FY23 DRCFA Annual Report

ANNUAL REPORT

FY2023

DETROIT REGIONAL CONVENTION FACILITY AUTHORITY

DRCFA ANNUAL REPORT

DRCFA BOARD MEMBERS (Left to Right): Jeffrey Abood, Secretary; Alexis Wiley, Treasurer; Claude Molinari, Chairman; Marilyn Lane, Vice-Chair; Ric Preuss, Member at Large

MESSAGE FROM THE DRCFA CHAIRMAN:

Claude Molinari 2 023 was another year of progress, resilience, and strategic initiatives aimed at advancing our mission to serve as a catalyst for economic growth and community development for the Detroit Regional Convention Facility Authority (DRCFA). I am particularly excited to spotlight a landmark project that exemplifies our commitment to innovation and collaboration: the Westside Expansion. Central to this endeavor is our partnership in the development of a directly connected hotel to Huntington Place. This visionary initiative enhances the accessibility and appeal of our facilities and amplifies our efforts to drive business and vitality to Huntington Place, the City of Detroit, and our entire region.

The significance of the Westside Expansion extends far beyond the physical infrastructure. It symbolizes our steadfast dedication to fostering synergy and prosperity across all three counties we proudly serve. By leveraging our collective resources and expertise, we are positioning ourselves at the forefront of economic revitalization and community engagement.

The DRCFA’s focus over the next few years includes the Westside Expansion; maintaining and updating the existing assets; and supporting a world-class team that will attract and retain conventions, consumer shows, trade shows, sporting events, and associations from around the world. As we navigate the opportunities and challenges that lie ahead, I am confident that our continued passion and vision will propel us toward even greater achievements in the years to come. www.HuntingtonPlaceDetroit.com

I am confident that our continued passion and vision will propel us toward even greater achievements in the years to come.”

CLAUDE MOLINARI

DRCFA CHAIRMAN

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MISSION

To be the best convention destination in the world.

VISION

Where the region comes together to serve you.

VALUE PROPOSITION

Delivering economic value to the region by providing a premiere convention and meeting center that attracts residents and visitors from the region, state, and around the globe.

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DRCFA ANNUAL REPORT

CORE VALUE STATEMENTS 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.

www.HuntingtonPlaceDetroit.com

3

CELEBRATING OUR SUCCESS CONVENTION FACILITY DEVELOPMENT

FUND DISTRIBUTION

Huntington Place continues to deliver strong economic activity across the region. In FY2023, a $ OAKLAND total of 146 events drew over 457,000 attendees to Huntington Place and delivered over $300 million in economic impact. FY2023 welcomed $ WAYNE new shows, returning shows, and attendees from all over the world. Huntington Place hosted The $ MACOMB North American International Auto Show again in September 2023. Huntington Place continues to $ OTHER MI COUNTIES partner with the NAIAS to deliver a world class event that has proudly been held at Huntington $ TOTAL Place since 1965. We hosted ACCESSE 23, the annual meeting of the Council on Engineering & Scientific Societies Executives. We participated in industry events and trade shows with the Visit Detroit sales team including IMEX USA, IAEE (International Association of Exposition Executives) SISO CEO Summit (Society of Independent Show Organizers) PCMA (Professional Conference Managers Association) EdUcon and EMEA, and ASAE (American Society of Association Executives). These events are instrumental in selling the Center and the region for future shows.

14,135,287

13,049,627

9,273,788

40,322,189 76,780,891

The Convention Facility Development Fund distributed $76,780,891 to the 83 counties in the state in FY2023 and has distributed funds every year since its inception. These dollars provide support for initiatives across the state that enhance the quality of life for residents and experiences for visitors. The tri-county region of Wayne, Oakland and Macomb Counties received a total of $36,458,702 in FY2023.

DIRECT SPENDING IN FY2023

ACROSS THE STATE OF MICHIGAN The direct spend in FY2023 includes all operating, labor, and capital project expenditures. Over 83% of the total dollars were spent in the State of Michigan

DETROIT

$13,515,217

TOTAL $34,325,670

WAYNE EXCLUDING DETROIT

OAKLAND

$4,083,211

$4,429,678

OTHER MICHIGAN COUNTIES MACOMB

$5,053,653 4

$1,672,059

OUT OF STATE

$5,571,852

DRCFA ANNUAL REPORT

Huntington Place made waves with 71 MEDIA ARTICLES

and a THRIVING ONLINE PRESENCE with 291,000 SESSIONS. The Huntington Place blog had 15,000 VIEWS and email campaigns resonated with 340,000 IMPRESSIONS. These metrics

highlight engaged audiences across multiple channels and reflect status as a premier events venue.

3474 ATTENDEES provided feedback on their experience at Huntington Place with an 81% overall experience rating. 82% were likely to revisit Huntington Place. Attendees gave high marks to safety and cleanliness, each with a rating of 89% SATISFACTION.

OVERALL EXPERIENCE

LIKELY TO REVISIT

SAFETY

CLEANLINESS

81%

89% www.HuntingtonPlaceDetroit.com

82% 89%

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KEY PERFORMANCE INDICATORS (KPIs) Our Key Performance Indicators (KPIs) reflect a strong performance for the year and a focus on a vibrant and sustainable future. The team continued to recruit and attract passionate and experienced members that delivered exceptional guest experiences. The number of large events increased with strong retention and overall building occupancy rates. The team’s sustainability initiatives continue to be a differentiator for the Center with an overall diversion rate of 49%.

➜ % Of Open Positions Filled

➜ Total # Of Events Over $5k Net ➜ Total # Of Event Days ➜ Total # Of Attendees ➜ Building Occupancy

➜ Retention Event Rate

➜ Waste Diversion Rate

FY2022

FY2023

NA

92%

83

87

723

323

544,284

457,092

29%

25%

46%

53%

35%

49%

LONG-TERM 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.

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ENHANCE

our green practices for a sustainable building: Protecting our community and the environment.

RECOGNIZED

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

DRCFA ANNUAL REPORT

INVESTING IN THE FUTURE THE TEAM We continued to invest in the team through professional development, training, and team building events. In FY2023, the dedicated team at Huntington Place actively engaged in over 55 training opportunities, collectively amassing an impressive total of 1980 training hours. 259 ASM Global/Sodexo Live and SAFE team members participated in a “Courtesy Training” program to elevate and ensure a welcoming experience for all visitors. Additional training programs successfully completed by our staff included

➜ Academy for Venue Safety and Security

➜ International Association of Venue Management

➜ Diversity Basics: Taking Action ➜ Culture Series: Valuing Diversity

➜ First Aid/CPR ➜ Global Safety Skills ➜ Active Shooter and Insider Threat

OUR COMMUNITY Huntington Place is dedicated to investing in the community to support our neighbors and our partners. Over 60 team members participated in community projects this year. These included hosting a holiday party for the Ennis Center for Children with food, gifts, and bicycles for the children and planting 12 trees on Congress Street in celebration of Earth Day in April 2023.

THE ENVIRONMENT Sustainability is a vital commitment for the organization. From eco-friendly designs to inclusive practices, Huntington Place is leading the charge for a greener future with renewable energy, water conservation, and waste reduction. We are reducing our environmental impact and fostering social equity and economic resilience. In a world where every action counts, sustainability at Huntington Place sets the standard for responsible progress.

246.7 TONS

of total waste diverted from landfill www.HuntingtonPlaceDetroit.com

49% diversion rate

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FINANCIAL SUSTAINABILITY FY2023 financial results reflected a strong Balance Sheet and positive net income of over $12M. Total assets increased year over year by $2,121,616. These financial results position the DRCFA to continue to invest in the future and support the Westside Expansion and strategic initiatives designed to continue to build the business and increase the economic impact for the region.

BALANCE SHEET

INCOME STATEMENT

ASSETS:

REVENUES:

Cash And Equivalents

$ 87,638,536

Accounts Receivable and Other Current Assets

$18,338,160

Capital Assets, Net

$284,706,086

Total Assets

$ 390,682,782

LIABILITIES AND NET POSITION:

State Operating Subsidy

$ 7,000,000

Operations And Other Revenue

$15,655,963

Parking Revenue

$5,687,326

Naming Rights

$1,500,000

Total Revenues

$ 29,843,289

OPERATING EXPENSES:

Accounts Payable and Current Liabilities

$ 5,358,556

Restricted Deposits

$172,852

Bonds Payable

$184,175,462

Total Liabilities

$189,706,870

NET POSITION:

Operations Expenses

$ 22,248,150

Authority Administration

$1,709,984

Parking Expenses

$1,510,149

Total Expenses

$25,468,283

NON-OPERATING REVENUES (EXPENSES): Depreciation Expense

(11,867,059)

Invested In Capital Assets

$121,972,265

Interest Expense

(8,755,000)

Restricted

$13,923,287

Amortization Of Bond Premium

1,582,535

Unrestricted

$65,080,360

Interest Income And Other

1,198,870

Total Net Position

$200,975,912

Total Liabilities And Net Position

$ 390,682,782

Year Ended September 30, 2023

Total Non-Operating Revenues (Expenses)

(17,840,654)

Total Loss Before Capital Contribution

(13,465,648)

Capital Contribution Debt Service Subsidy

25,950,215

Increase In Net Position

$ 12,484,567 Year Ended September 30, 2023

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DRCFA ANNUAL REPORT

LOOKING AHEAD The Westside Expansion will take the Center to the next level with an attached 600 room hotel, additional parking, and the Second Street project. These projects will create the opportunity to attract more conventions and meetings and enhance the convention center’s connection to the surrounding community. The capital team will continue to ensure the existing facility is well maintained with several projects under consideration to update and enhance public spaces. We will meet our client’s technology needs from increased wifi and high-speed capabilities to EV chargers, while integrating new technologies into our back office and customer facing initiatives.

We look forward to hosting a diverse group of shows and events in FY2024. We welcome President Biden for the NAACP dinner in May and the presidential and vice-presidential candidates in anticipation of the November 2024 elections.

The Center provides the venue and the security necessary for these events and showcases the partnerships of the Huntington Place security team with local, state and federal law enforcement agencies.

The future is exceptionally bright as we look forward to more than 6 shows contracted for FY2025 delivering over $1M in revenue each. These events will create significant economic impact with attendees from around the region, nation, and the globe. The North American International Auto Show will return to January in 2025 with a continued focus on creating memorable experiences to attract industry and consumers. New multi-year contracts through FY2028 for Siemens Live, Move America, XPOTENTIAL, and Battery Show reflect long-term commitments to the Center and its success.

www.HuntingtonPlaceDetroit.com

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THANK YOU Thank you to the DRCFA Board of Directors and all our partners that create exceptional experiences for everyone at Huntington Place.