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DURHAM CONVENTION CENTER F Y 11 A N N UA L R E P O R T


Ta b l e o f C o n t e n t s Statement of Purpose

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Letter from Authority Board Chair

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Message from the General Manager

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Letter from the County

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Letter from the Contract Administrator

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Letter from the DCVB

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Facility Overview

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Organizational Chart

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How Are we Doin’?

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Survey Scores

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Financial Performance

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Summary of Accomplishments

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Future Outlook

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S ta t e m e n t o f P u r p o s e Global Spectrum, under the direction of our client the City of Durham and County of Durham, is committed to providing a first-class operation of the Durham Convention Center that drives economic impact for the greater Durham area by creating a well balanced mix of events that enhance the downtown Durham Business District. Through this we hope to motivate residents and visitors to experience all downtown Durham has to offer. The Durham Convention Center team recognizes that the most efficient way to do this is by providing exceptional customer service, operating under the highest level of professional integrity, and through conscientious budget management and revenue generating decision making. The Durham Convention Center is the premier meeting and event destination in Durham, combining state-of the art facilities with a professional, energetic staff that works extremely hard to provide events and meeting spaces to all citizens of Durham. The facilities serve an integral role in boosting tourism and local traffic to restaurants, retails and parking facilities in downtown Durham.

Durham Convention Center Authority Board Front Row: Al Bass, Rosemarie Kitchin, Dawn Paffenroth, Billy Ruffin Back Row: Richard Ford, Patrick Byker (Chair), Bill Kalkhof

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Durham Convention Center Authority Board Patrick Byker, Chair

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Durham Convention Center Jen Noble, GM

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Durham County Assistant County Manager

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Director, Department of General Services

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Durham Convention and Visitors Bureau Shelly Green, President & CEO

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Facility Overview Proudly managed by Global Spectrum, the Durham Convention Center, located in the heart of downtown Durham, is a newly renovated facility owned by the City and County of Durham. With 33,000 total square feet of meeting space, the Durham Convention Center boasts spaces to host events from 10 people to 1,800 guests. Guests arrive to the center in the 5,400 square foot pre function area . This space offers guests additional space for registration or pre-function receptions. The 15,500 square foot Grand Ballroom offers guests traditional dÊcor with 17 foot ceilings and crystal chandeliers the Grand Ballroom creates a feeling of an elegant, high-end banquet and/or meeting space. Amenities include inhouse sound system, adjustable lighting, flexibility of additional break out space and easy load in and out access for exhibitors. The 11,500 square foot Junior Ballroom offers contemporary design. Air walls provide guests flexibility of space from one large room up to 8– break out rooms with amenities such as adjustable lighting, in-house sound systems . Four meeting rooms stem off of the main hallway and can be combined to make two larger rooms or divided for a more intimate setting. Two executive board rooms complete the Convention Center and are equipped with plasma screen televisions and leather swivel chairs giving the client the ultimate professional setting to conduct business meetings. Guests enjoy the excitement and amenities of a beautiful and vibrant downtown the offers a variety of shops, unique restaurants, and sporting and entertainment venues such as the Durham Bulls Athletic Pak and DPAC all just steps away from the Durham Convention Center. The proximity to Duke University, NCCU, Research Triangle Park and Raleigh-Durham International airport gives guests an unparalleled ease of access to our centralized downtown location. Page 9


Organizational Chart

Operations Staff and Housekeeping

Sous Chef and Preparation Cooks

Banquet Captains and Service Staff

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CUSTOMER FIRST Use all resources available to serve internal and external customer interactions GOLDEN RULE Treat co-workers and customers with complete respect, fairness and courtesy LISTEN Ask open-ended questions, be attentive and clarify understanding to improve accuracy of responses THINK YES Consistently demonstrate a can-do approach in thoughts and actions BE PROFESSIONAL Represent Global Spectrum in an ethical and positive manner with all interactions POSITIVE ATTITUDE Solve problems creatively by making decisions that positively impact the entire organization 24-HOUR RULE Act with an appropriate sense of urgency when responding to any and all requests EVERYBODY SELLS Suggest and implement new ways to drive and improve our business ENTHUSIASM Work with a passion towards achieving individual, team and organizational growth & success and encourage others to do the same

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DO IT NOW Deliver on the things you have committed to doing and are accountable for producing


Comment Cards Since 1989, the ‘Civic Center” has been the gracious home of Project Graduation of Durham...And the hospitality was at its peak on June 2012. The best party yet!

On behalf of the Mayor’s Committee for Persons with Disabilities, I want to thank you for your generous sponsorship of the event. The food was excellent and

-Mary Holderness

banquet service and audio visual staff rendered impeccable service. Deborah Giles, Dept. of Equal Opportunity City of Durham

r e t n e C ion t n e v n o eC r i t of n e l e e v h e t l ry a e to l s i p a m r e p x e h g n i a h our d e g e v n t i i i t g b i a h d e ex W mo m o o h c w c a w in re y s t c i s s e e r n c i e l v v u i ser htf Un g u e o k h u t D nd , a y e e n c o n o e L i pat line e u q c a J — s r o t i vis

Thank you again for e verything y to ensure th ou and you at our even r team did t occurred Today is m without a s y first day in gle hitch! back in the still talkin office and g about the everyone is wonderful Thanks ag time had b ain, y all. Marjorie B

lack

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5

The performance of the Durham Convention Center is measured through the use of our Customer Satisfaction Survey. The survey is given to event organizers for each event held at the Center.

4.5

4 3.5 3 2.5

2

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Overall Rating

Overall Facility Total

Overall Rating Total

Quality of AV Service

Cleanliness of facility

Comfort of facility

Accuracy of room set

F&B Total

Overall Rating of F&B

Quality of Service

Presentation of Food

Portion size

Quality of Food

Sales Totals

Employee Courtesy

Responsivness

CS Management

1 F&B Sales Process

The results are based on a combined overall score of 4.35 out of 5.

1.5

Booking Sales Process

Clients were asked a series of questions to rate their overall event experience.


FINANCIAL PERFORMANCE FY 2011-2012

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Summary of Accomplishments This year brought much excitement and a wide variety of accomplishments for the Durham Convention Center. A $6.9 million renovation of the facility began in January 2011. As early as February 2011 Global Spectrum assisted in consulting during the construction phase of the project. Upgrades to the center included HVAC, in-house sound system and lighting, wall and floor coverings. Our sister company, Ovations Food Service, assisted us in menu development, Chef selections and oversaw the development of our new catering kitchen. Several key initiatives were taken on by Global Spectrum to run a more efficient operation. A re-branding campaign now identifies the facility as a stand-alone operation. The re-alignment of the Sales & Marketing Department created an increased focus on market segments driving top-line sales where growth was anticipated. Emphasis was put on priority market segments that were not realized in the previous management company’s strategy. For the first time since the facility’s inception, a strategic plan was developed for selling the consumer show market. Additional factors that are strong indicators of Global Spectrum’s success, compared to the prior management firm, include the profitability of food and beverage. Global Spectrum delivered the following results in this area: -7% in FY 2009-2010 to +42.2% in 2011-2012 A shift in marketing strategies took place when Global Spectrum assumed management responsibilities. Creating awareness and visibility by utilizing social media outlets, grassroots initiatives, and press releases were new elements implemented in the operation. A streamlined, targeted approach was employed to advertise the facility, rather than a blanket advertising approach used by the former managers. Direct Sales efforts were activated successfully, and continue to be a driving force in the region. The utilization of Global Spectrum corporate resources played an important role in the successes mentioned above. Several components helped shape the strength and consistency of the Center’s new operation, including participation in the Global Spectrum national branding campaign and Global Prospecting System, the “How You Doin’?” customer service program, consulting with Ovations Food Service, and the shared experiences and successes of other Global Spectrum-managed facilities. Not only did Global Spectrum take measures to increase revenue and visibility, but the fiscal management of expenses also led to achieving positive financial results. Better understanding of the use of the facility’s energy management systems, evaluation and renegotiation of facility service contracts, and aligning staff/personnel levels as events dictated, proved to be additional and viable generators of efficiencies yielded: 41% decrease in utility expenses (focusing on conservation) 35% decrease in payroll of salaried employees 43.5% decrease in food & beverage labor expenses (eliminating overtime, adjusted staffing to event demand) Global Spectrum’s commitment to improving the financial health at the Durham Convention Center was substantiated with the Center’s year-end results, which included a $1 million reduction in net loss compared to the efforts of the prior management company. FY- 2009-2010 net loss with prior management company - $1,393,277 Page 17

FY- 2011-2012 net loss with Global Spectrum – $297,223


Event Mix ATTENDANCE

EVENT MIX Tradeshows, 16

Tradeshows 3,320

Banquets, 119

Banquets 18,949

Meetings 14,935

Conventions 150

Meetings, 150 Conventions ,5 Special Events, 45

Special Events 40,523

GROSS REVENUE Tradeshows, $82,284 Meetings, $549,766

NET REVENUE Tradeshows, $56,780

Banquets, $719,470

Banquets, $354,721

Meetings, $308,342

Special Events, $333,443

Conventions , $13,709 Conventions , $26,473

Special Events, $202,170

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Future Outlook The Global Spectrum team at the Durham Convention Center has redefined success in our first fiscal year 2011-2012, managing the center in a wide variety of areas. Despite renovation delays which created a ten-month stub year, Global Spectrum’s first year of operation at the Durham Convention Center yielded success in top- line revenue generation, expense savings, and a significant decrease in net operating loss. As with any operation, there are obstacles that threaten the Durham Convention Centers full potential. The DCC competes daily with convention centers and hotels that have the upper hand by having a proportionate amount of hotel rooms attached or in close proximity to their facility. In order for the center to market to larger conventions, the need for more hotel(s) within close proximity of the DCC is critical to our future success. Recently, two hotel projects have been approved for development. Both the Holland Hotel and 21C projects will help support our mission to market and sell to larger conventions and bring additional economic impact to the city by way of overnight visitors. These new hotels will offer guests a unique experience consistent with the vibrant culture of Durham. We look forward to partnering with these hotels to increase the number of conventions being booked for the Durham Convention Center and the Durham hospitality community at large. Global Spectrum is very optimistic about 20122013 and the future due to the strength of our relationship with our clients, local stakeholders, key partners, the excellence in services provided to our guests and the facilities offered at the Durham Convention Center. Page 19



Durham Convention Center 2011-2012 Annual Report