DRCFA Annual Report FY22

Annual Report

Detroit Regional Convention Facility Authority

FY2022

DRCFA Board of Directors

Message From Chairman of the Board Claude Molinari - Chairman DRCFA

2022 was a greatly anticipated year for the DRCFA as we continued to safely distance ourselves from the pandemic, enabling us to host a variety of events, conventions and tradeshows at Huntington Place. This inaugural Annual Report shows a strong return to business and economic impact for the region and the state. We returned to 85% of pre-pandemic staffing levels and welcomed attendees to the City of Detroit.

The strong relationships with our partners in the building (ASM Global, Sodexo Live!, Freeman Electric, Premier AV, S.A.F.E Security) and others across the city enabled us to once again showcase exceptional customer service.

The future is bright as the DRCFA builds upon the $5.7 billion in economic impact that Huntington Place has created for the city, region and state since the DRCFA’s inception in 2009.

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Building on the strength of Huntington Place’s quick return to business in 2022, the DRCFA launched its strategic plan for the future growth of the venue including a West Side Expansion. By leveraging the regional cooperation inherent to the DRCFA 5-member board structure which represents the City, State, Wayne, Macomb and Oakland Counties, we are committed to continuing to build the public-private partnerships necessary to fulfill the Board’s mission. A mission that drives economic impact and includes increased employment and financial stability for the Southeast Detroit region and the state of Michigan.

D E T R O I T 3

Mission, Vision & Core Values Mission To be the best convention destination in the world.

Vision Where the region comes together to serve you.

Value Proposition To create increased measurable economic value to the region by providing a premiere convention and meeting center with flexible uses under one roof.

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Goals Create one billion dollars in economic impact each year: Attracting and retaining business while continuing to develop strong partnerships

Deliver best in class customer service: Investing in our people and leveraging technology to deliver exceptional experiences

Continue to enhance our green practices for a sustainable building: Protecting our community and the environment

Recognized leader in Diversity, Equity and Inclusion: Strengthening our community

Strengthening our community 5

Premiere Convention Center Who we are We are a team of passionate Detroiters who love to share our amazing city with everyone who visits. As hospitality ambassadors we are proud participants in the resurgence of Detroit.

Our character is authentic and our service is genuine.

What we believe We care greatly for our guests and for one another. Our diversity is our strength. We respect one another’s talents by working together and we aspire to create lasting memories for every visitor to Detroit.

How we succeed We succeed by creating an environment with trustworthy, enthusiastic and caring people who embrace change. We work together as one very determined team focused entirely on the success of every event. We are only satisfied if we have exceeded expectations.

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Delivering Economic Impact Huntington Place hosted 162 events in 2022 with over 544,000 attendees. This created economic activity for the community from spending by the attendees, event organizers and exhibitors at the convention center, restaurants, hotels, entertainment venues, transportation, and other businesses in the area. People come to Huntington Place to attend conventions, consumer shows, trade shows, sporting events and banquets.

Using industry metrics, the FY 2022 economic impact from the local, regional, and international attendees is calculated to be $350.3 million.

162 events in 2022 with over 544,000 attendees.

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Key Performance Indicators 162 Events

544K Attendees

60 Percent Rate of Return Business

Community Impact 269,000 vaccines and boosters delivered in 2021 and 2022 10,000 People Tested for COVID 7M pounds of food distributed to Southeast Michigan residents through local agencies

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Designated Alternative Care Site for Detroit during COVID with 1000 beds

3605+ stories in broadcast, digital, print

2.5 billion impressions

$74.1 million media value

Public Art Scott Hockings / Floating Citadel Sculpture Covid Memorial Wall

D E T R O I T 9

Investments in People & the Community

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Investments into Huntington Place Investment into Huntington Place has been ongoing since the creation of the DRCFA with a total capital investment of over $366 million. In FY2022, $13,093,548 in projects were approved to maintain and enhance the facility and improve the guest experience.

The following reflect a sampling of the FY2022 Projects:

Roof Repairs Expansion Joint Replacements New tables throughout the venue New cleaning equipment Electrical Upgrades Breakroom for Staff Exhibit Hall floor repairs The Citadel Sculpture as an entry focal point for Huntington Place And much more

$13,093,548 in projects were approved to enrich our venue and our clients’ experience 11

Training & Development Investment is not only in the care of the venue but in the care of our PEOPLE through training and development.

The team at Huntington Place participated in over 51 training opportunities, team members logged 1,792 training hours in FY 2022.

Emergency Evacuation First Aid CPR/AED Active Shooter Cyber Security Autism Sensory Training and many more….

Diversity, Equity, and Inclusion (DEI) has been an ever-growing focus for the team at Huntington Place and we are proud of our progress.

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40% of all supervisor positions and above within our company are held by women 51% of our full-time staff of 95 individuals at Huntington Place identify as people of color Each hiring committee is composed of an inclusive group of team members to ensure we see and hear each candidate from a broad range of perspectives

Investing in Detroit It is so important for our team to find ways to give back to the community we serve. We do that at Huntington Place with a passion:

Ennis Children’s Center – Holiday Celebration with 12 deserving families receiving gifts, bikes and a special lunch with Santa for families struggling with a stable environment for their children City of Detroit Drive-in Vaccination Center delivered 268,517 vaccinations at Huntington Place Covid Testing Site administered 10,115 tests at Huntington Place Pope Francis provides meals for our most vulnerable population serving 25,589 people in need here at Huntington Place

Investment is always about the FUTURE and the DRCFA is committed to a future that continually provides value to the communities we serve. As an economic driver, we win when local businesses win, when locals get jobs, when unions put more of their members to work, and when DETROIT becomes a must on every meeting and event planners checklist.

Hosted Food Rescue US which created a distribution center for multiple food banks distributing over 7 million pounds of fresh produce and foods to various community agencies Huntington Place provided a safe election ballot counting location where volunteers processed over 80,766 ballots safely and without incident

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Balance & Income Balance Sheet Highlights Current Assets Capital Assets Total Assets

$ 99,671,722 $ 288,889,444 $388,561,166

Current Liabilities Bonds Payable Total Net Position Total Liabilities and Net Position

$ 5,726,824 $194,342,997 $188,491,345 $388,561,166

Income Statement Highlights

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Operating Revenues State Operating Subsidy Non-Operating Revenues Total Revenues

$ 19,901,560 $ 33,246,839 $ 3,196,036 $ 56,344,435

Operating Expenses Depreciation Expense Interest Expense Total Expense

$ 23,065,645 $ 12,003,692 $ 9,312,500 $ 44,381,837

Net Income

$ 11,962,598

The DRCFA and Huntington Place continue to deliver strong financial results that create the foundation for a vibrant and successful future. FY2022 revenues included the use of additional funds from the Convention Facility Development Fund to support the center during the COVD-19 pandemic. This financial strength and fiscal responsibility enables the organization to hire and retain a talented team, maintain and continue to update the building, and ensure that we can provide an exceptional experience for all clients, attendees and visitors.

“The DRCFA and Huntington Place continue to deliver strong financial results”

To get a more detailed list of the Detroit Regional Convention Facility Authority Statement of income, please view the publicly avilable records on the state website - https://www.michigan.gov/som

D E T R O I T 15

FY2022 Sustainability Metrics 153 tons of Waste Diverted 35% of all waste diverted from waste stream

Food to Food Banks 5.7 Tons

Compost 46 Tons

Cardboard Recycled 50 Tons

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Miscellaneous 51.3 Tons

Looking Ahead FY2023 & Beyond FY2023 reflected a return to business and with that, a robust year of booking business for the future. We closed on the following:

Lubricant Expo 2024, 2025 & 2026 American Gear/ASM 2025 SME Rapid + TCT 2025, 2027, 2029 DECA 2026, 2027 NCAA Final Four 2027

Our current rate of return business is 60%, which we consider to be a very healthy sign that the building and customer service levels are meeting and exceeding expectations. We have a solid pipeline of business in the hold, proposed and tentative status.

We continue to host industry events, CESSE 2023 (Council of Engineering and Scientific Society Executives) and PCMA (Professional Conference Managers Association) Educon in 2024.

Industry events bring hundreds of potential buyers in at one time, allowing us to showcase the city and center, and act as an extremely effective sales tool to attract new business.

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What’s Next On Dec. 29, 2022 Governor Gretchen Whitmer signed Senate Bills 1222 and 1223 to allow for additional bond issuances and capital expenditures associated with Huntington Place to enable the convention facility to expand and accommodate more convention business and economic development. The bills allow for an expansion of Huntington Place for the first time in 13 years and allows the convention facility authority to enter into public-private agreements, eliminate the authority’s spending cap, authorize bonding and redefine convention facilities to include plazas, green space, roads and bicycle paths.

On Jan. 31, 2023, the DRCFA memorialized an agreement that solidifies plans for the convention authority to extend Second Street to the Detroit River and for Sterling Group to build a 600-800 room hotel connected to Huntington Place. This development will be instrumental in attracting, retaining and expanding business at Huntington Place.

Our future is bright as we move towards a West Side Expansion. While the specifics of the expansion design are still under development, we know that it will strategically position the convention center to attract more meetings, conventions and events to Southeast Michigan.

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Our growth will be intentional towards increasing the economic impact in Detroit, the region, and the state.

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Detroit Regional Convention Facility Authority 1 Washington Blvd.

Detroit, MI 48226