mike Boyce Connie Engel Johnny Gresham Jerry Nix Derek Norton Steve “Thunder” Tumlin Robert P. Voyles
6 / COBB GALLERIA CENTRE • COBB ENERGY PERFORMING ARTS CENTRE • ARTSBRIDGE FOUNDATION
LETTER FROM THE CEO You will notice that this annual report looks very different than previous years. Fiscal 2020 was a year unlike any other for the Cobb-Marietta Coliseum & Exhibit Hall Authority. We navigated our way through a pandemic and the unprecedented shutdown of our venues while experiencing numerous event cancellations and first-time-ever employee furloughs. I am incredibly proud and grateful for the enormous efforts our entire team has undertaken by quickly adjusting to drastic staffing and budget reductions; updating policies and procedures; collaborating with governmental officials and industry colleagues to ensure a safe reopening; and for transforming live performances to virtual platforms practically overnight. Across the country, venues like Cobb Energy Performing Arts Centre remain closed. The live entertainment industry is expected to be one of the very last industries to reopen. During this temporary closure, we have reflected on the gift of time that the Centre received from its volunteer ushers throughout the year. During our busiest season, they donated countless hours to ensure patrons had an experience to remember. Sadly, this past year we lost two long-time volunteers, Delbert Flack and Jim Sustrich.
As you read earlier in this report, the Authority has lost a respected leader and dedicated public servant with the passing of Johnny Gresham. Johnny was a highly engaged board member, and he was a fierce advocate of our venues, our employees and ArtsBridge. He had many dedicated fans on our staff who looked forward to talking to him about Georgia Tech or their day-to-day lives. Johnny was a friend to all of us, and he will live on in our hearts for years to come. Fortunately, we are in a better position than some of our peers in the public assembly facility management industry who have exhausted their reserve funds. The financial model for Cobb Galleria Centre and Cobb Energy Performing Arts Centre is structured to more than cover its operating costs with the annual surplus set aside for unforeseen conditions such as the COVID-19 pandemic. The surplus over the past 25 years, in combination with a portion of the Hotel-Motel Tax collections from Cobb County and the municipalities within Cobb County, has enabled us to continue to pay debt service on our bonds, provide funding for Cobb Travel & Tourism and cover overhead expenses during prolonged downturns in business. We are grateful to those who had the vision to create this sustainable model and appreciative to the current leadership who supports renewing their partnership with the Authority. Despite our many challenges in Fiscal 2020, we firmly believe in our long-term future that includes welcoming back face-to-face meetings and live entertainment to our venues.
MICHELE L. SWANN General Manager & CEO Cobb-Marietta Coliseum & Exhibit Hall Authority
ANNUAL REPORT / 2020 / 7
LETTER FROM THE CHAIRMAN What began as a fiscal year with
I am grateful to the staff, my
great promise for the Cobb-
Authority colleagues and
Marietta Coliseum & Exhibit Hall
Foundation Board of Directors
Authority has concluded as the
who have worked together to
most financially challenging year
plan and meet the day-to-day
in our history. No industry was
challenges. Unfortunately, publicly
more impacted by the COVID-19
owned facilities like the Cobb
pandemic than leisure and
Galleria Centre and Cobb Energy
hospitality. Event venues like Cobb
Performing Arts Centre are not
Galleria Centre and Cobb Energy
eligible for any of the government
Performing Arts Centre rely on
relief programs, so we have relied
social environments and in-person
on strong financial stewardship and
interaction, which was impossible
our reserve funds to get us through
to sustain beginning in March.
this crisis.
When Cobb Energy Performing Arts Centre was forced to close
This summer we mourned the
its doors, ArtsBridge Foundation
passing of Johnny Gresham who
pressed the pause button on its
was a treasured member on our
2020 program season and quickly
Authority board for more than 18
reacted by creatively producing
years. Through his desire to be of
a virtual Georgia High School
service to others, Johnny touched
Musical Theatre Awards show.
many lives and leaves a lasting legacy in Cobb County and the
This has been a time of uncertainty
state of Georgia.
for our 250 employees, most of whom have experienced furloughs
History has proven that we are a
since April. This is especially
resilient organization; and we will
painful for us because without their
not only recover from this setback,
contributions, our organization would
but we will move forward quickly.
never have achieved the success it has over the past 27 years.
Sincerely,
Strict financial management and forecasting have been critical as we look toward recovery in 2021 and beyond. While many factors leading to a rebound are out of our control,
JERRY NIX Chairman Cobb-Marietta Coliseum & Exhibit Hall Authority
Unfortunately, publicly owned facilities like the Cobb Galleria Centre and Cobb Energy Performing Arts Centre are not eligible for any of the government relief programs, so we have relied on strong financial stewardship and our reserve funds to get us through this crisis.
8 / COBB GALLERIA CENTRE • COBB ENERGY PERFORMING ARTS CENTRE • ARTSBRIDGE FOUNDATION
COBB GALLERIA CENTRE & COBB ENERGY PERFORMING ARTS CENTRE Pre-COVID-19, business was pacing ahead of
mandated protocols. The encouraging news is
2019, and 2020 was on track to be a year of
that most of the shows that cancelled have been
unprecedented success. Some of the convention
rescheduled in 2021.
center highlights included Environmental Systems Research Institute’s (ESRI) GeoConX, the National
Venues like Cobb Energy Performing Arts
Money Show, the TRIB Convention and Buying
Centre have taken a huge hit. Governmental
Show, and WORKBENCH Con, as well as returning
protocols currently in place require reduced
events like Anime Weekend Atlanta, Junior Theater
seating configurations that generate considerably
Festival, the Atlanta Shoe Market, Atlanta Apparel
less revenue than financially feasible for the
Exhibition Group, Connect TECH and Georgia
artist and promoters. Managing Director Vickie
Agribusiness Council’s Harvest Celebration.
Hubbard continues to work with colleagues in the entertainment industry to determine the
Cobb Energy Performing Arts Centre once again
best procedures for safely welcoming back live
hosted the BET Hip Hop Awards, performances
performances to Cobb Energy Performing
by Shen Yun, Sesame Street Live, Neil DeGrasse
Arts Centre.
Tyson, Trisha Yearwood, Penn & Teller, The Doobie Brothers, Julie Andrews, Nate Bargatze, Gregory Porter and premier resident companies Atlanta Ballet and The Atlanta Opera. In mid-March when the effects of the COVID-19 pandemic caused massive cancellations, Cobb Galleria Centre and Cobb Energy Performing Arts Centre closed their doors for the first time ever. Those cancellations represented combined losses of more than $10 million in total operating revenue and an estimated 51,000 hotel room nights. After a four-month pause, the convention center reopened in July with Galleria Safety First, enhanced cleaning and safety guidelines, which helped to instill guest confidence that procedures being followed adhered to the Centers for Disease Control and Prevention and state of Georgia
TripAdvisor annually awards top-rated live entertainment businesses the Certificate of Excellence. Earlier this year Cobb Energy Performing Arts Centre received a Traveler’s Choice Award for being in the top 10 percent of attractions worldwide! Show managers have many choices when deciding to select a venue for their next tradeshow or convention, so it’s humbling for Cobb Galleria Centre to be recognized by the readers of EXHIBITOR Magazine as one of the best north American convention centers for the second consecutive year. And speaking of consecutive years, the Government Finance Officers Association (GFOA) once again awarded the Authority’s Finance Department the distinguished Certificate of Achievement for Excellence in Financial Reporting for the 25th consecutive year.
ANNUAL REPORT / 2020 / 9
COBB GALLERIA CENTRE Pandemic related shelter-in-place orders and travel restrictions resulted in a significant number of event cancellations. As a result, Cobb Galleria Centre closed to the public in mid-March and reopened in mid-July to significantly reduced bookings.
COBB GALLERIA CENTRE 2020
The line graph tracks operating results for the year, prior to and during the pandemic.
Total Events
214
Fiscal year ended September 30, 2020 (unaudited)
GC
OPERATING REVENUES
Total Attendance
$ 7,488,000
175,000
OPERATING EXPENSES (9,034,000) OPERATING RESULTS
$
(1,546,000)
$1,000,000
CGC
$500,000
COBB ENERGY CENTRE 2020
$0
($500,000) $1,000,000 ($1,000,000)
Total Events/ Performances
$500,000
($1,500,000)
$0
($2,000,000) ($500,000) Oct Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
($1,000,000)
Total Attendance
($1,500,000)
156,000
COBB ENERGY CENTRE ($2,000,000)
Oct related Nov restrictions Dec Janhave Feb Mar Apr Maythe live Jun entertainment Jul Aug As noted earlier, pandemic significantly impacted industry. Cobb Energy Performing Arts Centre closed to the public mid-March and remained closed through the end of the fiscal year.
C
164
Sep
The line graph tracks operating results for the year, prior to and during the pandemic.
Fiscal year ended September 30, 2020 (unaudited)
OPERATING REVENUES
$
6,851,000
OPERATING EXPENSES
(5,549,000)
$2,500,000
PAC
$2,000,000 OPERATING
RESULTS
$
1,302,000
Operating results do not include depreciation expense of $2.4 million.
$1,500,000
$2,500,000 $1,000,000 $2,000,000 $500,000 $1,500,000 $0 Oct Nov $1,000,000
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
$500,000 $0 Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Sep
10 / COBB GALLERIA CENTRE • COBB ENERGY PERFORMING ARTS CENTRE • ARTSBRIDGE FOUNDATION
INTERGOVERNMENTAL REVENUES Debt service for the Cobb Galleria Centre is provided for by a portion of the Hotel/ Motel and Liquor by the Drink Taxes collected by Cobb County and the municipalities within Cobb County. The Authority has entered into separate agreements with Cobb County and the municipalities in which all or a portion of the Hotel/Motel and Liquor By The Drink Tax collections are remitted directly to the Authority’s Bond Trustee to cover debt service. Remaining amounts fund the Authority’s contractual payments to the county and municipalities and provide funding for Cobb Travel & Tourism. Fiscal year ended September 30, 2020 (unaudited) Gross Tax Revenues Remitted to the Bond Trustee: Hotel/Motel Tax
$
12,272,000
Liquor By The Drink Tax
769,000
$ 13,041,000
Debt Service
(6,399,000)
$ 6,642,000
Contractual Payments to the County/Municipalities
(4,772,000)
Cobb Travel & Tourism Funding
(1,645,000)
Intergovernmental Revenue Surplus
$
225,000
HISTORICAL ECONOMIC IMPACT An Economic Impact Study for the Authority’s venues is prepared annually by a third party firm. The table below provides a recent history of the Total Economic Impact on the State of Georgia (including Cobb County). The decrease for fiscal year 2020 is pandemic related. FISCAL YEAR ENDED SEPTEMBER 30
COBB COBB GALLERIA CENTRE ENERGY CENTRE COMBINED
2008
$ 139,186,000
$ 17,255,000
$ 156,441,000
2009
$ 96,769,000
$ 18,191,000
$ 114,960,000
2010
$ 94,246,000
$ 19,487,000
$ 113,733,000
2011
$ 102,788,000
$ 21,522,000
$ 124,310,000
2012
$ 92,756,000
$ 19,504,000
$ 112,260,000
2013
$ 115,445,000
$ 21,828,000
$ 137,273,000
2014
$ 122,786,000
$ 24,218,000
$ 147,004,000
2015
$ 122,702,000
$ 19,820,000
$ 142,522,000
2016
$ 131,227,000
$ 24,184,000
$ 155,411,000
2017
$ 135,754,000
$ 25,357,000
$ 161,111,000
2018
$ 172,228,000
$ 25,402,000
$ 197,630,000
2019
$ 144,885,000
$ 28,851,000
$ 173,736,000
2020
$ 70,055,000
$ 15,737,000
$ 85,792,000
ANNUAL REPORT / 2020 / 11
2020 ECONOMIC IMPACT The Economic Impact Study provides an independent analysis of the total financial impact of the Cobb Galleria Centre and Cobb Energy Performing Arts Centre on Cobb County and the State of Georgia for the fiscal year ended September 30, 2020. COBB COUNTY
COBB COBB GALLERIA CENTRE ENERGY CENTRE COMBINED
Total Economic Impact
$ 51,266,000
Employment (number of FTE jobs)
$ 11,517,000
530
$ 62,783,000
130
660
$ 15,737,000
$ 85,792,000
STATE OF GEORGIA (Includes County) Total Economic Impact
$ 70,055,000
Employment (number of FTE jobs)
720
170
890
Total Economic Impact is the total direct, indirect and induced spending effects generated by each facility’s operations. Employment represents the number of full and part time jobs supported by each facility’s operations.
TAX REVENUE IMPACT COBB COUNTY Local Option, Liquor by the Drink, Hotel/Motel Tax
COBB COBB GALLERIA CENTRE ENERGY CENTRE COMBINED
$
982,000
$
274,000
$
1,256,000
Sales & Use Tax, Personal and Corporate Income Tax
$
2,524,000
$
727,000
$
3,251,000
Total Tax Revenue Impact
$ 3,506,000
$
4,507,000
STATE OF GEORGIA
$ 1,001,000
12 / COBB GALLERIA CENTRE • COBB ENERGY PERFORMING ARTS CENTRE • ARTSBRIDGE FOUNDATION
ARTSBRIDGE FOUNDATION Without a doubt, the highlight of the year was winning a third Southeast Emmy® for Special Event Live
During the first half of the 2019-2020 ArtsBridge Program Season, ArtsBridge Foundation served nearly 24,000 students and educators via field trips, the Georgia High School Musical Theatre Awards – Shuler Hensley Awards®, the Family Series Program and through professional development programs. The Snack Pack Program partnership with Action Ministries enabled ArtsBridge to provide each student who attended a field trip with a nutritious snack.
Coverage for the 2019
Cobb Energy Performing Arts Centre is home to all of the Foundation’s
Shuler Hensley Awards®.
programs, and its closure, together with the COVID-19 pandemic, forced cancellations of the remaining season’s events including the annual Overture Gala, which raises funds to support the Foundation’s Title 1 financial aid subsidy program. The 2020 Shuler Hensley Awards® program was able to be reimagined into a virtual awards show, one that provided celebration and hope for students across the state. Without a doubt, the highlight of the year was winning a third Southeast Emmy® for Special Event Live Coverage for the 2019 Shuler Hensley Awards®. Looking to the future, ArtsBridge is developing innovative ways to provide programming and connect with their constituency. Out of care for the safety and well-being of all they serve, the 2020-2021 Program Season will be completely virtual. The arts are important now more than ever – as creative outlets, for mental health, to communicate and as an educational tool – and ArtsBridge will continue to provide comfort, hope and inspiration through its arts education programming.
ArtsBridge won its third Southeast Emmy® for Special Event Live Coverage for the 2019 Shuler Hensley Awards®. The 2020 program was held virtually due to COVID-19.
ANNUAL REPORT / 2020 / 13
BOARD OF DIRECTORS
President Clare Richardson Dian Fossey Gorilla Fund
Vice-President Joanne Truffelman Chemistry Atlanta
Secretary and Treasurer Larry Dingle Wilson Brock & Irby, LLC
Helen S. Carlos
Shan Cooper
Barbarella Diaz
Fran Friedrich
Jerry Nix
Sam Olens
Samit Roy
Hon. Mary Staley Clark
Kessel D. Stelling
Percy Vaughn
Jack Ward
Barbara E. Williams
Community Volunteer
CFO (Retired) Genuine Parts Company
(Emeritus) President & CEO Synovus Financial Corp.
Executive Director Atlanta Committee for Progress
Counsel, Public Policy Dentons
(Emeritus) Director, Southern Regional Operations Kia Motors America, Inc.
Executive VP of Community Affairs Diaz Foods
CEO Scicom Infrastructure Services, Inc.
(Emeritus) President & CEO JF Ward Enterprises, LLC
Vice President, Commercial Relationship Manager Renasant Bank
Superior Court Judge Cobb County Mental Health Court
(Emeritus) Former State Farm Agent & Cobb County Commissioner
ARTSBRIDGE FOUNDATION, INC. Pandemic related restrictions also impacted ArtsBridge Foundation. With the Cobb Energy Performing Arts Centre closed to the public, several ArtsBridge programs and the annual Overture Gala were cancelled.
Fiscal year ended September 30, 2020 (unaudited) Support and Revenues
$ 432,000
Expenses
$ (484,000)
Change in Net Assets
$
(52,000)
14 / COBB GALLERIA CENTRE • COBB ENERGY PERFORMING ARTS CENTRE • ARTSBRIDGE FOUNDATION
ARTSBRIDGE FOUNDATION
DONORS PRODUCER $25,000+ Cobb-Marietta Coliseum & Exhibit Hall Authority Georgia Lottery Walton Communities
LEAD ACTOR $500 - $999 Atlanta Woman’s Club Forsyth Academy of Performing Arts Gene & Patricia T. Henssler Bennie Shaw
DIRECTOR $10,000 – $24,999 Bobbie Bailey Foundation Emerson Climate Technologies Jimmy & Helen S. Carlos Delta Community Credit Union Genuine Parts Company Georgia Council for the Arts
ENSEMBLE $250 - $499 Sondra Dillon Embassy Suites Centennial Olympic Park Susan M. Levy Leslie McLeod Diana Rossman
DESIGNER $5,000 - $9,999 Abney Family Foundation Bennett Thrasher Foundation Lynn Cochran-Schroder Deloitte Service LP Dr. & Mrs. Ronald Goldstein John & Mary Franklin Foundation The Martha and Wilton Looney Foundation Synovus Foundation Tyler Perry Studios Jack & Jean Ward
AUDIENCE $1 - $249 Anonymous (320) Allatoona High School Thespian Society Angela Amichia Jo Ann P. Ard Robert* & Susan Arko Julie Arnold Beth Birmingham Brenda Bookman Jo Ann Boyd Bobette Brizendine Carole Brooks Anne Camery Lynn Camp Jan & Bill Chalker Ellie Clark Jessica Coale Cobb Energy Centre Ushers Rosemarie Crosse Joan M. Davey Nancy Dehart Cynthia Dennis Jennifer D. Dobbs Gary Draper Helen DuBiner Brenda & Philip Etheridge Randall Farmer Georgianna Ferrero Anna Filardi Delbert* & Faye Flack Curtis Ford Northside Kiwanis Foundation Greenbrier High School Gresham Real Estate Advisors Christine Guerrasio Matthew Hand David Herman Cyndi Hinesley Arlyn B. Huntzicker
PLAYWRIGHT $2,500 - $4,999 Shantella Cooper Bruce & Sylvia Dick Georgia Power Foundation Jerry & Cheryl Nix Renasant Bank Clare Richardson Smiley for Kylie Tull Charitable Foundation The Vinings Rotary Charity Fund PRESENTER $1,000 - $2,499 Judith M. Alembik Atlanta Braves Foundation Helen A. Carlos Children’s Healthcare of Atlanta Cobb EMC Community Foundation Daktronics Deborah Lee Wachsman Trust René & Barbarella Diaz Ed Voyles Automotive Group Gay Construction Company Norman Radow Sam & Lisa Olens Scicom Infrastructure Services, Inc. Subaru of Kennesaw Michele & David Swann
Carolyn J. Johnston Delores Kennedy Mrs. Peter G. Kessenich Sr. Beverly Kinsey Barbara Kiss Margaret Kleiman Michael W. Knowles Susan Kowall Susan Kroll Pat Lamar Emma Lankford Katie Large Robert S. Lederman Barbara Lewitt Deborah Lundquist Sheree H. Martin Deborah Mcghie Pat McGinnis Angelia McLeroy Craig McMahon Sandra McQueen Deborah Minor Ronald & Linda Mussig David Nadler North Gwinnett High School Rochelle Oms Andrew Parks Alyce Paul Lori Penn Leonard Phillipps Margaret L. Pope Diggs Jonathan Quay Linda Randall Carmen Regier Rosalind Reiss Pierce Rossman Rachel Rudd Barbara Russy Staci Sabarsky Savannah Christian Prep Lisa Schmidt Linda Smith Page H. Smith Steven Spetnagel John & Karen Spiegel Sara Stephens Lenora Tanner Tama Tanowitz Douglas Thompson Lynn Walley Marlene Waraska Nicholas Wolaver Ralph B. Zaffino Zero Mile Operations
IN-KIND Alliance Theatre Bennett Thrasher Foundation Broadway Dreams Foundation The Cheesecake Factory Chick-Fil-A Clear Channel Outdoor Fifth Third Bank Broadway in Atlanta Fox Theatre Atlanta Georgia Public Broadcasting Georgia State University Publix Nicholas Wolaver
* Deceased
This list reflects gifts given between October 1, 2019 and September 30, 2020.
ANNUAL REPORT / 2020 / 15
THANK YOU We wish to express our appreciation to the members of the Cobb-Marietta Coliseum & Exhibit Hall Authority and to the numerous business leaders who continue to support us. We also wish to thank LevelOne Design for their efforts designing this Annual Report.