2020 Annual Report -Cobb Galleria Centre, Cobb Energy Performing Arts Centre & ArtsBridge Foundation

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.

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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.