2016 Annual Report - Cobb Galleria Centre, Cobb Energy Centre & ArtsBridge Foundation

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MISSION COBB GALLERIA CENTRE COBB ENERGY CENTRE ARTSBRIDGE FOUNDATION 2016 / ANNUAL REPORT

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MISSION I 2016

ON A MISSION The Cobb-Marietta Coliseum & Exhibit Hall Authority is proud to operate and market the Cobb Galleria Centre, Cobb Energy Performing Arts Centre, ArtsBridge Foundation and Galleria Specialty Shops and remains committed to our corporate mission: COMMUNITY. Enhance the quality of life and provide economic benefit to our community.

GUEST. Provide our guest with the foremost multi-purpose convention and performing arts facilities with the highest standard of customer service.

EMPLOYEE. Develop caring professionals by providing an environment that encourages growth, self-worth and well-being.

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he last year has been filled with changes – both in leadership and in facility infrastructure. Through all of this change, we remain focused on our mission to serve our community, guests and employees.

We are months away from the opening of SunTrust Park and the accompanying mixed-use district, The Battery Atlanta. Office towers and residential units are coming on the market just steps from our front doors, and a 1,100-foot multi-use bridge will connect the Cobb Galleria Centre with a $2.1 billion investment in shopping, dining, lodging and entertainment.

What a tremendous asset this will be for visitors to our facilities.

We addressed major capital projects in 2016, the most significant being an investment in new heating and air conditioning units for the exhibition halls at Cobb Galleria Centre. We are grateful to Bob Voyles and our Real Estate Committee who skillfully guided us through this project.

LETTER FROM THE CHAIRMAN Earl Smith retired earlier this year. I would like to extend my sincere appreciation to Earl for his many years of dedicated and loyal service to this Authority, including his 12 years as Chairman.

His vision and dedication are exemplified by the many successes of this Authority.

Earl Smith retired earlier this year. I would like to extend my sincere appreciation to Earl for his many years of dedicated and loyal service to this Authority, including his 12 years as Chairman. His vision and dedication are exemplified by the many successes of this Authority. We are pleased to welcome Tricia Pridemore, who joined the Authority in May. Tricia has built a reputation in Cobb County and Georgia as a loyal and hardworking advocate for our communities, and we look forward to her future contributions.

We are proud to report another year of growth and financial success at both the Cobb Galleria Centre and Cobb Energy Centre. The ArtsBridge Foundation continues to flourish and expand its reach. This success would not be possible without the continued support of my colleagues on the Authority and the ArtsBridge Foundation Board.

We invite you to review our fiscal year 2016 annual report.

JERRY NIX Chairman Cobb-Marietta Coliseum & Exhibit Hall Authority

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THE 2016 AUTHORITY T

he Cobb-Marietta Coliseum & Exhibit Hall Authority operates the Cobb Galleria Centre, Cobb Energy Performing Arts Centre, ArtsBridge Foundation and Galleria Specialty Shops.

JERRY NIX

STEVE “THUNDER” TUMLIN

A. MAX BACON

JOHNNY GRESHAM

The seven-member Authority is a body corporate and politic 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.

TRICIA PRIDEMORE

ROBERT P. VOYLES

TIM LEE

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S

ince 1994, the Cobb-Marietta Coliseum & Exhibit Hall Authority’s long-standing commitment to excellence in customer service, professional development of employees, and financial stewardship has enabled us to live up to our corporate mission of enhancing the quality of life and providing economic benefit to Cobb County and the state of Georgia.

An excellent year by many measures, 2016 proved to be a rewarding year for the Cobb Galleria Centre. For twenty-two consecutive years, we have realized an operating profit.

While our venues’ financial performance, attendance numbers and economic impact results were among the best we’ve realized in years, we are especially proud of how the activity level at the Cobb Energy Performing Arts Centre has ramped up over the past year.

LETTER FROM THE CEO While our venues’ financial performance, attendance numbers and economic impact results were among the best we’ve realized in years, we are especially proud of how the activity level at the Cobb Energy Performing Arts Centre has ramped up over the past year.

We said good-bye to our long-time Managing Director Michael Taormina when he retired earlier this year. Michael set the bar high for excellence, and his many contributions to the Cobb Energy Centre and to the greater metro Atlanta cultural arts landscape will be appreciated for years to come. In May we welcomed a seasoned veteran of facility management, Sandie Aaron, who after six months in her new role as Managing Director is busy preparing to celebrate our important milestone 10th anniversary.

ArtsBridge Foundation reached new heights this year by serving over 45,000 students and educators from 38 counties in Georgia through its performing arts education and outreach programs.

Fiscal year 2016 was a remarkable year, and we would like to thank our dedicated employees, partners in hospitality, entertainment, government and community for helping us achieve our mission.

MICHELE L. SWANN General Manager & CEO Cobb-Marietta Coliseum & Exhibit Hall Authority

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ECONOMIC IMPACT The Cobb-Marietta Coliseum & Exhibit Hall Authority engaged a third party firm to perform an Economic Impact Study for the fiscal year ending September 30, 2016. The 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.

ECONOMIC IMPACT

COBB COUNTY

Cobb Galleria Centre

Cobb Energy Centre

Total Economic Impact

$

$

97,375,000

Employment (number of FTE jobs) Personal Earnings

$

930 37,347,000

$

17,956,000

Combined $ 115,331,000

190 6,889,000

1,120

$ 44,236,000

STATE OF GEORGIA (Includes County) Total Economic Impact

$

Employment (number of FTE jobs) Personal Earnings

$

131,227,000

$

1,220 45,661,000

$

24,184,000

$

250 8,509,000

155,411,000 1,470

$

54,170,000

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. Personal Earnings are the estimated wages and salaries earned by employees of businesses associated with or impacted by each facility’s operations.

TOTAL REVENUE IMPACT

COBB COUNTY

Cobb Galleria Centre

Cobb Energy Centre

Local Option, Liquor by the Drink, Hotel/Motel Tax

$

1,925,000

$

338,000

$

2,263,000

Sales & Use Tax, Personal and Corporate Income Tax

$

4,861,000

$

971,000

$

5,832,000

Total Tax Revenue Impact

$

6,786,000

$

1,309,000

$

8,095,000

Combined

STATE OF GEORGIA

An excellent year by many measures, 2016 proved to be a rewarding year for the Cobb Galleria Centre. For twentytwo consecutive years, we have realized an operating profit.

COMMUNITY When a convention center and performing arts center were envisioned many years ago, the primary motivation was to develop public assembly facilities that would return value to the community in many ways. The objective was to be an economic catalyst, improve the standard of living and make a substantial contribution to the overall well-being of the citizens by serving as a venue for education, entertainment, recreation, culture and the arts.

Whether it’s the popular Atlanta Home Show & Outdoor Living Expo, a production by The Atlanta Opera or a national touring family show, the Cobb Galleria Centre and Cobb Energy Performing Arts Centre are a great source of civic pride and serve as our region’s gathering places.

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GUEST

Since opening Cobb Galleria Centre and Cobb Energy Performing Arts Centre, our goal has been to develop long-term successful relationships with our guests.

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Chuck Robertson Photography

The success we realized in 2016 would not be possible without the support of our loyal customers. They are at the core of our mission. Therefore, excellent customer service is vitally important to creating a lasting impression. Since opening Cobb Galleria Centre and Cobb Energy Performing Arts Centre, our goal has been to develop long-term successful relationships with our guests. We do this by focusing on a consistent customer experience – across all touch points – that meets or exceeds each of their expectations.

By developing the best front-line team of employees, each contact we have with our customers is an opportunity to build loyalty through a commitment to excellent service, a sense of urgency and attention to detail. Additionally, communicating and monitoring our customers’ feedback through surveys and online social resources is critical to resolving issues and improving the customer experience for their future events.

EMPLOYEE The skills, abilities, and performance of our employees form the foundation for our success.

We have high expectations of our employees and empower them to represent our brand by delivering the highest level of customer service. We are frequently told how welcome our patrons feel when they come to Cobb Energy Centre. That is due entirely to our warm and wonderful corps of 450 volunteers.

As One Team, One Company, our employees strive to serve the community throughout the year through participation in local charitable events such as SafePath’s Good Eatin’ Great Cause, WellStar Foundation’s Annual Gala, The Cheese Fest benefiting The Giving Kitchen, Go Eat Give, the Center for Family Resources’ Red Carpet Gala and Thanks for Giving food drive, the YWCA of Northwest Georgia’s Tribute to Women of Achievement and the United Way of Cobb County.

With the goal in mind to create a healthier work force and lower health costs, we launched an on-site employee-based wellness program, kicking it off with a Health and Wellness Fair.

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COBB GALLERIA CENTRE P

erforming 10 percent over budget, this was a robust year for new and returning tradeshows, conventions and social events. A total of 669 events were held with attendance totaling 344,000. Cobb Galleria Centre is proud to offer show managers and meeting planners versatile, flexible facilities capable of accommodating a wide range of events such as the Southeastern Shoe Travelers, Anime Weekend Atlanta, The Blade Show, Southeastern Jewelry Travelers, the Georgia Society of CPAs, International Council of Shopping Centers, Junior Theater Festival, Atlanta Home Show & Outdoor Living Expo, Builder Remodeler Expo, the American Probation and Parole Association, Everything Appliqué, Laser Institute of America, International Municipal Signal Association, the Atlanta Foodservice Expo, Cobb Chamber of Commerce Annual Dinner and Alzheimer’s Association Dancing Stars of Atlanta.

On the technology front, we launched new interactive floor plans on our website. This feature allows meeting planners to seamlessly navigate through the facility and view capacity information, images and diagrams. Our close partnerships with the entire team at Cobb Travel & Tourism and the local hospitality community strengthen our competitive edge and enable us to market our destination as a turnkey package. Together we produced a collaborative website at atlantagalleriaconventions.com and kicked off a

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comprehensive advertising campaign. Our goal was to create a website that incorporates all that we offer as a destination and to illustrate why Cobb County is Atlanta’s Sweet Spot.

As always, capital improvements to our physical plant and ongoing maintenance of the convention center property remain a top priority. The two most significant projects in 2016 were the replacement of the exhibition hall roof top heating and air conditioning units and upgrades to the building automation system.

Staff continues to champion sustainability practices and implement energy saving initiatives that translate to cost savings such as converting to LED lighting. The heating and air conditioning replacement in the exhibition hall reduced energy costs by approximately 15 percent.

COBB GALLERIA CENTRE OPERATIONS Since opening in 1994, Cobb Galleria Centre’s operating revenues have exceeded operating expenses each year, resulting in operating profits.

Fiscal year ending September 30, 2016 (unaudited)

OPERATING REVENUES Operating revenues exceeded budget by 10%

$ 12,214,844

OPERATING EXPENSES (10,298,656) Operating expenses were unfavorable to budget by 1% OPERATING PROFIT $ 1,916,188 Operating profit was favorable to budget by $1.0 million Capital Expenditures paid from Reserves

$ 3,569,887

COBB GALLERIA CENTRE

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 2016 occupancy percentages for the Centre are:

Cobb Galleria Centre 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 for the servicing of the Authority’s bond debt. Remaining amounts are forwarded to the Authority and used to pay amounts which the Authority is contractually obligated to remit back to the County and municipalities and to provide funding for Cobb Travel & Tourism.

Exhibit Hall

Ballroom 60% Meeting Room

Gross Tax Revenues Remitted to the Bond Trustee:

Total Events for 2016 633,986

344,000

(6,568,064) $ 9,684,230

Contractual Payments Back to the County / Municipalities

(6,071,339)

Cobb Travel & Tourism Funding

(1,254,304)

Intergovernmental Revenue Surplus

Total Attendance

$ 16,252,294

Debt Service

669

$ 15,618,308

Liquor By The Drink Tax

30%

Overall 46%

Fiscal year ending September 30, 2016 (unaudited)

Hotel/Motel Tax

47%

$ 2,358,587

For fiscal year 2016, total collections were favorable to budget by 5% and marked the highest level of collections to date. The result for the year was a surplus of $2.3 million.

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COBB ENERGY PERFORMING ARTS CENTRE N

ine years after opening, Cobb Energy Performing Arts Centre has affirmed its relevance as a regional asset while fulfilling its mission as a gathering place for artists, educators, corporate meetings and social events. This year’s financial results were impressive, with revenues exceeding budget by 13 percent. We proudly hosted 270 eclectic events that included ballet, Broadway, rock and roll, comedy, hip-hop, family shows, graduations, opera, modern dance, country western, corporate meetings and social events.

Cobb Energy Centre’s state-of-the-art facilities have enabled our exceptional resident companies, The Atlanta Opera and the Atlanta Ballet, to grow artistically and institutionally. This year, we were honored to welcome Gennadi Nedvigin, the Atlanta Ballet’s fourth artistic director in the company’s 87-year history.

This year’s diverse mix of performances and events included The Atlanta Opera’s Pirates of Penzance, the Atlanta Ballet’s Moulin Rouge, Atlanta Jewish Film Festival, SMITE World Championship, John Cleese & Eric Idle, Vince Gill & Lyle Lovett, Steven Tyler, Dancing with the Stars, Got 7, Tracy Morgan, Johnny Mathis and Il Divo.

In an on-going effort to elevate the patron’s food and beverage experience, we combined best-loved favorites with contemporary culinary trends by introducing new catering and customized concessions menus. Leading the team is the Authority’s Culinary Director/Executive Chef, Nicholas Walker, who blends an affinity for his Georgia roots with ingredients

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sourced from local and regional farms. We have always strived to keep our culinary program fresh and up-to-date, reflecting both changing trends and responding to what our patrons tell us they enjoy.

Whether it’s housekeeping, box office, stage operations or public safety, Cobb Energy Centre’s professional team shares a passion for delivering world-class customer service.

Chances are that patrons arriving at the Centre for the first time are at the receiving end of a warm smile and a handshake from one of our volunteers wearing a red vest. Since opening in 2007, these wonderful men and women have been crucial to achieving our mission.

COBB ENERGY CENTRE 2016 Total Events / Performances

270 Total Attendance

279,000

This year, we were honored to welcome Gennadi Nedvigin, the Atlanta Ballet’s fourth artistic director in the company’s 87-year history.

COBB ENERGY CENTRE OPERATIONS Fiscal year ending September 30, 2016 (unaudited) OPERATING REVENUES Operating revenues were favorable to budget by 13%

$ 8,930,062

OPERATING EXPENSES (6,808,232) Operating expenses were slightly favorable to budget OPERATING PROFIT (before depreciation) Operating profit was favorable to budget by $1.1 million

$ 2,121,830

Operating results do not include depreciation expense of $2.7 million.

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ARTSBRIDGE FOUNDATION We’re on a Mission…

Motivate and Inspire Georgia’s Youth through the “ToArts”Engage, which drives our daily focus to provide high quality arts education programs for our public, charter, private and home schooled students, K-12, across the state of Georgia.

ArtsBridge programs fill a critical gap many of our schools no longer provide, paving the way for our students to experience and benefit from the positive power of the arts.

During the 2016 Season, 45,266 students and educators experienced the arts through ArtsBridge.

Field Trips to the Cobb Energy Centre exposed students to the opera, ballet, and a wide array of performing arts programs tied to school curricula; The Georgia High School Musical Theatre Awards – The Shuler Awards, in its 8th year, celebrated excellence in high school musical theatre with 59 schools from 27 counties participating in our yearlong professional development program;

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Our new Family Series of popular children’s programs wowed our young audiences and families adding over 10,000 people to our audience reach; Master Classes focused on skill and talent development, and Educational Experiences in the theatre were expanded to include a Performing and Visual Arts College Fair and a Director’s Bootcamp for the professional development of arts educators.

Our 2016 accomplishments also included: Increasing audience reach by 12,306 people and attending schools from 172 to 223; Doubling ticket and bus subsidies, reaching 93 Title 1 schools.

In 2016 we provided subsidy support to 38 percent of the audiences we served; Enhancing education initiatives to include an Education Advisory Committee, comprised of 22 arts educators and community arts leaders from 10 different counties and school systems.

We are grateful to the many foundations, corporations and individual donors who provided support to ArtsBridge Foundation in 2016.

Their generous gifts are vital to sustaining and growing our reach.

ArtsBridge programs fill a critical gap many of our schools no longer provide, paving the way for our students to experience and benefit from the positive power of the arts.

ARTSBRIDGE FOUNDATION, INC. Fiscal year ending September 30, 2016 (unaudited) SUPPORT AND REVENUES Support and Revenues fell short of budget by 7% EXPENSES Expenses were favorable to budget by 3%

$ 714,673 (642,161)

CHANGE IN NET ASSETS $ 72,512 Change in Net Assets was unfavorable to budget by $35,000

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ARTSBRIDGE FOUNDATION GIVES THANKS TO OUR CAPITAL CAMPAIGN DONORS ¬¬¬¬¬¬

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¬

Cobb County Board of Commissioners

Anonymous

Cousins Properties

Cobb-Marietta Coliseum & Exhibit Hall Authority

Dr. Bobbie Bailey and Family

Cumberland Diamond Exchange

Comanche Investment Company, LLC

Cobb Energy Management Corporation

Diversified Trust Comprehensive Wealth Management

John and Mary Franklin Foundation, Inc.

John A. Williams

¬¬¬¬Robert W. Woodruff Foundation Gas South John A. Williams honoring Kessel D. Stelling Bank of North Georgia

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Galleria Office Park

Dr. and Mrs. Ronald E. Goldstein

Georgian Bank Hardin Construction Company, LLC

The Sartain Lanier Family Foundation, Inc.

Moore, Ingram, Johnson & Steele

Diane and Richard D. Levere

Russell Corporation

Martha and Wilton Looney Foundation

The Family of Jim and Sally Rhoden Earl and Rachel Smith

Anita and Barry Schrenk Seven Oaks Company, LLC

Gregory, Doyle, Calhoun & Rogers, LLC

SunTrust Directed Funds/ Harriet McDaniel Marshall Trust and Walter H. and Marjory M. Rich Fund

The Robert Lindner Family

Jean and Jack Ward

Sons Auto Group

Robert and Cheryl Moultrie/ The Facility Group

David, Helen and Marian Woodward Fund

Barbara and Yardy Williams

Wells Fargo

The Marcus Foundation Walton Communities, LLC

¬¬Genuine Parts Company Lockheed Martin Pope and Land Enterprises, Inc. PricewaterhouseCoopers Tull Charitable Foundation

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John and Marty Gillin

Smallwood Reynolds Stewart & Stewart

FOUNDATION DONORS PLATINUM Anonymous Cobb Energy Performing Arts Centre Cobb-Marietta Coliseum & Exhibit Hall Authority Walton Communities John A. Williams

DIAMOND M. Bobbie Bailey Foundation Ed Voyles Automotive, Kia Motors America Steve & Debbie Palm Family

GOLD Jimmy and Helen Carlos Delta Community Credit Union Bruce and Sylvia Dick Emerson Climate Technologies Genuine Parts Company Regions Bank Sartain Lanier Family Foundation The Martha and Wilton Looney Foundation, Inc. Bennett Thrasher The Zeist Foundation

SILVER Bank of North Georgia William Brantley Terry Chandler Lynn Cochran-Schroder Drew Horner John and Mary Franklin Foundation, Inc. Georgia State University

Greenberg Traurig Dr. Jeffrey Marcus Jerry and Cheryl Nix Jenny Pruitt John and Karen Spiegel Synovus Foundation Bennett Thrasher Foundation Valery Voyles Jack and Jean Ward Wells Fargo Foundation Yardy and Barbara Williams

BRONZE Atlanta Braves BB&T Rene and Barbarella Diaz Larry Dingle Fred Hanna Margaret Kleiman Larry and Sandra Prince Publix Super Markets Charities Travis Reed Janice Scott Six Flags David and Michele Swann The Vinings Rotary Charities The Weather Channel Joanne Truffelman Tull Charitable Foundation

STAR Suzanne & Matt Alea Anonymous Will & Catherine Areu Atlantic Capital Bank Robert Arko

Charlie and Yetty Arp Gordon T. Austin Garrett Bakeman Grub Burger Todd and Ann Ballantine Susan Bixler Ron and Gayle Breakstone Charles and Ginny Brewer Anne Camery Ned and Betty Case Children’s Healthcare of Atlanta Bruce and Mary Clayton Michael J. Coles Jan Collins D. Geller & Son George & Bonnie Daneker Joan Davey Sondra Dillon Jeff Elliott Howard and Ellen Feinsand Tom Gallagher Gil Garrison Neal Glomb Paul and Morria Goggin Patricia Griner Patricia T. Henssler Audrey Hoffman Pamela Hubby Mark and Rhonda Jacobson Peter Kessenich Fred R. Keith James C. Kincaid Kenneth Kingery Shelly Kleppsattel Mike Knowles Barbara Kornblitt Howard Krone Peter and Michele Lami Emily Lembeck Diane Levere Susan M. Levy Bill and Debra Liss Lockheed Martin Don Mabry Walter W. McBridge

Christopher McCarthy Leslie McLeod James R. Miller Gary and Leslie Myerson Michael and April Orcutt Stephanie Owens William A. Parker, Jr. Richard Parker Alex Paulson Boyd Pettit Ben and Christine Phelps Bill Pinto Mark Popkin Larry and Sandra Prince James L. Rhoden , Jr. Nigel and Clare Richardson Kathleen E. Rios Joel Robinson Dena Rodrigues Barkley Russell Jonathan Shapero Bennie Shaw Benjamin Sillins Earl and Rachel Smith Smallwood Reynolds Stewart & Stewart Ken and Caryl Smith Linda Jo Smith Andi Stein Michael Stogner Michael Taormina The Fox Theatre Terri Theisen Ticketmaster Ramon and Carol Tome Percy Vaughn The Velardi Family Foundation Juliana Vincenzino James B. Voyles James and Cindy Widner Wall Pam Whitacre Wilmington Trust Robert W. Woodruff Arts Center Camille Yow

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LOOKING AHEAD As we look ahead, the Authority has met and surpassed all projections for success, and it is now time to transition to a futuredriven strategy. Because of the direct connectivity via the multi-use bridge to SunTrust Park and The Battery Atlanta’s “play, work, stay” destination, there is a huge opportunity to activate the outdoor spaces and enhance the guest experience. Our primary focus will be the development of a headquarters hotel adjacent to the convention center and re-creation of sustainable spaces within Galleria Specialty Shops. Through focused planning and partnerships, the Authority’s long-term plans will be realized.

Beginning in January 2017, Cobb Energy Performing Arts Centre will have a year-long celebration — A Decade In The Spotlight – paying tribute to our resident companies, donors, sponsors, staff, volunteers and ArtsBridge.

As ArtsBridge’s programming expands and demands for teaching and rehearsal space increase, the Foundation board of directors has commissioned a feasibility study for a dedicated multi-functional arts education building. The study will involve consultation with a range of stakeholders in identifying demand, physical components and operating models.

We wish to express our appreciation to the members of the Cobb-Marietta Coliseum & Exhibit Hall Authority and to the numerous business leaders whose continued support helped us prosper and reach our goals for 2016.

We also wish to thank Suzie Brickley and Jennifer Gibbs for their efforts designing this Annual Report.

Atlanta Ballet photography by Kim Kenney.

The Atlanta Opera photography by Jeff Roffman.

SunTrust Park rendering courtesy of the Atlanta Braves.

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