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HomeMy WebLinkAboutJames L. Knight Center.ro.posal,for-Professional=Management= o an es:l -Knight ,Center ;- :R.FP# 31.328o;2 COVER PAGE Proposer's name SMG Contact Person for the RFP Gregg Caren, Senior Vice President Business Development Firm's Liaison for the Contract Gregg Caren, Senior Vice President Business Development Primary Office Location 300 Conshohocken State Rd. West Conshohocken, PA 19428 Local Business Address N/A Business Phone and Fax Numbers (P) 610-729-7922 (F) 866-211-3483 Email addresses gcaren@smgworld.com Title of RFP Request for Proposals for Professional Management of the James L. Knight Center RFP Number 313280,2 Federal Employer Identification Number or Social Security Number 232511871 Certification Statement Please quote on this form, if applicable, net prices for the item(s) listed. Return signed original and retain a copy for your files. Prices should include all costs, including transportation to destination. The City reserves the right to accept or reject all or any part of this submission. Prices should be firm for a minimum of 180 days following the time set for closing of the submissions. In the event of errors in extension of totals, the unit prices shall govern in determining the quoted prices. We (I) certify that we have read your solicitation, completed the necessary documents, and propose to furnish and deliver, F.O.B. DESTINATION, the items or services specified herein. The undersigned hereby certifies that neither the contractual party not any of its principal owners or personnel have been convicted of any of the violations, or debarred or suspended as set in section 18-107 or Ordinance No. 12271. All exceptions to this submission have been documented in the section below (refer to paragraph and section). EXCEPTIONS: We (I) certify that any and all information contained in this submission is true; and we (I) further certify that this submission is made without prior understanding, agreement, or connection with any corporation, firm, or person submitting a submission for the same materials, supplies, equipment, or service, and is in all respects fair and without collusion or fraud. We (I) agree to abide by all terms and conditions of this solicitation and certify that I am authorized to sign this submission for the submitter. Please print the following and sign your name: SUPPLI H R NAME: S PSI G 300 Conshohocken State. Rd. Suite 770, West Conshohocken, PA 19428 ADDRESS • PHONE: 610-729-7900 FAX: 610-729-1590 EMAIL: gcaren@smgworld.com BEEPER• SIGNED BY• Wes Westley TITLE• President/CEO uJ,v3;z1.7 DATE,: 6-15-12 FAILURE TO COMPLETE, SIGN, ANDRETURNTHIS FORM SHALL DISOUALIFY THIS BID. Page 2 of 41 Certifications Legal Name of Firm: SMG Entity Type: Partnership, Sole Proprietorship, Corporation, etc. General Partnership Year Established: 1988 Office Location: City of Miami, Miami -Dade County, or Other West Conshohocken, Pennsylvania Occupational License Number: GP9700000811 Occupational License Issuing Agency: State of Florida Occupational License Expiration Date: N/A Respondent certifies that (s) he has read and understood the provisions of City of Miami Ordinance No. .10032.(Section 18 ,105..of the City Code) pertaining to the.implementation.of.a "Eirst.Source:Hiring Abreement:": (Yes or No) YES Do you expect to create new positions in your company in the event your company was awarded a Contract by the City? (Yes or No) NO In the event your answer to question above is yes, how many new positions would you create to perform this work? N/A Please list the title, rate of pay, summary of duties, number of positions, and expected length or duration of all new positions which might be created as a result of this award of a Contract. N/A Will Subcontractor(s) be used? (Yes or No) No Page 3 of 41 Tit of i tath KENNETH ROBERTSON Chief Procurement Officer JOHNNY MARTINEZ, P.E. City Manager ADDENDUM NO. 1 RFP No. 313280 May 17th, 2012 Request for Proposals (RFP) for Professional Management of the James L. Knight Center The following changes, additions, clarifications, and deletions amend the solicitation documents of the above captioned RFP, and shall become an integral part of the Contract Documents. Words and/or figures stricken through shall be deleted. Underscored words and/or figures shall be added. The remaining provisions are now in effect and remain unchanged. Please note the contents herein and reflect same on the documents you have on hand. The RFP Closing Date and Time has been changed to Monday, June 11th, 2012 at 11:00 AM. ALL OTHER TERMS AND CONDITIONS OF THE RFP REMAIN THE SAME. Sincerely, enneth Robertson Director/Chief Procurement Officer KR/pv Cc: RFP File Tit of KENNETH ROBERTSON JOHNNY MARTINEZ, P.E. Chief Procurement Officer City Manager ADDENDUM NO. 2 RFP No. 313280 June 6th, 2012 Request for Proposals (RFP) for Professional Manaqement of the James L. Knight Center The following changes, additions, clarifications, and deletions amend the solicitation documents of the above captioned RFP, and shall become an integral part of the Contract Documents. Words and/or figures stricken through shall be deleted. Underscored words and/or figures shall be added. The remaining provisions are now in effect and remain unchanged. Please note the contents herein and reflect same on the documents you have on hand. Q1: Please provide the following financial information: a) actual financial statements (detailed) for the last -two (2) fiscal years; b) a list of events and attendance per event for the last two (2) fiscal years; c) a fist of tentative events for future fiscal year(s); d) copies of the settlement/show invoices for the three (3) most recent major: 1') concerts:(ifany), 2) conventions/trade shows, 3) family shows (if any), 4) consumer/public shows (includes any gated events), and, 5) sporting events (if any); e) a copy of the capital improvement budget; f) a copy of the current management agreement with Global Spectrum; g) a list of the current rental rates; h) .a copy of the formal booking policy (if any); and, i) a list of prices/labor rates for special services. AI : Concerning the requested financial information: a) actual financial statements (detailed) for the last two (2) fiscal years are provided via Attachment A to the Addendum No..2 Header Section; b) a list of events and attendance per event for the last two (2) fiscal years is provided via Attachment A to the Addendum No. 2 Header Section; c) .a list of tentative events for future fiscal year(s) is provided via Attachment A to the Addendum No. 2 Header Section; d) copies of the settlement/show invoices for the three (3) most recent major: 1.) concerts (if any) provided via -Attachment A to.the Addendum. No. 2 Header Section, 2) conventions/trade shows - provided via Attachment A to the Addendum No. 2 Header Section, 3) family shows (if any) - not available, 4) consumer/public shows (includes -any gated events) - not available, and, 5) sporting events (if any) - not available; e) a copy of the capital improvement budget is provided via Attachment A to the Addendum No. 2 Header Section; f) a copy of the current management agreement with Global Spectrum is provided via Attachment A to the Addendum No..2 Header Section; g) a list of the current rental rates is provided via Attachment A to the Addendum No. 2 Header Section; h) a copy of the formal booking policy (if any) is provided via Attachment A to the Addendum No. 2 Header Section; and, i) a list of prices/labor rates for special services is provided via Attachment A to the Addendum No. 2 Header Section Q2: Please provide the following personnel/staffing. information: a) a listing of all current full-time positions and salaries by position; b) a current organizational chart; c) designations as to which full-time employees are union and to which union they belong to; and, d) copies of the employee benefit programs (summary plan descriptions). A2: Concerning the requested personnel/staffing information: a) a listing of all current full-time positions and salaries by position is not available; b) a current organizational chart is provided via Attachment B to the Addendum No. 2 Header Section; c) designations as to which full-time employees are union and to which union they belong are not available; and, d) copies of employee benefit programs (summary plan description) are not available. 43: Please provide the following third party agreements: a) copies of tenant agreements (if any); b) a copy of the current concession and catering agreement; c) a-copy-ofthe°current-labor and work rule agreements; d) a copy of the ticketing agreement (if any); and, e) a copy of the security, parking, IATSE and other.third party service agreements. A3: Concerning the requested third party agreements: a) copies of tenant agreements (if any) are provided via Attachment C to the Addendum No. 2 Header Section; b) a copy of the current concession and catering agreement is not available; c) a copy of the current labor and work rule agreements is not available; d) a copy of the ticketing agreement (if any) .is provided via Attachment C to the Addendum No. 2 Header Section; and, e) a copy of the security, parking, IATSE and other third party service agreements are provided via AttachmentC.to the Addendum No. 2 Header Section. Q4: Please provide the following requested other information: . a) a listing of services performed by the City for the venue; and, b) whether the current management company has self -promoted any events in the James L. Knight Auditorium and Convention Center over the course of the current contract and, if so, provision of copies of the license agreement and event settlement, -with detail. Page 2 A4: Concerning the requested other information: a) a listing of servicesperformed by the City for the venue consists of the monitoring of monthly payments, assisting with budget preparation, compilation of audit information, adjustment of rate changes, and the review and approval of CAP memos; and, b) concerning whether the current management company has self -promoted any events in the James L. Knight Auditorium and Convention Center over the course of the current contract and, if so, provision of copies of the license agreement and event settlement, the City does not allow this. Q5: Please provide a chronological listing of all ticketed events hosted in the Knight Center Theater for fiscal years 2008-2011 inclusive, reflecting the date, the event name as it appeared on the ticket header, the lessee, and the number of tickets sold. A5: The information available concerning a chronological listing of all ticketed events hosted in the Knight Center Theater for fiscal years 2008-2011 inclusive, reflecting the date, the event as it appeared on the ticket header, the lessee, and the number of tickets sold is provided via Attachment E to the Addendum No. 2 Header Section. . Q6: Please provide a chronological listing of all non -ticketed events hosted in the Knight Center Theater for fiscal years 2008-2011 inclusive, reflecting the date, event title, event type, lessee, and number of attendees. A6: The information available concerning a chronological listing of all non -ticketed events hosted in the Knight Center Theater for fiscal years 2008-2011 inclusive, reflecting the date, event title, event type, lessee, and number of attendees is provided via Attachment E to the Addendum No. 2 Header Section. Q7: Please provide a chronological-listing-of-all-events=in-the Miami ConventionCenter-fon-fiscal years 2008-2011 inclusive, reflecting event type, lessee, and attendance. A7: The information available concerning a chronological listing of all events in the Miami Convention Center for fiscal years 2008-2011 inclusive, reflecting event type, lessee, and attendance is provided via Attachment E to the Addendum No. 2 Header Section. Q8: ' Please provide a chronological listing of all ticketed events hosted in the Ashe Auditorium for fiscal years 2010-2011 inclusive, reflecting date, event as it appeared on ticket header, lessee, and number of tickets sold. A8: The information concerning a chronological listing of all ticketed events hosted in the Ashe Auditorium for fiscal years 2010-2011 inclusive, reflecting date, event as it appeared on ticket header, lessee, and number of tickets sold is not available. Q9: Please provide a chronological listing of all events hosted in the Miami Conference Center for fiscal years 2010-2011 inclusive, reflecting date, space utilized, lessee, event type, and number of attendees: Page 3 1 A9: The information concerning a chronological listing of all events hosted in the Miami Conference Center for fiscal years 2010-2011 inclusive, reflecting date, space utilized, lessee, event type, and number of attendees is not available. Q10: Please provide a statement of revenues and expenses for the period ending September 30th of fiscal years 2008-2011 inclusive, as submitted to the City of Miami reflecting actual and budgeted figures and variances therein. A10: A statement of revenues and expenses -for the period ending September 30th of fiscal years 2008- 2011 inclusive, as submitted to the City of Miami reflecting actual and budgeted figures and variances therein is provided via Attachment E to the Addendum No. 2 Header Section. Q11: Please provide the revenues earned from the Knight Center Theater rental for fiscal years 2008- 2011 inclusive. Al 1: The revenues earned from the Knight Center Theater rental for fiscal years 2008-2011 inclusive are provided via Attachment E to the Addendum No. 2 Header Section. Q12:, Please provide the revenues earned from the Riverfront Hall rentals for fiscal years 2008-2011 inclusive. Al2: The revenues earned .from the Riverfront Hall rentals for fiscal years 2008-2011 inclusive are provided via Attachment E to the Addendum No. 2 Header Section. Q13: Please provide the revenues earned from the Miami Conference Center rentals for fiscal year 2010- 2011 inclusive. A13: The revenues earned from the Miami Conference Center rentals -for fiscal year_2010-2011 inclusive are provided via Attachment E to the Addendum No. 2 Header Section. Q14: Please provide the revenues earned from the Miami Conference Center rentals for fiscal years .2010-2011 from the Hyatt Regency as lessee. A14: The revenues earned from the Miami Conference Center rentals for fiscal years 2010 2011 from the Hyatt Regency as lessee are provided via Attachment E to the Addendum No. 2 Header Section. Q15: Please name the newspapers in which the RFP was advertised and the date of publication. A15: The newspapers in which the RFP was advertised and the date of publication are as follows: a) Diario Las Americas, with the publication date of May 17th, 2012; b) Miami Daily Business Review, with the publication date of May 16th, 2012; and, c) The Miami Times, with the publication date of May 16th, 2012. Page 4 Q16: Please identify the websites and professional trade association journals/websites utilized for advertisement/notification in which this RFP was noticed and date of publication (Le. commonly used for the RFP solicitation of public assembly facilities). • A16: Concerning identifying the websites and professional trade association journals/websites utilized for advertisement/notification in which.this RFP was .noticed and date of publication (i.e. commonly used for the RFP solicitation of.public assembly facilities), perthe City's requirements, -the RFP was only advertised in three (3) newspapers identified in the response to the prior question above. Q17: Given the short time frame between the pre -bid and due date, and as responses to formal questions were pending, can there be a reasonable extension on the Closing Date. A17: Given the short time frame between the pre -bid and due date, and as responses to formal questions were pending, the Closing Date is being extended to Monday, June 18th, 2012 at 2:00 PM. ALL OTHER TERMS AND CONDITIONS OF THE RFP•REMAIN THE SAME.' • KR/pv Cc: RFP File Sincerely, Kenneth Robertson Director/Chief Procurement Officer Page 5 Table of Contents Executive Summary 11. Proposer's Professional Experience and Qualifications 14 Proposers R.eputation 91. Proposer's,Financial Responsibility • 1.09 Proposers Fiscal and Marketing Plan 110 Proposers Address of City Objectives 139 Local Preference 144 2012 © SMG SECTION 41.3: EXECUTIVE SUMMARY Executive Summary As the acknowledged industry leader in the management of arenas, convention centers, stadiums, theaters and performing arts facilities, we offer you unmatched experience and expertise. Currently, SMG enjoys positive partnerships in 225 such facilities worldwide, many of which are in major markets like Miami. We believe this tremendous opportunity with the City is the perfect fit for SMG given the breadth and scope of what we offer our municipal clients. As you read the backgrounds of our leadership team, you will find the most known and respected names in our industry, many of whom have specific experience not only in southeast Florida, but in the Knight Center. We have both a professional and personal interest in maximizing usage and com- munity benefits of this community asset. In responding to this RFP, we have carefully studied the market, the venue and its current position within the convention and entertainment industries. We have concluded that from a physical and logistical standpoint, the Knight Center remains a vital and viable facility. We do see missed opportunities and a lack of forward thinking leadership that properly responds changing economic conditions. SMG is excited about your future and eager to share with the City of Miami our vision of what the Knight Center can and should be. Professional Experience: SMG is the convention center management & marketing company. Operating 68 convention centers throughout North America and the world, SMG's Convention Center Division has no peer. Just one of our convention centers, McCormick Place in Chicago, encompasses more square footage than all of the convention centers managed by our competitors. While, SMG manages some very large convention centers, the bulk of our portfolio are convention centers of a size and market just like the Knight Center. In the convention center industry, SMG is the known "brand" by meeting planners throughout the country. As you will read, no other company can offer the resources, programs, expertise and value that SMG provides. As evidence of our strength in this sector, SMG has been selected in all five first time RFPs for management of convention centers that we have responded to over the past eighteen months. In a sixth bid, we were just selected to replace the incumbent firm, your incumbent firm. Professional Experience: SMG is the theater and performing arts center managernent company. Operating 54 theaters and -performing arts centers worldwide, SMG's experience and expertise in theater and performing arts center management is unmatched. With only five such venues, our nearest competitor cannot approach the level of booking and arts support we offer. Only SMG has invested in a dedicated Live Entertainment Division, tasked solely with the responsibility of driving business into our theaters, performing arts centers and arenas. SMG has three senior executives based in our corporate office working full time to put world -class events in our performance venues. No other company has a specialized Theater Division with experienced theater -management professionals focusing exclusively on event bookings, effective event marketing, industry relations and providing the best possible theater experience for our patrons. Additionally, our relationships witri and understanding of the needs of cultural and community organizations that use our theaters combined with the unique experience and expertise needed to properly operate, book and market a theater, makes SMG the best choice for the Knight Center. SMG has as plan: Both Marketing & Fisai As you will see in our response, SMG's expertise in marketing its arenas, theaters and convention centers and their events is unmatched. We have analyzed the financial statements made available to us and see definitive areas for improving bottom line per- formance. Our marketing plan is specifically written for the Knight Center, split into equal focus on convention and entertainment aspects of the venue. We will engage much more positively, frequently and adeptly to our hotel partners, especially the Hyatt Regency Miami, the facility's most important client -partner. Don't just take our word for it, in Section 5 you will read countless references from many of our other Hyatt headquarter hotel partners. In just a short time, we have no doubt that Mr. Aloma would be compelled to write a letter similar to those of his colleagues around the country. As a preview, the City will benefit from SMG's regularly scheduled booking conference calls, local event creation, networking and sharing of marketing ideas between our facilities, proprietary Intranet SMGbooking.com, social and database marketing in cooperation and partnership with our ticketing providers. SMG has a proven history of partnering and maximizing occupancy and revenues for our facilities and local hotel stakeholders. On the advertising and sponsorship sales side, the experts that make up our impressions Sales Network provide the knowledge and sales direction for advertising, sponsorships and naming rights for ©2012 SMG Proposal for Professional Management of the James L. Knight Center u our venues and assistance to our performing arts tenants. For Convention Center sales, our national sales organization is second to none, ready to assist the local staff, our partners at the Hyatt Regency Miami, the GMCVB and the hospitality industry in downtown Miami. Finally, you will see a financial proposal that immediately saves the City considerable precious dollars, and holds SMG accountable for our performance during the term of our agreement. SMG is a good community citizen. SMG has been in business in South Florida for more than 25 years. It is part of our management credo that we become a great partner with our client and a significant contributor to the local community. Our local staff is committed to community involvement through the Convention and Visitors Bureau, Chamber of Commerce, and service to volunteer and charitable organizations like the Boys and Girls Clubs. In fact, two SMG senior executives, during their time in South Florida, were instrumental in the development of two programs in Miami -Dade Public Schools that benefit its students to this day: the Academy of Travel and Tourism and the ARTEC (Arts Related Technologies for Entertainment Careers) Academy. This aspect of SMG's local responsibility is vital and never taken for granted. Reputation: Our most important asset. We have provided countless references from our municipal clients, convention bureau partners and hotel stakeholders. If you ask major event planners like Microsoft, Experient and Nielsen Business Media, "What is the top/only brand in convention center management," you will hear a three letter response time and again: "SMG." This is evidenced by the fact that we are the only firm that holds national contracts, making us' their preferred choice when in need of convention and conference facilities. Our venues were all well ahead of the last recession, as our CEO directed them in 2008 to prepare for a downturn. This preparation helped our company help the cities we serve. Consider this: SMG has experienced positive growth in each year since 1991. This includes 9-11 and multiple recession years. This is hard evidence of fiscal prudence. Experience in major markets like Miami. The 2010 census lists the City of Miami as the 8th largest metropolitan statistical area (MSA) in the country. Looking at the national rankings, SMG. serves thirteen of,thetop,twenty,markets_ in one or multiple venues. This experience, combined with our strong presence in markets with large Latino and African American communities, will serve us well in preparing and executing an operational plan that can only enhance bookings and revenues. Rooted in Hospitality, we are a preferred hotel partner. We are most proud of our hospitality roots and relationships. Originally founded by Hyatt Hotels in 1977, SMG has long mir- rored the organizational structure and hospitality delivery promise of our first class hotel roots. Today, we partner with dozens of hotels, which proudly include no less than nine Hyatt headquarters properties. As you read our response, take note of the relationships we have forged, that recognize needs ranging from bookings to flexibility — all underscored by service delivery. We believe that this is a critical improvement area, and look forward to working with the Hyatt Regency Miami and all local hotels to build abetter base of business. 12 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.1. : EXECUTIVE SUMMARY It's Time For a Change Ironically, the following is a direct quote from the COO of your incumbent management company in another current Florida RFP response: "It's time for a change Making the change is often very difficult: there is a certain comfort level in most cases with the status quo. But often "change" breathes new life, enthusiasm, and very positive results into projects that have not been performing up to expectations...We believe that under our leadership and management, the [Facilities] will re-establish themselves as a viable complex that increasingly has a positive economic impact on the community by attracting more regional and national events." Based on our due diligence, in the case of the James L. Knight Convention Center, we at SMG would wholeheartedly agree with our competitor. Has the City of Miami achieved its goals at the Knight Center in recent years? `SPRING 201', NIumclpalitles have made it cl a whom they'bel►eve is hest suited to manage their most important assets RLCENI'RFPU�CISIOA'S CreBg Caren`SMG ` MCCORMIGK.PLACE SriG 04513AL; Chi&zgq, It a COBO CENTER ., o'o Detroit,"hII:.., JEKYLL ISLAND CONVENTION CEN7EJ Jekv➢Island, (,A .. MONTEGO BAY CONY vrION CENTRE llontcgti B }Y J rrnnua':. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 13 4.1.4.a) Proposers Professional Experience and Qualifications Wes Westley President and CEO Wes has been SMG's President and CEO since October 1994. In the years that Wes has been President, the number of facilities managed by the company has increased sevenfold. Under his direction, the company was reorganized to focus on convention centers and stadiums/arenas as distinct entities. The European Division was established to recognize the special needs and features of that market. Wes joined SMG in December 1991 as Senior Vice President and.Chief Financial Officer, with responsibility for the company's financial reporting and systems, including corporate finance, facility accounting and internal audit. Prior to being named President, Wes was Executive Vice President of Finance and Development. In that capacity, he was responsible for: strategic planning; corporate development; analysis and negotiation of new business ventures; acquisitions and capital expenditures; risk management; management information systems; and sales and business development. A native Philadelphian, Wes' background includes an MBA in Finance from Drexel University and a BS in Business Administration/Accounting from Temple Universrty.'He is a Certified Public Accountant. Wes served with the United States Marine Corps in Vietnam. Maureen Ginty Executive Vice President, Marketing Services and Human Resources Maureen joined SMG in 1991 as Vice President of Human Resources. She was named Senior -Vice President -of Human Resources in 1993. In 1995, Maureen assumed responsibility for a newly created Corporate Communications Department in addition to her responsibility to oversee the Human Resources Department. In 1996, her responsibilities were further increased to include the Public Relations, Advertising, Presentation -Development -Services, and Meeting -and -Event._ Production Departments. Maureen is a member of various industry organizations including IA.AM. She is an Executive committee member and past chairperson of the hospitality and tourism management advisory board for the school of business at the college of Charleston. She is a member of professional organizations, such as the Society for Human Resources Management, The World at Work Benefits and Compensation Association, the Philadelphia Public Relations Association and The Forum for Executive Women. Maureen holds a Bachelor of Arts in Political Science from the University of Delaware. She possesses her SPHR and CCP designations. A native Philadelphian, she has served on various community boards including the Pennsylvania Horticultural Society and the Philadelphia YMCA. Before joining SMG, Maureen was Assistant Vice President with Colonial Penn Group in Philadelphia. John Burns Executive Vice President and CFO John is responsible for all corporate accounting as well as the Risk Management and Management Information Systems Departments of the company. Prior to being named Senior Vice President, John served as SMG's Controller and was responsible for corporate financial reporting, including the preparation of monthly financial statements, the annual corporate budget, the annual financial statement certified by independent accountants, monthly cash forecasting reports and various tax returns,: including. Partnership Tax -Forms. Johmalso,serves.as the company's Contract Administrator for all management and subcontractor contracts. A native Philadelphian, He holds a Bachelor of Science degree in Accounting from Villanova University and is a Certified Public Accountant. John was a three -time All -American in track and Captain of Villanova's track team during their 1979 NCAA Cham- pionship year. John was also a member of the U.S. National Track Team which competed in Europe and Russia in 1977. 14 Proposal for Professional Management of the James L. Knight Center ©2012 SMG 5=Et TE0I .1.4: PROPOSER'S PROFESSIONAL EXPERIENCE A -ND QUALIFICATIONS Gregg Caren Senior Vice President Strategic Business Development Convention Center Division A graduate of The Pennsylvania State University's Hotel & Restaurant Management program, Gregg started his hospitality career in 1984 with Marriott Hotels & Resorts, subsequently working with Hilton and Sheraton properties. Gregg joined SMG at the Atlantic City Convention Center in 1998. Today, he is responsible for business development. He also leads the International sales and booking support for 68 convention centers in the SMG network, including facilities in Chicago, Denver, Honolulu, Toronto, as well as San Francisco's world renowned Moscone Convention Center. Gregg represents SMG's portfolio of more than 14 million square feet of exhibition space, serving as home for nearly ten thousand events and twenty million visitors yearly. Gregg has a unique perspective of the convention and tradeshow industry, instilling the best practices in the industry and managing the SMG "brand" of convention centers much in the same way as international hotel chains. Bon McClintock Senior Vice President SMG Convention..Centers Bob is a 26 year industry veteran spending 21 of those years with SMG. He is responsible for the operation of the more than 60 convention centers, and more than 10 million square feet that SMG manages, seeking to build on the mission of providing the users of SMG-managed centers with the maximum return on their investment of time and money and enhancing the experience of all who utilize these facilities. He leads a team of 15 regionalumanagers all focused on the needs of our municipal partners by providing a business friendly environment, enhancing the growth of staff at the venues, and creating new event product for the Centers. Bob has worked on a number of high profile construction projects including the completion of the Atlantic City Convention Center, the historic restoration of the Boardwalk Hall, and as Regional Vice President, working on such projects as the construction and opening of the David L. Lawrence Convention Center, the largest LEED Gold Status facility in our industry at the time. Thor :orin0h5 Regional Vice Presidentr Thom Connors is Regional Vice President of SMG and General Manger at Detroit's Cobo Center. Before moving to Detroit,Thom coordinated the start up of the new Irving Convention Center that opened in January 2011. Previously based in San Juan, Puerto Rico, he established SMG's Latin American office there as Senior Regional Vice President and oversaw operation of the Coliseo de Puerto Rico and the Puerto Rico Convention Center, while directing SMG's business development activity in the region. From 1996-2006 he served on the corporate staff as national director of SMG's Convention Center Division. Mr..Connors joined SMG in 1982.and has also been - . Southeast Regional Vice President while serving as General Manager of the Miami Beach Convention Center and the Jackie Gleason Theater. He was Director of Development for SMG International in London from 1986-1991. Thom was also the General Manager for the James L. Knight Center from 1982-85. He began his career in public assembly facilities management with the City or Orlando, Florida where he was appointed Manager of the Centroplex in 1978. Jim ivicCue Senior Vice President, Live Entertainment Division A facility management veteran, Jim comes to SMG from Arena Network where he was Senior Vice President. He was integral to North American launch of"Walking with Dinosaurs, The Live Experience" arena tour, one of the most successful family entertainment tours in recent years, winning the Ticketmaster Platinum ticket award in 2008. Prior to that position, he was Senior Vice President for House of Blues/Denver Market, where he supervised all talent buying, marketing, finance, ticketing, sponsorship sales and business development for venues that included: Coors Amphitheatre, Red Rocks Amphitheatre, and Paramount Theatre. Jim has also held executive positions at the Rose Garden Arena and Palace of Auburn Hills, and has been a Talent Agent for ICM Talent Agency. ©2012 SMG Proposal for Professional Management of the lames L. Knight Center 1.5 Bob Papke Vice President, Theater Division A 20-year veteran of SMG, Bob oversees entertainment industry relations for all SMG-Managed theaters and performing arts centers. Most recently Bob served as Director of the Times -Union Center for the Performing Arts in Jacksonville, Florida. Prior to his arrival in Jacksonville, Bob worked in Toronto, Ontario as -a booking consultant with O&Y/SMG Canada overseeing operations at the Ricoh Coliseum and Oshawa Civic Auditorium While serving as Director of Marketing at the Miami Beach Convention Center and Jackie Gleason Theater, Bob was instrumental in the development and implementation of the Miami -Dade County Public School's ARTEC (Arts Related Technology for Entertainment Careers) program. • • - Bob received the 2002 Arts & Education Impact Award from the Arts &Business Council of Greater Miami and was a 2000 Finalist for the South Florida Hospitality Executive of the Year. An alumnus of the University of South Carolina, Bob was the first student enrolled in USC's Arts Adminis- tration program. Jon Petrunak Vice President, Live ,Entertainment - Arenas In Jon's position as Vice President of Entertainment - Arenas, he is responsible for providing booking support and services to SMG's Arenas and Theaters. Jon works closely with sports leagues, concert promoters, talent agents and tour managers to provide content to SMG's many venues. Jon is also accountable for maintaining SMGBooking.com, SMG's premier booking system. Before joining SMG Sports & Entertainment, Jon held many positions within the SMG managed.Sovereign.Center.in_Reading, PA. including. Box Office Manager, Theater Director and Director of Booking. A graduate of James Madison University, Jon holds a bach- elors degree in Sports Management/Business as well as an MBA from Kutztown University. Micc, el Gociov Vice President, Operations Michael is responsible or pre -opening services for new construction and renovation of existing facilities. He has provided design review and consulted on operational, marketing and event requirements during facility planning, negotiated national contract pricing with vendors (yielding average savings of 5.4% ), developed pre -opening operations standards for all SMG facilities, enhanced intranet website to provide existing facilities access. to national contract pricing and specifications and oversight of furniture, fixtures and equipment (FF&E) procurement (more than $45,000,000). Mike has overseen the openings of major facilities across the United States, including: BOK Center (Tulsa, OK), Joe Robbie (Dolphins) Stadium, (Miami, FL), FedEx Field (Landover, MD). Jochi Davila Vice President Business Development & Entertainment SMG Latin America Jochi Davila has more than 15 years of experience in the entertainment field and is currently the Vice President of Business Development & Enter- tanineriffdfSMG`Latin Amerrica.'& Senior General Manager for SMG Puerto Rico. Jochi has been involved with the Coliseo de Puerto Rico since the beginning of the project and started with the responsibility of Marketing Director in 2002. As such, he was able to implement a sponsorship and suite sales program that translated to $8,000,000 in yearly revenues for, the building. He then implemented an innovative sales program for the Puerto Rico Convention Center that represents close to S1,000,000 in yearly revenues for that building, establishing world record sales for Convention Centers. Jochi was -born and raised in Puerto -Rico and -has a -Bachelor Degree in Communications from the University of Mas- sachusetts in Amherst, a year of study in Berklee College of Music in the areas of Music and Music Business and a Masters Degree in Music Entertainment Professions from the University of New York. 16 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4_.1.4: PFROPOSE.R'S PROFErSIONAAL. EXPERIENCE AND QUA IFIC.ATICJNS Gary iAcAner1r:'�. Vice President, Finance and Administration Gary has spent 20 years in the venue management business. For the past 15 years, Gary has worked for SMG and in his current capacity he is directly responsible for the financial and accounting functions for all SMG facilities. He and his staff are responsible for hiring and training all financial personnel. Gary provides oversight during the budgeting, funding and month -end processes. Gary also works closely with the facilities in coordinating yearend audits and other year-end reporting required by the client. Gary also oversees a staff that is responsible for new business proformas and acquisition analysis. Fredia Brady Regional Director of Sales, Savannah International Trade and Convention Center More than twenty years in the hospi- tality industry, Fredia Brady is Senior Director of Sales for the Savannah International. Trade & Convention Center and the SMG Southeast Region. Fredia joined the SMG team in early 1999 after excelling 16 years in hotel sales first with Hilton and later the Hyatt Regency Savannah, where she distinguished herself by twice winning the Hyatt Masters Award for her exemplary sales efforts and professionalism. As Senior Director of Sales, Fredia mentors and guides other Director of Sales in her region and assists with corporate co- operative ad campaigns and SMG representation at national meeting planner conventions. She is active in industry associations including the International Association of Expositions and Events (IAEE), National Coalition of Black Meeting Planners (NCBMP), and the American Society of Association Executives (ASAE). Fredia resides in Savannah and serves locally as a Sustainer Advisor for the Jr. League of Savannah and a committee member for the St. Joseph's/Candler Foundations, Smart Women Event that benefits the Mary Telfair Women's Hospital. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 17 tio Proposal for Professional Management of the James L. Knight Center OWS ZTOZ5 Hospitality CommUnity Liason = Corporate and Regional Support = On -Site Management U James L. knight Center Functional Organization Chart Bookkeeping Human Resources Gerieral Manager James L Knight Cohvention Center Operations Department Engineering Housekeeping Event Services Theater and Booking Department Tcketing -• -,--•• ••--- Advertising SECTION 4.14: PR.OPOSErt'a PROF ESSiONAi_. EXPERIENCE AND QUALIFICATIONS General Manager Candidate Resume STRATEGIC PLANNING ROBERT A. MURRAY, JR. EXECUTIVE MANAGEMENT OPERATIONAL EFFICIENCY BUDGET MANAGEMENT Highly accomplished facility executive with extensive experience in operational efficiency, budget preparation and management, strategic planning and positioning for public/ private enterprise, target marketing and implementation of unrecognized revenue sources. Results -oriented, decisive leader with proven success in new market and revenue identification, strategic thinking and problem -solving. Proven track record of increasing revenues, reducing costs and optimizing organizational efficiencies. Tendency to thrive in dynamic and fluid environments while remaining pragmatic and focused. CORE COMPETENCIES • Visionary Leadership • Operations Management • Budget Management • Strategic Planning • Market Identification • Contract negotiation PROFESSIONAL EXPERIENCE PA'Spoitsu.&:Entertainment :aune'2007-=:Present Regional Vice -President Provide innovative and strategic consulting services for public assembly facilities including arenas, convention centers, stadiums, theaters and ice facilities. Services provided include, but are not limited to: contract negotiation and compliance toward increasing revenue sources and reducing operational costs while realizing maximized efficiencies; analysis and implementation of risk management solutions for increased liability control; budget analysis and fiscal management practice solutions; facility construction and operations analysis; staffing analysis and assessment; strategic marketing and advertising; FF&E and RFP organization and procurement; event booking, planning and production; operations policies and procedures; creation and implementation of effective sales strategies for increased event bookings and maximized per event ticket revenues. GLOBAL SPECTRUM James L. Knight International Center- Miami, FL General Manager March 2002- May 2007 Served as General Manager of multi -component facility comprised of the 5,000 seat Knight Center Theater, the 28,000 s.f. Miami Convention Center, the 612 room Hyatt Regency Miami and the 50,000 s.f. University of Miami Conference -Center -located in downtown Miami, FL. Full responsibility for the day-to-day management, operation and promotion of the facility including policy formulation, booking, finance, marketing, box office, purchasing, advertising, security, production, maintenance and related operations. Provided cross -functional management; direct three departmental Directors, three Services Managers and general oversight of 40-60 employees and subcontracted employees. ©2012 SMG Proposal for Professional Management of the James L. Knight Center ig Key Achievements: ➢ Consistently reduced approved City budget deficit to lowest level in facility history ➢ Increased confirmed event days from 284 to 417 during same period ➢ Increased indirect net revenues from 6% to 30.4 % of annual net revenues ➢ Recommended and oversaw $1.1 million of capital improvement projects and equipment purchases resulting in new revenue streams, increased operational efficiencies and aesthetic upgrades ➢ Renegotiated union stagehand labor and ticketing distribution contracts resulting in net 10% profit margin on labor and 122 % increase in direct ticket service revenue respectively ➢ Revised City ticket surcharge ordinance resulting in 98.4 % increase in surcharge revenues Director of Sales/ Marketing March 1999-2002 Directed the scheduling and booking of facility events including concerts, trade shows, conferences, meetings, banquets and conventions. Developed and implemented strategic marketing plans and established marketing and sales objectives while maintaining existing customer base and attracting new lessees. Conducted facility site inspections to prospective lessees and made formal presentations to concert promoters, convention and exhibition managers and lessees regarding booking policies, rental rates, services and operational policies. Develop, plan and execute promotional programs/ advertising campaigns for the facility and event lessees. Reported to the General Manager. Key Achievements: ➢ Conceived, developed and implemented full scale re -branding of facility including logo, website launch, venue signage and facility surface upgrades ➢ Increased average annual ticketed events from 14 to 52 events per year ➢ Revised the City Ordinance schedule of rates and fees for usage and services successfully positioning the facility into a competitive range for comparable facilities within the region ➢ Implemented "All Concerned Parties" sales program uniting Knight Center, Hyatt, UM and GMCVB sales teams providing unified, one -stop shopping for potential and existing facility lessees ➢ Initiated and oversaw Downtown Miami Convention Center Feasibility Study during 2001 conducted by CSL International (St. Paul, MN) and H.O.K. Design (Kansas City, MO) MIAMI HOCKEY PARTNERS, LLP- Miami, FL May 1998- February 1999 Director of Corporate Sales Directed and solicited corporate sponsorship sales, promotion and relations for expansion ECHL professional hockey franchise Responsible for establishing and pricing sponsor inventory opportunities, creating sales and marketing related materials, identifying and soliciting prospective sponsors, executing game day sponsor promotions and maintaining sponsor relations. Key Achievements: ➢ Generated $530,000 in sponsor sales during initial 8 month period, ranking 4th league wide ➢ Conceived, developed and implemented "Bull Ring Club" premium services program for sponsors and first tier season ticket holders providing parking and private dining prior to and during all home games EDUCATION Bachelor of Science in Political Science - University of New Orleans - New Orleans, LA PROFESSIONAL ASSOCIATIONS AND COMMITTEES INTERNATIONAL ASSOCIATION OF VENUE MANAGERS FLORIDA FACILITY MANAGERS ASSOCIATION MIAMI-DADE COUNTY SPORTS COMMISSION MIAMI-DADE COUNTY CITIZENS TRANSPORTATION ADVISORY COMMITTEE US LACROSSE SOUTH FLORIDA CHAPTER GULLIVER SCHOOLS LACROSSE DEVELOPMENT COMMITTEE References Upon Request 20 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4..1,4: PRROPOSER'S PROFESSIONAL EXPERIENCE AND QUALIFICATIONS Director of Sales Candidate Resume • Amy Brielle Issersohn SALES PROFESSIONAL Top Sales Performer with documented success in consultative sales/marketing and building business relationships ` Comprehensive experience and education in promotional event planning and orchestration. Propel growth and profit by successfully cold calling, educating, selling, and servicing large B2B accounts. Consistently exceed sales goals by getting past "gatekeepers" to decision -maker. Strong creative sales/marketing energy with an effectively passionate, assertive, and innovative sales techniques. Take ownership of work situations with a high degree of integrity and confidence. Branding • Sales Team Development • Client Relationship Building • Competitive Product Analysis • Negotiating • Business Planning • Marketing Development • Sales Communications • Public Relations • Key Account/Client Management • Negotiating • Customer Service • Prospecting SALES PERFORMANCE .OVERVIEW SMG / Charlotte Harbor Event & Conference Center • Punta Gorda, FL • 10/09— Present Sales Manager Developed sales and marketing department from initial startup. Created, implemented, and managed new ideas, ways of thinking, and problem solving techniques including unique sales presentations, website/social media approaches, advertising campaigns all that serve as "blueprints" for continual improvements in business development. January 2012 venue acquired Food & Beverage contract; took on catering sales bringing in over 71k in first month. • Achieved 91 % of year end goal by second quarter 2012 • Through the development of creative advertising and marketing grew banquet revenue 64% in 2011 and meetings revenue by 100% in 2011 • Analyzed then restructured offerings, resulting in achieving the maximum competitive edge in terms of features, benefits, and price points Established key accounts such as Medtronic, Wal-Mart, US Foodservice, Wendy's, and the military — building long-term relationships, establishing extensive networks with various localmitd national groups —cultivating andrmaintainingcontacts • Ranked as a Top Sales Manager in a confidential survey based on communication skills, probing questions, customer rapport and ability to close sales ➢ Precisely evaluate customer requirements — generate excellent relations to produce new and repeat business; quickly solve customer problems Y Keep pace with market trends, conditions, and the competition for maximum sales results; actively participated in industry tradeshows and conferences ➢ Created innovative social media advertising guide used in SMG Knek't Training Adventure Aquarium, Currents Ballroom • Camden, NJ • 2/09-10/09 Sales &Event Coordinator Y Skillfully coordinated B2B and B2C sales and events with exceptional time management for $60M venue Served as the "go -to" person on event teams tasked with creating and instituting process improvements; provided highly effective support to management by efficiently dealing with change requests, event tracking, mobilization of resources, and the coordination. of efforts to ensure completion of objectives Bobcats. Sports &.Entertainment.Arena • Charlotte,.NC •..2/0.7_-12/0,7. Operations & Events Extern ➢ Instrumental in effectively controlling facility operations, promoting the facility to prospective clients, providing overall innovative adaptations to new and existing facility procedures Y Ensured consistent work excellence and responsiveness in this highly competitive environment EDUCATION B.S.; Sports/Event/Entertainment Management Graduated Cum Laude, Johnson & Wales University- Charlotte, NC SMG/Collegeof Charleston School of Hospitality &.Tourism-Knek't Sales and Customer Service Training 2010-1-1- - .. HONORS AND ASSOCIATIONS Boys and Girls Club of Charlotte County, Board Member and Event Chair, 2009-Present. Florida Society of Association Executives, Member, 2010-Present. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 21 4.1.4.b) Past Performance at Named Facilities JAMES L. KNIGHT CENTER REQUEST FOR PROPOSAL 4.b.1-2 EVENT BOOKINGS Convention Centers Prime Sq. Ft. Total # of Bookings Conventions Consumer Conferences Banquets Entertainment/Music/Stage Shows Other Convention Centers with Theaters Prime Sq. Ft. / Seating Capacity Total # of Bookings Conventions Consumer Conferences Banquets Theater, Entertainment/Music/Stage Shows Other Stand alone Theaters Seating Capacity Total #.of Bookings Conferences Banquets Theater Entertainment/Music/Stage Shows Other Lynnwood Charlotte Harbor Event Convention Center & Conference Center Ontario Mobile Convention Center Convention Center 34,000 457 50 10 282 86 0 29 44,000 313 21 43 200 0 37 12 70,000 539 41 37 424 28 6 3 Albuquerque Convention Center Peoria Civic Center Ogden Eccles Conference Center 166,000 / 2,300 536 , 103 140 167 37 13 55 21 110,000 / 2,20D 388 98 47 92 77 59_ 15 0 50,000 / 800 333 6 0 28 176 70 0 53 100,000 456 33 18 154 42 174 35 Genesee Theater Sovereign PAC Akron Civic Theatre Landmark &'Center Stage Theaters 1,799 79 10 12 8 34 15 1,819 113 0 47 24 40 2 2,400 92 4 0 53 19 16 5,484 319 10 9 119 145 36 22 Proposal for Professional Management of the James L. Knight Center ' ©2012 SMG SECTI0 4.1.4: PROPOSER'S PROFESSIONAL EXPERIENCE AND QUALIFICATIONS Savannah International Trade & Convention Center Savannah, GA Full Management, since 1997 Project Description The Center is a 355,000 sq. ft. (gross) multi -purpose events facility, developed by Chatham County, GA to attract conven- tions and other large events with significant economic benefit to the County and Coastal Georgia. The facility lies within the city limits of Savannah, Georgia; and is part of Federal Foreign Trade Zone 104. The facility comprises a 100,000 sq. ft. exhibit hall; 25,000 sq. ft. ballroom; 13 meeting rooms; a 367-seat auditorium/theater, and 4 board rooms. There are 1,200 paved surface parking spaces, and 212 garage parking spaces on site. Location The Center is located riverfront on Hutchinson Island in Savannah, GA, directly across from Savannah's Landmark Historic District; and adjacent to the 400-room Westin Savannah Harbor Resort on the east; and_an active maritime slip on the west. Management Client, Dates of Management The facillty.is owned by the State of Georgia; and operated by the Georgia International andMaritime Trade 'Center Authority (GIMTCA), an instrumentality of the state overseen by an appointed volunteer board. The Trade Center Authority engaged SMG through a Pre - Opening Services Agreement in October 1995; then through a Management Services Agreement effective March 2000 for a 5-year term. The management agreement was renewed effective March 2005 for 5 years; and again effective July 2010 for 3 years. SIA G Responsibilities • Pre -Opening. SMG provided significant assistance at key design and engineering stages, including environmental, telecommunications and way -finding systems and FF&E/ small -wares packaging. From experience with many similar facilities, SMG brought both operator and customer perspectives to bear at critical stages of devel- opment. By agreement with CVB, SMG also assumed responsibility for facility pre -opening sales and marketing. • Management. SMG serves as Managing Agent for day-to-day facility operation and marketing. SMG also provides administrative, accounting and staff assistance to the client. • Marketing. From pre -opening through our tenth anniversary, SMG has brought local and national sales resources to booking the center. The SMG Network offers national marketing and sales programs; SITEPAS lead referrals, co-op advertising and industry representation. • In 2003, SMG and CVB jointly envisioned and founded the Savannah Accord, a convention marketing cooperative that includes Center, City, CVB, and major hotels. The Accord also provides one -stop booking, transportation planning -funding and other client benefits; and has been modeled`for similar cooperative marketing initiativesin other SMG markets. • Food and Beverage. SMG provides high -quality house food and beverage services through its affiliate SAVOR... Savannah, at a level comparable to the best of local hotels ©2012 SMG Proposal for Professional Management of the James L. Knight Center and clubs; and serves several prestigious off -premise house catering accounts. • Other. On client's behalf, SMG established and provides planning, policy direction and funding coordination for the Savannah River Ferry System, which connects Center -Westin and other Hutchinson Island facilities with River Street and downtown Savannah. SMG has also assumed a leadership role in developing Savan- nah's comprehensive Visitor Mobility System, and provides strategic advice and management to client in areas such as: Master development planning, including a major con- vention hotel project Project management and capital improvement pro- gramming • Federal and state grant writing &programming • Federal and state legislative liaison programs Accomplishments the Center is a seven -time recipient of the Prime Site Award, and has been honored four times by ConventionSouth as a Readers' Choice -Best of the Best. The facility was chosen as the International Media and Delegations Center for the 2004 G-8 Sea Island Summit; and as 2006 host of Inc. Magazine's The Inc. 500 Conference. Client Comments "Savannah has set the bar: best staff, and best first-show-in-a- new.:city,.ever. "You have an amazing venue. In our 24 years of producing this conference, our best ever." "Best event management, best food, best service in the history of this major conference." 24 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION z `. : PROf O SER'S PROFESSIONAL EXPERIENCE AND iAL.(F CAT IONS Wilmington Convention Center Wilmington, North Carolina Full Management, since 2008 • 107,000 total sq. ft. of venue space • 30,000 sq. ft. Exhibit Hall • 12,000 sq. ft. Ballroom, divisible into 6 rooms • 5,700 sq. ft. meeting rooms -total 8 rooms • 11,700 Event Lawn • 578 space attached parking facility 'Ihe Wilmington Convention Center opened in November 2010 and serves the southern US, North Carolina, and Wilmington as a leading destination for a multitude of events in prime convention space. The Center complex is located, on the north side of the City of Wilmington's downtown core along the bank of the Cape Fear River. The City's River walk, spanning 2 miles, was extended around portions of the Center and links the Center to Wilm- ington's vibrant historic district. The Center features a dramatic interior design including red cedar wooden walls and ceilings; reminiscent of its celebrated regional use in boat building. This beautiful showpiece is enhanced by its extraordinary maritime themed art collection reflecting local artists and industry from the past that shaped Wilmington's future. SMG began work with the City of Wilmington in 2006 and coritraeted�iri November 2008'°for' pre-openirig'eoilsliltatiori ' services regarding design and engineering, marketing development, equipment identification and procurement, and advisement on overall operational aspects ofmanagement. In November 2010, the City of Wilmington executed a three year contract for facility management with two additional one- year options. Added responsibility to the SMG agreements were the Food & Beverage operation in the Center, the 11,700 sq. ft. Event Lawn (Park Space), and the 578 space attached Parking Deck. SMG Responsibilities: • Pre -Opening: Advised on design elements and technical aspects during the construction period. Provided FF&E consultation services (furniture, fixtures and equipment) for $2 million of equipment including: specification, quantity, selection and procurement. Developed of an FF&E list and specifications for one half million dollars of food and beverage equipment. Management: Enhance operational excellence by providing daily adminis- trative oversight, open & steady interaction with customers and vendors, regular financial reporting to the owner, inte- gration of safety and LEED practices with facility users and employees for greater environmental quality. Marketing: Engage in advertising, solicitation and promotional activities in solid coordination with the Wilmington Convention & Visitors Bureau to maximize the economy, facilityrevenues, and cultivate broad community support. Accomplishments: • Aided the City in FF&E expenditures, resulting in spending well under -budget. • Provided advanced and future bookings exceeding the expectations of the new facility. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 25 Sovereign Performing Arts Center Reading, PA • 1918 capacity The Sovereign Performing Arts Center was built in the 1870s as a market, with a Masonic Temple on its upper floors. It became the Academy of Music in 1886. The Rajah Shriners purchased it in 1917 to use the building for various activities including vaudeville, motion pictures, and live appearances. The auditorium was rebuilt in 1921 after a fire destroyed most of the facility. It is now a venue for quality symphonic, opera, ballet, popular music, and theatrical performances. At the turn of the 21st Century, the Rajah Theater was the only downtown movie palace of its kind to survive. Its sister palaces, the Astor, Embassy and Loew's Colonial, had all been demolished. In June of 2000, the Berks County Convention Center Authority purchased the Rajah Theater from the Shriners. The building was renovated and renamed the Sovereign Per- forming Arts Center. The $7 million renovations included a new air conditioning system, seating that is more comfortable, better stage equipment, improved dressing rooms, and more. These improvements, along with the building being managed by SMG, ensure that this historical center for performing arts will be preserved for years to come. Significant Achievements • The Sovereign Performing Arts Center is home to the Reading Symphony Orchestra, one of the oldest continually running symphonies in the country. The Reading Symphony Orchestra will celebrate their 100th anniversary in 2013. • Our Broadway on Sixth Street Series has brought some of the best Broadway to downtown Reading including Titanic, Mama Mia, Beauty & the Best, Rock of Ages, Cats and many more! • The Sovereign Performing Arts Center hosts 90-100 events -drawing over-100;000-patrons annually -to downtown Reading. It has hosted numerous top level entertainers including Diana Ross, Johnny Mathis, Straight No Chaser, Jeff Dunham, Melissa Ethridge, John Mellencamp, Bryan Adams, Lynyrd Skynyrd, Willie Nelson, Hilary Duff, Jerry Seinfeld, David Copperfield, and Sesame Street Live, just to name a few. SMG Reading works with many local and non-profit arts organizations to make it possible for them to produce events at the theater. We currently work with: Reading Symphony Orchestra • Berks Jazzfest • Theatreworks USA • Dance Expressions ▪ YNOT AWARDS • Royals Charities • Greater Reading Chamber of Commerce ° Girl Scouts of America • Gilmore-Henne Foundation • Berks Ballet 26 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION ' .:.4: PROPOSER'S PROFESSIONAL. EXPERIENCE AND QUALIFICATIONS Akron Civic Theatre Akron, OH • 2592 capacity Since its opening in 1929, The Civic has been Akron's "Jewel on Main Street." Conceived by entertainment mogul Marcus Loew and lavishly designed by acclaimed theater architect John Eberson, the opulent atmospheric theater was built to accommodate the entertainment needs of Akron's growing population. In 2001, the theater underwent a S22.5 million renovation/expansion and re -opened to universally positive reviews. In 2010-2011, The Civic was host to 120 public events drawing 107,412 people to the heart of downtown Akron. Significant Achievements • The Akron Civic Theatre is home to Ballet Theatre of Ohio, Cuyahoga Valley Youth Ballet, Children's Concert Society and host to performances by the Akron Sym- phony Orchestra. • In keeping with the Board of Trustees' strategic focus, SMG has worked to program a mix of local and regional attractions while more than doubling the number of national shows presented in a competitive market that includes another significant performing arts venue in Akron and multiple major venues in Cleveland. • =National events recentlyspresented-atae Oivic,include Bill Cosby, Gabriel Iglesias, Buddy Valastro, Celtic Woman, Alice Cooper, Earth Wind and Fire, David Gray, Todd Rundgren, Lyle Lovett and John Hiatt, the Oak Ridge Boys, the Temptations and The Four Tops, Ledisi, The Imagination Movers, Yo Gabba Gabba, Rob Zombie and Widespread Panic, among others. • Tickets are made available for many of the theater's in-house events through its highly successful All Access program, through which tickets are distributed to clients of Akron Child Guidance, Urban Ounce of Prevention, Girl Scouts of NE Ohio, Big Brothers & Sisters, West Headstart, Summit County Children's Services, Com- munity Drug Board/Kid Space, Community Health Center, Battered Women's Shelter, Better Connection Life Center, Life Skills Center of Akron, ACCESS, Inc., Child Guidance &Family Solutions and United Dis- ability Services, and other social service agencies. Operating as Akron's community -focused performing arts venue, SMG works extensively with local non-profit arts and non -arts organizations to make it possible for them to produce events at the theater. These partnerships increase engagement and help make the case for broad based community support for the theater and the participating organization(s). Active and ongoing partnerships include: • Akron Canton Regional Foodbank • Akron General Hospital Foundation • Miller South School for the Visual and Performing Arts • Firestone High School • Cleveland International Film Festival • Council of Summit County Italian American Societies • Youth Excellence Performing Arts Workshop ©2012 SMG Proposal for Professional Management of the James L. Knight Center 27 Landmark Theater and Richmond CenterStage Richmond, Virginia • 3,565 - Capacity for Landmark Theater • 1800 - Capacity for Carpenter Theatre • 200 - Capacity for Rhythm Hall • 175 - Capacity for Gottwald Playhouse Located across from historic Monroe Park and nestled in the midst of the Virginia Commonwealth University campus, the lavish Landmark Theater originally opened its doors as a Mosque in October 1927. Designed in Moorish Revival style by Marcellus Wright Sr., Charles M. Robinson and Charles Custer Robinson, exotic features include: over 100,000 square feet of gold and aluminum leaf in the Theater's dome; Arabian paintings which border the proscenium arch of the stage and ornamental tile, lush carpets and silken curtains imported from Spain, Italy and Tunis. One of the best known and most striking buildings in Richmond, the Landmark is also the largest theater between New York City and Atlanta. Known for its excellent acoustics, the Landmark has seating for 3,565. The Landmark's ballroom is also host of numerous gala affairs and the ballroom has a capacity of 1,100 and a seated capacity of 800. "Richmond'CenterStage•is the•region's,'newperform ng-arts complex right in the heart of downtown Richmond. This 179,000-square foot facility includes three performance venues: the historic Carpenter Theatre, Rhythm Hall and Gottwald Theater; a visual arts gallery and an interactive education facility The cornerstone of this downtown Richmond performing arts complex is the fully renovated, historic Carpenter Theatre. This grand Theater has nearly 1,800 comfortable, spacious seats, state-of-the-art acoustics and brilliant lighting, including new fiber optics that enhance the ceiling's sparkling stars. Significant Achievements • The Landmark Theater is known by local citizens as the "people's venue", because of it wide demographic base and the number of communities that it serves. Neil Young, Anita Baker, James Taylor, Prince, Paul Simon, Elvis Presley, Frank Sinatra, Ray Charles, Aretha Franklin, Johnny Cash, Bing Crosby, Beverly Sills, Leontyne Price, Louis Armstrong, Duke Ellington, James Brown and Rod Stewart have all graced the Landmark's stage. • CenterStage Foundation, and resident companies including Richmond Symphony, Virginia Opera, Richmond Ballet, Richmond Shakespeare all call Richmond CenterStage their home. Both the Landmark and Carpenter Theatre are home oftlie=wildly auceessful`Broadway.rri`Richmoridaeries which has presented two runs of WICKED, Beauty and the Beast, Avenue Q,.The Wedding Singer, Rain: A • Tribute to the Beatles, South Pacific, Mannheim Steam- roller, Straight No Chaser, Vince Gill and Amy Grant, Blue Man Group and 32 performances of Disney's THE LION KING. Partnerships/Community Involvement Community partnerships are key for SMG and we are proud to partner with such organizations as the City of Richmond, City of Richmond Police Ambassadors Program, City of Richmond Cultural Affairs and Parks and Recreation Department, Richmond Public Schools, Richmond Center - Stage Foundation Education Department, Resident Company Association members including Richmond Symphony, Virginia Opera and Virginia Ballet, Girl Scouts of the Com- monwealth of Virginia, Virginia Commonwealth University's Student Leadership Council and Student Veterans Asso- ciation, Toys for Tots and SPCA: 28 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 414: PROPOSER'S PROFESSION. EXPERIENCE AND QUALIFICATIONS Peoria Civic Center Peoria, Illinois • 110,000 sq. ft. exhibition halls • 27,000 sq. ft. Ballroom • 17,000 sq. ft. of meeting space • 15 meeting rooms • 12,000 seat Arena • 2,200 seat Theater Managed by SMG since 1990, the Peoria Civic Center is the centerpiece of downtown Peoria and is regarded as both an economic generator and a magnet for entertainment and meetings of all types. The Civic Center is located halfway between Chicago and St. Louis on the banks of the Illinois River. The facility is within walking distance of several hotels, restaurants, shops and a beautiful Riverfront that offers year-round activities in downtown Peoria. The Civic Center is a three building complex that was designed by nationally renowned architect Philip Johnson. A glass arcade connects the 12,000 seat Arena, 2,200 seat 'Theater, 110,000 sq. ft. of continuous exhibit space, and 27,000 sq. ft. Ballroom. There are 15 additional breakout rooms totaling 17,000 sq. ft. In June 2005, the Civic Center broke ground on a $55 million expansion and renovation project. It is estimated that more than 100 local jobs per month were created during the life of the Revitalization project. Much of the new space opened in Spring 2007 with a final completion date of October 2007. This Revitalization project makes the Civic Center the largest convention facility in downstate Illinois with more than 900,000 sq. ft. The Civie Center hosts more than 350 events each year drawing nearly 1,000,000 annual visitors. The Civic Center staff is committed to providing the highest level of service to its sporting and performing arts tenants as well as the convention and meeting clients that utilize the facility. SMG Achievements: • The Peoria Civic Center generates about $134 million in annual economic activity for Peoria. • Six new flat -screen TVs demonstrate SMG's com- mitment to working with the Peoria Civic Center Authority to acquire the necessary technology needed for a successful public assembly facility. • SMG is very active in local community initiatives, some examples include: • The District 150 Public Schools "Celebrating Our Success" showcase • The Mitchell J.J. Anderson All Star Basketball Camp • The Salvation Army "Share the Spirit" toy giveaway program • 'The Urban League "Youth Doing the Right Thing" program to recognize local students' achievements • A partnership with Harrison Primary School which includes financial donations (for uniforms or other items as determined by the school), participation in special reading programs, and ticket donations to YouTheater performances. Significant Highlights: • Bradley University Men's Division I Basketball and AHL Rivermen Hockey share the Arena with a host of family shows and concerts. • Three local performing arts tenants maintain a busy calendar at the Theater. • Andrew Lloyd Webber's "Phantom of the Opera" played its first downstate Illinois performances in the Civic Center Theater drawing fans from a multi -state region. There were 32 shows held during 4 weeks, with 63,000 tickets sold. Facility Statistics: Great Hall: • The Great Hall was designed to be the largest interior space in downtown Peoria. It's 65 feet tall, which is more than 6 stories from the floor to the ceiling. • • The Great Hall was carefully located over the existing lower level truck dock in order to minimize the addi- tional structural loads over that area — thereby reducing the need for additional columns • New entrance into the Arena from the Great Hall. This opening will help diminish the crowds and lines in the Arena concourse by offering patrons the opportunity to use the Great Hall restrooms and concessions. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 29 The interior color palette of the Great Hall is based on the local colors of the nearby Illinois Riverbed and cut stone. Layered and striatedycolors compliment the existing building's color palette and continue the theme of the Civic Center's Riverfront location. Concessions area by the Great Hall: • New concessions area was designed to be 2-sided, serving patrons in the Arena and the Great Hall with 14 points of sale. Wireless Cafe: ▪ The Verizon Wireless Internet Cafe allows patrons to access the internet for free via their laptops. Arena: o Arena capacity 12,248; Basketball setup 11,100; Hockey setup 9,400 • The Arena is home to the Bradley University men's basketball team and the Peoria Rivermen hockey team ° 500 sections of insulated floor allow the icc to remain and basketball or concert set-up to be placed on top of the ice. • It takes 30 workers 6 hours to change from ice to basketball or concert. o For rodeos and monster trucks, approximately 80 truckloads of dirt are brought in. • Event highlights: IHSA Boys' Basketball Tournament, World's Toughest Rodeo, Harlem Globetrotters, Monster Trucks, Disney on Ice, Ringling Brothers & Barnum and Bailey Circus, and for concerts The Eagles, Aerosmith, Elton John, Kenny Rogers, George Strait, Van Halen, New Kids On The Block, Metallica, Alan Jackson, Limp Bizkit, Nickelback, Kenny Chesney, Kiss, Cher • Two of the old, smaller Arena concession stands along Jefferson Ave. side were transformed into two new women's restrooms to help minimize restroom lines for women at Arena events. • There are now four women's restrooms along the Jef- ferson Ave. side of the Arena, with a total of 26 facilities in that area. • The Civic Center also remodeled three of the existing women's restrooms in the Arena with new floor tile and textured wall paint. Mezzanine level (mid -point escalator landing) and 4th Floor Ballroom: • Beyond the glass door, is a new Club Room and four sponsored Arena suites. • The 4th floor Ballroom &flexible meeting space is 27,000 sq. ft. • This new space gives the Civic Center a new total meeting space of 45,000 sq. ft. (including Meeting Rooms 134-222) • 27,000 sq. ft. of new flexible meeting space: » Can be used as one large ballroom that accommodates 1,600 people or it can be divided into 9 separate meeting rooms There is 12,000 sq. ft. of pre -function space on the 4th floor in the hallways outside the Ballroom/flex meeting space • The 4th floor features two coat check areas, high finish "restrooms, a "Green Room" dressing room for an enter- tainer, and high-tech audiovisual capabilities. • Patrons can walk out onto the balcony, which overlooks the Peoria RiverFront and O'Brien Field, home of the Peoria Chiefs minor league baseball team. 3o Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 1.4: PROPOSER'S PROFESSIONAL EXPERIENCE. AND QUA Ir!CAiIONS Lynnwood Convention Center Lynnwood, WA Opened in April 2005, the Lynnwood Convention Center is situated in the heart of Washington's aerospace, high-tech and bio-med corridors. 15 minutes north of downtown Seattle, the Lynnwood Convention Center offers an affordable, first-class facility for meetings, social gatherings and conferences. The Center is the cornerstone of Lynnwood's New City Center project. Total Building Area: • 53,985 sq. ft. • 34,000 total sq. ft. of functional exhibition & meeting space • 600 FREE parking spaces on site • 11 meeting rooms • 950-person dining capacity • 1,200-seat capacity for general session SMG Provide Services: • Pre -Opening - Procurement of $1.5 million of FF&E on behalf of owner prior to the grand opening of the $28 million dollar project; Providing owner, construction project manager and design team with convention industry standards relating to operating and marketing the facility; Creation of the Lynnwood Marketing Coop- erative with community stakeholders to generate leads and room nights in the locallregional meeting market. • Current — Full Facility Management Services and Food &Beverage Management • Contract Status — Initially contracted for 3 years in 2005; Renewed for 2 more years in 2008; Renewed for 5 years in 2010, with a 5 year renewal option in 2015. SMG Achieveme • Reduced subsidy every year since 2007. • Finished 2010 with the highest revenues, lowest subsidy, and highest customer service ratings in the facility's history. • In 2010, Lynnwood Convention Center events generated $17.3 Million in direct and indirect economic impact. SMG Community involvement: • SMG is active in a number of community organizations and initiatives to include: o Snohomish County Tourism Bureau, Board Membership • South Snohomish Chamber of Commerce, Board Membership • Edmonds Community College Hospitality Management Program, Advisory Committee • United Way of Snohomish County, Board Membership o Big Brothers Big Sisters of Snohomish County, Board Membership ▪ Snohomish County Lodging Association • Lynnwood Tourism Advisory Committee o Lynnwood Arts Commission ©2012 SMG Proposal for Professional Management of the James L. Knight Center 31 4.1.4.c) Company Description The industry's World Leader in Facility Management Beginning in 1977 with its first account,' the Louisiana Superdome, SMG has defined a management philosophy and style that has led to its industry -leading position; 225 facilities throughout the United States, Canada, Puerto Rico, England, Northern Ireland, Turkey, Chile, Jamaica, Poland and Germany. Our clients include: o Privately and publicly -owned facilities o Professional and college sports teams o Collegiate administrations and athletic departments SMG's corporate offices are located at 300 Conshohocken State Road, West Conshohocken, PA 19428. Our phone number is 610-729-7900 and our fax number is 610-729- 1590. On the web we can be found at www.smgworld.com. SMG is a stand-alone company of which American Capital is a major shareholder. SMG operates on an independent basis from American Capital and stands on its own financial merits. John Burns, SMG's CFO and Executive Vice President is authorized to execute agreements on behalf of SMG. Facility Management Experience SMG prides itself on hiring the industry's best. Our employees have unmatched experience managing facilities. From our corporate staff to our on -site local teams, SMG's people comprise the best the industry has to offer. SMG has no standard contract or method of serving our clients. Each client determines SMG's role and level of involvement. Our experience spans full management services for arenas, convention centers, theaters and stadiums, FF&E, pre -opening design services, management audits, construction oversight, concessions and food management, and much more. Services Provided by SMG Through our corporate headquarters and key field personnel, SMG supports the facility with a variety of services and knowledge base. In addition to our nationwide employee network being a vital resource for SMG, we will provide many services for the City. The entire staff will utilize all of the systems, procedures, resources and support described in this RFP response. We will supervise the on -site staff in its performance of its functions. Our goal is to maintain effective, seamless communications with the City and local stakeholders, while enabling the timely and accurate flow of information. SMG: .Management: Philosophy Our goal is to manage facilities with the highest concern for the public purpose and community mission of the project. We will maintain accountable standards of operational and fiscal responsibility and continually establish and achieve new goals of operational excellence. 32 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4..1.4: PROPOSER'S PRO ESSIONAL XPERIEN .:E QUAL IF'IC/kTIOI\S Convent m Ce er Clients McCormick Place Reliant Center Direct Energy Centre Moscone Center Cobo Center Colorado Convention Center Salt Palace Convention Center Atlantic City Convention Center Greater Columbus Convention Center TD Convention Center • David L. Lawrence Convention Center South Towne Exhibition Center Long Beach Convention Center Dena'ina Civic and Convention Center DeVos Place American'Bank Center Convention Ctr. Broward County Convention Center Hawaii Convention Center Albuquerque Convention Center Mercedes-Benz Superdome Conv. Ct . Puerto Rico Convention Center Cabarrus Events Center Charleston Area Convention Center Palm Springs Convention Center Jackson Convention Complex Jekyll Island Convention Center Knoxville Convention Center Peoria Civic Center Hampton Roads Convention Center Tulsa Convention Center Baton Rouge RiverCenter Cox Business Services Convention Ctr. DCU Center Mobile Convention Center . ... Sc.;. r !. L t:.HtupitiD^ Space Chicago . IL 2,600,000 Houston TX 1,484,000 Toronto ON 1,000,000 San Francisco CA 738,000 Detroit MI 700,000 Denver CO 584,000 Salt Lake City UT 515,000 Atlantic City NJ 500,000 Columbus OH 426,000 Greenville SC 368,000 Pittsburgh PA 313,400 Salt Lake City UT 243,000 Long Beach CA 224,000 Anchorage AK 215,000 Grand Rapids MI 202,000 Corpus Christi TX 200;000 Fort Lauderdale FL 200,000 Honolulu HI 200,000 Albuquerque NM 167,000 New Orleans LA 166,000 San Juan PR 152,700 Concord NC 150,000 Charleston SC 135,000 Palm Springs CA 130,560 Jackson MS 128,000 JekyllIsland GA 128,000 Knoxville TN 120,000 Peoria IL 110,000 Hampton VA 102,000 Tulsa OK 102,000 Baton Rouge LA 100,000 Oklahoma City OK 100,000 Worcester MA 100,000 Mobile AL 100,000 Rhode Island Convention Center Savannah Intl Trade and Convention Ctr. The Oncenter - Nicholas J. Pirro Conv. Ctr. Fresno Convention Center Shreveport Convention Center Ontario Convention Center El Paso Convention Center Prime F. Osborn III Convention Center Rabobank Convention Center Wildwoods Convention Center SeaGate Convention Centre Montego Bay Convention Centre Irving Convention Center Kansas Expocentre Meadowlands Exposition Center Nassau County'Expo Center Ford Park Ogden Eccles Conference Center Osceola Heritage Park Pontchartrain Center Pershing Center William A. Egan Civic and Convention Ctr. Francis Marion Exhibition Hall Charlotte Harbor Event & Conference Ctr. The Hall at the Dow Event Center The Centre, Evansville Ora Convention Centre Lynnwood Convention Center Valdez Hall Iowa State Center Wilmington Convention Center Providence RI 100,000 Savannah GA 100,000 Syracuse NY 99,000 Fresno CA 96,000 Shreveport LA 95,000 Ontario CA 90,000 El Paso TX 80,000 Jacksonville FL 78,500 Bakersfield CA 78,000 Wildwood NJ 75,000 Toledo OH 75,000 Montego Bay Jamaica 73,000 Irving TX 70,000 Topeka KS 68,000 Secaucus NJ 61,000 Uniondale NY 60;000 Beaumont TX 50,000 Ogden UT 50,000 Kissimmee FL 47,850 Kenner LA 47,000 Lincoln NE 45,000 Anchorage AK 45,000 Florence SC 44,500 Punta Gorda FL 43,500 Saginaw MI 42,500 Evansville IN 38,000 Istanbul Turkey 35,500 Lynnwood WA 34,000 Fresno CA 32,000 Ames IA 30,000 Wilmington NC 30,000 ©2012 SMG Proposal for Professional Management of the James L. Knight Center 33 Theater and Pe orm n Arts Center Clients Wells Fargo Theater Arie Crown Theater Landmark Theater Terrace Theater Shreveport Municipal Auditorium Rabobank Theater Moran Theater Stephens Auditorium Abraham Chavez Theater American Bank Ctr. - Selena Auditorium Larry Aiken Theater William A. Egan Center Theater Plaza Theater Akron Civic Theatre DeVos Performance Hall Genesee Theater Saroyan Theater Bridgewater Concert Hall Coronado Performing Arts Center Kiva Auditorium Hanover Theater for the Performing Arts The Theater at the Dow Event Center North Charleston Performing Arts Center Peoria Civic Center Theater The Oncenter - Crouse Hinds Theater Bob Hope Theatre Mobile Civic Center Theater Victory Theater Saenger Theater RiverCenter for the Performing Arts Baths Hall Jacoby Symphony Hall Richmond CenterStage Carpenter Theater Sovereign Performing Arts Center Wagner Noel Performing Arts Center York Barbican Mill Volvo Tyne Theater Paramount Theater of Seats Denver CO 5,000 Chicago IL 4,249 Richmond VA 3,667 Long Beach CA 3,051 Shreveport LA 3,007 Bakersfield CA 3,000 Jacksonville FL 2,979 Ames IA 2,747 El Paso TX 2,500 Corpus Christi TX 2,500 Evansville IN 2,500 Anchorage AK 2,500 El Paso TX 2,410 Akron OH 2,400 Grand Rapids MI 2,400 Waukegan IL 2,400 Fresno CA 2,353 Manchester UK 2,341 Rockford IL 2,300 Albuquerque NM 2,300 Worcester MA 2,300 Saginaw MI 2,275 North Charleston SC 2,260 Peoria IL 2,200 Syracuse NY 2,117 Stockton CA 2,042 Mobile AL 1,950 Evansville IN 1,950 Pensacola FL 1,921 Baton Rouge LA 1,900 Scunthorpe UK 1,900 Jacksonville FL 1,800 Richmond VA 1,800 Reading PA 1,800 Odessa TX 1,800 York UK 1,500 Newcastle UK 1,050 Charlottesville VA 1,040 Peery's Egyptian Theater Center Theater Plaza Theater Five Flags Theater Orpheum Theater PLAYHOUSE Whitley Bay Terry Theater The Oncenter - Carrier Theater Fisher Theater Plowright Theatre Palm Canyon Theater . Richmond CenterStage Gottwald Playhouse The Oncenter - BeVard Studio Outdoor A CMAC Ford Pavilion Idaho Center Mesker Amphitheater Koka Booth Amphitheater Davis Park Bright House Networks Amphitheater McKelligon Amphitheatre Ogden UT 855 Long Beach CA 825 Palm Springs CA 800 Dubuque IA 700 Sioux Falls SD 680 North Tyneside UK 630 Jacksonville FL 600 Syracuse NY 463 Ames IA 450 Scunthorpe UK 354 Palm Springs CA 230 Richmond VA 200 Syracuse NY 162 heat r C er is Canandaigua Beaumont Nampa Evansville Cary Rockford Bakersfield El Paso NY TX ID IN NC IL CA TX 15,000 14,000 11,000 8,500 7,000 5,000 4,000 1,503 _6/12 34 Proposal for Professional Management of the James L. Knight Center 02012 SMG SECTION 4.1A: PROPOSER'S PROFESSIONAL EXPERIENCE AND QUALIFICATIONS Stadium Uer is Mercedes-Benz Superdome EverBank Field Reliant Stadium Reliant Astrodome O.co Coliseum Soldier Field Chase Field Wroclaw Stadium Baseball Grounds of Jacksonville Stockton (Banner Island) Ballpark m r CDents Manchester Evening News Arena New Orleans Arena CONSOL Energy Center BOK Center Oracle Arena Chesapeake Energy Arena Nassau Veterans Memorial Coliseum Coliseo de Puerto Rico Times Union Center Save Mart Center John Paul Jones Arena Cox Business Services Arena INTRUST Bank Arena DCU Center Arena Jacksonville Veterans Memorial Arena Atlantic City Boardwalk Hall 1st Mariner Arena Blue Cross Arena CenturyLink Center Dunkin' Donuts Center Richmond Coliseum Long Beach Arena North Charleston Coliseum Konig-Pilsener Arena Leeds Arena Petersen Events Center ..: of Seats New Orleans LA 76,000 Jacksonville FL 73,000 Houston TX 71,500 Houston TX 70,000 Oakland CA 62,500 Chicago IL 62,000 Phoenix AZ 60,000 Wroclaw Poland 42,000 Jacksonville FL 7,200 Stockton CA 5,000 Manchester UK 21,000 New Orleans LA 19,711 Pittsburgh PA 19,500 Tulsa OK 19,200 Oakland CA 19,200 Oklahoma City OK 19,000 Uniondale NY 18,100 San Juan PR 18,000 Albany NY 17;500 Fresno CA 16,182 Charlottesville VA 16,000 Oklahoma City OK 15,00D Wichita KS 15,000 Worcester MA 14,800 Jacksonville FL 14,500 Atlantic City NJ 14,500 Baltimore MD 14,000 Rochester NY 14,000 Bossier City LA 14,000 Providence RI 14,000 Richmond VA 13,553 Long Beach CA 13,500 North Charleston SC 13,295 Oberhausen Germany 13,000 Leeds UK 12,500 Pittsburgh PA 12,500 Idaho Center Van Andel Arena Baton Rouge RiverCenter Arena Movistar Arena Peoria Civic Center Stockton Arena Verizon Wireless Arena Selland Arena Metroradio Arena American Bank Center Silver Spurs Arena Mobile Civic Center Florence City County Civic Center Landon Arena Laredo Energy Center BMO Harris Bank Center Odyssey Arena Pensacola Civic Center Rabobank Arena Oslo Spektrum Bank of Kentucky Center George M. Sullivan Sports Arena Sovereign Center Ford Park Arena Mohegan Sun Arena at Casey Plaza Big Sandy Superstore Arena Huntington Center Reliant Arena The Arena at The Dow Event Center Pershing Auditorium Covelli Centre Eastern Kentucky Expo Center K-Rock Centre Sioux Falls Arena The Oncenter - War Memorial Arena Ora Arena John A. Carlson Center Cambria County War Memorial Arena ShoWare Center Canton Memorial Civic Center Hershey Centre Cabarrus Arena and Events Center Five Flags Center Arena Nampa Grand Rapids Baton Rouge Santiago Peoria Stockton Manchester Fresno Newcastle Corpus Christi Kissimmee Mobile Florence Topeka Laredo Rockford Belfast Pensacola Bakersfield Oslo Highland Heights KY Anchorage Reading Beaumont Wilkes-Barre Huntington Toledo . Houston Saginaw Lincoln Youngstown Pikeville Kingston Sioux Falls Syracuse Istanbul Fairbanks Johnstown Kent Canton Mississauga Concord Dubuque ID 12,279 MI 12,100 LA 12,000 Chile 12,000 IL 12,000 CA 12,000 NH 11,770 CA 11,300 UK 11,000 TX 10,500 FL 10,500 AL 10,112 SC 10,000 KS 10,000 TX 10,000 IL 10,000 N Ireland 10,000 FL 10,000 CA 10,000 Norway 9,700 9,400 AK 9,046 PA 9,000 TX 8,500 PA 8,500 WV 8,101 OH 8,000 TX 7,800 MI 7,600 NE 7,500 OH 7,000 KY 7,000 ON 7,000 SD 7,000 NY 7,000 Turkey 6,300 AK 6,100 PA 6,000 WA 6,000 OH 5,500 ON 5,500 NC 5,200 IA 4,800 ©2012 SMG Proposal for Professional Management of the fames L. Knight Center 35 Equestrian Center Cfler is Cabarrus Arena and Events Center Idaho Horse Park Jacksonville Equestrian Center Kansas Expocentre Agricultural Hall Osceola Heritage Park Concord NC Nampa ID Jacksonville FL Topeka KS Osceola FL Specific -use CF e is Bakersfield Ice Sports Center Ben Boeke Ice Rink Dempsey Anderson Ice Rink Idaho Sports Center Millennium Youth Entertainment Complex North Central Recreation Center Oak Park Ice Arena Odysseum Cologne Science Center Rye Airfield Skate Park & BMX Track Scheman Continuing Education Building Bakersfield CA Anchorage AK Anchorage AK Nampa ID Austin TX Johnstown PA Stockton CA Cologne Germany Rye NH Ames IA 36 Proposal for Professional Management of the James.L. Knight Center ©2012 SMG L£ ia;ua) ;ySluN 1 sawel ay; ;o ;uawaBeueW Ieuo!ssa;oJd 104 Iesodoid JNIS ZTOZOO SNIOI1Y IJITV110 ON7 ;IVJIdJdX 1VNOISS : 0dd S,2 3SOdO2dd -17'`L's NOI1 3S Wells Fargo Theater Peery's Egyptian Theater Bob Hope Theatre Saroyan Theatre Valdez Hall Rabobank Theater Long Beach Center Theater Long Beach Terrace Theater Kiva Auditorium Plaza Theater OURTh' Genesee Theate Coronado Performing Arts Center Five. Flags Theater Peoria Civic Center Theater Stephens Auditorium Orpheum Theater Abraham Chavez Theater Wagner Noel Performing Arts Center American Bank Center Selena Auditorium Shreveport Municipal Auditorium RiverCenter for the Performing Arts Arie Crown Theater Evansville Auditorium Victory Theatre DeVos Performance Hall ERS The Theater at the Dow Event Center Akron Civic Theatre The Hanover Theatre for Performing Arts Sovereign Performing Arts Center Paramount Theater Richmond CenterStage Landmark Theater Koka Booth Amphitheater North Charleston Performing Arts Center Moran Theater Jacoby Symphony Hall Terry Theater Charlotte Harbor Events Center Saenger Theatre - Mobile Civic Center Theater 38 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 41.4: PR POSER'S PROFESSIONAL EXPERIENCE AND QUALIFICATIONS HANOVER THEATRE FOR THE PERFORMING ARTS Worcester, MA 2,325 seats Troy Siebels, Executive Director • 508.471.1761 troy@thehanovertheatre.org www.thehanovertheatre.org Copromote: Yes Take risk: Yes RICHMOND CENTERSTAGE Richmond, VA Carpenter Theatre:1,800 seats Rhythm Hall: 200 seats Gottwald Playhouse: 200 seats Dolly Vogt, Regional General Manager 804.592.3355 dvogt@smgrichmond.com www.richmondcenterstage.com Copromote: Yes Take risk: Yes 2 SOVEREIGN PERFORMING ARTS CENTER Reading, PA 1,819 seats Zane Collings, Regional General Manager 610.898.7210 zcollings@sovereigncenter.com www.sovereigncenter.com Copromote: Yes Take risk: No PARAMOUNT THEATER Charlottesville, VA 1,040 seats Jason Williams, Facilities Manager 434.979.1922 x106 jasonwilliams@theparamount.net www.theparamount.net Copromote: Yes Take_risk: Yes LANDMARK THEATER Richmond, VA 3,565 seats Dolly Vogt, Regional General Manager 804.592.3355 dvogt@smgrichmond.com www.landmarktheater.net Copromote: Yes Take risk: Yes KOKA BOOTH AMPHITHEATER AT REGENCYPARK, Cary, NC 7,000 seats Becky Schmidt, General Manager 919.462.2024 bschmidt®rprk.com www.boothamphitheatre.com Copromote: Yes Take_risk: Yes ©2012 SMG Proposal for Professional Management of the James L. Knight Center 39 00MM rr.mooim0Al60® NORTH CHARLESTON PERFORMING ARTS CENTER Charleston/North Charleston, SC 2,268 seats Dave Holscher, General Manager 843.529.5002 dholscher@knology.net www.coliseumpac.com Copromote: Yes Take risk: Yes SAENGER THEATRE Pensacola, FL 1,630 seats Doug Lee, General Manager 850.595.3885 Dlee@ci.pensacola.fl.us www.pensacolasaenger.com Copromote: Yes Take -risk: Yes ' irlfIUt9Ap� TIMES UNION CENTER FOR THE PERFORMING ARTS CHARLOTTE HARBOR CONFERENCE& EVENTS CENTER Jacksonville, FL Moran Theater: 2,979 seats Jacoby Symphony Hall: 1,724 seats Terry Theater: 600 seats Sarah Bartlo, Director 904.633.6191 sbartlo@smgjax.com www.jaxevents.com Copromote: Yes Take risk: No MOBILE CIVIC CENTER THEATER Mobile, AL 1,940 seats Jay Hagerman, General Manager 251.207.7262 jagerman@mobilecivicctr.com www.mobilecivicctr.com Copromote: Yes .Take.risk: No Punta Gorda, FL 1,500 seats Jim Finch, General Manager 941.639.5833 . Jim.Finch@charlottefl.com www.charlotteharbormeetings.com Copromote: Yes Take risk: No RIVERCENTER FOR THE PERFORMING ARTS Baton Rouge, LA 2,000 seats Todd Mitchell, General Manager 225.389.3030 tmitchell@brrivercenter.com www.brrivercenter.com _Copromote: Yes. Take.risk:.Yes SMG THEATER NETWORK j Bob Papke j Vice President, Entertainment — Theaters I 610.729.7907 1 bpapke@smgworld.com 3 4o Proposal for Professional Management of the James L. Knight Center ©2012 SMG S;.CTION 4: P OPOSER'S PROFESSIONAL LYPERIENCE AND IFICATIDNS MUNICIPAL AUDITORIUM OFSHREVEPORT Shreveport, LA 3,007 seats Sam Voisin, General Manager 318.841.4201 svoisin@shreveportcenter.com www.shreveportmunicipalauditorium.com Copromote: Yes Take risk: No AKRON CIVIC THEATRE Akron, OH 2,572 seats Howard Parr, General Manager 330.535.3179 hparr@akroncivic.com www.akroncivic.com Copromote: Yes Take risk: Yes 4 AMERICAN BANK CENTER - SELENA AUDITORIUM Corpus Christi, TX 2,526 seats John Meyer, Director of Convention Center Projects & Special Events • 361.826.4102 johnme@cctexas.com www.americanbankcenter.com Copromote: Yes Take risk: No EVANSVILLE AUDITORIUM AND VICTORY THEATRE Evansville, IN Evansville Auditorium: 2,500 seats Victory Theatre: 1,900 seats Darren Stearns, General Manager 812.435.5770 darren_stearns@smgevansville.com www.smgevansville.com Copromote: Yes Take risk: Yes WAGNER NOEL PERFORMING ARTS CENTER Midland -Odessa, TX Performance Hall: 1,819 seats Greathouse Recital Hall: 200 seats Bob Papke, SMG Corporate Office 610.729.7907 bpapke@smgworld.com www.wagnernoel.com Copromote: Yes Take risk: Yes PEORIA CIVIC CENTER THEATER Peoria, IL 2,127 seats Marc Burnett, Director of Marketing 309.680.3503 mburnett@peoriaciviccenter.com www.peoriaciviccenter.com Copromote:. Yes .Take. risk:. Yes ©2012 SMG Proposal for Professional Management of the James L. Knight Center 41 STEPHENS AUDITORIUM Ames, IA 2,747 seats Mark North, General Manager 515.294.8809 mnorth@iastate.edu www.center.iastate.edu Copromote: Yes Take risk: Yes ARIE CROWN THEATER Chicago, IL 4,249 seats Dulcie Gilmore, Director 312.791.6196 dgilmore@mpea.com www.ariecrown.com Copromote: No Take risk: No ORPHEUM THEATER Sioux Falls, SD 688 seats Terry Torklidson 605.367.7288 terry@sfarena.com orpheum.sfarena.com Copromote: No Take risk: No GENESEE THEATRE Waukegan, IL 2,427 seats .Gary Zabinski, General Manager 847.406.3146 gzabinski@geneseetheatre.com www.geneseetheatre.com Copromote: Yes Take risk: Yes FIVE FLAGS THEATER Dubuque, IA 711 seats Joyce White, General Manager 563.589.4254 jwhite@fiveflagscenter.com www.fiveflagscenter.com Copromote: Yes Take risk: Yes .:FRIENDS OF .THE CORONADO !FOR AUTO USE'ANU SNARE ' CORONADO PERFORMING ARTS CENTER Rockford, IL 2,309 seats Michael Goldberg, Executive Director 815.968.2722 x10 rngoldberg@coronadopac.org www.coronadopac.org Copromote: Yes Take risk: Yes SMG THEATER NETWORK I Bob Papke 1 Vice President, Entertainment — Theaters I 610.729.7907 I bpapke@smgworld.com 5 42 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTWN 4.1.4: PROPOSER'S PROFESSIONAL. EXPERIENCE: AND QUALIFICATIONS DEVOS PERFORMANCE HALL THE THEATER AT THE DOW EVENT CENTER Grand Rapids, MI 2,446 seats Chris Machuta, Director of Finance 616.742.9192 cmachuta@smggr.com www.devosperformancehall.org Copromote: No Take risk: No KIVA AUDITORIUM Albuquerque, NM 2,338 seats Amber Jaramillo, Sales Manager 505.768.4552 ajaramillo@albuquerquecc.com www.albuquerquecc.com/kiva _Copromote: No . .Take.risk:.No 6 Saginaw, MI 2,276 seats Matt Blasy, General Manager 989.759.1325 mattb@doweventcenter.com www.doweventcenter.com Copromote: Yes Take risk: No WELLS FARGO THEATER Denver, CO 5,000 seats Nikki Haddad, Sales Manager 303.228.8061 nhaddad@denverconvention.com www.denverconvention.com ..Copromote: Yes.. _Take_risk:.No ABRAHAM CHAVEZ THEATRE AND PLAZA THEATRE El Paso, TX Chavez Theatre: 2,525 seats Plaza Theatre: 2,049 seats Bryan Crowe, Assistant General Manager 915.534.0667 bcrowe@el pasocvb.com www.elpasocvb.com Copromote: Yes Take risk: No PEERY'S EGYPT►AN THEATER Ogden, UT 855 seats Terri McGhee, Director 801.689.8631 tmchgee@oecenter.com www.peerysegyptiantheater.com Copromote:.Yes .. Take_risk:_No ©2012 SMG Proposal for Professional Management of the James L. Knight Center 43 LONG BEACH PERFORMING ARTS CENTER Long Beach, CA Terrace Theater: 3,051 seats Center Theater: 825 seats Dan Spellens, Director 562.499.7606 Dspellens@longbeachcc.com www.longbeachcc.com Copromote: Yes Take risk: No BOB HOPE THEATRE Stockton, CA 2,049 seats Mike Cera, General Manager 209.373.1400 mcera@stocktonarena.com www.bobhopetheatre.com Copromote: Yes Take risk: Yes RABOBANK THEATER Bakersfield, CA 3,000 seats Ed Dorsey, Director of Booking & Events 661.852.7304 edorsey@rabobankarena.com www.rabobankarena.com Copromote: Yes Take risk:. No FRESNO CONVENTION & ENTERTAINMENT CENTER Fresno, CA Valdez Hall: 3,000 seats Saroyan Theater: 2,349 seats Amanda Banks, Sales Manager 559.445.8166 Amanda.Banks@smgfresno.com www.fresnoconventioncenter.com Copromote: No Take risk: No SMG THEATER NETWORK I Bob Papke 1 Vice President, Entertainment — Theaters 1 610.729.7907 1 bpapke@smgworld.com 7 44 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.1.4: PROPOSERS PROFESSIONAL EXPERIENCE AND QUAt..Ir I CAi IONS 4.1.4. d) Use Subcontractors and Sub -consultants Outsourced Services It is SMG's philosophy to provide complete management services to all its clients, however, there maybe instances during business operations which require the use of a subcontractor to fulfill specific needs or services. It is SMG's practice to address these instances on an as needed basis. All subcontractors will be held to the same impeccable SMG business standards that all of our clients have come to expect. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 45 4.1.4. e) Any other additional information On the pages that follow, we give you a look inside the systems and programs that we have spent a third of a century building. From our diversity and training programs to operations and green initiatives, every aspect of managing public facilities is covered in great detail. We hope you will feel our commitment to the City, the facility and - more importantly — the people who work there and visit as our patrons. • Our Commitment to Diversity • Financial Systems • SMG Operations • Approach to Sustainability • Convention Center Marketing • SMG Live Entertainment Division • Guest Services Training • Advertising and Sponsorship Sales • Experience in Transitioning 46 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.1.4: PkOPOSER'S PROwEES1ONAL EXPEFdENCE AND QUALIFICATIONS SMG's Commitment to Equal Opportunity Employment In all contracts executed by SMG we provide not only all required services to our client, but also are committed to meet/exceed any and all Minority Business Enterprise/ Women Business Enterprise (MBE/WBE) goals/requirements established for and by the client and provide all supporting documentation as required. Our policy regarding equal employment and minority partici- pation is provided below. Equal Employment Opportunity SMG believes in, and is committed to, the principles and practices of equal employment opportunity and nondiscrimination. Employment is based upon personal capabilities and qualifications regardless of race, color, religion, sex, age, national origin, disability, marital status or any other protected characteristic as established by federal law. In addition, we comply with applicable state and local laws governing nondiscrimination in employment in every location in which the company has facilities. This policy applies to all terms and conditions of employment, including but not limited to, recruitment, employment, placement, promotion, termination, layoff, recall, transfer, leave of absence, compensation and training. Specifically: • Employment opportunities arc and shall be open to all qualified applicants solely on the basis of their experience, aptitudes, abilities and training; • Advancement is and shall be based entirely on the individual's achievement, performance, ability, attitude and potential for promotion. • SMG is committed to creating and maintaining a work environment in which all individuals are treated with respect and dignity. Each individual has the right to work in a professional atmosphere that promotes equal employment opportunities and prohibits discriminatory practices, including harassment. Therefore, SMG expects that all relationships among persons in the workplace will be business -like and free of bias, prejudice and harassment. • The Human Resources Department, in compliance with all federal, state and local laws, has overall responsibility for this policy and maintains the reporting and monitoring of procedures. Employees' questions or concerns should be referred to the Human Resources Department. • Appropriate disciplinary action may be taken against any employee willfully violating this policy. As part of SMG's business practice, we-have..developed -an-entire._hand- book dedicated to our initiatives towards inclusion and support of minority, women and small business development. Our Commitment to Diversity ©2012 SMG Proposal for Professional Management of the James L. Knight Center 47 SMG's Equal Opportunity Programs Affirmative Action Recruitment and Training Plan SMG takes affirmative action, consistent with sound policies and applicable law, to ensure that business enterprises owned and controlled by minorities (MBE), and women (WBE) are afforded a maximum feasible opportunity to do business with SMG. We are firmly committed to promoting and advancing the meaningful participation of minority -owned business enterprises and women -owned business enterprises in all venues. SMG has a proven history of minority and women business enterprises in its business activities as joint venture partners, man- agers, employees, subcontractors and vendors in pre -opening, construction and management operations. Some examples of our successes are found further on. SMG recognizes that municipal entities, universities and private companies, like SMG, bear an important and influential responsibility to help improve MBE/WBE representation in the economy on a local and national level. SMG also recognizes that the meaningful inclusion of minority and women -owned and disabled individuals firms is not simply about extending economic opportunity to a few, but about building a foundation to achieve social equity and economic self sufficiency for all. To give credence to its policy of promoting the full participation of MBE/WBEs, SMG enacts a wide array of post -contract award efforts such as extensive and aggressive outreach efforts to the elimination of gratuitous economic barriers (like bonding require- ments where appropriate) that hinder opportunities for minority, women businesses and disabled individuals. SMG is keenly aware that MBE/WBEs not only have to confront problems related to race and gender, but need to address economic obstacles that stand in the way of all small businesses. SMG is confident that its substantial efforts will help minority and women businesses and individuals attain their full measure of entrepreneurial self sufficiency and economic self reliance. 48 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION z.1.4: PROPOSER'S PR OFESG SONAL EXP'ERIENCE AND QUALJi"{CATIONS Equal Employment and Affirmative Action Practices A written statement is the starting point for emphasizing to all employees that SMG;s top management is committed to making and advising all employees that equal employment opportunity is a basic company policy. Employees are provided a copy of this policy both through the HR Policy and Procedure Manual and SMG's Business Conduct Policy. SMG is ;committed to a program of Affirmative Action in accordance with federal guidelines "It is therpolicy of'SMG as an equal opportunity/affirmatiue action employer to recruit,`hire train, and promote individuals in all lob classifications without regard to. race,` color religion, age, sex, national origin disability and veteran status make employment and promotion decisions thatYare consistent with the principle of: equaLemployment opportunity and require only objective qualifications; and insure`that all personnel actions; sueh:as compensation, benefits; transfers, tuition assistance social and recreational ram,',„„ administered without regard to race, color, religion, sex, age national on in disabilit o'r veteran status SMG is firmly committed"`-t business enter ri"ses ovine management ; SMG has a demonstrated history of embracing minorities .an womenfiinzitsbusiness activities;as,joint venture, partners, Managers, employees subcontractors and' vendors SMGrecognizes that government entitiesYand private companie"s IikeSMG, beaGa specie and continuingtresponsibility to make serious efforts to help MBEs and;WBEs' enter the econornic mainstream' SMG also recognizes, tth hat e meaning ful inclusion of minority owned and women owned firms�in the�:facility management operations is not simply about extending econornic� opportunity to a few b14abocif buiId) ng a;foundation toachieve-social equity and economic self sufficiency for alf 5 Ffirmative Action plan`thatwi merit ancl,the use of',MBEIW SMG: is further committed to extend its best efforts to achieve a. maximum practicable leve of MBE/WBE participation in a mannericonsistent with the affirmative action guidelines • of our client(s), and in a manner.thatwill also represent meaningful and substantial participation ©2012 SMG Proposal for Professional Management of the James L. Knight Center 49 In addition to this, we issue a statement that each employee is individually responsible for pursuing a policy of equal employment opportunity and nondiscrimination. This statement is consistently posted in conspicuous places, available to all employees and applicants for employment, notices setting forth State and Federal law provisions prohibiting discrimination in employment and SMG's own policies regarding nondiscrimination, equal employment opportunity and affirmative action. SMG's Equal Employment Officer SMG has appointed Shauna Elvin, Senior Vice President, Human Resources, as its equal opportunity employment officer. This top-ranking SMG executive is responsible for overseeing and implementing SMG's Affirmative Action program. She is empowered to act as a direct liaison with all subcontractors, vendors and employees of SMG, to answer any questions or problems regarding SMG's equal employment opportunity and Affirmative Action efforts, and nondiscrimination obligations. Monitoring & Reporting SMG will monitor and audit all affirmative action activities (nondiscrimination: affirmative action policies; MBE/WBE participation) to identify problems which will enable the speedy undertaking of corrective action measures, to identify cases of under utilization and to devise internal and external remedies to address problems issues (e.g., better and more aggressive recruiting; internal employment goals; review of subcontracting standards and processes; compensation practices; interview and testing process). Recruitment & Training During this contract, SMG maintains contacts with appropriate governmental and non -governmental entities to find qualified minority and women subcontractors, vendors and employees. SMG is committed to ensuring that women and minorities hired by SMG have the opportunity to gain the skills necessary to perform their jobs in a satisfactory manner. We offer an educational assistance programming addition to other in-house designed training programs. Future Employment Practices SMG will follow these principles: o To consistently maintain a work force for the operation in a nondiscriminatory fashion, resulting in a work force that is reflective of the population in the area o Issue a written equal employment policy statement and affirmative action commitment o Publicize, internally and externally, our affirmative action program • Maintain an on -site official with responsibility and authority to implement the program o Identify potential sources of discrimination in: The recruitment process - Selection standards and procedures Promotion and transfer systems - Wage and salary structure Termination and disciplinary policies Develop and implement specific programs to eliminate discriminatory barriers • Establish internal audit and reporting systems to monitor and evaluate progress in each aspect of the program • Develop support of community programs, including cooperation with job -related programs. 5o Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION = i.4: ,PROp'-SSSIONA4 EXPERT- 111-r: AN OLi LI I :ATIONS SMG's Commitment to MBE/WBE Inclusion in Day to Day Operations. Due to our corporate philosophy that in each venue we manage our business is local, we make every effort to work with local firms as suppliers, partners, vendors of our managed properties. In addition, SMG encourages doing business with MBE/ WBE firms. Our track record in this arca exceeds in many cases the milestones set by municipal clients. On average SMG venues expend 10% of all Operating Expenses (including labor and utilities) with MBE/WBE firms. The business lines are also not limited to supplies or services such as building maintenance but also include professional services, marketing firms and the like. A few success stories within the SMG network in the area of MBE/WBE participation are: • Baton Rouge River Center in Baton Rouge, LA which is under no minimum threshold tracks MBE/WBE business at 23% of all operating expenses. • Chicago, II;s Soldier Field maintains more than 25% of its business with MBE firms. • BOK Center in Tulsa, OK spends 18% of its operating budget with MBE/WBE firms, again as a voluntary imposed initiative. Supplier Diversity Activities SMG is dedicated to continuing the establishment and operation of a successful comprehensive supplier diversity -program. We do this by: • Conducting a thorough spend analysis to identify potential areas of opportunities for MBE/WBE suppliers and con- tractors • Developing a template RFP for services contracts that includes specific MBE/WBE language for the respondents • Networking and educating current suppliers/vendors on potential M/WBE opportunities within their current supply chain (Le., paper products, etc.) • Identifying potential M/WBE suppliers that are potential candidates in specific areas within which we currently spend, (i.e., HVAC maintenance, janitorial supplies, electrical supplies, etc.) • Continuing to educate our staff with respect to the supplier inclusion and diversity spending program at the facility. In addition to seeking M/WB'E vendors in categories, we explore creative methods to encourage participation such as breaking up bids into smaller portions that a specific minority business can handle or even pushing them to match the pricing of another company. SMG's overall goal is to integrate not only certified, but also qualified diverse suppliers into our pro- curement process. We understand that due to the unique nature of our business this will be a multi -faceted approach that will require developing and maintaining relationships with various M/WBE suppliers over the next several years. The outcome to our approach will not only help to strengthen the local community in which the facility conducts business, but also provide for a much broader selection of competitively priced goods and services -for -the -facility. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 51 Financial Systems and Support We provide resources in the following areas to ensure timely and accurate financial reporting: • Internal Controls • Risk Management and Insurance • Data Processing • Cash Management • Audit Procedures Event Time and Attendance Tracking We have an industry -customized financial accounting and reporting system. This system is tailored to meet the specific needs of the Facility. It has the ability to meet our mutual reporting needs, as well as, provide information useful in making sound management decisions. We work on a preferred basis with nationally recognized vendors of payroll and time and attendance systems. These relationships exist due to both the high quality of the product provided and the preferential pricing we enjoys as a result of our size. Corporate and Regional Support Our Corporate Center Accounting Team provides support and guidance in all areas of financial administration and works closely with the Center's Finance Department in the development cif: • Yearly Budgets • Purchasing Strategy • Short -Term Investment Strategy • Capital Improvement Planning • Financial Systems/Internal Controls • Comparisons to Budget and Prior Results • Cash Flow Management • Contracts (tenants, subcontractors, etc.) Financial Statements In addition to our participation in the annual audit, and at the discretion of the City, an annual audit by an independent accounting firm, we also maintain audit support in the form of dedicated staff whose only job is to review the financial operations of our facilities in order to find opportunities for improvement. Internal audit reviews are conducted regularly and often unannounced. The reviews will ensure adherence to our and the client's standards regarding all center personnel, operations and third -party contractors. The goal is to review and address all areas tangibly affecting the Center's financial performance and our responsibilities to the client. Our knowledge, resources and flexibility are available to the Facility to meet your unique financial management and reporting needs. Our center -based and corporate finance staffs are dedicated to working with you on an ongoing basis to remain at the forefront of industry financial management practices and systems. 52 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4..1,4: PRO USER'S PROFESSIONAL EXPERIENCE AND QUALIFICATIONS Finance and Administrative Systems and Procedures We accept the highest level of fiduciary responsibility and accountability to the clients we serve. Our ability to meet that standard is unique in the industry. Our Corporate Finance Department provides super- vision and support in all fiscal areas including internal controls, risk management, data processing, audit and cash management. A comprehensive accounting manual created by our financial professionals offers the staff at our facilities a complete set of procedures and policies to be followed. When a facility joins our network, its monthly financial statement is formatted to comply with both the client's requirements and our standards. This ensures that the revenues are collected for each event and enables us to identify weak areas and evaluate changes to•improve performance. A standard payroll system is also imple- mented to make sure that all labor related expenses for a particular event or project are recorded appropriately. Internal audit reviews are conducted annually, often unannounced, and address all areas tangibly affecting the bottom line: box office, concessionaire operations, cash management, payroll, purchasing, etc. These audits examine the facility's operation for opportunities to improve. Our management team, with input from our client and key.corporate administrators, prepareyearly statements of facility objectives, which are then incorporated into fiscal yearly plans encompassing issues such as cash flow management, short-term investment strategies, tax planning and payroll administration. Yearly budgets, including capital improvement requests, are submitted to our governmental partners for review and approval. They contain a condensed income • statement, an event analysis, and a management fee calculation, along with key facts, assumptions, and trend analysis on which the budget was based. We also prepare annual and monthly cash -flow projec- tions so that appropriate funding is obtained. Our Finance Department has established a standardized box office sales report to track sales for ticketed events in the months and weeks before the events. These "flash" reports provide a snapshot of each event and its success, along with monthly cash forecast which allows us to monitor adherence to our policies and procedures for controlling cash to" ensure "maximization of investment earnings: Information regarding cash management and banking pro- cedures is contained in the Finance Department Procedures Manual. It is available upon request. Facility Accounting Systems - Monthly Financial Statement Reports • Financial Highlights: A monthly and YTD executive summary of the income statement for the facility highlighting events and activities significantly impacting the income statement. Compares current year numbers to budget and provides explanations of major variances.. • Balance Sheet: Statement of financial position as of the current month end. • Statement of Cash Flows: Monthly and YTD statement of sources and uses of cash. • Aged Accounts Receivable Listing: Summary of the accounts receivable broken down into aged categories with explanations of items in the 90 day categories. • Facility Statement of Income: Summary income statement reflecting major event income categories and a breakdown of departmental expense totals. • Monthly Event Income: Income broken down by event reflecting major revenue categories for each. ▪ Statement of Services Income: Schedule of revenues billed to clients and associated expenses to the facility measuring effectiveness of the event management staff in the billing of services. • Event Income Statement: Accumulation of expenses and revenues for all events during the year. Identifies individual expense and revenue categories that have significantly changed from budget or from the prior year. Provides information on profitability of all•revenue centers within the events. o YTD Event Summary: Allows the operator to see the total number of events within any specific category and the total event income generated by those categories. o Departmental Income Statement: Detailed listing of expenses by department. Allows the operator to determine if individual department heads are staying within their budget constraints. Indirect Expense Summary: Category 1 includes all expenses related to in-house labor costs. Category 2 is materials and services which breaks out all other expenses. This allows the operator to determine if overall goals for expenses are being met. Annual Reports: Includes the budget, financial statement, cash flow forecast, marketing/capital improvement/ repairs and maintenance plans. The Budget serves as the primary document for setting financial management goals and objectives for the fiscal year. It also _provides the Center with a forecast of cash requirements for the facility. This document is put together with input from all departments with the objective of identifying all sources of revenues and expenses. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 53 Facility Annual Report: Provides the Facility with an accounting of the activities of the facility for the prior year as well as a brief preview of the year to come. This report will typically include sections related to meeting such goals as local management involvement with com- munity organizations. Annual reports typically include the annual reports listed in the paragraph above. Budget Overview We view the budgeting process as an important tool for overall facility management. We will work closely with the City to develop a specific budget plan for the Center. Furthermore, we will adhere very closely to the City's policies and procedures with regard to the budget for the Facility as well as seeking the most competitive bids for goods and services. In developing the budget for the Facility, we strive to always include: • The City's goals for the venue • The impact of SMG's experience and programs SMG's knowledge of the industry and it's impact • The dynamics of the local market The end result of our process is a specific, targeted budget plan for the Facility that incorporates all of the above. The Budget Package is Flexible Our facilities have budget packages ranging in size from 1 to 200.pages, demonstrating the.flexibility. and customization implemented at the request of our clients worldwide. This flexibility will ensure the City receives the information at the level desired. The Budget Process Developing a budget requires fact gathering, analysis and judgment. Some information is obtained from actual expe- rience, some by inquiry and some by intelligent assumption. The Director of Finance is responsible for the information collection and works with the General Manager, all department heads and SMG Corporate staff. The following outlines the basic information compiled for the budget: • Event Programming - event types and attendance • Event Related Income: Rental and Services Income Food and Beverage Income Novelty Income Other Income (Interest, Sponsorships, Ticket Incentives & Other) • Expenses: 01 01 Salaries Administrative Wages - maintenance, custodial, security, event coordinators, etc. Part-time Wages Payroll taxes Employee Benefits Repair and Maintenance Utility Expenses Venue Marketing and Advertising Liability Insurance 54 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION' 4.1. : PROPOSE 2'S PROF TONAL EXPERIENCE. a QUALIFICATIONS SMG Operations Introduction: SMG is the only private management firm of public assembly facilities to provide a professional asset management approach to day to day venue operations. SMG has achieved this by establishing policies and procedures specific yet flexible for each facility through a dedicated corporate department. SMG accounts are provided support through resources and technology to meet their clearly defined expectations. A system of measuring compliance is then used to gauge results. The entire system is then reviewed to ensure continual improvement. The SMG Operations discipline is based on the foliowina core elements: • Identifying best methods, techniques and processes to ensure: Compliance rr, Efficiency Safety Optimal performance Longevity of equipment • Communication & Resources focusing on achieving established, quantifiable goals • Measuring/Accountability going forward to ensure continued'perforrnanceand improvement • Professional development of staff Best Practices SMG's Best Practices Program is the culmination of the hard work and efforts of many SMG operators combined with industry knowledge and information from easy -to -access industry information resources. SMG's vast experience is used to author these Best Practices which form the cornerstones of the operational excellence found throughout the SMG network. Best Practices are the first of four core operations elements described here. Summary of reas of Focus for Policies and Procedures: • Capital Plan • Emergency Procedures • Electrical Systems Environmental Initiatives • Fire / Life Safety • Hazardous Materials • HVAC • Janitorial • Maintenance Administration • Material Handling / Storage • Plumbing • Rigging / Fall Arrest • Security • Sports Surfaces • Technical Services • Vertical Transportation �••W- r -- 5MG OPERATIONS - BEST PRACTICES PROGRAM 1.11 VERTICAL TRANSPORTATION V1. Establish procedures to assure the 159150t level of performance and safety while maintaining egsoprment consistent with SMG Best Practices. 2. Third Pam Maln[enance C mratmi 3. Manufacturer Representative 9. 5MG Maintenansr SUMMARY SMG venues must maintain assets, building systems, prysol plant, equipment, etc. to a manner comstenl wM professional asset management All SMG venues will adhere to the following as minimum . standards. ACTION PLAN 1. All Vem01 Transport equipment (such as: seva[rs, esileon, dumbwaiters, Mc.) must be manmmed through a third party osntra1ar certified by original manufacturer to perform Semce and maintenance on said equipment 2. At no awe wlp SMG personnel perform adiustmar6 or maintenance an Vertical Transport equipment or attempt to resolve entrapments. 3. Vertical Transport equipment must be maintained as per manutach rests recommendations. 9. All maintenance procedures must be included and tracked in $/a.ENIO PILAII5R pm9ram. 5. Annual inspections and safety Mt most be administered in accordance to Nei AM1. • b. ADA, local, State codes must be followed with regards to swage, access, etc 7. HP'», b01, Suite mow must be observed during events and/or periods of -independent Use.' 8. Equipment Rooms must be kept dean and free or debris and stored Items and be well'rnarked. 9. Vertical 1mnsportequipment opemtkn and appearance must be inspected by 5MG Malay Mg and documented with any lnes e9ularrocommunicated to maintenance contractor. Sample G 1Jim5 are available on the SMG Operations wehsae. 10. Refer to Appendix A (below) for Sample Scope of Work Maintenance Contractor ADOITIONAL INFORMATION • ANSUASME A17.1-.4 Safety Code for Elevators, Dumbwaiters, Escamtors and MovIng Walks ✓ ANSI 117.1 Barrier free elevator access ✓ ADA Americans rah Disabilities Act r' NFPA.101 UM Safety Code" ✓ NFPA 70 National Electric Cede DISCLAIMER In an effort to provide a certain degree of cons/whey and coverage eta regards to SMG's operational a,tnees at ea of Its venues, these Best fa mites have been developed for your use. These Shoed not be cons -kcal to provide in every instance complete coverage nor shoe Btese Popeseoe City, CcoMY, Sate. Federal or Manufacture rep/cements as appeoble. 1.11 SEE APPENDIX A — SAMPLE SCOPE OF WORK MAINTENANCE CONTRACTOR END OF SECTION Verbal Transportation 081709 l a/ 1 SMG All Rights Reserved Confidential ©2012 SMG Proposal for Professional Management of the James L. Knight Center 55 OSCAR - Operations Support through Communications and Resources The platform we have developed to facilitate dissemination of our knowledge -base is our internal, proprietary OSCAR program (Operations Support through Communications and Resources), this website is designed to be constantly revised, modified and adapted to meet the ever -changing needs of our venues. Using the wealth of knowledge and resources available only to SMG, OSCAR offers the industry's deepest base of resources for venue operators. OSCAR disseminates clear guidelines for operations, delivers preferred goods and services to SMG venues and responds to the needs of those venues. Com- municating through OSCAR is the second core component of SMG's operations program. Here all SMG produced Best Practices reside along with cut sheets, vendor provided product information, sample templates, contracts, etc., that all provide direction to the individual venues on how to enact these vital processes. tn. page a!bws the OPt We,site m serve es the daffy port* pope for all SMG Operations Personnel. addltionaf UK. to commonly used ld/r pLm wi'I be edced to ensure toe Dot %f Weoslte continues to serve t e needs or d Its users. Best Practices are based on our extensive expertise across the SMG network 4044,4 «etxM r+sow kf ?H/Ni/jsraa LAVIREISCEd fas- Quick view of5MG'Dps News Blasts 'Headline Ticker with Items of Interest d u t'rEwa/, isf� Site Navigation Preferred Vendor Accessible through Click. Through Licks 731, Ability to ask auestions, scorch FAQ archive, etc. 445 56 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 41.4: PROPOSER'S PROFESSIONAL EXPERIENCE AND QUA _I:HC,ATIONS Ask OSCAR SMG'_, Interac:.Iye educational component. Questions to "Ask OSCAR" are routed to a group of SMG veterans in numerous locations, venue types, etc. who post a response in line with SMG Best Practices. Responses are then posted and stored in an archive for future research. Archives are searchable by subject, keywords, etc. SICO launches new mobile buffet stations =Hom rVendor Directory Resources h • Venue lntormation' F.SMGiOpSitilews Links Sury PRG Master Services Agreement witivKONEOtis and ThyssenKrupa e OSCAR stands: ar Operations' Support throug6Comm' )efferyBarnes: Is It a requirement to Load Bank Test the Emergency Generators every year or will a ( 4/29/2010) Building Load Test he adequate? MichaelGodoy: National Electric Code (NEC) Article 708 and National Fire Protection Association (NFPA) 110 provide (S11112010) specific requirements for Emergency and Standby Power Systems. It is SMG's Best Practice to engage a third party firm certified by the emergency generator (EG) manufacturer to perform the required testing, repairs and preventative maintenance on EG equipment Specific to the question; using the building as the load during a test of the EG will provide the scope of load or which services within the building are served by the EG in the case of power outage. However the NEC/NEPA codes may require a higher threshold (Load) relative to the buildings Class designation and/or Level. Reference sties for more information are: http?iwww.rrka.org/aboutthecodestAbbutThbCodes.asts DoCNum=1 I0&cookie test.' http:ilwww.kraftpower.comlpdfs/KPC Info id NFPAII0.odf fit_tp://otissmeworld.com/Documents\DocumentLibrary1106i!.3.1 Electrical Emergency Generator GE Industrial.pdf fry 2009 SMG, All rights reserved. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 57 Measurement and Accountability - Facility iM,:aintenance Though SMG Maintenance Measurement and accountability are intrinsic to SMG oper- ating standards. Whether using technological tools such as SMG's proprietary computerized maintenance management program or physical venue audits by regional Operations personnel, compliance is trusted but verified. SMG worked for several years with a leading software firm to develop SMG Maintenance, the only program of its kind in our industry. SMG Maintenance offers the best real time preventative maintenance and work order tracking program available. It is 100% customizable not only to the specialized equipment in sports, entertainment and public assembly facilities but also around the unpredictable schedules by which these venues operate. Through the implementation of SMG Maintenance, SMG's preventive maintenance software, the operation of the facility equipment and plant systems will continue to be maintained at the highest standards. The guidelines address: o Furniture, Fixtures and Equipment • Life Safety Systems • Building Features and Structural Systems • Waste Disposal ▪ HVAC/Refrigeration Systems • General Maintenance o Mechanical, Electrical and Plumbing • Fire Protection Systems il>aetae 7a Mainfananao o,a.ml cuus :.Rarenthro Ezry +mil erwe itodocs. Eve dtttl1 ............... SM4 Other areas to be included: • Roof Inspections Elevators and Escalators • Exterior Cleaning • Exit/Entrance Doors • Fire Sprinkler • Expansion Joints • Exterior Irrigation Each department (electrical, plumbing, HVAC, etc.) is responsible for providing a summary of all preventative maintenance tasks completed within a monthly cycle. These summaries include both completed and non -completed tasks or work orders which are then complied into a Monthly Maintenance Report. Copies of the report is distributed to the General Manager, Director of Operations, and the appropriate representatives of the City. Gt 00 w.M.m. Imw c.rr i ale, lnurmalcr GanOn1.11 Wary war or will • v::,lest �..4,StreLa ELM ,a e0> Mineral ark,. Cade lNEC)Am NB ay I0 .& . v.am,aem.m.MI.N In p.m."l,n „O.q rne4 mw....c,b,e+r,kr ee„o.Wroot Syste. ,.a.m mos.%.o" ..,m.a d.eu.,. a. En.....ee...o,.dd, or ...a-neesxishin Tn• tuak, an, Mend ey EL 33 the cut Own, ware astignamn Menem slues be.. Mane. art ,pr=1 iris „ r,r«.IItr The Operations Intranet Website has been designed to integrate seamlessly with SMG's proprietary, computerized SMG Maintenance Management System. En.V.ent ydie t+n oree -.._.. ..... .......— keylon. nn-t:1 S'ie. ::as+o-eot timer, ;- -i-1 ony r... <.wa-..�-1 naignromiohn tre:ma �C'B .Date iypeu:utpeea:. t'iJ from oaln:'—' -, .7o oaln:anvilolo _7 aul nr, S[6W+Catt'La0, osored ...-. •E:`j Stat0, :..AIE.... ..:1CJ .ri'O1VUa. AI .. ..... ..... ..:;q vnorrt:•'. Ai ... .......i 'J (OStte2EN:--.-q _....-........ ....-y;'t .. - .••- Ai-+-Rl L CAI .... 'J_$Yb toe AI }- Pso01 :Eculprlen[::NI _."+lf } rd HVAC .-.w:.Lwnmab CeN!�I nS "- r rJ J -.- rl ]a. mxneu,.t 1Lf2010 : allai 20IC aer.]'.tea Jei: SV : pt a a w vae• Irt �NerduaU :-gym 58 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION `. , : PROPOSERS FESSIONAL EXPERIENCE. AND QUALIFICATIONS Venue Audits Measurement and Accountability verified through physical venue audits are per- formed to ensure compliance with Corporate Best Practices. SMG's network of regional operations personnel conduct venue audits using the SMG audit template which has evolved and continues to improve with each audit conducted. Focus is on the adherence to Best Practices and providing a pathway towards meeting goals. Private Management tar Public facilities AUDIT REPORT Venue WTC Print Date 11/29/07 Prepared By: David Aldana & Michael Godov Item Reviewed Item Category Priority Substation Electrical Moderate Inspected By D. Aldana & M. Godoy Inspection Date October 29 & 30, 2007 FINDINGS Power supplied to WTC is a total of 4,000 KVA to a Substation located on the 2nd floor. Two (2) 2,000 KVA transformers step down this service. COMMENTS / RECOMMENDATION Recommend infrared scans of electrical system due to age. Implement R&M findings of such an exercise in the formal PM program of the Center. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 59 SMG's Approach to Sustainable (Green) Facility Programs SMG recognizes that events today are not only capable of bringing together people and ideas, but can also work to increase our collective social responsibility. By remaining mindful of our impact on the environment and community, we believe events can be produced without leaving a negative footprint. With an eye on the future, SMG-managed venues are taking action to provide energy efficiency, ecological and environmentally -friendly programs. The focuses of these Best Practices are as follows: • • Commitment and Awareness Energy Efficiency Solid Waste Management Water and Air Quality Water Conservation Environmental Procurement Goal " Establish a document that details the individual programs needed to address a comprehensive, all -encompassing Sustainability Program. Each program or plan, while standing on its own merits and importance, contributes to the Sustainability Program as a whole and strive to adhere to industry standards of what constitutes a "green meeting venue." Resources • 1. Best Practices narrative • 2. SMG SustainabilityTask Checklist • 3. Department Operating and Training Policies and Procedures • 4. Human Resources Manual, staff policy • 5. APEX Green Meeting Venue Standards • 6. LEED Existing Building: Operation and Maintenance Summary Best Practices: The Sustainability Best Practices for SMG arc intended to increase the efficiency of the facility while addressing areas of environmental impact. Benefits of implementing these BP's include but are not limited to, operational cost savings, increased operational efficiency, reduced impact on envi- ronment and resources, positive marketing opportunities and positioning, positive reputation in community, and increase in employee retention and pride. The BP's are categorically defined to adhere to those addressed in the Accepted Practices Exchange (APEX) Green Meeting Standards for Meeting Venues and Leadership in Environmental Energy and Design (LEED) standards. LEARDERSHIP.IN ENERGY & ENVIRONMENTAL DESIGN 6o Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION .1,4: PROPOSER:'S P ONAL EXPERIENCE AND QUALIFICATIONS Recognition for SMG's Environmental Conservation Efforts Salt Palace Rooftop Solar Panel Array We have 11.319 new reasons to meet in Salt Lake with the nations largest rooftop solar panel array coming to the Salt Palau, Convention Center. And solar power isn't the only way to reduce your environmental impact when you hove a green meeting in Solt take. In addition to our carbon elicit ',rewash, most of the local hotels offer a variety of green programs and options for your meeting too. Submit your RPP and find out more about how Salt Lake Is Green by Nature. When the installation protect is complete the 2.62 megawatt installation on top of the Salt Palace Convention Center will: • be the largest rooftop eater installation in the United Stales (Current leader: FO1Ex Building, Woodbridge, NJ 2.42 MW, 2010) • offset almost quarter of Salt Palace's electricity consumption, enough to power 261 homes for a year • reduce the environmental impact similar to:. • avoiding the omission of 4,749,040 pounds of carbon dioxide each year o not driving 412 cars each year not burning 242,350 gallons of gasoline each year • cover 600,00D square f act, larger than the size of six football fields As port of an ongoing commiltment to protect, restore, and preserve natural resources Salt lake County and its project partners — Bella Energy, Energy Technology Solutions, and the Calvin L Rampton Salt Palace Convention Center announced in September 2010 the construction of ono of the largest real -top solar panel installations in the United State The estimated 600,000 square -foot system will be built atop the Calvin L Rampton Salt Palace Convention Center. When completed, the system may produce up to 2.6 megawatts of electricity, nne.quarter of the annual needs of the convention center. This installation is a big step toward achieving Salt Lake County Mayor Peter Conaon's goal to install a total of 10 megawatts of solar power on as many county -owned facilities as possible. 'This solar project is exactly what we need in Salt Lake County,' said Mayor Corroan.'It will help keep our air clean but won't hurt our pocketbooks... It will nave money, generate clean energy, anti serve as an ample of the serer possibilities in Utah. Our environment will benefit from clean, renewable energy sources, and this Installation is but a down payment an the promise to improve our air quality along the Wasatch front' The solar panel array Is a•publlc-private partnership, and will utilize a Power Purchase Agreement (PPA) financing model. Salt Lake County will partner with Bella Energy, which will build the system, and Energy Technglogy Solutions, which will own, operate and maintain the system, Providing power to the county at a fixed rate. The pro;dct win also employ public and private capital, Federal gran., and public/private subsidized bonds that work in canted through the federal stimulus package. Salt Lake County has worked with Rock/ Mountain Power to maximize the productivity of the solar instillation, a relationship which is key to the projects success. 'Rocky Mountain Power congratulates Salt Lake County on the announcement of the Salt Palace solar power project; said Rocky Mountain Power President Richard W alje.'As a national leader in the production of renewable electricity, we look forward to continuing our partnership with the county. We lank forward to learning from the county`s experience as it builds and operates this landmark protect.' BUSNESS COUNCIL ON CLIMATE CHANGE This Certificate of Recognition is given to Catering by SWIG for leadership and participation in the Business Council on Climate Change In appreciation for your com.rni(ment to the Principles on • Climate Leadershil LEEDing the Revolution BY HEIDI GENOIST .it's not easy building.an environmentally .sound convention center from the:ground up. Just ask Rafael Vintily Architects or Brayman Construction, designer and general contractor of Pit.ts- burgh's:David L.iLawrence Convention Center, the first to earn a LEER gold rating — albeit with some challenges. So, just -imagine what -it's like:trying.to.takc.an.existingbuild- ing, constructed back in the days of small Windows, big boilers and a seemingly: endless supply of cheap energy, and turning it into a sleek, 21.st.century green ,machine. But that's not stopping a few from trying. The Dallas Convention Center, Houstons George.R. Brown Convention Center and Atlanta's SPECIAL FOCUS GREENING THE TRADESHOW INDUSTRY Georgia World .Congress Center are three existing facilities that have begun the process of obtaining theirLEEI) certification. As the exhibition industry becomes more environmentally conscious,-there.will-likely-bemore facilities.retrofitted.than.built green. That's why, for this:inaugural green issue,.TSW asked Dal- las, Houston and Atlanta to share what they're going through. Any- body about to jump on the LEER bandwagon — and, for that mat- ter, .anybody still pretending the need to go green is a.sham — should take note. (Go ro p. 21) David L. Lawrence Convention Center ©2012 SMG Proposal for Professional Management of the James L. Knight Center 61 David L. Lawrence Convention Center Program Description gl comes naturally at the David L. Lawrence Convention Center (DLCC). Located in downtown Pittsburgh, the DLCC is the first "green" convention center in the world, and the only meeting venue to be awarded the Gold LEED® Certification by the US Green Building Council. Built Green; Working Green, Everyday! Green is more than the way we are built-- it is the way we operate. Because we are in the business of events, conventions, meetings, and shows, we handle a large volume of materials and work to transform space into a special event. Every day, our staff thinks g1(greer f rst) by considering green alternatives. Recycling: Collecting materials that are being deposed of and giving the materials to companies that turn them into usable raw product. We recycle the traditional items —plastics, aluminum, glass, cardboard, all paper, wood and the not -so traditional items — light bulbs, batteries, water and food. Reducing: Using water cambros in meeting areas to reduce the bottled water usage, planning menus through the "Buy Fresh, Buy Local" food program, setting and monitoring hours of building operations such as lighting, escalators, by the event schedule, growing vegetables and. herbs on the Center's rooftop terrace. Reusing: Operating our own grey water reclamation plant, using natural fresh air to cool the building, purchasing environmental friendly office supplies. For a facility to become and remain established in "green" practices, everyone plays a key role —including event planners, decorators, contractors and attendees. Each are encouraged to respect the environment and provide a helping hand while in the DLCC. To recognize visitors and attendees who provide a helping hand, the DLCC established g1 buttons. When visiting the Center, attendees are encouraged to engage in green practices. If a member of the gl patrol, the DLCC staff member, witnesses you being green, you could be rewarded with a gl button! 62 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 1.4: PROPOS "'z, PROFESSIONAL EXPERIENCE AND QUALIFICATIONS For Immediate Release October 13, 2008 Contact: Mark Leahy 412/325-6150 David L. Lawrence Convention Center Turns Trash Into Tokens of Awareness The David L. Lawrence Convention Center, the first "green" convention center in the world and the only meeting venue to be awarded the Gold LEED Certification by the U.S. Green Building Council, is turning trash into tokens of environmental consciousness. The g1 (green first) Program rewards visitors for doing their part to keep the building green. Visitors to the Center have always been encouraged to use convenient recycling containers throughout the facility for disposing of trash. But now, when members of the g1 patrol observe visitors using the proper containers, they will be rewarded with g1 buttons for being environmentally conscious. "Green is more than the way we are built — it is the way we operate day-to-day," explains -Mark -Leahy, generalrrtanager-of the .David , Lawrence Convention -Center. "We take our commitment to the environment very seriously, and encourage everyone who uses the building — event planners, decorators, exhibitors, contractors and attendees — to act environmentally and observe our green practices. The g1 program will recognize people who are observed adhering to our 'green practices. - The g1 buttons, which are destined to be "must -haves" among building visitors, are made from recycled bottle caps that are supplied by the Convention Center's caterer, Levy Restaurants. The bottle caps, which were used at events at the Center, are flattened. Then, the g1 logo is placed in the center of the cap and a small magnet is placed on the reverse side to enable the g1 message to be displayed as a lapel button. "It would be great to see everyone who uses or visits the Center wearing a g1 button," says Mr. Leahy. "It is our hope that recycling becomes second nature among our -visitors and that awareness in our green practices is raised." For complete-details-about-the-g1program,,-visit-www,greenfirat.us. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 63 Achieving LEED Certifications LEED-Certified'SMG-ivlanaged Buildings Gold Certified • CONSOL Energy Center (Pittsburgh, PA) - GOLD LEED Certified • David L. Lawrence Convention Center (Pittsburgh, PA) - GOLD LEED Certified • Huntington Center (Toledo, OH) - GOLD LEED Certified Silver Certified • Salt Palace Convention Center (Salt Palace, UT) - SILVER LEED Certified • ShoWare Center (Kent, WA) - SILVER LEED Cer- tified • Wilmington Convention Center (Wilmington, NC) - SILVER LEED Certified ' Jekyll Island Convention Center (Jekyll Island, GA) - SILVER LEED Certified ' Broward County Convention Center (Ft. Lauderdale, FL) - SILVER LEED Certified • K-Rock Centre (Kingston, ON) - SILVER LEED Certified SMG-Managed Facilities in process of obtaining LEED Certification ' Colorado Convention Center (Denver, CO) • Soldier Field (Chicago, IL) • Jackson Convention Complex (Jackson, MS • Knoxville Convention Center (Knoxville, TN) • Rhode Island Convention Center (Providence, RI) • Dunkin' Donuts Center (Providence, RI) (Mai, a (,NVW.l ma;Lr.TAA DV. 1+: 64 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.1.4: PROPOSER'S PRO CSS1ONA_ EXPEPfl NCE AND QUALIFICATIONS Convention Center Marketing Division Through our Convention and Exhibition Marketing Division, SMG provides a unique package of corporate sales, marketing arid promotional support"to: all`SMG-managed facilities to enhance the image of facilities within the marketplace and generate event activity for the venue and the community. SMG's Exclusive integrated Sales and Marketing Programs Marketing and promoting a facility doesn't just happen on a local level, but on a national level as well. That is where SMG's broad base of experienced personnel and extensive com- munication network really come into play. We know venues, audiences, industries, and we know marketing. The other thing we know how to do is'bring all that experience together and make it work locally. SMG's corporate and regional offices will provide added value to the Facility and the region in a variety of ways. The following details corporate driven strategies and new booking techniques designed to supplement and enhance the on -site sales and marketing approach. Features of SMG's corporate programs include specifically how the corporate office generates or initiates: • New, qualified convention and association business leads to pursue. • Utilize corporate contacts and sister facilities to uncover and target touring show opportunities. • Media placements as part of the SMG National Adver- tising Program. Destination Marketing and Sales Support • SMG supports and enhances the efforts of our clients and the local CVBs to attract and market meetings, conferences, trade shows, sport tournaments, and special events/festivals for the venue and the community. • SMG has a track record of success in attracting world - class events, partnering with other clients in similar markets and venues. • We provide the CVB with access to resources and opportunities unmatched by any other firm. This includes lead generation, telemarketing and sales programs, promotional exposure opportunities and existing client relationships. Focus Sales Focus A Direct Approach • Focus on national sales support and developing "brand" messages through industry activities, collateral and public relations. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 65 • Ongoing emphasis on direct client relationships, presen- tations and deal -brokering aimed at soliciting events for the Facility. • SMG solicits and negotiates any agreements (standard agreements, preferred provider agreements, etc.) to facilitate booking SMG venues first. • Create cooperative opportunities for reinforcing the "corporate sales support" to our client cities. • Assist regionally and locally with targeted direct sales efforts based on database marketing prospect lists. SMG National Sales/Marketing Support SMG Means Leads and Access to Information One of the keys to successful selling is lead generation. SMG has developed a unique approach to database research with a proprietary database incorporating more. than 200,000 customers and events from both internal and external sources. This database generates qualified leads for each SMG- managed facility. These prospects are drawn from competitive markets and a historical database, and cover short and long term objectives of the Facility. National Sales Plan for Meetings and Conventions Our corporate office has created introduction and direct selling opportunities for all,facilittes in our network through "Face -to -Face Expos," wherein facility staff meet with and expose their venues to major show managers. These opportunities will include on -site presentations at corporate headquarters as well as "co-op" participation in national sales events sponsored or coordinated by SMG. SMG National Advertising The "branding" message and inclusion of the Facility in SMG's national network of facilities is integral to the ongoing marketing effort. SMG's Integrated Sales and Marketing Plan The following text provides an overview of SMG's approach to integrating its corporate -based and national programs to its individual properties. SMG employs a multi -layered approach to the sales and marketing of its venues. SMG's sales effort focuses on industry distribution channels, to which we have unique access. These include interacting with trade show organizers, special event promoters, consumer show producers and entertainment promoters. Sales Programs Our Processes • Client Relationships — national contracts and constant` communication with the major players • Trade Show Co-ops'— our national sales exhibits and sponsorships are highly visible at 10-12 events each,year, plus in -office presentations to multi -management films. These events are open to SMG facility sales staff and our CVB partners! • Advertising Co-Ops — more exposure for the Facility at fractional cost • SITEPAS lead referral system — we send leads on a regular basis both from our national sales office and between facilities, referring events that rotate from year to year • Marketing Plan — on both a national and local level, we are focused on sales activities that complement the local CVB, and leverage our relationships and buying power • Signature "Tele-Blitz" events using proprietary database • SMG National Sales: SMG is the only firm involved with the management and marketing of convention and conference centers that offers personal and ongoing sales relationships with trade show organizers and convention planners. Our People • National Sales Office: Regional Sales Directors — six team leaders around the -US k'nekt Sales Training — ongoing advanced training, focusing on current trends and technology, and open to CVB partners 01 National Sales Meetings — annual face to face event, inclusive of key national clients ,„ Recognition — our management teams consistently are recognized for achieving the best in convention center sales, service and industry participation • Corporate Initiated Telemarketing Events: Using our. proprietay database, our corporate sales coordinator will work with a specific region of SMG venues to contact prospects who fit the profile of the venues and markets and create an environment for our multi -unit clients to book more readily, and more often. National agree- ments with large meetings and trade show management companies have created contract templates which expedite the booking and negotiating process. We focus our attention on companies that manage multiple events, matching their destination preferences with SMG facilities and services for the benefit of our entire network of venues. 66 Proposal for Professional Management of the James L. Knight Center ©2012 SMG CTION 1.1.4: PROPU;ER'S PROFESSIONAL EXPERIENC A.Ni.i QUALIFICATIONS • Preferred client relationships: put all SMG venues on a higher priority status with firms such as: Experient (formerly Conferon) Conference Direct ,,; Microsoft Nielsen Media (formerly VNU Expositions) ' Toll Free Sales Hotline: Show managers appreciate the ability to "shop" date availability and proposals through a centralized national sales hotline. Our advertising theme is "68 Event Venues...1 Number to call: 1-866-BOOK- SMG." Our Partnerships • CVBs/ DMOs — SMG is a proud partner (and some- times sub -contractor) to almost 50 destination marketing organizations across the United States. We are members of DMAI, and have supported the DMAI/IAAM White Paper. • Hotel brands — We work with all hotel brands in all size markets. • Local Partners — as successful as we have been these past 33 years, we still see the value in local partnerships. It ensures that we truly appreciate the needs of the com- munity, and can incorporate local strengths. ' Industry Association Presence — no brand or individual sales executives are more prominent in the industry than SMG. Marketing Programs • National Trade Advertising: As a continuing part of our "branding program,`SMG'places co-op advertisements in trade publications giving exposure to all of our venues. Often this includes "opt -in" advertising at greatly reduced rates. • Industry Media Campaigns: As a result of our visibility and reputation within the industry, SMG can leverage "advertorial" and other free publicity opportunities in the trade press for all of our venues. Additionally, we are often called upon for comment on industry issues, allowing us to incorporate specific venues and staff into the text. • SISO Member Affinity Program: The Society of Inde- pendent -Show Organizers -is made-up of an elite -group -of "for profit" trade show managers. The 200 member firms are collectively responsible for more than 3,000 events per year. Recognizing the synergy of events and venues under such focused control, SISO and SMG have established a program offering incentives and benefits to members for hosting events at SMG venues. n outline of our Na-0.041.Salesand Marked rogramsus as follows °xs Trade Show Participation and Sponsorshi To11 Free,Sales Hotline 1' 866 BOOK S' Corporate Initiated Telemarketing Event zit"`a Preferred Client Relations) ips National�Trade Aclvertlstrig SISO Member Affinity>Program x r GREATER COLUMBUS CONVENTION CENTER & ARAMARK JOIN EXPERIENCE COLUMBUS AND 18 HOTELS IN SALES BLITZ THIS WEEK Sales teams from the SMG-managed Greater Columbus Convention Center and ARAMARK, the facility's exclusive caterer, will join representatives from Experience Columbus and 18 local hotels in a sales blitz on March 23 and March 24. The sales blitz is designed to promote booking events at the Convention Center, accompanying hotel stays, and experiencing Columbus as a destination. "Our combined sales teams intend to make 2,000 calls to generate leads'for booking events at -our newly°renovated Convention Center, room nights for our hotel partners, and promote Columbus as an attractive, affordable destination," explained SMG Regional General Manager Craig M. Liston. "As an SMG-managed facility, our specialized database provides us with the opportunity to personally contact our target audience with the goal of generating both short-term and long-term business for our facility and the hospitality community." The sales blitz will occur at the following times in a 12-person telephone call center established for the event in the Convention Center's A-102 meeting room: • Tuesday, March 23 from 9:30 a.m. to noon • Tuesday, March 23 from 1:45 p.m. to 5 p.m. • Wednesday, March 24 from 9 a.m. to noon • Wednesday, March 24 from 1:30 p.m. to 4 p.m. Drawings for special prizes, including a Nintendo Wii Gaming System, Apple gift card and Global Positioning System (GPS), will involve all the participating respondents. "Other SMG facilities have reaped great rewards by gathering the hospitality community to contact meeting planners and promote what we have to offer event planners and their guests," Liston said. "For example, earlier this year our facility opened the $40 million renovation of Battelle Grand as the largest ballroom in Ohio.- Later -this year, we're -looking -forward to:the ground--• breaking for the new 532-room Hilton convention hotel opening in 2012, which will be another welcome amenity for convention delegates." ©2012 SMG Proposal for Professional Management of the James L. Knight Center 67 Maximum Value, Minimum Cost In a recent 18 month period, we estimate that SMG's corporate office generated more than S300,000 of "value- added" exposure and direct savings opportunities to each of its convention centers as detailed below: Co -Op & Ad Options SMG National Sales & Marketing Co-operative Program Opportunities, Value and Cost to Participate (if any) Value Cost Experient Envision IAEE MPI NACS CESSE SISO SISO TEAMS MDI EXPO Magazine Tradeshow Executive Database Access Tele-marketing Co-op All Publications Internet Promotion Sponsorship and booth at private trade show for Experient's 300 planners "SMGworld @ EXPO! EXPO! Tradeshow SMG National Sales Meeting with National Clients 20% Discount on membership dues (avergage savings) World Education Congress Diamond Sponsorship and national sales booth Annual "NACS Nite Out with SMG" Sponsorship and booth for 100 top consumer show producers SMG is Internet Cafe Sponsor; Ineraction feature for sales execs SISO: Affinity program gives incentives and benefits for members to book each SMG center; Members are the top 200 for profit trade show firms in the country. Includes links directly from www.siso.org. SISO: Co -opportunity at bi-annual forums National Sponsorship, tradeshow and client appointments for competitive event planners Database Sort for Highly Qualified Top 200 Prospects for Venue Corporate Discount for Advertising in Expo Magazine (est. based on 3 insertions) SMG Guide to Consumer Shows Year -long "Family Tree" package including (2) ads, web site flash box, Gold Gala 100 "World's Top Convention Centers" Issue (full page, 4-color ad) $ 26,000 $ 2,900 $ 54,000 $ 1,100 $ 440 $ 352 $ 100,000 $ 2,500 $ 15,000 $ 1,700 $ 15,000 2500 $ 20,000 $ - $ 30,000 $ 11,000 $ 30,000 $ 2,500 $ 3,000 $ - $ 12,000 $ 9,750 $ 4,890 $ 3,400 $ 10,700 $ 1,750 $ 5,276 $ 3,223 Access to proprietary database.of all SMG national accounts $ 25,000 $ 1,000 Participation in ongoing national telemarketing service by SMG's provider $ 36,000 $ 11,400 National Branding Ads/Inserts NO COST to venues. $ 30,000 $ - Listings and links to inidividual facility web sites from www.smgworld.com. $ 5,000 $ Total Value vs. Total Cost $ 361,306 $ 52,125 Total Savings Opportunity Afforded/"Value Added" $ 309,181 68 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 414: PROPOSE R'S PROFESSIONAL EXPE I=NCr AND QUA r"lC'ATlO NS SMG Beats the Competition to Competitive Events We have seen great success in our early partnership with the TEAMS Conference, produced by Sports Travel Magazine. This annual conference and trade show brings together the rights holders of competitive events. Given the parameters of the destination and the Knight Center, we feel a strong focus should be on the following market segments: Corporate Meetings: The Corporate meetings market encompasses the following categories: • Sales Meetings • Shareholder's Meetings All -Employee Meetings • Training • Testing ' Seminars • Product Launches • Press Conferences We have prepared a qualified prospect list of regional companies and organizations that meet the parameters of our "destination sell" and the meeting package we can offer. SMG proposes, working in partnership with the hotel community and the CVB, to take the lead in conducting a telemarketing blitz:' targeting the prospects froth our database as well as others. "SMERF" Opportunities: These market segments are collectively called "SMERF" groups by the hospitality industry and defined below: • Social: Weddings, Parties —Through local advertising, social organizations • Military: Reunions, Conferences — "The Reunion Network," military associations, etc. ' Education: State, Regional — Government agencies, education associations, training -firms • Religious: Conferences, Revivals - Religious conference managers association, church leaders • Fraternal: Elks, Masons, etc. — National lodges and fraternal orders INCUBATOR Fast -Growing TEAMS Conference Fills Niche in Sports Travel Marketing ty k.W"I CAN inn, ens,: ;aunw,,olis m.n air nanlrhr.nna/a.. rc ,hotw today fill n plying holy if' an initiate,;h, what Saineblst Publishing Company anti, to do when the company unnehed Ihr 'IPANN ranlr.rrred atmiil'I:AAI.. is bl:lnagem ., in .lunl90A Tits as..^ux coidactne. now in t year. n t :al:n imigionth at 2lnpartewhi:h was bunh u.0 ilpuldisi,inM taaaaamm• Pohiishrr Tin Schnee mitt Mr mane,. tuned exhibitit.M al spoils induni y"stir shoo, but dithi l Nol like ally of them addremmi me n of spoilsmod.arel untJ they a' a' hihilaJ"u morn inmism Jere. hosted ire George Wathimotin University Washington. la(:. I'wsl• eA41.111.01111,60/ satin, .IV in Srlmr6lrr Pinks ung taiil% owr conference management with eoe..• ntngral Iiugsup,Mn 'loin Inc nitisrily. Tie conforms. anti r llel. nd TEAMS. "We've carnation into an <WM that et hop• is the nusiuv demlarment imnlxnnnity Of Mc your dim hotrd, (Nth ' a and rhinoshu: to:na rnmmimianr and robtuui,n mlt. se lxirinnr from the apar:. menr industry.- Sdnridrr aid. 47 Million Room Nights' 'f he inn year.? Yoder rri,ihirrd al Mr fin.:e Peasi . (rui mem, there sems"a do= mhibilo a. t:ntie1'M s rildata tannic- in I908, nisi nonbr, finny in 77.11y 7IMM_ alma; Jql cxhihd.as }vr itilv.d fly the nwilasseirsiwwwwwwwwin "aa,a,b Ywe.aM4 now NJetana. uw mhma kla,.has a"• With the ,f41111101 exhihi:ars: &hntidermiJ. '1I:e host war in TR:ialj Mom won•,no NM 130 mural.. lost ants thine were 13tp:111 a h. n:g vatting. ifs soy 1:11.11 nl quali:r ttxrg,wnuIY:" Smmi,bm sai.l.'W'c wart mannul ILc rnda:.• Rothltbihlita r renewal n".—• Whim aanrr araand wt —snµns n:e; vial is Icing 0aentd.wine spin, such m nnF.osrrliusm. Sidtb alarrint; Nimmes wide with" of S,onrn kiumlakc and gean Western ',Muth, add In :he dn,w, ticrosr him mid Ihr .Ira:. has Ivan plod. :taNr and Was Puce.• vial Inn continued annh.1(mtle of tradafaw[ve.tiaa • San .rl lwanr gi ntiilu.n moon: nigh. nvha n. he. nn:rti, vi.l rive Message iini lost on <itirsel,at rely of smniing cm. tonl"n IMh 1. CY'Ny and µrts rvnnnnlnna Irma hens such .0 Gl,mloae bays mum, the expo high oat ki. "Italdta has loemmc an inn:nimbi! .xhYic :n bring w;:idr.+or¢asur.r- ng.uilib us and Om. even.• io:n.lean:n:'au Irfindhhi:n, mmitista and(:Idrn(thrlhal. hone":: mmivion. SIa Iakr (JII a lit ar Inn" of T1Ad(S in.l cities ohm ate anemic,- atnloiloit lla pi : ally base luslrana hrer rrotation .shin with thc moot. molions nmight m.ha odwri 'r. Spantlim To pursue this market segment as well as the Corporate business highlighted above, SMG will work with the CVB to create a branded "Complete Meeting Package."Borrowing from the conference center model, this "Meetings Xpress" approach answers the meeting planner's need to simplify the planning and budgeting process by packaging together and making available online a complete menu of the most common components of any corporate meeting: the room, basic audio visual equipment and catering along with a meeting concierge assigned to each group. ©2012 SMG• Proposal for Professional Management of the James L. Knight Center 69 a u o':::+-.; on'gratiilatns;to�O:uis�'vi�euty=Eight"�;,fl�;r,�;�;,-,(" Prime. Site Awara W suers: �Y AlbugderqueCuovcntlon Gtsen(�It;.r4,j2ih: .ry ^KCVSO;•Attamtc,Wry Gonvanuvn Genteai '.: l?t)p�iC .?I)N2'jCjle s^ii:9aton Rouge 'R{ve1'.GeM¢FConventbnGmtar •:"Lo::i:u^.i SiiErowartl County Convention Cantor: {fr>f tfl5ilrlar. COBO Center Molina :;:IrigPigcr, i, C�lorado Comanlion Cantnr (Drnt�r3 jnlvnri�rl.�%Cax Convonton,Cantoi'tc2r6ilNnrrc:_Y J'DAlalorr„'-�;f)ivitl L. Lawrence Convention Cent¢r(f>:ittkwirgl.;l?c[:nsvtrirlji DaVas'Placn„ •nn item t15: Nicnclsti'Direct EiRrgy Centre t7vionui; 3^L-ster Columbus [onvsntini Center,(Col•Hampton Roads Convention Center (Ica A>t i Vir4 ii ;); Hawaii"'i)77( ;Converlbon'Center (I Iolat.:1 :"lime.. Jackson ConventiOn Complex 2KansaExpocentre Gl.ie;.;i:I(Lika-j;Knoaville Convelilion Center.ft(ni M[Cormlck place (C7iit:l 'Meadowlands owlands ...t jflp; •Ilh+nR7: Meatlowlantls Exposition ...:. .. "' CeMer,(tic Moblle ConV¢"ntion Cerater(itl�?I?bn„moi: Palm Cpnntlon Ccecnt.�erS ( II :.l.co ".''CJhlarriip[; Puerto Rico ConVVentiefi Centel :5.'c J.;:0. N,. rlo IY.cgi'Rhotle ISWnn Convention .': Center (nrori:lCocc. I2Fodn el,2r(I;;Salt PalacO Cnpventlon C¢Mer :Savanna)Intematlonal,Trade b'COnvention Center.'S.ivin,.n(1:(,"enrrl ,` SeaGato Canventlon`; :' Centre (lolc:ito C7hm Shreaeport Conv¢ntion Cenfei Sl n:';Ctw?�2(,Ln„iil,trJ)TD conv¢ntlon,'^';; vmescat tobeatOOK.M0atoot 2� SMG Prime Site Award Winners. Prime Site Awards are given to the�top�conventiori;'exposition' and exhibition centers throughout North America and the Caribbean based on venue quality, features and services. This highly anticipated award of excellence recognizes special achievement. The Facilities PRIME SITE AWARD is received by the TOP Convention Centers in the Country. Each year there are more SMG- Managed Convention Centers on this list than Centers managed by any other private facility manager. 7o Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.14: PROPOSER'S PROFESSIONAL EXPERIENCE AND QUALIFICATIONS ,armciem, Recent SMG facilities promotional pull-outs featured in Trade Industry Publications and magazines provide easy reference for show planners anttee CifyConuentio:;n1Cent+ re�l::v esJ r'v�ixn.:.111111111t l•:^iuiw l;?'. YC\l, tv%'• 1.1$ MVOu„W,.,, tt; .j �: `::•''. emu:_,: uM�:av:nn:.y:w.nv:nc:u,^ryxa • cWdnU s.LCutcatc. -_, u....rnzr tox.• :n'H M1n mmr'v.:Vu¢.Imr:. er.d-: :.au:. co co coenc,,Inc Orr.. me,a e361,1,i•4rh.:• I...» .:.......... .. rIt .,n0,c pcc...co. tart, ., National Sales Hotline offers a one -stop shopping opportunity for show organizers, meeting planners and event planners. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 71 Microsoft Corporation One Microsoft Way • Reomono, WA 98052-6399 Tel 425 882 8080 Fax 425 936 7329 tittp://www.microsoft.corn/ Gregg Caren Executive Director Operations SMG Convention Centers 701 Market Street, 4th Floor Philadelphia, PA 19106 Dear Gregg, I would first like to thank you and your network of facilities for providing Microsoft with a consistently high level of service and responsiveness under very demanding conditions. As you know, we routinely use facilities that you manage to support ourconferences of all sizes. SMG consistently demonstrates great partnership with us and always represent their clients' facilities to us productively and with great professionalism. Microsoft remains gratified that at a high level, we were able to complete a national operating agreement that, for many facilities, cuts the amount of time required to negotiate terms and conditions with local ownership. As we demonstrated when you visited us here in Redmond, our in-house meeting planners are encouraged to attempt to book these facilities with preferred status first. This is efficient for Microsoft and positive for those preferred facilities. If any of your facilities need further information on our processes or outlook for meetings and special events, they should feel free to contact me at any time. S' ce;ely, gsaas 'rector Microsoft Events Microsoft Corporation is an equal opportunity employer. 72 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4-.1.4: PROPOSERS PROFESSIONAL EXPERIENCE AND QUis-1 ;AT IONS AUTO SHOWS, LLC Gregg Caren Senior Vice President SMG Convention Centers 300 Conshohocken State Road, Suite 770 West Conshohocken, PA 19428 Dear Gregg, As you may know, Motor Trend currently manages 24 automobile shows nationally. As I scan our landscape, I am pleased to say that 11 of these shows are currently held at venues managed by SMG. I wanted to take a moment to thank your national sales office and you for being instrumental in helping to either book or manage the process of working with many of these facilities, and to offer myself as a reference for you in your pursuit of other convention center management contracts. SMG is the only firm we see with a national presence, not just as operators, but as marketers of convention centers. Your involvement and support of our consumer show industry is noted not just by Motor Trend, but by many other national event producers. The coordination between you and your property level staff has been invaluable to us on many occasions. You truly understand our needs, and I am comfortable in saying that — all other things being equal — we would certainly book an SMG managed venue first! As we await the economic recovery, and with it a return to a stronger automotive industry, we continue planning the expansion of our auto show portfolio. One of the first considerations for expansion shows at Motor Trend is — who runs the building? When the answer is "SMG," the opportunity immediately looks more promising. Atop the list of expansion possibilities are an additional 3 SMG venues; in each case, the venue staff has been extremely helpful in meeting our needs as we plan for hew auto shows in their buildings. I look forward to working with you as we both seek to expand our businesses in the future, and remain available as a reference at any time. I can be reached at (860) 663-5527. Sincerely, John Marriott Senior Vice President, General Manager Motor Trend Auto .Shows, .LLC . ©2012 SMG Proposal for Professional Management of the James L. Knight Center 73 Mr. Gregg Caren Senior Vice President Strategic Business Development SMG Convention Centers 701 Market Street, Suite 4400 Philadelphia, PA 19106 Dear Gregg, It gives me great pleasure to extend Experient's vote of confidence in.SMG as the leader in professional convention center management. Experient is the nation's largest independent meeting planning and services company. We are active participants in the site selection and management of over 4,000 - meetings and conventions each year, on behalf of over 1,000 association, corporate and government clients. The collective value in hotel terms is over 5.5 million room -nights per year, making us the largest single producer or referral source for all major hotel. chains. Not only do we maintain a corporate relationship with SMG's National Sales Office, we also have a negotiated contract that provides booking benefits to Experient managed events at every SMG managed venue. This clearly puts the SMG family of convention centers at the forefront of our 600 associates thought process. Information on this agreement — as well as data on every SMG venue — is maintained on our intranet for immediate access by our team of professional planners in the site selection process. In truth, every one of our staff members has experience with SMG. In recent years, they have played host to a number of our own corporate events in addition to hosting those of our clients. At your venues in Denver, Fort Lauderdale and Atlantic City, your team did a stellar job hosting both our Annual Meeting as well as key strategic annual events EnVision and E4 Client Conference These events are attended by each of our associates, over 600 hospitality industry suppliers from around the country, as well as over 100 of our top clients. The on -site attention to detail was impeccable, anticipating our needs at every turn. We are always impressed by SMG's professional care for the facilities in your charge and, more importantly, our clients. We look forward to working with our partners at SMG when and where ever possible! I would be happy to speak with anyone interested to further discuss the service we receive and comfort we have with your facilities nationwide. Sincerely, Rick Binford, CMP President — Event Management 74 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4-14: PROPOSvR'S PROFESSIONAL EXPERIENCE AND QUALIFICATIONS SMG Live Entertainment Division SMG will provide the Knight Center with the support of our Live Entertainment Division. A key difference from other firms in the industry, SMG is the only management company with dedicated Corporate and Regional booking personnel supporting the efforts of our local General Manager. Our department serves as an advocate for SMG facilities worldwide, with a 1.75 million seat footprint. SMG was the first in the industry to be nationally recognized for its innovative approach to event booking. The large number of venues under SMG's management ensures involvement in the booking process long before. these opportunities are available to non-affiliated buildings. Our booking team has daily contact with agents, managers and national touring promoters to assist them routing their events and advocate for dates in SMG venues. Some of these artists include Elton John, Tim McGraw, Journey, Jeff Dunham for arenas, and James Taylor, John Mellencamp, Gabriel Iglesias and Janet Jackson for theaters. We have both a national team as well as regional booking managers. Our team leads regularly scheduled conference calls on both a regional and national basis to share information on upcoming tours & events, exchange booking leads and deals, compare event experiences and best practices. These calls often include guests such as agents and regional promoters who introduce new and upcoming touring projects. Additionally, our team convenes private, SMG only meetings at nat. ionalcopferet ces_such asBilboard Musicconference, Association of Performing Arts Presenters, Pollstar Live Conference and International Entertainment Buyers Asso- ciation, featuring guest speakers from leading talent agencies and national promoters. Local Conditions Few entertainment markets are as competitive as the South Florida region. Between theaters and performing arts centers, arenas, amphitheaters and stadiums there are more than enough available venues to satisfy any promoter. As such, venues must be competitively branded and priced. But these days, a.good rental deal is simply not enough. Successful theater operators are not sitting in their office, waiting for the phone to ring. They are actively marketing their venue to artists, managers, agents and promoters. They are looking for new events and new event types; creating new, innovative deals and strategic parmerships with the business and hospitality communities, retailers and even other venues in the market to drive'biisuiegs—in o`theii buildings ilere are several eesm • Create partnering opportunities with like -sized venues • in South Florida that, are not direct. competitors. There are several venues in Broward and Palm Beach Counties that share some media and some audience with the Knight Center. If we view these venues as potential partners, not competitors and work cooperatively to attract and incentivize promoters while sharing advertising and marketing costs we can significantly reduce promoter expenses and provide them with two show days, instead of one. SMG has already successfully employed this strategy in South Florida and our past partners are ready to become our future partners. These strategies and partnerships apply not only to.the Knight Theater but also to the Ashe Auditorium, which has the potential to host a variety of community events, emerging artists, comedians, dance, chamber music and jazz. With the proliferation of similar -sized venues in surrounding communities, building strategic partnerships will most definitely result in increased bookings. • Reestablish the Center as a preferred venue for television tapings, award shows and other high profile events. For many years the Knight Center hosted international events such as the Miss Universe pageant, "Premio to Nuestro," and the Free Trade Area of the Americas Summit. In recent years events of this nature have relocated to other venues, creating a programming void. SMG has a long, successful track record These `mega -events' provide unique public relations, branding and sponsorship opportunities and we will.work hard to leverage our existing industry contacts while working cooperatively with the hospitality and entertainment community in Miami to return high -profile events to the Knight Center. • Inccntivize promoters and presenters to use the Knight Center on a regular basis. As a reward to promoters for increased use of the facility, we propose the creation of a frequent lessee rewards program, whereby a promoter is entitled to a discount on facility rent and fees incurred for production of multiple presentations on calendar -year basis. These discounts could include, rent, Box Office fees, equipment rental, base sound and light packages, back of house catering and hotel accommodations for talent and management in cooperation with Hyatt Regency Miami or other downtown Miami properties. These types of programs have proven to be both successful and popular with our -promoters -and. are creates-busier-buildings:and happy promoters, two things vital to the success of the overall enterprise. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 75 Adopting these ideas as programming goals will serve to increase programming, create additional events that will cater to a broad range of artists and audience, reestablish the Center as a highly visible destination for major events and create programs that will recognize and reward loyal and frequent promoters and presenters. Latin Programming For years, the Knight Center was regarded as a premier desti- nation for touring Latin artists. In recent years, however, the number of concert bookings has declined in both the number of total concerts presented and the number of Latin concerts presented. One of SMG's main objectives is to reclaim the Knight Center's market position. in Miami andthroughout the entertainment industry as a must -play venue for Latin artists. We will achieve this goal by utilizing all of our industry contacts and resources within the Latin Music Industry. An example of the successful implementation of these strategies can be found at the SMG-managed, multiple award winning Coliseo de Puerto Rico in San Juan. In its eight years of existence, the Coliseo de Puerto Rico has been among the Top 20 Venues Worldwide in gross tickets sales and has received different awards including one International Large Venue of the Year Award in 2005, given by Pollstar Magazine and 5 Prime Site Awards given through industry votes by Facilities Magazine and over 4.6 million visitors since its opening. This success is based not only in tickets sales, but also in SMG expertise in bringing all types of shows to perform at the venue. Latin artists such as Ricky Martin, Shakira, Mani, Ricardo Arjona, Marc Anthony, Luis Fonsi, Chayanne, Enrique Iglesias, Ednita Nazario, Wisin & Yandel, Juanes, David Bisbal, Daddy Yankee, Franco De Vita, Juan Luis Guerra, Ruben Blades, Don Omar, Ricardo Mon- taner, La Oreja de Van Gogh, La Quinta Estacion, Natalia Jimenez, among many others, have performed successfully at the Coliseo. Also, in 2010 the Coliseo was the host for the Latin Billboard Awards, demonstrating the building capacity to host all type of productions. To reinvigorate concert bookings at the Knight Center, SMG will work in conjunction with all these promoters to book and promote their shows to perform at the -venue. SMG will also leverage our excellent industry relationships with Latin Music Promoters and agents in the United States such as Gerry Fojo/Henry Cardenas, Javier Macias, Phil Rodriguez/Evenpro, Arie Kaduri, Michel Vega (WME), Juan Toro Relentless Agency, Jorge Naranjo and Live Nation among others, in order for the Knight Center to, once again, become a must - play venue -Latin artists performing in Miami. Two SMG senior executives, Jochi Davila, VP of Business Development & Entertainment — Latin America and Senior General Manager of the Coliseo de Puerto Rico and Bob Papke, VP Theaters will have•significant°and,ongoing involvement in and oversight of Knight Center operations. Mr. Davila has extensive contacts in the Latin music industry and has generated hundreds of thousands of dollars in sponsorship revenue for the arena. Mr. Papke, while serving as director of marketing/booking coordinator at the Miami Beach Convention Center and Jackie Gleason Theater from 1994-2004 was instrumental in the Gleason's successful . rebranding efforts, making the theater a hot destination for touring artists, award shows and special events. Additionally, the Knight Center will function as an important bridge for the SMG Latin America division, allowing us to more easily facilitate touring opportunities between the US and the Caribbean, Central and South America. Our Latin American regional office was established in San Juan in 2006 in response to a significant increase in contracted activities and opportunities for growth within these areas. SMG currently operates arena, theater and convention center facilities in Puerto Rico, arena facilities in Chile (Movistar Arena) and Convention Center facilities in Jamaica. 76 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 414: PROPOSER'S PROFESSIONAL ._XPERIEIC:E AND QUALIFiCAT10IN S SMG Live Entertainment and Tour Rehearsals SMG national booking staff works to have national touring artists rehearse their shows in SMG venues. Beyond gener- ating revenue, these rehearsals will often lead to a performance and the associated increase in revenue that might not take place if the venue did not land the initial rehearsals. Some recent examples of artists that SMG has landed rehearsals/ tour openings for SMG clients include Tim McGraw, Josh Groban, Madonna, Juaiies and How to Train Your Dragon. Upcoming tours that have chosen to rehearse and begin their tours with SMG include Tim McGraw in Corpus Christi, Texas and Josh Groban in Bossier City, Louisiana. ar ie:•Golditone;T ank'Productions„ <' . �Taletst;�3uyer%Promote`; Relationship With Ticketing Companies SMG venues receive maximum benefits due to SMG's national relationships with major ticketing companies including Ticketmaster and Tickets.com that have resulted in the development of unique systems and client bcncfits exclusive to SMG, including: • A nightly download of sales to the SMG Box Office System Weekly settlement, wired directly to the appropriate building • The highest national rates for service fees and royalties paid to our venue clients Approximately 90% of SMG's ticketed facilities are under contract with Ticketmaster to provide ticketing services. Consequently, SMG is one ofTicketmaster's largest customers nationally and in Europe. Our leverage in achieving the best possible contract with Ticketmaster for our managed facilities in terms of the financial arrangement and the level of service is unparalleled. SMG also works with various other ticketing providers including Tickets.com, ShoWareTicketing and others. ticketmas r ©2012 SMG Proposal for Professional Management of the James L. Knight Center 77 SMG's Live Entertainment Event Promoters Relationships SMG's Live Entertainment Division maintains a daily dialogue with the entertainment industry that fosters relation- ships with the widest variety of product and content providers. SMG's comprehensive booking process and entertainment industry influence will be brought to bear for your facility operation. Our ability to secure new and distinctive events through our combination of resources and partnerships will be a key element for the success of the Center. No other company maintains the same depth and breadth of industry entertainment relationships with event promoters, artists and managers as SMG. SMG has special relationships with major promoters including: • AEG • Beaver Productions • BMG • BRE Presents ' C3 Concerts o Cirque du Soleil • Concerts West • Creation Concerts ' Creative Artists Agency ' Elite Entertainment • Feld Enterprises (Ringling Bros. Barnum & Bailey Circus/Disney on Ice/Disney Live) Harlem Globetrotters • Icon Concerts • Jam Productions and Jam Theatricals ' Knitting Factory ' Lippizaner Stallions ' Live Nation ' Metropolitan Entertainment • Mike/Kidd Entertainment Group • Monster Nationals • National Artists Corp • National Shows 2 (NS2) • Nite Lite Promotions o NYK Productions • Outback Concerts • Playhouse Disney Live • Police Productions Premiere Concerts • Professional Bull Riders • Red Mountain Entertainment • Rose Presents • Rush Concerts • The Wiggles USA • Varnell Enterprises • VEE Enterprises (Sesame Street Live) • William Morris Endeavor • WWE 1r yREATIVE ARTISTS ACEICY :.. .................. ENTERTAINMENT, INC. L�V fl n T I ®1 1 78 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4. .4: PROPOSERS 55 IONA.L EXPERIENCE AND QUALI ICCAT SMGBooking.com - Our Competitive Advantage SMG's proprietary booking system, SMGBooking.com, and preferred financial systems provide our clients with a unique competitive advantage versus other providers. 'referred booking management software systems - SMMGBooking.com SMGBooking.com is a proprietary web -based system that gives entertainment promoters an "unprecedented level of access" to real-time booking availability for all arenas managed by SMG. We talked to our major clients such as CAA, William Morris Endeavor, tour managers and family show producers and designed this proprietary booking system with them in mind. This system positions SMG in the forefront of the industry by allowing us to respond and, provide booking information, which is a valuable commodity in our business, to the enter- tainment community even faster than before. SMGBooking.com is a great opportunity to leverage our position as a market leader and use the latest technology to provide added benefits and services to our clients. The information provided through this new system will be in the hands of decision -makers faster to ensure even more concerts and events at our venues. There are two main component of 13lYiGboo roil. om that are extremely be eficiaE to agents/promoters/ managers and vernes. The first, the booking caGerdar, allows SWAG Sports Entertainment t to work directly with tours as they are being routed. With access to ail of our venues' dates, we c ro decrease the amount of time and effort it takes to compile ail of that data on an individuaL basis. This give SMG venues "first look" opportunities when tours first begin routing. The second valuable component to srngboflkt'n� Isom; SMGBooktng. om Gosh Provide current mfommtion regarding booking and routing infoonetion to participants. UtBiee SMG's vast internal resources and =palm= w provide support and assistance to SMG venuesfpessoonoel as needed. Serve as a resonsce and database for all SMG-managed faciluics. • Strive to improve relalionabips with existing presenters while necking to develop new psesmtma with the ability and resources to pmums in multiple markets. Thir ix your runurce Please contact me with any comments or suggestions. Jon Pevunak SMGbooking.com is the information it provides. Timing and information is everything. SiViGb oking.corn is updated constantly with booking insight and an event bulletin to give venues as much of a head start as possible. ©2012 SMG Proposal for Professional Management of the lames L. Knight Center 79 Guest Services Training k'nekt Training Programs Philosophy SMG believes in developing our employees. We want to provide tools that will help our employees to be better in all aspects of their lives: their work life and their personal life. We understand that in order for training to be valuable it must be relevant. Our programs focus on life skills. By doing so we have given people a reason to engage. We believe that by understanding the purpose in our work and focusing on the "how" of how we deliver service, the outcome is improved for all. This philosophy underscores the format and materials in all our programs. Creating a great guest, customer, and employee experience takes creativity and must be multi -dimensional. We all win when we feel good about the job we are doing and how we are doing it. Even the name we have chosen for our programs, k'nekt, exemplifies how we feel about it. "We are all in this together." All of our behaviors impact each other. Every aspect of our industry is people -centric: entertainment and sporting events, meetings and conventions. We designed a program exclusively for our unique requirements. We understand the importance of hospitality and quality of service, of increasing sales and driving revenues, of always looking to exceed guest, client, and customer expectations. The following pages detail the various elements of our programs. Methodology Making training engaging and relevant to the adult learner is critical in order for it to be effective. SMG takes this theory one step further in all of the training programs. Not only are all of the messages and skills pertinent for the success of the employees at their jobs, but many of the lessons taught are also relevant to personal interactions. Employees engage and incorporate concepts when they see value. By showing value beyond the workplace, employees embrace and take ownership of the training. Each program includes the following: Professionally delivered training utilizing industry experts and/or nationally recognized speakers ' A blend of media that is current and engaging • Messages and skills that are directly applicable to work and often personal lives • Versatile skills that allow the learner to internalize and personalize for a more genuine application and delivery • Current topics that address the electronic world we operate in ' Customized programs that significantly improve results at minimal cost Programs Customer Service: The SMG story begins by recognizing that there is a purpose to our work, not simply tasks to be performed. The first training program in the k'nekt portfolio is meant for all new -hires and temporary employees. It is a cutting edge training video explaining the company's philosophy. Each of SMG's core beliefs are explored in a way that the individual employee understands how he or she is part of the success of the company. By the end of the 17 minute video, employees understand that at SMG: • We Engage our customers by making a great first impression through our body language and facial expressions • We Celebrate our affiliation with the SMG team by presenting ourselves and wearing our uniform with pride • We Entertain our guests by acting as a host of events and ensuring that each and every guest has a'positive experience • We Amaze our patrons by going above and beyond to really WOW them. Satisfied guests aren't good enough.. . we want to amaze them • We k'nekt when we focus on our purpose and our core beliefs. We "k'nekt"with our customers to build loyalty and ultimately success for all ©2012 SMG 8o Proposal for Professional Management of the James L. Knight Center SECTION ,1.4: PR )POSER'S PROFESSIONAI. EXPERIENCE AND QUA .I "ICATIO1` S Formal Customer Service Training Once employees have been trained in their specific job, they are encouraged to attend the half -day, interactive program further exploring the skills of customer service. A blend of live and virtual facilitator training is tailored specifically for each individual facility. Our employees engage because they see relevancy. We show them how the skills they learn have application in their personal lives as well as their business lives. The skills taught include the following: • What you give out you get back, so appropriately presenting yourself is critical to the success of any interaction — at work or in our personal lives ▪ Managing unusual or unpleasant situations can lead to positive outcomes when it is done properly and with the right frame of mind • Working in a safe and productive environment is an SMG expectation. All employees are expected to comply with that • Each facility has unique attributes and those are high- lighted and shared with all of the employees • Everyday there is an opportunity for employees to be sensational, even with the little things. Little things make a big difference and contribute to our success Sales: Sales Training I - The Consummate Sales Profes- sional The main focus of this intensive three-day session is to arm the SMG sales person with the right tools to convert potential businessinto'bookeddbusinessThis 'program encompasses all aspects of the sales job teaching interactive selling points, etiquette & protocol, networking, online communication, letters and proposal writing. The course is led by two experi- enced hospitality executives and calls on some of the field's top experts to share their experience and knowledge with the trainees. Speakers include a panel comprised of outside meeting planners, professors from The College of Charleston's Tourism and Hospitality division and Executives from SMG. Within the training program, the following are reviewed: • Correctly opening the sales call • Querying.the customer with the right questions to discover pertinent information • Describing the SMG product in terms of customer benefits • Overcoming objections • Confidently quoting prices and closing the sale Sales Training II - Advanced Selling Techniques Whereas, Sales I focuses on the reactive selling process, Sales II takes that to the next level. Participants work on extensive evaluation of business opportunities and the different buyers within that opportunity. It is a complex approach to assessing customers' buying styles and presenting offerings that best influence and persuade those styles. Participants will apply the theory presented to current business opportunities. They will also develop action plans that support this theory in order to persuade future customers. Additionally, participants explore the proactive portion of sales — prospecting. Sources for new business, effective strategies and necessary action plans are all developed in order to ensure a constant flow of business. Participants learn to: • Gather and synthesize necessary information to fully assess a business opportunity Assess customers' buying styles and select an approach that best persuades each style • Offer solutions to customers that provide value and show results based on the customers' business objectives • Organize information and deliver presentations (including proposals) that persuade different types of buyers and influencers. • Identify the purpose/need for prospecting • Establish a unique system that ensures frequent and effective prospecting calls • Identify sources relevant to specific market segments • Identify critical information needed before attempting to contacta prospect • Create a compelling opening statement that will entice the prospect to continue the call • Create an effective questioning strategy for different prospects • Recognize challenges when making prospecting calls and respond to typical customer objections on a prospecting call ©2012 SMG Proposal for Professional Management of the fames L. Knight Center 81 Sales III Accountability and Leadership Training SMG understands that companies that embrace a sales culture are the most successful in any industry or market- place. Infusing a sales culture throughout the organization begins with leadership, measurements and accountability. This training has many components utilizing cutting edge, web -based programs, as well as traditional facilitator -lead classroom training. The series includes: • Developing a comprehensive Marketing Plan that incor- porates specific nuances of the facility, the marketplace, the competition and stakeholder expectations • Establishing team and individual measurements per market segment, per year that directly link to the facility's initiatives, budget and market expectations • Developing and executing sales strategies that support the team and individual sales (revenue) goals • Developing an efficient sales team by coaching sales people on sales skills, strategies and account management Sales Administrative Assistant Training When customers contact a sales office, it is not unusual to initially spcak to an Administrative Assistant. That first point of contact can make or break a sale, so providing training to this audience is necessary to accomplish the following: • Understand the importance and value of business opportunities that are handled in the sales office • Understand their role in the success of the sales process • Manage the call (or walk-in customer) in a way that efficiently gets the customer to the right person • Effectively explain necessary information to customers when directing then to the next step of the sales process 82 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.1.4: PROPOSER'S PFROFE SIONIAL EXPERIENCE AND QUALIFICATIONS yrtreat`in .eaeh..otlier` nd WESPSCT .we "ci`e u.t:Fthe=best,of wh,OTW ©2012 SMG Proposal for Professional Management of the James L. Knight Center 83 EATING RVICE SUC Current Trends Shaping the Customer Service Industry try Do More Than Change Customer Perceptions - They Can Change There is an old saying that, "there is nothing new under the sun," and anyone who has sat through more than one traditional customer service - training seminar can attest to its truth. However, in summer of 2008, Maureen Ginty, Senior Vice President of Marketing and Human Resources at SMG', the world's leading facility management company, set out to break that mold, and in doing so sought to create a program that enriched not only patron experience, but the employees' perception of themselves and coworkers alike. With 30 years in business and more than 200 buildings in their family of convention centers, stadiums, arenas, theaters, and specific -use venues, SMG welcomes millions of customers through their doors in venues the world over. So when launching a company -wide customer service training program, generic and old-fashioned just wouldn't do. Thus, the new K'nekt was conceived: an innovative and interper- sonal approach to customer service that stresses not only the patron experi- ence but employee'development and self-expression. According to Maureen Ginty, SMG is looking to make a much stronger, more personal connection, or "K'nekt-ion" with its employees. "Creating a great guest experience," says Ginty, "takes creativity and must be multi -dimensional. Todays employees are smarter and more sophisti- cated. In any training, they're looking for two things: relevancy and respect. Employees need a real reason to engage. They need to understand that there is personal value to be gained; that they are not just performing well out of a sense of obligation. So many of today's new thought thinkers are teaching through their lectures and writings that, 'what you give off is what you getback.' In this program we are -sharing these concepts with our employees not only so they can be better at their jobs, but also improve all aspects of their lives." SMG piloted the new K'nekt program on September 9, at the Savannah International Trade and Convention Center in Georgia. Front-line managers from SMG's Savannah facility and the Jacksonville, Florida complex took part in the traming. In their anonymous evaluations, the attendees gave the program an overall score of 9.3 out of a possible 10. The K'nekt program itself is a combination of live and virtual facilitator training. Beyond the focus on self -development, the program is tailored to the specific needs of each facility, providing a double dose of relevancy. No one places more importance on the guest experience than SMG Presi- dent Wes Westley. He also understands the key relationship between how employees treat themselves and how they treat SMG's guests. A quote from Mr. Westley stressing courtesy, consideration and respect appears in every K'nekt work guide provided at every training session. SMG is training their employees to be better -people in andout of_the,work- place while advancing the facility management industry at the.same time. Not a bad connection to be making. 84 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.1.4: PROPOSE , S PROF+ESSIONAL RI'_NCE AND QUALIFICATIONS Advertising and Sponsorship Sales impressions SMG has always recognized the need of its clients for expe- rience and expertise in the area of sales of advertising, spon- sorship and promotional opportunities. In order to maximize opportunities, a strong local staff with local knowledge and contacts, working hand -in -hand with the client and major community stakeholders, must be combined with SMG's corporate knowledge, experience and expertise which has been developed and honed over the years. To address this need, a team of SMG's best and brightest have been identified which can provide the sales knowledge and experience to create opportunities, share ideas, identify potential advertisers and sponsors, develop marketing strategies and materials, and, if requested, help close sales, all within the framework of the needs of the client. We call this team - HE CSKj SALES NETWORK The impressions Vision The individuals who make up our impressions sales network bring a single purpose to this area of facility management — to maximize revenues while recognizing the needs and sensitivities of our clients and the tenants of those facilities. Our network brings a level of experience and skill not often available on a single building basis. The impressions Team An impressions team member is assigned to our managed facilities on a regional basis. Whether it is a straightforward signage sale, a fundraising opportunity, the naming of a meeting space or the sponsorship of an event or series of events, impressions is there for our clients. Because impressions is an in-house operation for SMG, it operates differently than a third party sales organization. impres- sions' client list is virtually every SMG-managed facility. Best of all, unlike a third party sales organization, impres- sions' services are provided to you as part of SMG's basic management services with NO ADDITIONAL COST OR COMMISSION EXPENSE. Examples of our success can be found in the sales revenue numbers. For example, advertising sales for some of our representative regional facilities are: DCU Center $600,000 Dunkin' Donuts Center $4 5,OOO Dimes Union Center - $1,500,000 Verizon Wireless Arena - $800,000 In each of these facilities substantial inventory is controlled by the tenant teams and that inventory is not included in these totals. Our Approach to Advertising Sales Corporate Partnership Valuation / Pricing & Packaging SMG conducts a review of the facility and the operations. of its tenants to identify and quantify all assets available for potential inclusion in corporate partnership packages. Each of the possible assets to be included in a corporate partnership package is valued based on industry standards, valuation techniques and market conditions. Additional elements that influence the pricing of corporate partnerships include category exclusivity, audience interest and loyalty, ability to activate and amount of sponsor clutter. Assets to be valued include, but are not limited to, the following: • On -site advertising • Broadcast exposure • Editorial media coverage • Publications • Collateral material • Promotional opportunities • Event marketing • Internet • Premium seating • Ticketing • Merchandising SMG then recommends inventory content, pricing and appropriate term lengths for corporate partnership packages. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 85 Advertising Sales Plan Once the corporate partnership inventory is identified/valued, a comprehensive sales and marketing plan is developed to serve as our road map for the execution of the corporate partnership program. The marketing plan includes: ' Establishment of measurable goals and objectives - Goals and objectives shall include both cash and non -cash benefits such as goods and services. • Sales Strategy — Strategies for marketing corporate partnerships to existing partners and new prospects. • Sales / Project Timeline — A timeline detailing release dates (sales sequence) for corporate partnership inventory, key dates and responsibilities. Action Steps 1. Database Development — Identify local, regional, national and international companies and organizations best suited for purchasing corporate partnerships. 2. Advertising / Public Relations — Develop a plan to support the sales program. 3. Printed Collateral — Create and produce corporate part- nership sales brochure and other ancillary sales materials. The collateral material will be a detailed presentation with a significant amount of information including: • Overview of the properties • Demographics • Property descriptions ' Events • Sponsorship opportunities • Consideration 4. Presentation Materials — Develop computer and/or audio- visual presentations for sales presentations. 5. Sales Functions — Plan and coordinate meetings, presenta- tions, events and social functions designed to attract prospects and sell products. 6. Sales Agreements — Develop the corporate partnership agreements. 7. Reporting — Provide ongoing communication and sales reports to keep our clients informed of progress. 8. Contract Administration —Manage the contract execution process. 9. Customer Service — Coordinate program in conjunction to keep customers informed, involved and satisfied with their purchase(s). 10. Promote a positive image of the Center as a desirable advertising medium to both local and national agencies. 11. Educate potential clients on the value of marketing their brand or product to Center patrons and its varying demographics. 12. Incorporate the Center into SMG's advertising opportu- nities in the northeast region, which combines inventory from all SMG facilities, to present to national advertising agencies. Working with The City of Miami on Naming Rights Planning and Procurement If desired by the City, SMG will work diligently in conjunction with the City to secure the naming rights sponsorship for the Knight Center as a whole or as portions of public space. SMG has a rich history and vast experience in the procurement of major naming sponsors for facilities throughout the nation. The SMG/impressions marketing team will be instrumental in this process and will design unique proposals to present to a variety of corporations. Naming rights would grant the sponsoring organization certain naming, sponsorship, promotional, advertising and other related rights and benefits pertaining to or associated with the Facility. Using our experience and the database of valuations from other markets, SMG can assist the City in establishing a valuation for the naming opportunity. If it is deemed beneficial, SMG can assist the City in obtaining a valuation/verification by an independent organization such as Joyce Julius and Associates, Inc. or IEG, LLC. Often such third party valuations can be beneficial in the sales process. A proposal will be presented and would include exclusivity within the building in categories related to its business; i.e. food and beverage, insurance, banking, utilities, automotive and transportation, communications, retail, etc. Other aspects designed and identified by our team will be various signage, marketing, cross promotional and hospitality prospects. SMG is knowledgeable in the area of sponsorship metrics evaluation and the presentation of sponsorship proposals. ©2012 SMG 86 Proposal for Professional Management of the James L. Knight Center SECTION 41: PROPOSER'S PROF SSIONAL E; PFi-:IWNC_" ANG QUALIFICATIONS One of the greatest challenges faced in the area of sponsorship procurement is the ability to acquire a presentation oppor- tunity to the key decision makers of the major corporations. SMG has an extensive network of contacts with major corporations who would be qualified potential clients for the naming sponsorship. Working alongside the City, SMG will contribute the strategies and methodologies it has utilized in amassing an unmatched record of success in the sale of naming rights. A representative list of naming rights deals for which we were directly responsible includes: Cox Business Services Arena, Oklahoma City, OK • Mohegan Sun Arena, Wilkes-Barre, PA • Ford Park Arena, Beaumont, TX • Dow Event Center, Saginaw, MI • Rabobank Arena, Bakersfield, CA • Verizon Wireless Arena, Manchester, NH • American Bank Center, Corpus Christi, TX • Big Sandy Superstore Arena, Huntington, WV • CenturyTel Center, Bossier City, LA • DCU Center, Worcester, MA • 1st Mariner Arena, Baltimore, MD • Times Union Center, Albany, NY ©2012 SMG Proposal for Professional Management of the James L. Knight Center 87 Transition Plan Through the experience of transitioning many municipal facilities' during many years, SMG has developed a "Facility Transition Manual" detailing more than 400 specific tasks. This of course is a proprietary manual developed after years of experience in countless transitions. Nothing is left to chance. We will work with City to implement this plan. Every detail for each operating department is planned for. As the sample pages below indicate, each task is assigned to the proper team member, with targeted completion dates. A flow chart detailing duties and activities for the employee -based items and people assigned can be found on the following page. ESTABLISH TRANSRION TEAM. INCORPORATE TEAM MEMBERS VP OF CONVENTION CENTERS EXECUTIVE DIRECTOR OF OPERATIONS DIR. FACILITY ACCOUNTING MIS REPRESENTATIVE H/R REPRESENTATIVE 0 0 0 OBTAIN CURRENT FINANCIAL DATA FOR FACILITY . CURRENT BUDGET DISTRIBUTE SMG POLICY MANUALS AND INDUSTRY MANUALS TO FACILITY ......_.._......... OPERATIC) ACCOUNT ACCOUNT BOX OFEB .............. .... BOX OFFIE TRAVEL& RELOCAT END USER 401-K MA HUMAN R PERSONNI ADA MAN HR/15 REM SMC MAR ADP MAN ' WORKER'S 'REVIEW SY 0 GENERAL DATA `PROJECT LOCATION - -VENUCTYPE TRANSITION DAIL, ` DOCUMENT TITLE' CIVIC CENTER, EXPO, THEATER 1/1/09 TRANSITION CHECKLIST TRANSITION TEAM DIVISION REGIONAL FACILITY ACCOUNTING OPERATIONS - CORP GENERAL MANAGER• OPERATIONS - BUILDING - SALES • MARKETING' FINANCE • PROJECT LOCATION' VENUE TYPE CIVIC CENTER, EXPO, THEATER ...............DIVISION 0._.. TRANSITION DATE 1(1/09 RDINA I - REVIEW FORMAT FOR EVENT FILE WITH FINANCE DEPARTMENT: ORDER FOUR PART FILE FOLDERS INSERT CHECK LIST REVIEW EVENT SCHEDULES FOR ALL FUTURE BOOKINGS. DEVELOP EVENT MANAGER AWARENESS, EFFECTIVENESS, PROFESSIONALISM THROUGH IN-SERVICE TRAINING - IAPLEMENT 5MG EVENT MANAGER CHECKLIST IMPLEMENT INSURANCE CERTIFICATE CHECKLIST FOR EVENTS. 'SEE ATTACHED) OBTAIN SMG RISK ,MANAGEMENT INSTRUCTIONS IN REVIEWING CERTIFICATES FOR COMPLETENESS AND ADEQUACY OF COVERAGE. INITIATE IMPROVED DOCUMENTATION SYSTEM FOR ALL EVENTS ESTABLISH SYSTEM FOR CIRCULATENT ORDERS". AND EXECUTED CONTRACTS AND ADDENDUMS TO ALL DEPARTMENTS INVOLVED. ESTABLISH MECHANISM TO FOLLOW-UP ON RETURN OF EXECUTED CONTRACTS, ADVANCE DEPOSIT INFORMATION TO FINANCE. ESTABLISH PRE -EVENT PUNNING MEETINGS AMONG SMG EVENT STAFF AND PROMOTERS. INSTALL DEPARTMENT CALENDAR WITH DATES FOR: EVENT DATES DEPOSIT REQUIREMENTS CANCELLATIONS NEW BOOKINGS IMPLEMENT EVENT WORK ORDERS DEVELOPED WITH FINANCE TO DOCUMENT SERVICES REQUESTED AND AUTHOLRIZED BY PROMOTER ADAPT ATTACHED SAMPLE FORM TO FACILITY NEEDS. DEVELOP EVENT GUIDE FOR NEW FACILITY. INCORPORATE BILLING RATES DEVELOPED BY FINANCE FOR LABOR, MATERIALS. OTHER BOX OFFICE, INTO EVENT GUIDE - SEATING CHARTS DISTRIBUTE EVENT GUIDE TO FACILITY USERS i0x/ d 3>a ra %# 88 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4i 4: PROPOSER'1 PROFES5IO.NIAL EXPERIENCE AND QUALIHIC;IiTIONS Experience in Transitioning Employee Transition Timeline of Events SMG will work with the City to transition operations and employees currently at the Facility. Once the transition plans are adopted, we will begin the on -site transition process for existing employees. It is important to involve all levels of staff in the process of incorporating our proven systems into the daily operation. Our process consists of: SMG Benefits Presentation After contract execution, SMG's Human Resources Repre- sentative will make a presentation to all employees identifying and explaining SMG's benefits. We will also distribute written information regarding benefits. At that time, they will be provided with welcome kits and benefit enrollment information. Employee MI, etings During the beginning stages of the transition, SMG will have an on -site representative available to meet with each employee individually. The purpose of these meetings will be to identify and address concerns and issues the employee may have. Employee Questions Throughout the transition period and beyond, representatives of SMG's Human Resources Department will be available by phone and in person to respond to any questions or concerns related to human resources. Human Resources Designee SMG's Corporate Human Resources Department and the General Manager will designate a Human Resources Designee for the facility. This individual will be responsible for the day-to-day operation of the facility's human resources needs in conjunction with the Corporate Human Resources Department. Benefits Enrollment Once employees of the facility have been identified to work with SMG at your facility, our Human Resources Represen- tative will explain and distribute orientation packets to include benefits enrollment forms and information. On -going Support. To provide continuous support for all employees, SMG's Corporate Human Resources Department is available to answer any employee's questions. In addition, SMG's human resources designees are involved in conference calls throughout the year. During these conference calls, HR Designees have the oppor- tunity to discuss general issues and concerns of their employees. Additionally, they are provided with information regarding new legal legislation that affects HR practices, new company policy and procedures, and an opportunity to share ideas. Reinvention of Staffing Structures Our experience and past performance show that, very often, there are efficiencies and service enhancements through a reinvention of the staffing structure. This doesn't necessarily mean job -cuts, but rather combination and crossover positions where similar skill sets and best use of time are utilized. Staffing Opportunities in Transitioning We have built an enviable track record of transitioning employees from• the public sector.and::then•.promoting,from within. Additionally, we maintain a highly diversified man- agement staff. With an opportunity to share in the company's success, our employees are motivated to do the best job possible. SMG undertakes all responsibilities with regard to personnel at your facility. We will: • Identify staffing gaps and develop a hiring plan for new employees • On board and train on -site a Human Resources repre- sentative • Implement ongoing hiring/training policies and proce- dures for facility staffing ©2012 SMG Proposal for Professional Management of the James L. Knight Center 89 Existing Staff Intentions No area is more sensitive than the concerns of existing staff, at any level. Rest assured, no facility management company has transitioned more convention centers, arenas and stadiums than SMG. What happens to the existing staff? In situations such as these, it is important for us to understand the City's objectives and comfort levels. With that in mind, our typical process is outlined below. First and most clearly, neither SMG nor anyone else has a "warehouse of personnel" ready to be shipped in to an already functioning building. Additionally, there is no more valuable asset than the human element already in place. Everyone is treated with dignity and sensitivity. They are, by all accounts, knowledgeable about the facility and its clientele. Many of them carry the history of events in their heads, providing a comfort level for repeat clients. Interview All Staff Our HR professionals will sit with all team members, in groups for overall introduction, and individually for a one-on- one dialogue. There arc oftcn surprises likc the server with a professional sales background or the administrative assistant with an interest and aptitude for public safety. We strive to build relationships with our staff and identify their strengths in order to foster his/her true potential. Have Staff Interview Lis People have a desire and basic need to understand their new employer. They want to know about our company history and philosophy of providing first class service. More importantly, they need to know how we will meet their basic needs like insurance and other SMG employment benefits. 90 Proposal for Professional Management of the James L. Knight Center ©2012 SMG I iON 4.1.S: PROPOSER'S REPUTATION 4.1.5 Proposer's Reputation There is nothing more important to us than our reputation, and the confidence we have in providing client references. Whether municipal clients like those shown in this section, or national facility user clients like those in the prior section, SMG has proven the value we provide to both sides of our business time and time again. As you are well aware, many contracts for municipal facility management are limited to three- to five-year terms. Combine this with our renewal rate of over 92%, and you see our clients showing their appreciation and faith — in some cases dozens of times with renewals that date back to 1977 with our original client, the Louisiana Superdome, recently renamed the Mercedes-Benz Superdome. Yet another mark of excellence confirming what we have been able to achieve and maintain for our fourth decade in business. Please read the following letters which we share with pride, and feel free to contact the authors or request additional references. We have provided more than five simply to cover the two lines of business at the Knight Center: convention center and live theater. ©2012 SMG Proposal for Professional Management -of the James L. Knight Center 91 Proposer's Reputation: Theater Venues THE TV 4. 1 I.Awe'Thc Place! June 7, 2012 Bob Papke Vice President, Live Entertainment - Theaters SMG Sports and Entertainment 300 Conshohocken State Rd, Ste 770 West Conshohocken, PA 19428 Dear Bob, l am pleased to write this letter in support of SMG'sproposal to manage the James L. Knight Center in Miami, which I understand includes a 5,000 seat auditorium. As president of the Akron Civic Theatre Board of Trustees since the inception of our agreement with SMG in September 2010, I amableto speak directly about the positive impact our partnership has made on the theater and the broader community we serve. Over the courseof the last four years, the Akron Civic Theatre has increased its number of events by more than 100%. Our agreement with. SMG contributed substantially to that success, particularly with regard to commercial and national attractions, which have included sold -out performances b.y.. Gabriel -Iglesias, _ Buddy.Valastro: The:Cake>Boss, Celtic Woman, Alice Cooper, Jerry Seinfeld, Cesar Milan: The Dog Whisperer, The Fresh Beat Band, and Bonnie Raitt. In addition to increased ticket revenue generated by those events, the theater has seen substantial increases in revenue from ticketing (due to a significantly improved contract with Ticketmaster negotiated as part of a broader SMG deal) and concessions and merchandise sales. As an independent theater operator in a market which includes a significant university -owned auditorium (E. J. Thomas Performing Arts Hall) and one of the nation's largest performing arts complexes (Cleveland's Playhouse Square,) SMG has provided criticalrelationships and institutional knowledge which have contributed greatly to our success. I am available to discuss this matter by phone (330.864.5550) or by e-mail (mawatkins@hahnlaw.com.) Sinerely, (7) Mark Watkins President, Board of Trustees Community Hall Foundation dba Akron Civic Theatre 162,O! ,.1A!NS-,,._. AKR:'i 44108-135F; .. 330.53..3179 r..:330.53;.9?2 92 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.1.5: PROPOSER'S REPUTATION Proposers Reputation: Theater Venues P.O. Box 1499 Reading, PA June 8., 2012 To Whom It May Concern: I am pleased to write this letter to share the success of the Sovereign Center and the Sovereign Performing Arts Center which are located in Reading, PA and managed by SMG - Worldwide Entertainment.. and Convention Venue Management. SMG provides all the critical, factors .for success including booking, marketing,-sales,_financial:..accounting;and,operations. oversight. The Sovereign Center,a 7,000 — 8,900.seat arena, which opened,in 2001, has thrilledthe: community with 'headline .entertainment such as Elton John, The Eagles, Tim McGraw, Cher, Reba Mclntire, Cirque. du Soleil and Daniel Tosh. In addition, the Sovereign Center is home to the Reading Royals of the ECFIL since the Sovereign .Center opened back in 2001.. The Sovereign Performing Arts Center (SPAC) is a beautifully. renovated 1,819 seat theater professionally managed by SMG since the major renovations in 2001.. SPACis home to many of the community music presenting organizations and local theater groups iri the Greater Reading area including our very own Reading SymphonyOrchestra and Broadway on Sixth Street. The addition of the Reading Eagle Theater came in the summer of 2004 when SMG sold the naming rights to the Reading Eagle Company for a unique theater configuration, which allows conversion of the large arena into a smaller, more intimate setting (seating 2,5.00 to 4,500) Artists :such as Michael W. Smith, Daniel O'Donnell and Kenny Rogers have all played the .Reading Eagle Theater. SMG's ©2012 SMG Proposal for Professional Management of the James L. Knight Center 93 Proposer's Reputation: T h ate r Venues long term strategic plan to offer the Reading Eagle Theater configuration has resulted in a noticeable increase in the number of events each year. Providing professional expertise and a proven track record of successful arena venues, SMG's team consistently provides the talent and skill necessary to ensure the success of our venues in Reading. I would highly recommend SMG to manage your facility. SMG's clients benefit from the company's depth of resources and its leadership. The Sovereign Center and the Sovereign Performing Arts Center have been wonderful additions to our community and have enhanced the entertainment and cultural offerings to residents and visitors. The venues are appreciated and enjoyed by 500,000 people each year and I truly feel the arena and theater would not have reached this level of achievement without the management team of SMG. Sincerely, Michael Ehlerman, Chairman Berks County Convention Center Authority 610-208-1800 94 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION ..l.5: PROPOSER'S REPUTATION Proposers Reputation: Convention Centers City of Palm Springs David H. Ready, City Manager 3200 E.Tahquirz Canyon Way • Palm Springs, California 92262 TEL: (760) 323-8201 • FAX: (760) 323-8207 • Web: www.palmsprings-ca.gov To whom it may concern: SMG manages the Palm Convention Center and Bureau of Tourism under contract with the City of Palm Springs. In that role, SMG is responsible for the full operation of the convention center, the destination's convention sales and marketing efforts and the overall marketing of the destination for leisure and tour & travel visitors. SMG has provided management services to Palm Springs since 1997 and has consistently proven to be an effective partner in managing our facilities and marketing the destination. Some key highlights include its assistance with the recent expansion of the center, which was completed in 2005, its active engagement with our many and varied stakeholder groups and most recently, the development of an award winning branding campaign to market the destination. I recommend SMG for your consideration for management and consulting services. Sincerely, David H. Ready, City Manager Post Office-Box-2743 • Palm Springs, California 92263-2743 ©2012 SMG Proposal for Professional Management of the James L. Knight Center 95 Proposer's Reputation: l.onvention renters VISIT DENVER The Convention & Visitors Bureau Dear Selection Committee Members: It is my pleasure to serve as a reference for SMG and the work that their management team has done for the Colorado Convention Center and Denver's hospitality community. I have worked with SMG's leadership team for more than a decade and can attest that they arc a quality management company with a focus on efficiency and customer service. Our teams successfully opened up a new center in the early 1990s and worked closely to design and open in 2004 an expansion that doubled the size of our facility. In January 2006, I was fortunate enough to be part of a study group that investigated, evaluated, determined, and then published a "best practices" guide on the destination marketing organization/convention center management relationship. SMG and VISIT DENVER worked to incorporate many of the best practices defined in the white paper, ultimately resulting in a new relationship that has less duplication of effort between the Center and the Bureau, offering greater customer satisfaction. Together with SMG and the City, we also determined that the best way to enhance overall performance would be to form an Alliance with a broader group of key stakeholders. This group has a goal of collaborating on the promotion and use of the. Colorado Convention Center to_ generate and maximize economic benefit to all parties of the Alliance and the entire community. SMG has been instrumental in implementing this new effort, which is seen as a cutting edge approach in the meetings industry. Because of our recent Alliance and cooperative working arrangement, Denver ranks in the top echelon for convention center facilities and management. The latest 2009 Metropoll Study, which is a national independent survey of major associations and leading corporate meeting planners, is proof of SMG competencies. According to the study which ranks the top 40 cities, the Colorado Convention Center improved on its already very high scores in 2007, placing in the TOP 5 in 13 out of 21 attributes and in the TOP 10 on 18 out of 21. Metropoll wrote: "The findings for the convention center image are so positive that they do not require a detailed analysis. The numbers speak for themselves." Three specific areas speak directly to SMG's performance: 1s' in helpful staff; 5`F' in excellent reputation; and 5th in competent management. I have to give a majority of the credit for these rankings to John Adams and the SMG staff. They understand the market place and have been a great partner and asset to the City of Denver and to VISIT DENVER. Sincerely, Richard W. Scharf President & CEO, VISIT DENVER 96 Proposal for Professional Management of the James L. Knight Center .©2012 SMG SECTION 4.`.5: PROPOSERS REPUTATION Proposer's Reputation: Convention Centers VISITOR & CONVENTION BUREAU April 4, 2011 To Whom It May Concern: On behalf of the Charlotte Harbor and the Gulf Islands VCB, it's my pleasure to provide this letter as a recommendation for SMG. SMG has managed the Charlotte Harbor Event Center since October 2009. SMG has been an excellent partner of the VCB. In many destinations, the relationship between a convention/event center and the DMO can be contentious and a constant struggle for control of the facility bookings. SMG has.consistently worked to create a mutually beneficial relationship with the VCB. They have forged a very positive relationship with a foundation of trust and mutual consideration. The staff of SMG has proactively assisted the Bureau by participating in sales calls both regionally and within the state of Florida. For example: SMG staff attended the TSAE luncheon and trade show the past two years, partnered with us on the Rejuvenate tradeshow in 2009, and have signed onto participate in the Cvent Supplier Network. SMG also has included FSAE and other meetings market shows in their 2011 program of work. Theca excellent customer service is evidenced by the facility user surveys they have received. This is further supported by the positive comments we have received from our clients. SMG brings professionalism, credibility, and the service ethic necessary for success in today's competitive environment. 1 recommend them without qualification. Sinc/ly, 'Larah.Steiner Director of Tourism LS/ 18501 Murdock Circle, Suite 502 Port Charlotte, FL 33948 941-743-1900, Fax: 941-743-2245 www.CharlotteHarborTravel.com ©2012 SMG Proposal for Professional Management of the James L. Knight Center 97 Proposers Reputation: Convention Centers SNOHOMISH COUNTY W A _LL' ON Close to everything. Far fro,n ordinary.® To whom it may concern: I write this letter of recommendation for SMG as the convention marketing and development agency contracted to manage the Lynnwood Convention Center in Lynnwood, Washington. Lynnwood is one of the key cities in Snohomish County; the geographic region for which the Snohomish County Tourism Bureau is responsible for tourism marketing. SMG has held the contract since the facility opened in 2005; and more importantly was selected again in 2010 as the public facilities district board went back out for bid as part of their due diligence to secure the best management company for the facility. SMG was instrumental in the initial development of the facility, its branding of the building and service bundle, the opening sales efforts and more. Under current General Manager Kelvin Moore's leadership, the facility has adopted green/sustainable initiatives and has undertaken an aggressive sales and service strategy that has paid off. Through five full years of operation, the Center has hosted 2,255 events and over 383,000 guests. The Lynnwood Convention Center has hosted a wide range of events including, conventions, corporate meetings, auctions, weddings, Quinceafieras, bar mitzvahs, product launches, consumer shows, community gatherings, religious services, and memorial services. In 2010, the center grossed more than $2 Million in revenues marking the highest in the center's history while maintaining excellent service standards and actually increasing customer satisfaction ratings. The SMG management team is active in our local community, sitting on many boards including the Snohomish County Tourism Bureau, Big Brothers Big Sisters of Snohomish County and the South Snohomish County Chamber of Commerce. These volunteer positions help to support our community and grow the professional stature of these organizations by providing leadership, vision and business acumen to these non-profit agencies. Kelvin and his team represent SMG, the Lynnwood Convention Center and Snohomish County well. Based on their performance in Snohomish County and my experience working with their management team, I highly recommend SMG for convention center management services. Sincerely, Amy Spain Executive Director Snohomish County Tourism Bureau SNOHOMISH COUNTY TOURISM BUREAU 909 SE Everett Mall Way, C-300 • Everett, Washington 98208 425.348.5802 Fax 425.348.5701 • email visitor@snohomish.org • www.snohomish.org 98 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.1.5: PROPOSER'S REPUTATION Proposer's Reputation: Convention Centers ,(SAVANNAH EST. 1733 Mr. Gregg Caren, Senior Vice President Strategic Business Development SMG 400 Market Street, Suite 1100 Philadelphia, PA Re: Letter of Recommendation Dear Gregg: The purpose of this letter is to convey my thoughts to you on the relationship and role that your company and team, play here in Savannah. With SMG managing,the Savannah: International Trade &Convention Center, the Center has been a key factor in the growth of the convention industry here; but even more important is the relationship between them, the CVB, and the primary group hotels in our market. The CVB is pleased to consider SMG a partner in the sales promotion and marketing of Savannah as a convention destination. The company has been of considerable assistance to our efforts from pre -opening of the building through to the present. SMG's resources and expertise influence our community's day-to-day economic impact and visitor experience in many ways, including providing valuable advice on convention business development; leading the ever -important visitor -focused transportation planning and funding; and as mentioned earlier, overall destination marketing. Center staff are considered key partners with the CVB and hotels in various sales task forces, and they have effectively managed the vital (and complex) relationship with our primary headquarter hotel, The Westin Savannah Harbor Golf Resort and Spa. SMG took the lead in establishing.a single point of contact for Westin -based clients that are also using the building. This includes combining (Center and Westin) contracts and other collaborations between the two. From a CVB standpoint, it is a testament to SMG that the Center's partnership with Westin continues to thrive without detriment to its responsibilities to the other hotels and the community in general. SMG was also a founding partner of the original Savannah Accord agreement, a convention marketing cooperative between the building, the CVB and the larger hotel group. The Accord served its purpose very well for its time, and I know that it has become a template for similar marketing alliances in other SMG-served-markets.. :.. .. . ©2012 SMG Proposal for Professional Management of the James L. Knight Center 99 Savannah has also benefited from SMG's national sales network which is designed to drive business to SMG markets with its unique SITEPAS lead referral system. Finally, I know that Savannah has also been a beneficiary as SMG regularly provides reciprocal assistance among its facilities when hosting major events. The most significant example was when Savannah played a key role in hosting the 2004 G-8 Summit. Gregg, as we have discussed before, my experience in working with SMG management and staff in Savannah and in Columbus, Ohio is one of true professionalism and integrity. l would recommend SMG to any public client looking for a reliable partner in a direct, sustainable path to success. Best wishes, and please contact me with any questions you may have. Sincerely, Joseph Marinelli President c: Mark Smith, Chairman, Georgia International and Maritime Trade Center Authority Bob Coffey, General Manager, SMG-Savannah International Trade & Convention Center too Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 415: PROPOSER'S REPUTATION TATION Proposer's Reputation: Convention Centers Mr. Gregg Caren Senior VP, Strategic Business Development SMG 701 Market Street, Suite 1100 Philadelphia, PA 19106 Dear Mr. Caren, As a Chatham County Commissioner who led the effort to build our Savannah International Trade & Convention Center, I have seen it all. We had to make a lot of decisions to get this project designed, built, commissioned, opened and operated through its early years and now into stabilized performance. None of those decisions turned out better than that of hiring SMG to help us help manage the design, construction and operation of the project. At a time when corporate image has become more important to many organizations than performance, SMG has consistently made promises and kept them. In addition to being a County Commissioner, I was Chairman of the Trade Center Authority when we opened our center, and during its early years of operation. Getting our building and physical plant up and running was a great challenge, and we could not have met it without the support of SMG's entire organization. Once open, we were able to hit the ground running, because SMG helped us learn how to hunt and find business. More importantly, they kept us from making any rookie mistakes —which would have ruined our young reputation in the market place. Since that time, I have had the pleasure of watching President George Bush give a media conference to several hundred international journalists at the close of the G8 summit in our building, seeing Glenn Frey entertain over 1000 Gulfstream jet operators at their annual convention here, and hearing the chorus of praises from meeting planners from all over the United States express their genuine delight at how they were treated. None of this would have been possible without the strength and commitment of SMG's corporate resources. Now we are in the process of making our 350,000 square foot building a model of energy and resource conservation. The people at SMG have embraced this challenge with great enthusiasm. I would have no reservation about giving SMG an outstanding recommendation to you and your facility. If you have any questions, please do not hesitate to contact me personally. Patrick Shay, LEED AP, AIA Chatham County Commissioner Past Chairman, Georgia International Maritime Trade Center Authority ©2012 SMG Proposal for Professional Management of the James L. Knight Center io1 Proposer's Reputation: Convention Centers �ILII GTON NORTH Office of the City Manager 102 N. 3r° Street PO Box 1810 Wilmington, NC 28402-1810 910 341-7830 910 341-3264 fax wilmingtonnc.gov Dial 711 TTYNoice Re: SMG services for the Wilmington Convention Center To: Whom it may concern, The City of Wilmington (City) has a long standing relationship with SMG Corporation for services related to the Wilmington Convention Center. When the City decided to construct a convention center, we quickly realized that we needed professional assistance in reviewing the plans and specifications to ensure that the facility, as designed, would function and flow properly from the perspective of a management firm. Our goals included assisting the city in developing FF & E specifications, budgets, and ultimately managing the facility on behalf of the City. The City requested and received.proposals from several management firms.. SMG was ultimately chosen to assist the City in this endeavor. The City formally entered into a contract with SMG in 2008 and began by reviewing plans and specifications from an operator's perspective. They provided assistance throughout the design and construction process. In addition, SMG provided expert assistance in developing the FF & E budget and ultimately prepared specifications for many of these items. The FF & E budget was set at $4.0 million dollars. Through the assistance of the SMG staff the final expenditures for these items was well under the budgeted amount. A portion of SMG contracted services included recommending and preparing the preopening budget and activities leading up to the grand opening. Preopening services started approximately 12 months prior to the expected opening date. Due to construction delays the opening was pushed back several times and SMG continued to manage the preopening activities within the allocated budget. This also included early bookings for the facility and working very closely with the Convention and Visitors Bureau to attract and secure booking for the facility. Since opening the facility SMG has provided excellent management services including numerous advanced and future bookings for the facility which to date have exceeded the expectations of the new facility. Customer comments on the services provided to conventions, meeting and banquets have been overwhelmingly positive. The City of Wilmington is very pleased with these management services. All SMG employees both prior to and since opening have provided excellent, customer friendly services while maintaining the expected budget for the facility. Steven Assistant to the C } anagetlof Deopment 102 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.1.5: PROPOSED' a REPUTATION Proposer's Reputation:, Multi -Purpose Venues Convention Arenc Authority GRAND Rill l `lT COUNTY CONVENTION / ARENA AUTHORITY 1 am writing to recommend SMG as your selection for building manager. SMG has capably managed the Van Andel Arena®, DeVos Place®, and DeVos Performance Hall for seventeen years. For ten years of their management. I have chaired the Convention and Arena Authority, which owns the facilities. I have been directly involved in their engagement and very attentive to their work. I base my recommendation in part on the following: 1. Seventeen years of very good management, frankly remarkable management, by SMG. They have been strong enough to justify a recent seven-year renewal of our contract. 2. Under SMG's management, the Van Andel Arena® and DeVos Performance Hall have continually ranked by national trade publications within the top 10 buildings of their size in the world for attendance and gross revenues. Further, SMG has managed within an aggressive budget and assured the financial viability of the facilities; and 3. SMG takes personal responsibility and pride in our facilities, and its manager and senior staff has become an integral part of our community. If you have any questions, or wish to discuss this further, please feel free to contact me at (616) 391-2590 or via e-mail at steve.heacockru;,spectrum-health.orc. Sincerely, Steven Heacock, Chairman Grand Rapids -Kent County Convention/Arena Authority Von Andel Arenos 130 West Fulton Grand Rapids, MI 49503-2601 t `t -PLACE DeVos Ploces 303 Monroe Ave. NW Grand Rapids, MI 49503-2233 6 :i 7.12 6 6'.,_, 42.65:0 ©2012 SMG Proposal for Professional Management of the James L. Knight Center io3 Proposer's Reputation: M iti-Purpose Venues Michael V. O'Brien City Manager CITY OF WORCESTER SMG is the select manager of the City's DCU Center and has previously managed the City's Centrum Centre Arena (re -named the DCU) since 1982. With the City's expansion of the Centrum Centre Arena to include a Convention Center in 1997, SMG extended its management and marketing services to successfully oversee and promote this new venue as well. SMG guided the initial construction of the arena and the addition of the convention center 15 years later. Their vision for improvements has been important to keeping our facility fresh over the years and currently we are underway with a twenty million dollarrenovation project to the facility. When asked to manage the neighboring 1,000 space parking garage for the arena when it first opened, SMG jumped on board. When asked to market and sell the naming rights for the facility, SMG did a terrific job. No matter the task, they have consistently exceeded all of our expectations. That said, Worcester's venues have consistently met or exceeded all expectations and have been ranked among the top venues of their size for many years under SMG's purview. For nearly 30 years, SMG has ensured that the DCU Center is one of the most successful municipallyowned arena -convention center facilities. In addition to SMG's expertise in marketing the facilities, booking events, maintaining the properties, and ensuring the highest quality experience for our visitors and patrons who attend events at the venue, the SMG staff also provides leadership in our community. From participating on myriad business boards such as the Worcester -Bus iness,Development Corporation; the :Worcester Research 'Bureau and the Central- Massachusetts Convention and Visitor's Bureau, to volunteering their services to the United Way Day of Caring and the Red Cross Donor Recruitment Initiative, the SMG staff takes an active part in the community. Most recently, the SMG staff volunteered their time and efforts to provide meals to those left homeless in the wake of a hurricane that devastated several of the City's surrounding towns. SMG recognizes the importance of being part of the fabric of the larger community. The City has been fortunate during this difficult economic period to have many development projects underway. SMG routinely contributes to and supports our City initiatives and is a valued community partner. If I can provide you with any further information or details relative to the outstanding contributions of SMG to the City of Worcester, please feel free to contact me directly. Sincerely yo.rs Michael V. 0 Crien City Manager EltrzA OFFICE OF THE CITY MANAGER, CITY HALL, WORCESTER, MA 01608 TELEPHONE (508) 799-1175 I FAX (508) 799-1208 EMAIL: citymanager@worcesterma.gov Nrowcencr 104 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4..5: i='ROPOSER'S REPUTATION Proposer's Reputation: Multl'Purpose i/emus April 4, 2011 Subject: SMG reference letter To Whom It May Concern: Charlotte County's•contract for the operations of the Charlotte Harbor Event & Conference Center with SMG began October of 2009. In that time I have foundthe.staff to be open and responsiveao our needs. :Our contract calls for an annual qualitative'incentive fee:based on client satisfaction, ' administrative/professional management, maintenance and operations, community involvement, and creative marketing. Over the first year of service SMG.has demonstrated qualityservice to its clients and exceptional professional management of: the center. SMG is committed:to:the success of the Center and has collaborated.with ourVCB staffon.marketing. SMG's staff continues.to invite potential renters to visitthe facility through sales calls. Charlotte County -is very pleased with our arrangement with SMG. We anticipate a beneficial partnership 'for the life of our contract. Please contact me at 941-743-1944 if I can provide any additional information. Sincerely, • Kelly A. Shoemaker Assistant County Administrator 18500 Murdock Circle, Suite 538 I Port Charlotte, FL 33948 _ Phone: 941.743.1944 I Fax: 941.743.1554 ©2012 SMG Proposal for Professional Management of the James L. Knight Center ios What Our Hyatt Partners are Saying "It is no coincidence that the largest, most successful firm in the managing convention centers was the brainchild of our founder, A.N. Pritzker. The very principles that guide SMG's management style, dedication and national acclaim are all rooted in the same "Hyatt Touch" that has made us successful ... We experience firsthand the local relationships and national support that SMG provides. Like us, senior management of SMG has personal relationships with national meeting and event planners, our mutual and prospective clients." Marc W. Ellin Senior Vice President -Field Operations Hyatt Hotels & Resorts 7500 E Doubletree Ranch Road Scottsdale, AZ 85258 "I have worked with many convention centers in my career. In my opinion this facility is run very well from customer service to cleanliness. Our meeting planners continue to provide positive feedback on how well the center is run." Daniel Kuperschmid General Manager Hyatt Regency Albuquerque 330 Tijeras NW Albuquerque, New Mexico 87102 000000000000000000000000000000 "I just wanted you to know how much I appreciate working with SMG, you and your team. I wear many hats in the city of San Francisco from Board President of the Union Square BID, Officer with the Hotel Council of San Francisco, soon to be Board Chair of SF Travel and of course General Manager of the Grand Hyatt San Francisco. You and your team take care of the many visitors to San Francisco and do it in the utmost professional manner. It's wonderful just how long SMG has been represented at famed Moscone Center. I also pushed for SMG to take over the Albu- querque Convention Center when I was in Albuquerque from 200-2003. They were the first company to come in when we privatized that convention center and they still are doing a remarkable job." David Nadelman General Manager Grand Hyatt San Francisco 345 Stockton Street San Francisco, CA 94108 "My experience as a Hyatt general manager, working with SMG has been positive and professional throughout. Their leadership is committed to working with not only our hotel, but with the entire hospitality community in an effort to better serve customers and drive incremental business into those communities. From General Manager John Wilusz, to Regional General Manager Craig Liston to Senior Vice President Gregg Caren; the SMG team continues to be a solid partner for Hyatt Hotels." Tim Dant General Manager Hyatt Regency Columbus 350 N High Street Columbus, OH 43215 io6 Proposal for Professional Management of the James L. Knight Center ©2012 SMG TION 4.1.5: PROPOSER'S REPUTATION Proposer's Reputation: Hotel Partners E,15,,M112'ES4R3rS0,,,i June 11, 2012 Mr. Charlie Beirne General Manager Long Beach Convention & Entertainment Center 300 E. Ocean Boulevard Long Beach, CA 90802 Hyatt Regency Long Beach 200 South Pine Avenue Long Beach. CA 90802-4553 USA Telephone: 562.491.1234 Fax: 562.432.1972 Dear Charlie, I would like to take the opportunity to personally thank you and your Director of Sales, Ellen Schwartz, for your partnership with the Hyatt Regency Long Beach. In an ever -changing economic environment and increased competiveness in the convention and group markets, we appreciate your quick response time as well as flexibility in working with the Hyatt Sales Team in assisting us to try and secure business not only for our property but the City of Long Beach. With the recent completion of our $30 million guestroom renovation and the numerous enhancements of the Center, we look forward to showcasing both entities to our customers and our Worldwide Sales Force. Thank you again for your support. Stephen D'Agostino General Manager Hyatt Regency Long Beach Direct Line: 562/624-6060 E-mail: stephen.dagostino@hyatt.com ©2012 SMG Proposal for Professional Management of the James L. Knight Center 107 Proposers Reputation: Hotel Partners s Hyatt Regency Ureertvlli 70 C R:It'Artet ei:.64... 3S 123 r 11 OREENVlt1E June 7, 2012 John Wilusz TD Convention Center General Manager One Exposition Drive Greenville, SC 29607 Dear Mr. Wilusz, Please accept this letter as recognition of the excellent job that SMG does in operating and managing the TD Convention Center here in Greenville, South Carolina. As you know the TD Center is the largest convention and meeting space facility in our city and providing outstanding service and facility space has always been key to current and future programs enjoying their time here and both returning to and recommending our city, our hotels and the TD Center as a great location to have their event. SMG understands the hotel's needs and our role in the community and they play an important part with cooperation in ensuring our business needs are always considered as SMG focuses on capturing events and meetings to fill their facility and then partnering with us to sell guestrooms and accommodate attendees. We can highly recommend SMG for future facility management assignments as they have a proven record of success and an excellent customer service reputation here in Greenville. Please don't hesitate to reach out to me for further information if required. Regards, Jim Berkley General Manager 1o8 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.1,6: PROPOSER'S FINANCIAL RESPONSIBILITY 4.1.6 Proposers Financial Responsibility Audited Financial Statements We are providing a copy of SMG's financial statements for 2009 - 2011 under separate cover.These financial statements were audited by PricewaterhouseCoopers and Ernst &Young LLP, major independent CPA firms. ' he financial statements provide documented evidence of SMG's financial strength and stability. Since SMG is a private, closely held partnership, we appreciate your discretion in the distribution of these state- ments. Financial information is not normally made available for. inspection. If there are questions concerning financial issues, please contact John Burns, CFO and Executive Vice President. Recent Quarterly.Financial Statements We are providing a copy of SMG's most recent quarterly financial statements .under separate cover. ©2012 SMG Proposal for Professional Management of the James L. Knight Center io9 4.1.7 Fiscal Plan and Marketing Plan 7a. Fiscal Plan There are two elements of our fiscal plan for the Knight Center: our pro forma and our compensation proposal, both can be found on the following pages. 7b Marketing Plan Our Marketing Plan for the Knight Center can be found on the pages following our Fiscal Plan. Proposal for Professional Management of the James L. Knight Center ©2012 SMG SEICTlON 4.1. ; ?R'OPO.SER'S r1SCAL.. AND MARKETING PLAN Pro Forma Analysis Though we had limited access to financial statements for our evaluation, we did review publicly available financial state- ments for the facility. We have analyzed this information, compared with other SMG-managed venues, and believe that the facility is under -performing financially. As noted in our Marketing Plan that follows, we have a very clearly delineated plan to market all aspects of the complex in order to boost occupancy, revenue and local tourism impact. As such, we have outlined on the next several pages a pro forma income statement showing current performance, and our projections based on the plans we are ready to put into action. ©2012 SMG proposal for Professional Management of the James L. Knight Center iii A review of the audited Statements of Revenues and Expenses: Revenues for FY 2007-11 inclusive reveals significant changes to the sources of revenues earned by the facility. Most notably, a decrease in Auditorium/Exhibit Hall and Ticket Surcharge/ Box Office revenues offset by a windfall commencing with the departure of the University of Miami on January 1, 2010: • Since 2007 Auditorium/ Exhibit Hall revenues decreased 20% overall from $856,000 in 2007 to $703,000 in 2011 with a yearly average of $688,000 • Since 2007 Ticket Surcharge and Box Office revenues decreased 21% overall from $ 382,000 in 2007 to $279,000 in 2011 with a yearly average of $305,000 • Since 2007 total revenues less the Miami Conference Center contribution begun in 2010 have decreased 5% from $1,719,000 in 2007 to $1,670,000 in 2011 with average gross revenues of $1,638,000 annually. During FY 2010 and 2011 revenues from the Miami Conference Center contributed $441,000 and $719,000 respectively with Hyatt Regency Miami rental usage accounting for the vast majority of occupancy/ event sales. As the facility's Major Use Customer, Hyatt contributed an average of 24% of total annual revenues for FY 2007-09 while providing 30% and 56% of total sales in 2010 and 2011 respectively. Over the past four years, the historical Net Operating Income (Loss) at the James L. Knight Center has been stagnant. Excluding the Miami Convention Center & Yacht Docking Rentals, which were not present in 2008 and 2009, the operating loss in 2011 is worse than it was in 2008: Audited Financial Statements 2011 2008 Total Revenues 1,565,889 1,402,742 Total Expenses 2,224,757 1,994,487 Net Operating Loss (658,868) (591,745) SMG has a long and successful track -record of injecting commitment and energy into new contracts for the client; bringing fresh ideas and new events. Making a significant financial impact requires focus on many areas of the operation with the ultimate goal of increasing revenues, while at the same time, reducing expenses. SMG has developed a stabilized year projection which will be achieved over a period of time. These projections are based upon the financial information provided as part of the RFP, SMG's knowledge of the greater Miami marketplace, and our industry leverage and experience. With the proper focus on driving new event activity, implementation of SMG's policies and operating standards, and taking advantage of SMG's purchasing power in the industry, we project an overall improvement of the operation of $478,700. • 112 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.1.7: PROPOSER'S FISCAL A MARKETING PLAN REVENUE ENHANCEMENTS: SMG has projected over $356,200 incremental revenues. Below are the highlights of the initiatives that will result in the growth in revenues. • Generate additional event activity: • Use SMG's Theater division and leverage in the live entertainment industry to drive income across all revenue streams. • Utilize SMG's Convention Center division and proprietary SITEPAS to generate new business leads resulting in additional events. • Generate additional ticketing income based upon SMG's national relationship with Ticketmaster. • Work closely with the current food service provider to enhance opportunities for driving sales, creating new events and maximizing bookings from social business, weddings, receptions, business luncheons and dinners resulting in additional commissions to the City. We have seen significant growth in this area when properly marketed and priced. • Emphasize attracting more national and regional business and target advertising and marketing strategies in the greater Miami region. As a result of the above, the following represents the projected increase in revenues: Revenue Enhancements: Increased Event Revenues $240,700 Ticket Surcharge / Box Office $115,500 COST CONTROL SMG recognizes the important goal of containing and/or reducing expenses while maintaining high levels,of service to facility usersand stakeholders To that end, we believe the following strategies will achieve this balance and result in roughly $122,500 in cost savings: Procurement Process The utilization of specific and detailed procurement processes will result in both cost savings and the highest quality goods and services. Typically, we work hand -in -hand with our municipal partners to develop a comprehensive purchasing plan which may include: • A formalized bid process for all purchases over $5K. • Requiring at least 3 price quotes for all purchases over $1K. • Active participation in preferred pricing via SMG national accounts. SMG is continually working to increase our reach with new vendors with the goal of increasing cost savings and service to all our clients. • Explore additional opportunities to make bulk purchases with other SMG venues which will reduce overall per unit costs. Maintenance and Capital Planning • Utilize SMG's proprietary maintenance and capital planning programs to proactively schedule and plan for all repair, maintenance and long-term capital projects. Having a solid, forward -looking repair, maintenance and capital plan in place helps to implement more efficient bid processes and allows us to bundle purchasing in order to achieve greater cost savings. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 113 Energy Savings • The control of utility expenses is critical as they typically are the #1 or #2 highest single expenditure in public assembly facilities. • In the past, we have employed specific strategies to control ever rising utility costs. This includes items such as: • The achievement of LEED certification in order to become more knowledgeable about and implement cost -saving energy reducing practices. • Implementing energy efficient equipment and supplies such as energy efficient Tight bulbs and fixtures which may also qualify for local utility company rebates. This will result in savings on both the initial purchases and ongoing costs. Further, using more efficient bulbs saves on the cost of labor to replace the bulbs as they are replaced less frequently. • Implement intelligent facility closures to reduce utility costs during extremely hot days where no events are to take place or there is no preparation for upcoming events. Labor Savings SMG has not forecasted any reduction in staff due to the sensitive nature of labor relations. However, SMG will work closely with the City to evaluate both full-time staff and the labor used to staff events. We have been successful at re -engineering our staff to meet the needs of the facilities while the highest standards for users, tenants and customer service are met. Further, whenever possible SMG will employ smart measures to control and reduce labor costs through: • Delaying post -event tear -down and clean-up 12-24 hours to avoid union labor overtime. • Negotiating effective and cost -saving union agreements, designed to control labor costs during the down economy. • Wherever possible, limiting the use of 3rd party subcontracts to perform work that can be handled by in-house SMG staff. • Negotiating favorable terms with 3rd party subcontractors when their use is deemed necessary. • Negotiate stronger use agreements to maximize the reimbursement of expenses incurred to host an event. As a result of the above, the following represents the projected improvement in operating expenses: Expense Reductions: Management Fee Savings $72,200 Operational Efficiencies/Programs/Utilities $42,901 G&A/Miscellaneous $7,410 114 Proposal for Professional Management of the lames L. Knight Center ©2012 SMG SECTIO 4 .7: PROPOSERS FISCAL. AND MARKETING PLAN SMG JAMES L. KNIGHT INTERNATIONAL CENTER SMG ANTICIPATED IMPROVEMENTS OPERATIONAL IMPROVEMENT 2011 Audited Financial Statement NOI $164,963 SMG Operational Improvements: Management Fee Savings $72,200 Revenue Enhancements: Increased Event Revenues $240,700 Ticket Surcharge / Box Office $115,500 Expense Reductions: Operational Efficiencies/Programs/Utilities G&A/Miscellaneous $42,901 $7,410 TOTAL IMPROVEMENTS $478,711 TOTAL SMG PROJECTED NOI $643,674 (inclusive of base management fees) ©2012 SMG Proposal for Professional Management of the James L. Knight Center 115 Compensation Proposal You will find our proposal to be creative, competitive and focused, on your objectives. We have provided that information on the following pages. Werm..we irnell 0nen[ and Colmar:an Venue...gement Cost Proposal to Provide Services as Detailed in Section III Scope of Services CITY OF MIAMI - JAMES L. KNIGHT CENTER JUNE 18, 2012 As WITH ALL OUR CLIENTS, WE REMAIN FLEXIBLE WITH REGARD TO THE OVERALL COMPENSATION STRUCTURE AND WILL WORK CLOSELY WITH THE CITY TO ARRIVE AT BUSINESS TERMS WHICH MEET ALL OF OUR MUTUAL GOALS FOR SUCCESSFUL OPERATION OF THE JAMES L KNIGHT CENTER. SMG HAS THEREFORE PROVIDED THREE DIFFERENT OPTIONS TO THE CITY OF MIAMI AND WOULD BE WILLING TO DISCUSS THE MERITS OF EACH TO COME TO A SATISFACTORY COMPENSATION STRUCTURE FOR ALL. Option A: Fixed and Incentive Based Compensation Term: 3 years with contract extensions of three (3) one (1) year periods at the discretion of the City, per the RFP Base Fee: $65,000 Annual Fee Base Fee Rebate/Expense Cap Protection: If in any year, SMG does not achieve the approved annual operating budget, SMG will rebate dollar for dollar the amount ,of„such shortfallcappedat its Base Fee .for.that_year. In addition, SMG will, be responsible for any expenses over the agreed upon budget, except as approved by the City Incentive Fee: in order to qualify for any incentive payments, SMG must first achieve the approved annual operating budget. 1. Financial Incentive Fee : SMG would earn 20% of Net Operating Income improvement in excess of an agreed upon benchmark. SMG is willing to work with the City to determine the appropriate benchmark based on historical performance of the facility. 2. Non -Financial Incentive Fee (up to 30% of base fee) In addition, SMG would be eligible for an incentive fee based upon the City's evaluation of SMG's performance in the following -suggested areas: • Achievement of Annual Customer Satisfaction Goals (10% of base fee) • Achievement of Annual Event Diversity Goals (10% of base fee) • Achievement of Annual Asset Management/Operations Goals (10% of base fee) SMG and the City will work closely to determine the specific goals and weight given to each. SMG's total compensation in any year would not exceed $120,000 Marketing Fund: SMG will contribute $50,000 to an Event Marketing Fund to be used at the City's discretion to enhance event activity at the James L. Knight Center Other Considerations: -SMG-will-fund-all_expenses_associated_with_transitioning-the. management _to_SMG. 1i6 Proposal for Professional Management of the James L. Knight Center ©2012 SMG CTION LL'L7: PROPOSER'S FISCAL AND MARK G PLAN Wonuwlue eraenemn,en anu Convention venue MenDelnen, Cost Proposal to Provide Services as Detailed in Section III Scope of Services .CITY OF MIAMI - JAMES L. KNIGHT CENTER JUNE 18, 2012 Option B:-Incentive Based Compensation Term: 3 years with contract extensions of three (3) one (1) year periods at the discretion of the City, per the RFP Base Fee: NONE Incentive Fee: SMG will be entitled to an incentive fee based solely on its ability to increase the profitability of the James L. Knight Center. We therefore propose that SMG will earn the following percentages of net Operating Income improvement over a benchmark derived from taking the average from audited financial statement for the fiscal years ending September 30, 2010 and 2011 respectively (see table below). x4 rOgenVA 50' 30! Fiscal Year Ending Sept. 30 2011 2010 Excess of Revenues over Expenses $164,963 $89,275 Add: Management Fees 137,200 122,914 Total $302,163 $212,189 2-year average $257,176 SMG's total compensation in any year would not exceed $150,000 Marketing Fund: SMG will contribute $50,000 to an Event Marketing Fund to be used at the City's discretion to enhance event activity at the James L. Knight Center Other Considerations: SMG will fund all expenses associated with transitioning the management to SMG. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 117 IW/Mwtoe fnrnWutmrnl end lonYNItIMI ItWE AWMPEMMI Cost Proposal to Provide Services as Detailed in Section III Scope of Services CITY OF MIAMI - JAMES L. KNIGHT CENTER JUNE 18, 2012 Option C: Fixed Fee Compensation Term: 3 years with contract extensions of three (3) one (1) year periods at the discretion of the City, per the RFP Base Fee: $95,000 Annual Fee Base Fee Rebate/Expense Cap Protection: If in any year, SMG does not achieve the approved annual operating budget, SMG will rebate dollar for dollar the amount of such shortfall capped at its Base Fee for that year. In addition, SMG will be responsible for any expenses over the agreed upon budget, except as approved by the City Incentive Fee: -None Marketing Fund: SMG will contribute $50,000 to an Event Marketing Fund to be used at the City's discretion to enhance event activity at the James L. Knight Center Other Considerations: SMG will fund all expenses associatedwith transitioning the management to. SMG. 118 Proposal for Professional Management of the James L. Knight Center ©2012 SMG Table of Contents Miami Convention and Conference Center Sales & Marketing Plan • Introduction • Convention Center Services • SMG and the GMCVB Partnership • Public Shows • Tradeshows and Conventions • Meetings • SMG National Sales Initiatives Advertising and Marketing James L. Knight Theater Marketing Plan • Mission • Event Marketing • Programming • Advertising — National/Regional • Public Relations • Theater Website • Database Marketing • Social Media • Community Partners and Sponsors • Future Audiences • Industry Memberships Miami Convention and Conference Center Introduction ° The theme for the SMG marketing plan is to focus on the wide scope of services SMG provides with regard to worldwide management of convention centers, arenas, per- forming arts centers, theaters, stadiums, exhibition halls, trade centers, and specific use venues. The focus will be how SMG markets our facilities on a national level, as well as local level with respect to destination marketing, and partnering with the Greater Miami Convention and Visitor's Bureau (GMCVB) and other SMG managed facilities. The marketing of the Miami Convention and Conference Center (MCCC) will be discussed in terms of promotions that SMG will execute with other SMG-managed facilities to create awareness in the convention and meeting planning market place, as well as entertainment agencies. Working synergistically between the GMCVB, Hyatt Regency and the Miami Convention Center . sales staff is most essential in reaching financial goals, maxi- mizing the number of hotel room nights, as well as increasing revenue for the GMCVB. SMG currently manages 68 convention centers. Management and support of these economic catalysts has been a specialized division for SMG for more than twenty years. Here are some quick SMG Convention Center Division facts: • SMG operates 85% of the publicly owned exhibition space operated by private companies in North America. • The convention and exhibition facilities currently managed by SMG include more than 14 million square feet of prime space. • The facilities range in size from 30,000 square foot regional venues, to the 2.6 million square feet at Chicago's McCormick Place, the largest in the western hemisphere. • More than 30 million people attended thousands of convention and exhibition events at our facilities last year. • These included events of all shapes and sizes: consumer shows, trade shows, conventions, corporate meetings, product launches and other special event. • SMG's Convention Center Division not only facilitates these events, but also helps the facilities attract more shows through our day-to-day industry relationships. SMG has a track record of reducing public financial burdens while maximizing the customer service expe- rience. In our first year of operating McCormick Place and Cobo Center, we have beaten financial targets by 153-million and S1-million respectively. 120 Proposal for Professional Management of the James L. Knight Center ©2012 SMG CONVENTION CENTER SERVICES SMG offers its municipal clients the benefit of experience and success in convention sales and marketing support. Our corporate office and extensive network of facilities allows us to offer: • Full -service national sales and marketing programs • National contracts to help facilitate bookings • An integrated network of Sales Directors to share leads and client information • Electronic lead distribution • Proprietary client database • National tradeshow exposure • Co-operative advertising and branding campaigns • Telemarketing programs With this wealth of opportunities, expertise, and experience our clients have the benefit of leveraging the SMG brand, recognized industry -wide for excellence, dedication and client satisfaction. All SMG-managed convention centers strive to a concierge -level of customer service. SMG's solid industry reputation, best industry practices, day-to-day industry relationships with Convention and Visitor Bureaus, Industry Vendors/Suppliers, Labor Unions, and the Hotel Community makes SMG the leader in convention center marketing, booking and operations. 11NIL" rL, I C,h MARKET iNl- PLAN SMG & THE GMCVB PARTNERSHIP The success of MCCC appeal as a viable convention and event destination heavily relies on an open and mutual relationship between SMG and the GMCVB working together with common sales and marketing goals. The GMCVB will be the primary destination marketing organization for Miami charged with marketing the city to conventions and meetings and other organizations. Strategies • Sell qualified groups for the MCCC. • Create demand in key national, regional and state markets focusing on the off-peak season and net new business, which will produce room nights for meeting and convention facilities and hotel properties. • Uncover new and expanding market segments. • Increase the national visibility of MCCC as a viable convention destination. • Initiate a program to develop more off-season meetings/ conventions. • Sales efforts will be targeted primarily to the Association and SMERF (social, military, educational, religious, and fraternal and sports) markets, with the addition of some new niche markets. • Connect with event decision makers who must first understand and appreciate the destination as a whole. Delegates will attend a meeting if their leadership is enthusiastic about the community. • Collaborate with the GMCVB on Familiarization Tours "FAM"Tours. These tours have long been an excellent means for locations to make themselves known to meeting planners in the convention industry and to cultivate relationships with the people behind those locations. • SMG will work with the GMCVB on a MVP (Most Valued Partner) campaign to encourage local leaders to work with us on opening doors to their associations. A MVP must consider the associations and organizations of which they are a member. This program will reward local businesses and residents for their help in bringing more meetings, conferences and convention guests to the city of Miami. Through MVP, you can win airline tickets, hotel accommodations, concert tickets, attraction passes and an MVP medal. Attend industry trade shows with the GMCVB that are proven lead generators. • Work with meeting planners to help build attendance. Specific tactics include developing regular contact, attending key conventions the year prior to their gath- ering in Miami, assisting the meeting planner with direct mail, and developing online content for the facility and the GMCVB websites. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 121 • Explore new ways to utilize new technology tools to attract meeting planner's conventions to the MCCC. • Work with the GMCVB on their annual Tourism Awards and National Tourism Week Luncheon to be held in the Convention Center and sponsored by SMG. SMG Sales staff and General Manager will have monthly breakfast meetings with the GMCVB Executive Director and sales team to exchange ideas, review the event calendar, booking procedures, processes, current business model challenges, status of outstanding pro- posals, existing proposal and booking challenges, discuss marketing and sales initiatives for the destination. • SMG will create a promotion incentive rental package to drive short-term business in which discounted rental at the Center will be offered based on qualified catering and included an added value of a hosted beverage break. ▪ SMG will provide business leads to the GMCVB and the MCCC, which will not only be a source of excellent rental, but will generate considerable hotel room nights. • Through SMG's national partnership with leading industry publications and trade associations, advertising and tradeshow Co -Op participations are extended to the GMCVB and the MCCC. • Interlinking websites and sharing content between the GMCVB and MCCC websites ensures a common message is extended. • SMG will prepare effective yet competitive rental proposals for the GMCVB and the MCCC that incorporates the "big.picture" by, considering hotel room nights, catering revenue and other ancillary revenue potential. • An integrated booking system will be utilized, which allows the GMCVB to get real-time view of the Center's booking calendar. • SMG will partner with the MCCC by hosting space and a phone bank to conduct a telemarketing sales blitz. The Miami Alliance - A New Model for Marketing the Package Our experience in the convention industry has shown us the competitive nature of the marketplace, the importance of a cohesive approach to the meeting planner and attendee, and the need for coordination of goals and approaches. SMG is prepared to partner with the GMCVB and the Hyatt Regency in development of a new and comprehensive sales and marketing program that recognizes these critical areas. Our other CVB partners who have welcomed this progressive concept in Denver, Jacksonville and most recently in Detroit, have praised us. Create a new model for the cooperative marketing of a destination and Convention Facility. The City of Miami has historically followed the traditional model of GMCVB/Convention Center/Hospitality Com- munity where the parties act independently of each other as a loose coalition with similar goals but limited investment in the overall joint goals of the city at large. This system has, at its root, a series of talented professional teams working largely independently of each other and producing what each feels is their mission. While this system can be successful in producing some results, the growth in opportunity for the Miami market demands a newer approach. For Miami, we believe that the optimum approach is to now transcend traditional relationships to form a new and powerful Strategic Alliance that assures our collective future success in economic development through convention bookings. To achieve that goal for the city, we recommend adoption of this exciting new program, which would be branded for future community convention development as "The Miami Alliance." In our opinion, a strategic alliance is a serious business relationship that is built upon mutual trust, ideology, business need and opportunity. Only a few business relationships can actually be classified as genuine alliances —and, as stated previously; we have demonstrated success with our Alliance partnerships in Denver, Detroit and Jacksonville. This new strategic alliance opportunity can be best fostered through a written agreement to leverage resources for the greater collective good of the community —in this case, the GMCVB. 122 Proposal for Professional Management of the James L. Knight Center ©2012 SMG KNIGHT Gr TE RKE rIN Di W A What it delivers - How I` works. In most communities, their destination industry agencies and components focus primarily on their own requirements and deliverables -- and are not necessarily vested in the interests of other supportive partners. Through the Miami Alliance, there will be a new community commitment, fostered by the GMCVB with these principal benefits: A joint commitment to hierarchy of goals —Participants will commit to support the delivery of other alliance member goals as well as their own. • A truly seamless Team -Sell approach —delivered through a new comprehensive marketing agreement of Alliance members. In this way, we will begin to think of the Miami sales team as one comprehensive team, compromised of the various sales team resources of the GMCVB, the convention center, and major convention hotels. • "One sight, one sound, one sell" —A clearly defined set of branded, priority customer communications messages for everyone to employ; delivering a new brand program for the community to rally around and support. "Team Miami" —an enhanced service team that follows up on the team -sell approach with prescribed mutual training and evaluative processes to measure and produce even greater success. Key Participants in the Miami Alliance. 'The overall policy direction would be provided by both the GMCVB and the convention center management company. The lead contact for convention sales and service would be the GMCVB, supported by the Center Management Company, the Hyatt Regency and the hotels, along with other potential participants and the new Miami Alliance would become a new branded program that is prominently noted in all participant communications, on their websites and other collateral. Onsite display plaques for all Alliance business participants would proclaim, "A proud member of the Miami Alliance: com- mitted to service excellence." The extended Miami Alliance Team of facility management, hotel participants and other important partners required by the client will be ever-present with the GMCVB for sales calls, familiarization programs and other related marketing needs. 1ji;' recommend launching a new Custorner Assessment Survey vey Using SMG's existing "e-survey" provider, a GMCVB/Facility Customer Perception analysis of Customer perceptions and future needs. The GMCVB can help provide direction regarding customer interests and destination needs. In the spirit of cooperative participation with the GMCVB, we are prepared to develop a joint online e-survey to quickly capture on a projectable basis, critical customer perceptions about the City and convention product, surveying both current and potential future customers for the city and convention center. Combining our electronic news release that "SMG is here and things are changing at the Miami Convention Center," we believe this important survey would: Send a positive message to customers that their business is valued and focus is on continuous improvement to meet their needs. Identify any problems to improve service quality or supporting systems, processes and procedures. • Establish benchmarks and measure progress going forward. In collaboration, the GMCVB, SMG and the Hyatt Regency can determine which meeting planners should be included in the survey. At the same time, we can decide how the data is to be broken out for analysis: size of the association, location by region, typical attendance, etc. SMG's Commitment to the Miami Alliance SMG is committed to development of this concept, in full support of the Miami Convention Brand Promise for customer sales and service excellence, and our commitment to continue the integration of these efforts for a true seamless delivery. In that spirit, we offer the following commitments for consideration: • Participate with the GMCVB at trade shows on their travel calendar, and offer access to SMG national trade show co-ops to add exposure and save money. • Provide tours and related food and beverage during GMCVB FAM/site trips. • Partner with GMCVB during all relevant sales missions, and offer access to SMG national client events and sales missions. • Partner with GMCVB during all customer events. • Facilitate real time access to space availability, infor- mation on SMGbooking.corn. • Attend all sales meetings of the GMCVB. • Quote competitive pricing, with sensitivity to competitive market conditions. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 123 ' Eliminate the traditional booking window in favor of market segment specific assignments. • Review the current booking policy and recommend changes to better accommodate changing market conditions. • Develop a cross training program for all Alliance sales professionals, including the option to join our K'nekt sales training programs at the College of Charleston. • Participate in year-end reports for the community to review the year's efforts of the Alliance. In partnership with the GMCVB, we would also look to: ' Develop joint goals for bookings, room nights, space and revenue. ' Establish a series of regular strategic meetings to examine the overall goals of the Alliance and progress toward achievement of those goals. • Review and confirm agreement on the standardized definitions of business performance (measurement metrics) in accordance with the standards of the Desti- nation Marketing Association International. ' Deliver a Year-end Report for the Miami Alliance that: Reviews past year bookings of meetings for the future, including meeting space, hotel room nights produced and estimated economic impact to the community. Forecasts booking goals for the destination and the Center for the coming year. Pro -actively promote the Convention Center in all selling activities. As demand builds, create a "yield management" system that would allow the sales professionals to maximize the utilization of space at the Center. Review and revise marketing/sales activity with the GMCVB staff every quarter. Develop a Convention Center Advisory Committee consisting of local constituents for quarterly input and ongoing reviews of plans, progress and challenges. Produce an integrated team -sell approach that requires joint sales team members to call on customers together. The Center will be visible by potential convention clients at all major trade shows where the bureau exhibits and solicits, as well as sales forums and missions. Create an electronic customer feedback system that would allow the Affiance to constantly monitor its performance against its qualitative goals .andenhance its performance to those goals. Strategies by Market Segment: PUBLIC SHOWS Miami Convention and Conference Center will be positioned as the premier regional facility for public shows of every kind. The consumer show market should ride the coat tails of the local economy and increase in attendance in future years. Strategies: Family activities are a great way to build attendance. An increased focus on family activities at public shows tends to draw in more attendees. SMG will encourage all public shows to incorporate family activities into their programs in order to build attendance. A good example of a family focused event is an Auto Show. For instance, SMG could work to bring in characters such as: Transformers, Phineas & Ferb, Iron Man, etc. during a certain time period, which will result in increased attendance. Influence our current show promoters to try new events. The SMG sales and marketing team will identify new niche markets and present them to existing customers. We will identify some of the smaller vertical markets that have a good chance of success, and present them to new and existing clients. Some events that may have great potential here are: a Motorcycle Show, Food Show, Women's Expo Show, Antiques Show, Craft Show, Health Expo, Martial Arts, Travel Show, Vintage Classic Car Show, and Liquidation Sales. Event Specific: Races — (Registrations, Expos, and Fan Fairs) -The MCCC will provide a central location with the infrastructure to support successful races. The MCCC is a good location for races because of its centralized registration areas,' adequate parking, ample expo space and plenty of restrooms for participants. Special Events — The MCCC could connect with the local community by hosting a few events throughout the year when there is availability or by using the street level lobby. The MCCC will realize income from concession sales, catering, and parking. These events will serve as a way for the MCCC to plug into the local community during the slow summer months. Assuming these events succeed and grow from year-to-year, they could prove to be larger revenue generators down the road. Highlighted Future Initiative - Develop a strategy to bring in different consumer food shows. 124 Proposal for Professional Management of the James L. Knight Center ©2012 SMG KNIGHT CENTER MARKETING PLAN• Strategies by Market Segment: TRADESHOWS & CONVENTIONS The main objective for any tradeshow is to create an oppor- tunity to develop a mutually beneficial relationship between buyers/attendees and sellers/exhibitors. The majority of tradeshows are produced by for -profit organizations. Hence, in the case of a true tradeshow, the decision to locate in Miami is an objective one which will be based upon a proven business model. That is, if the numbers work, tradeshow producers will choose the MCCC. Conventions, even those that have a strong tradeshow component, have a different focus than tradeshows. The primary purpose of a convention is not the exhibit booths, but rather the educational and networking components. They usually utilize less exhibit space and significantly more meeting room space than do tradeshows. Conventions have a greater reliance upon our Convention and Visitors Bureau to secure room blocks in the immediate area surrounding the MCCC. Conventions are a highly desirable growth market for the MCCC due to the lucrative nature of conventions and because they often meet during our slowest period of time. Strategies Tradeshow and Convention sales will focus on emphasizing the strengths of the MCCC as a facility and as a world -class convention destination. In order to capitalize on current opportunities and lay the groundwork for future business, MCCC's tradeshow and convention sales strategies are as follows: • Focus marketing efforts on trade shows that meet during the MCCC's off-peak times and trade shows in strong markets. Trade shows that meet during the slower months at the MCCC will be targeted. Research and sales efforts will be focused on trade shows that meet during this time period. • The MCCC will position itself as a cost-effective location in which to bring a small to mid -size tradeshow and watch it grow in size and generated revenue. Prospective leads for these types of small tradeshows will be uncovered through canvassing area hotels, convention facilities, and industry publications. As a rule, these annual shows require less than 50,000 sf of exhibit space at the present time and have a great potential for growth. • Continue involvement in IAEE (International Asso- ciation of Exhibitions and Events). Networking with trade show industry professionals is important for referral business. • Partner with GMCVB to prospect and close new trade shows. SMG will work together with the GMCVB to bring business to the MCCC and to Miami. • Increase emphasis on the MCCC's technological access. A continuing trend that will accelerate in importance will be a Convention Center's ability to compete in the area of Internet access. Almost all trade shows and conven- tions require up-to-date and wide -spread (free) Internet access. The ability for the MCCC to offer competitive rates or offer this service at no charge to show man- agement will be one key factor in securing events. Increase emphasis on the MCCC's Green Initiatives. Green programs for convention facilities will continue to be a hot topic for trade show and convention planners. As cited by PricewaterhouseCoopers, "Not only do green Convention Centers promote social responsibility, but they can also result in cost reduction and in some cases accommodate demand among meeting planners who insist on a green facility for their event(s)." The MCCC will be aggressive in SMG's green initiatives and it will be a continued sales advantage in prospecting new business. • Prospect for new convention business. The MCCC will continue to work closely with the GMCVB to contract regional and national conventions.The convention market continues to be the most significant, from a revenue growth standpoint in terms of the economic impact it produces for the city based on number of attendees and hotel room nights, as well as for the income it brings to our facility. The convention market holds the key to significant revenue growth for two reasons: The overall revenue per group can be substantial, and conventions book when we have the most available inventory. For these reasons, responding to convention leads is our uppermost priority. The convention customer insists on a good working relationship between the GMCVB and the Convention Centers in the cities they are considering for their events. Destination appeal and hotel/Convention Center negotiations are all one buy in the eyes of the client. The GMCVB will present a destination -wide proposal to potential convention groups. 'This proposal will not only outline space at the center, but also outline hotel room blocks with rates, direct flights with rates, and positive editorial comments about our destination from national magazines. The GMCVB's sales approach is to offer one -stop shopping to make it easier for the customer to buy from us. A team approach, between the SMG, MCCC, Hyatt Regency and the GMCVB, is a big advantage when presenting the Miami destination. This cooperative effort is often recognized by the prospect and is a determinant in closing convention business. The GMCVB is responsible for long-term convention marketing of the MCCC. Annually, the GMCVB sales team participates in several industry tradeshows in key feeder markets. They will also develop leads for the MCCC by hosting client events in each market, by in -person sales ,calls .to..prospective _clients„and. by.hosting.individualized. _.... ©2012 SMG Proposal for Professional Management of the James L. Knight Center 125 familiarization (FAM) trips to Miami. The MCCC sales team will join the GMCVB at FAMs, major industry tradeshows (for example, IAEE, MPI, ASAE), regional client events, and some local sales calls. SMG will also attend monthly citywide strategy sessions conducted by the GMCVB. Once the request for.proposal (RFP) is received by the GMCVB, it is forwarded to the MCCC and area hotels. The MCCC then develops a customized space and rate proposal for the customer. It is the responsibility of the MCCC sales team to negotiate and secure contracts with the customer. A lead may originate at the MCCC which needs the services of the GMCVB. In this case, we refer the customer to the appropriate GMCVB salesperson. A close collaboration with the GMCVB will be integral to bringing convention business to the MCCC. Strategies by Market Segment: MEETINGS Although some of the smaller meetings last only one day and utilize only one meeting room, others utilize the entire facility and last five days or more. The financial impact on the building from these larger corporate events is significant as they contribute rental revenue, along with revenue to all other ancillary areas, including food and beverage, operations, audio visual and parking. These larger meetings are the main focus of our marketing efforts. Although the smaller meetings may not be extremely lucrative, they cannot be overlooked, as they constitute most of our short-term filler business. Short-term bookings, events that book and become realized within six months to a year, are extremely beneficial, in that we can layer these smaller groups in between our larger events. However, "it can prove to be a challenge when trying to schedule a large meeting program in a short time period, due to conflicts from public shows, tradeshows, and conventions, which typically book more than a year out. Together, both large meetings and small meetings will contribute a generous amount of revenue for the MCCC, and help to fill in the gaps of downtime between public shows, tradeshows, and conventions. The meeting market is very important to the business mix and SMG prides itself on being able to successfully execute all types of meetings. Strategies The majority of our meetings tend to be small in terms of attendance andrevenue; however these events are quite significant in helping to meet the overall rental goal. Along with focusing on obtaining these small filler events, SMG will plan to target large meetings that will generate significant financial growth. • Continue to book repeat meetings Booking repeat business is a key factor for sales success. In order to do this, Zve need to re -visit past events and secure them for the upcoming year. The sales staff will produce a rolling forecast every year to help direct the sales focus. Events are categorized into market segment and event statistics are tracked, such as, event name, attendance and itemized revenue. We will use this report and past years' reports not only to book repeat meetings, but also to target meetings that may have been held at the MCCC but never rebooked. • New Business Prospects, Local Ambassadors, Hotel Collaboration, and 3rd Party Meeting Planners and Lead ReferralCompanies Although repeat business is important, we also need to continue to prospect new groups and customers. SMG has Sales Training to prepare us for effective prospecting. SMG has its own internal referral program, SITEPAS. Targeting organizations within_ 126 Proposal for Professional Management of the James L. Knight Center ©2012 SMG 610) 729:7900. . .. . ._ A800=964=.4SM�.,:: Sfax ,(6'1'0) 729 =1.591>`. iwwwirngworld com; ,`,. rr _ ya '<,:=: file materials" contained'. in -"this docurnent`'are protected by;4copyright-of` SMG: ©2012 SMG. Allxrights .reserve 1. Noipart of this' document- may be reproduced, stored.iin•a=database-and retrieval system ar:transmitted',in=' ,form or.by any,•means- graphic, electronic;,; photocopying; °recordiing, mechanical ;orjotherwise-;withoutthe :priorwritten permission of: SMG;, Ttie'matenals,containedYin ttiis'document,.includes data'or other information thatiisprcprietary avid confidential.infottnationof. SMG:'This: mformation.shall_ not, withoutthe'prior written permission of;;SMG, be, peed bit any: person:pr- ep except: in :Connection_with; the'.iroviding;consulting.; and/orb management by SMG, or'by any of its affiliates or subsidiaries." t KNIGHT CCNTµR MARKETING PLAN a local drive market is one strategy. Other strategies for securing new business are to work closely with our hotel partners to offer meeting space alterna- tives and to reach out to the 3rd party planners and referral companies that we have relationships with all to increase our number of events and revenue. Addi- tionally, the MCCC will team with the GMCVB to develop and cultivate our local ambassador program. This program will .bring local representatives who are members of regional, national and international associations, groups, and businesses together to promote the MCCC as the meeting destination of the Miami arca. Specific targets for these areas arc:. • Hotel Community Collaboration The hotel community has become a critical outlet for short-term business that books and realizes within.90 days. By working with the sales representatives from various area hotels, we will have solid relationships that benefit all parties. Together we can provide customers a meeting option even.when the hotel may not be able to host the meeting portion of their event. By teaming up with the local hotels, we will book numerous short-term filler business that will prove to be extremely lucrative. • Continue to work with third party meeting planners and referral companies Increasingly, we are seeing a large amount of third party meeting planners handling accounts. By SMG developing these relationships, our product will be exposed to individuals who have the ability to place many diverse meetings at our facility. Additionally SMG will work with a few third party lead retrieval companies. 'These outlets offer a free service where meeting planners can submit their RFP's to par- ticipating companies. A few of these companies are Starcite, CVENT and GMCVB Hot Rates. SMG NATIONAL SALES - THE GOLD STANDARD SMG's mission is to work with our municipal, destination marketing and facility user partners in order to maximize desired outcome to each and every one. The desired outcome is an optimal balance of facility utilization, business tourism growth, customer service and financial performance. Our Program Ten years ago, SMG established the first and only formalized National Sales effort with.the express purpose of generating sales leads and bookings to support the efforts of our local sales teams and their partner Convention and Visitors Bureaus. This effort has grown intothe program that today can claim established relationships and affinity programs with the largest event planners in the United States, premier status with the industry associations that support them and proven Co-operative programs and direct sales opportunities that deliver value and savings to our centers and their partner CVBs. Today, SMG is still the only firm offering an integrated national sales approach that mirrors those of nationally branded hotels. Just as with Hilton, Hyatt, Marriott and Starwood, we strive to create opportunities that expand the sales reach of the Convention Center through various means. A few prime examples include: • Microsoft Corporation — National Contract and pre- ferred vendor relationship Experient (formerly Conferon) — National Contract Addendum and preferred relationship • Conference Direct — National Contract Addendum and preferred relationship • Nielsen Business Media (formerly VNU Expositions) — SMG Corporate "bridge" agreement, simplifying contracts with individual SMG facilities Advertising Co-Ops • Client Relationships "preferred" vendor status, national contracts, and constant communication Trade ade Show Executive SMG receives a special negotiated rate. The mission of Trade Show Executive magazine is to provide news, views and tools to the managers of shows large and small, in every industry from automotive to medical to woodworking, so that show executives can turn innovative ideas into a competitive edge. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 127 Expo ktiagazine EXPO A magazine that is published 10 times a year. It includes sales and marketing -focused features about destinations, case studies and revenue -generating ideas, as well as coverage of new products and services for its audience: show organizers and their managers. SITEPAS (Send It To Every Peer At SMG) A new electronic lead referral system designed to help research availability and share leads within all SMG facilities. Through the distribution of outgoing leads and the intake of incoming leads, SITEPAS enables SMG facilities to work as a team to generate greater revenue. By participating in this new system the MCCC will benefit by gaining more leads, while helping our sister facilities by sharing incoming leads. SING K`nekt. Sales Training SMG is committed to the offering of sales training for SMG sales teams across the country, to produce the best trained sales people in the industry, thus providing a competitive advantage over non-SMG facilities. This training works to hone the skills of SMG sales employees to close more sales. There are a series of three classes: "Introduction To Sales," "Advanced Sales and Prospecting," and "Sales Leadership and Accountability." Trade Show Co-Ops- National sales exhibits, sponsorships and maximum exposure for venues. SMG offers a menu of 10-15 industry functions each year for individual venues and partner CVBs to "opt -in," typically at a reduced cost for enhanced exposure. More importantly, we are there representing your facility and market, whether local staff can attend or not. Trade Show Executive Fastest. 5C (www. tradeshowexecutive.com) This event will honor the CEOs, presidents and show directors of the fastest growing trade shows held in the United States. The event is starting to create a lot of buzz within the industry. The show producers from these growing events are very excited to receive the recognition they deserve for their contributions within our industry and the communities and industries they serve. TSE will select the fastest growing shows to be honored by association or for -profit company based upon the show's increase in net square footage, exhibitors or attendance. The Fastest 50 will be done in true TSE style! 2.5 days of great networking with industry leaders while enjoying outstanding social events including a golf outing or culinary challenge, opening night reception and of course -the -Awards -Dinner. Sessions will focus_on_the.most innovative products and services influencing the exhibition industry; including social media, virtual events and technology being used to enhance and grow events. This is an exclusive event by invitation only, open to the honored -show directors and their immediate bosses, the Presidents and CEOs of the companies. It is our intent to build an intimate environment for networking and relationship building; while providing the perfect opportunity for you to meet with your top customers and key prospects in a warm inviting setting. SMG Strategy - We see this as a strong opportunity to expand on our yearlong relationship with the magazine, as well as to stay in front of the major trade show organizers. SISO - Society of Independent Show Organizers (www.siso_org) Members of this group read like a veritable who's who of the exposition industry. The association is dedicated to meeting the needs of the for -profit show producers. SISO is the only place where the Presidents, owners, and CEOs of for -profit show producer companies exchange ideas, share experiences, launch industry wide projects, and learn from each other. SISO grew from a small group of 12 producers in 100- to an organization with nearly 200 companies. SISO members produce more than 3,000 events all over the world. Trade and consumer shows, focused conferences, and other face-to-face events are represented. Members run their own shows and manager shows for others. The membership is a combination of large corporations and small entrepreneurial companies. wTt'.lG Strategy — continued support through Co -Op sponsorships at the organizations two annual events, the CEO Forum (attended by top executives from companies like Reed, Advanstar, EJ Krause and Nielsen Expositions) and the Executive Forum which attracts the top three levels for trade show executives. This segment of trade and consumer shows falls into the traditional 18-month booking window for most of our venues. NACS - National Association of Consumer Shows (www.publiCShOw .COm) The primary purpose of a consumer (public) show is to bring buyers (consumers) together with sellers of goods and services. Consumers benefit from a diverse product mix, expert advice, education and entertainment. Sellers benefit by consumer purchases, product and brand awareness, public relations, research and development, and product testing. A consumer show or public show is an event -that serves specific industries or interests that are open to the general public. They include home shows car shows, sportsman shows, RV and boat shows, computer and technology shows, crafts shows, and many others, large and small. 1128 Proposal for Professional Management of the James L. Knight Center ©2012 SMG KNIGHT CENTER MARKETING PLAN tiiVJ.C_; Strater;v — As with SISO, this segment is a key focus area for short-term revenue -generating events. Gregg Caren has been active in the association for 18 years, and currently sits on the Board of Directors. Annual Co -Op sponsorship is typically shared among 12-15 SMG venues and/or CVBs. Sponsorship gets SMG podium time, and recognition for `hosting' the annual convention's closing reception, as well as dominant exposure at the trade show. Our relationship has also helped SMG markets host this event in a number of SMG destinations. CESSE - Council Of _�. 171r eerliL& Scientific Society _Executives (www.cesse.org) The Council of Engineering and Scientific Society Executives (CESSE), incorporated in 1977, is an informal, not -for - profit international organization of chief executive officers and mid -to -senior level staff members of scientific and engineering societies. CESSE offers its members a forum for exchanging information about their experiences and a venue for addressing the problems, challenges, and opportunities they face in operating their societies. The objective of CESSE is to advance, in the public interest, the arts and sciences of the management of engineering and scientific societies. S.IVl.G Strategy— given that this segment includes major associations in their given fields, they are also major con- vention planners that fulfill our facility and CVB goals of filling both Convention Centers and hotels. It has been under the radar for many suppliers, allowing SMG to be seen as a major supplier sponsor. TEAMS Travel, Events & Management in Sports (w'ww.teamsconference.com) SMG Beats the Competition to Competitive Events We have seen great success in our early partnership with the TEAMS Conference, produced by Sports Travel Magazine. This annual conference and trade show brings together the rights holders of competitive events. Given the parameters of the destination, we feel a strong focus should be on the following market segments: Conference program with leading experts who share the latest inside information on competitive events of all types that can occur in all types of venues. Informative trade show with more than 300 sports -event suppliers and destinations provides new contacts and ideas. The trade show includes scheduled personal appointment sessions that allow quality time between event organizers and suppliers. Networking sessions and social functions help build valuable relationships for today and tomorrow. S•J4. Strategy— SMG venues/ CVBs have played host to this event more often than not in the first 10 years of its existence. Cities like Houston, New Orleans, San Juan and Pittsburgh ha* fought to host and promote at this event. The nature of the planner attendees is a primary target for first tier and regional cities alike, based on the wide variety of competitive events represented. SMG's level of sponsorship guarantees participants in the SMGworld Pavilion an appointment with every rights holder at the event. This level of exposure could not be achieved for any individual exhibitor. Leads and bid books are shared with all of our Co -Op participants. PCMA - Professional Convention Management Association (www.pcmca.org) PCMA represents nearly 3,000 meeting industry leaders responsible for the development, organization, and man- agement of meetings, conventions, exhibitions, and seminars. Held in January for each year, the annual convention is one of the most important face-to-face opportunities for suppliers (Convention Centers, bureaus and hotels) and planners. These planners work with events typically include coveted wide hotel room blocks in addition to Convention Center needs. SM C; Strategy— As there is no trade show at this event, we typically attend periodically to keep the company name top of mind. When the event is held in an SMG venue/market, we seek out host sponsor and social opportunities to leverage the relationships that much more. r Rejuvenate - Religious Market TradeShow how (www.rejuverlatemeetings.com) • Invitation only for religious meeting planners; each planner is given $200 towards travel expenses and are refunded if business is hooked. They match up planners with suppliers, verify planner credentials and close remigration once the planner/supplier ration met. Event features: • 6-minute appointments between planner and supplier • Tracking mechanism to make sure planners come to show; if not, they are not invited again • Associations vary from small regional conferences to large national events • Both education and tradeshow component Sh iG Strategy— This segment is seen as a good target for smaller and regional markets and venues. Markets like these do very well with religious groups due to drive access and more affordable hotel rates, as well as traditionally strong ties to religion in these areas. Though SMG has done Co-Ops in the past, more and more CVBs have focused on this event and partnered with our venues directly. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 129 IAEE Internationa.ssociation for Exhibitions & Events (www'.iaee.com) ' IAEE promotes the unique value'of exhibitions and other events that bring buyers and sellers together such as road shows, conferences with an exhibition component, and proprietary corporate exhibitions. IAEE is the principal resource for those who plan, produce, and service in the industry. • Organized in 1928 as the National Association of Expo- sition Managers to represent the interests of tradeshow and exposition managers, the International Association of Exhibitions and Events is today the leading association for the global exhibition industry. Today IAEE represents more than 8,000 individuals who conduct and support exhibitions around the world. SMC.; Strategy — Like other groups mentioned prior, this segment falls within the typical booking window for most SMG managed venues. It has been our largest promotional effort in recent years, establishing SMG as the dominant player in facility management. Our SMGworld Pavilion allows all venues and/or CVBs in our network to exhibit under the SMG banner, much like the major hotel chains. Participants can either buy into the national sales pavilion or maintain their own booth identity while co -locating with it. Advanced direct or e-mail promotions are sent, enticing attendees to stop at our booth for both one -stop venue shopping and prize drawings. Prospects and leads are gathered and disseminated to all Co -Op participants post -show. Experient - 3rd Party Meeting & Trade Snow Management (r?ww,experient-inc.com) • Experient is the source for integrated meeting and event services. From concept to completion, we partner with you to find the best location for client events and to deliver exceptional experiences for your attendees, exhibitors, sponsors, and internal stakeholders. Last year we provided our world -class services to more than 3,000 events of all types and sizes ranging in size from 25 to over 100,000 persons. Experient is the only company that can creatively and conveniently engineer and fully integrate the total event experience — one that is distinct, memorable and efficient and drives bottom line results to meet your goals. Experient is the largest demand generator for all major hotel chains, directly or indirectly placing more than 6 million room -nights per year. The company was recently selected to manage events for Microsoft Corporation, with whom SMG also has a master License Agreement. SMG is the only facility management firm to hold a preferred contractual relationship with Experient, including a national contract addendum providing pre -negotiated terms. Sh'It. Strategy — Experient's annual EnVision event is the company's annual meeting, educational forum and industry trade show. For many facilities and CVBs this is the most important event and third -party planning organization, likely touching more Convention Centers than any other firm. In addition to the annual meeting and tradeshow, we maintain relationships with all levels of executives and planners keeping SMG top of mind. We participate in Experient's regional conference calls and they participate in our sales meetings. We typically host sales missions to any number of the firm's key offices in major markets around the country. SmithBucklin Associates - Association Management Firm (www.smithbucklin.com) SmithBucklin is the world's largest association man- agement company, providing flexible, tailored services to 225 trade associations, professional societies, technology user groups and government institutes/agencies. SmithBucklin provides full -service management and function/project-specific services to 235 trade associa- tions, professional societies, technology user groups and government institutes/agencies. As such, SB is a highly prized national client for all suppliers in our industry. SMG Strategy — In the past, SMG has held in -plant trade shows and education sessions for SB. Currently we are working towards a national agreement (similar to Experient) that will benefit SmithBucklin, SMG, our mutual clients and the destinations we serve. Our CVB partners view SmithBucklin as the most important source of association meetings and conventions and would benefit greatly from a closer relationship. 13o Proposal for Professional Management of the James L. Knight Center ©2012 SMG ADVERTISING & MARKETING Miami Convention and Conference Center (MCCC) will benefit from their relationship with SMG because SMG is the recognized "Brand" among meeting planners in the meetings industry/MICE market (Meetings, Incentives, and Confer- ences & Exhibitions). • SMG's Convention Center Division not only facilitates these events, but also helps the facilities attract more shows through our day-to-day industry relationships. SMG works closely with the Hotel Industry, Convention and Visitor Bureaus, Industry Vendors/Suppliers, as well as Labor Unions to facilitate the event and deliver the best possible environment for conventions and trade shows. The level of professionalism at SMG-managed facilities is top-notch, the customer service is first class, the understanding of convention and sports -event industries is thorough, and SMG's appreciation for long-term commitments and relationships is invaluable. SMG has the industry local and national knowledge and expertise with which to assist the City with negotiating or renegotiating agreements with service providers to improve service contracts, food and beverage returns and other agreements. SMG will be able to successfully establish the facilities as a well respected and branded venue for Miami. SMG will use best efforts to meet all economic condi- tions established by the City of Miami, create jobs in the community, and provide economic stimulus to the local economy. SMG will keep the City of Miami informed of all operational, maintenance and capital requirements of the facility. SMG will promise to continue to deliver excellent customer service and build James L. Knight International Center, especially the Convention Center, into a premier facility. KN H nrNJT'v ,RK T1N3;; r, Pint ' edia Sucigesjons l .cil.il:ies Superbook - Publication is mailed and distributed to more than 10,000 event bookers - including booking agents, talent buyers, college concert buyers, owners and managers of entertainment management firms, and special events planners. Facilities Superbook is an ideal marketing platform for sports and entertainment venues. Sporn; "have' GIs ::;azine - "Since 1997, Sports Travel Magazine has served the sports -related travel and event industry. It is the only publication written and designed to serve the people who organize and manage sporting events of all types and at all levels. Sports -related travel generates more than 47 million room nights annually, and Sports Travel Magazine —read by more than 16,000 industry decision makers —is the trusted and proven information source for this resilient group travel market." Sport: Events Magazine - "The mission of Sports Events Magazine is to help planners of amateur sporting events and competitions to be more effective, informed, and successful." 16,000 copies per issue are distributed to people involved in the sports events marketplace. "The editorial content includes "how-to" type articles written by recognized authorities, news and information relevant to sports event planning, spotlights on destinations and sports complexes, interviews and profiles, and other items of interest to the industry." Trace Show Executive - "Trade Show Executive magazine provides news, views and tools to the managers of shows large and small, in every industry from automotive to medical to woodworking, so that show executives can turn innovative ideas into a competitive edge. We aim to help show managers stimulate growth, profits and customer satisfaction so that their show, organization and the trade show industry can prosper." 61% of subscribers are Trade Show Managers, Event Managers, or Executive Managers;.39% are Business or Trade Association. SMG is prominently listed among Trade Show Executive's Gold Standard advertisers. Facilities &: Destinations Planner Guide - Mailed and distributed to 51,000+ Association and Corporate Meeting Planners and Executives.This publication is an annual sourcebook/directory. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 131 James L. Knight Theater Our Commitment to the Community Introduction Recognized worldwide for nearly 30 years as Miami's premier multi -purpose venue hosting concerts, family entertainment, graduations, meetings and assemblies of all types, the James L. Knight center Theater has served as the City's most utilized and accommodating public assembly facility since opening its doors in 1982. SMG is excited by the prospect of applying its extensive resources, experience and skills to a revitalization of the Theater as Miami's most dynamic, diverse and entertaining venue located in the heart of"The Gateway to the Americas." James L. Knight Theater Mission James L. Knight Theater Center is a regional multi -purpose theater owned by the City of Miami and operated by SMG, which is committed to operating the venue according to policies, which will: • Produce the highest possible income and operate the theater in a fiscally responsible manner. • Encourage artistic events that interest the entire com- munity, which include, but are not limited to concerts, comedies, orchestral presentations, ballet, opera, popular presentations and family shows, etc. • Increase understanding and appreciation of the arts outreach programs. • Make The James L. Knight Theater available to as many producers as possible so as to maximize the number of days during which events are held. • Contribute to the image of Miami as a cultural desti- nation and support the above policies by developing and implementing a strong marketing plan using the new image of the theater as a cornerstone of this effort. • Assist programs from small, local community arts groups and educational institutions by offering incentives James L. Knight Theater is committed to continuing what we know builds success for the City of Miami the Theater and the community at large. These successes can be broken down into four tenets: • AN UNFORGETTABLE EXPERIENCE We are committed to providing a safe and welcoming envi- ronment to everyone we come in contact with before, during and after an event. We will extend and maintain excellent customer service to every employee and to every guest that passes through our doors. SOMETHING FOR EVERYONE We will present quality, diverse events and programming on the Main Stage, as well as provide access to beautiful, adjunct event spaces for weddings and receptions, business meetings, fundraising events and recitals. THE VALUE OF A DOLLAR We will continue to operate the Theater with complete financial and operational transparency, making every effort to explore revenue -generating avenues. We will create and enhance already existing partnerships with all businesses and members of the community, such that our efforts impact the City's economic development in a positive manner. BE THE BEST We are committed to being a leader in our industry. Utilizing "best practices", our partnerships within the industry and the many valuable resources provided as being part of the SMG • network, the Theater will be nationally recognized as the finest facility of its kind. 132 Proposal for Professional Management of the James L. Knight Center ©2012 SMG KNIGHT CENTER RKET1NG PLAN Event Marketing {COAL. • Continue to develop the entire venue as a desirable location for national agents, regional promoters, national family shows, meeting and wedding planners, special events and community supported functions • Establish the theater as a must play venue for Latin and Urban events • Produce signature events to bring people out to preview the theater, generate awareness, test drive seats and promote ticket sales • Expand the reach of advertising regionally and encourage show promoters to continue to increase advertising in outlying areas to reach new patrons • Continue to develop relationships with promotions and sales managers within media outlets to increase our exposure for clients through various added value promo- tions and third party tie-ins • Remain current on new marketing trends, new media and strategies in the industry METHOD • Create an advertising program that stretches the promoter's advertising budget with local and regional media outlets to entice them to come to James L. Knight Theater • Develop relationships with wedding, meeting and festival planners • Use our website, all social media outlets and new tech- nology to reach as many potential customers as possible ACTION • Continue a mutually beneficial relationship with all media • Attend industry conferences to connect with promoters and colleagues and to learn about new trends • Work closely with the GMCVB to take advantage of any potential Theater user • Continue to collaborate with City of Miami as a catalyst for distribution of information • Host local bridal consultants, wedding coordinators and special events coordinators for site tour and mini -trade show • Place advertising and listings in meeting planner, festival and wedding industry publications and resources, where applicable • Participate in area bridal shows RESULT • Awareness within industry (national and regional) and community of James L. Knight Theater • Amount of new and returning shows • Increased event rentals and ticket sales Programming James L. Knight Theater prides itself on developing and presenting unique and distinctive programming that appeals to every taste - top-quality national and international performances including Broadway, classical, pop, rock, comedy, dance and family - all find a home here at the Theater. The James L. Knight Theater Advertising - National & Regional GOAL • Build brand awareness of James L. Knight Theater and its events within the region. • Cultivate a positive image of James L. Knight Theater as a "hot spot" which is part of a vibrant community • Educate potential clients and promoters on the strong market conditions of Miami and surrounding areas METHOD • Create unique, eye-catching advertising and promotions campaigns to support re -branding efforts • Support the events and attractions that visit James L. Knight Theater ACTION Enlist the services of a full -service advertising agency when necessary • Utilize traditional and non-traditional methods of advertising/promotions (online, social media, outdoor, mobile and new media)to promote the venue, events and location • Create "Theater Mobile" (a mobile street team) that will increase brand awareness at various events and landmarks in the Miami area • Provides immediate customer service; patrons can learn about upcoming shows, view seating chart, and buy tickets within minutes • Solicit third party sponsor to assist with overhead and enhance advertising reach • Drive ticket sales Integrate Theater message and logo in all marketing, ©2012 SMG Proposal for Professional Management of the James L. Knight Center 133 advertising, public relations and co-sponsorship efforts to create brand awareness • Utilize relationship with ticket provider as a means to reach mass audiences • Create and market Theater Getaway packages that will include unique and exciting destination packages created with a number of local hospitality industry partners RESULT • Awareness within industry and region of James L. Knight Theater • Increased events, ticket sales and attendance ` Partnerships drive economic development within the City of Miami Public Relations GOAL • Support and stimulate ticket sales efforts Further the positive image of the Theater and the City of Miami as a desirable and exciting live entertainment destination • Promote Theater's enthusiasm and commitment to hosting outstanding entertainment events • Provide a meaningful and lasting impression of the Theater METHOD o Target industry publications such as Billboard and Pollstar on regional spotlights o Provide excellent customer service to all parties o Create a memorable gift for performers and promoters that will reinforce their experiences at the Theater o Create PR campaigns in order to supplement the paid advertising for events ACTION o Actively pitch story ideas to local, regional and national media • Continue ongoing personal contact with state and local news, business and entertainment reporters to ensure repeated coverage of the Theater and its events • Send out media releases to local and regional newspapers and trade publications o Develop and distribute monthly Theater newsletter to City of Miami, presenters, media and industry profes- sionals o Host "site tours" for media representatives and hospitality —industry RESULTS Number of articles generated • Number of advertorials produced • Total advertising equivalent value of the articles and broadcast placements produced • Potential clients' awareness of James L. Knight Theater and its upcoming events and reputation Theater Website James L. Knight Theater website includes the following information: • Theater History • Full event listing • Ticketing information o Photos • E-mail database sign-up • Box Office, Parking and Directions • Links and Partners Future enhancements could include: • Text message club sign-up • Design site for Smart Phone viewing/usage • Include interactive photo gallery of Theater, events, on-stage performances and backstage access • Stream concerts on website* (upon presenter approval) • Add RSS feed and Podcasts to website • Create virtual tours of Theater Database Marketing James L. Knight Theater uses a database management system in order to efficiently reach its target demographic for upcoming shows. The system will be used to send out e-newsletters, special discounts, and advance notifications to subscribers, etc. This program is beneficial to the Theater in various ways: o Nearly 25,000 e-mail subscribers to date • Collect customer data and increase our database • Develop efficient and attractive marketing/promotional campaigns • Create reports to monitor campaign success • Build lists of customers, based on interest and campaign outcome to help target audiences better • Understand consumer's needs through demographic information • Ensure message delivery by avoiding spam filters Increase exposure of events through various mediums ` Proven useful in increasing sales during a pre -sale 134 Proposal for Professional Management of the James L. Knight Center ©2012 SMG KNIGHT CENTER MARKETING PLAN • Improvement upon conducting surveys • Text message and website sign-up system for users to receive exclusive offers • The Theater will utilize contesting, smart phone applica- tions, social media, guerilla marketing and Ticketmaster platform to enhance internal e-mail database and Ticketmaster alert subscribers. Social Media More than ever, audiences today are vocal, savvy, and require up-to-the-minute information, instant gratification, engagement and reward. As a result, the utilization of social media is an absolutely critical component in communicating with patrons, staying relevant, enhancing awareness and driving ticket sales. Social media adds value: • The Internet is everywhere: at work, on our phones, at home, etc. • There is a decline in readers, viewers, and listeners or tra- ditional media: TV, newspapers, and radio now all have a website where you can obtain the same information • Provides "real time" information in an easy -to -read format • Connects patrons to the product or service • Elicits immediate feedback from consumer (consumer expects immediate response) • Builds communities The goal is to: Remain current on social media trends . • Increase "likes" on Facebook and "followers" on Twitter Engage and encourage patrons through social media and geo-location platforms, smart phone applications, mobile marketing, contesting, crowd sourcing and guerilla marketing efforts Future plans include: • Blogs • Enhanced YouTube applications • Podcasts • Streaming video on social media applications • Crowd -sourcing • Geolocation-based media (Four Square, Gowalla) Community Partners and Sponsors The continued success ()flames L. Knight Theater is due in great part to the vested interest that our friends, partners and sponsors have in the future of the venue and its programming. It is through these unique collaborations that the Theater is able to position itself as a platform, which creates goodwill within the community and yields a positive return on investment for the advertiser or sponsor. Our plan for the upcoming year is to increase the number of partners and sponsors, continue to be a good corporate citizen, remain involved in our community and increase awareness and revenue for all participants. We will achieve this goal in the following ways: • Continue to partner with the City of Miami on charity programs • Collaborate with promoters to bring performing artists into area hospitals and schools • Provide ticket donations or autographed items to charitable organizations • Participate in volunteer opportunities and community groups • Host seminars and networking sessions for chamber and business organizations, arts groups and young profes- sionals' organizations throughout the year Assist community arts groups and educational institu- tions by offering incentives and resources • Actively participate in local business organizations, collaborative arts marketing committees and civic organizations • Consistently cultivate relationships with neighborhood associations, young professionals' organizations, hospi- tality industry, arts organizations, housing associations, religious and civic organizations and tour operators ©2012 SMG Proposal for Professional Management of the James L. Knight Center 135 Future Audiences It is critical that The James L. Knight theater actively engage younger audiences to build brand awareness, cultivate future Theater lovers and increase ticket sales. these audiences arc active, current, have disposable income (young professionals) and are interested in supporting their community. The Theater will foster future audiences by: • Cultivating and building brand loyalty with younger audiences by partnering with surrounding universities and arts groups to ensure a love of the Theater/arts at a young age • Advertising in parent and youth -oriented publications • Co -promoting special events at the theater that target young professionals' groups • Exploring and leveraging bookings for a lecture series in partnership with local universities and colleges • Establishing relationships with department heads of area universities to include James L. Knight Theater events in the classroom • Managing and maintaining Marketing Internship(s) at the Theater to demonstrate the theater's commitment to education Memberships ' The Miami staff is active in a number of international, national, regional and local industry associations: • IAVM (International Association of Venue Managers) • Downtown Miami • Miami Convention and Visitors Bureau • Miami Chamber of Commerce • Kiwanis Club • Lion's Club • Business Network International (BNI) • American Legion Auxiliary First impressions • First impressions mean a lot. Whether it is a job interview, a restaurant or a social function, the first impression forms the lasting impression. A positive first impression sets the stage for a memorable encounter, while a poor first impression can be nearly impossible to reverse or undo. that all-important first impression sets the stage for what is going to occur inside the Knight Center Theater and must be a positive, welcoming impression. An enlightened venue operator knows that there are a number of first impressions to manage, among the most important are the venue website, social media and the physical entrance into the theater. The website is your branding statement; it creates excitement and anticipation while also functioning as a one -stop shop -for allnecessaryinformationour-patronmay-- require, including event information, directions and a direct link to the ticketing entity. Social media, such as Twitter and Facebook allows venue management the opportunity to create a sense of `event' surrounding the performance, something that is critically important in Miami and allows instant communication and feedback between the patron and the theater. The vast majority of patrons attending events at the Knight Center park in the City garage and enter the theater via the pedestrian connector, which links the garage and the theater. As first impressions go, it is lacks a sense of welcome and anticipation of the performance our guests are about to enjoy. SMG understands and appreciates the importance of the first impression. With that in mind, here are a couple of concepts that we would propose to create a strong welcoming first impression: Physical First impressions When walking through the James L. Knight Center, your guests are greated with empty, cold and univiting spaces. 136 Proposal for Professional Management of the James L. Knight Center ©2012 SMG V NIG`"i i C[ N TE R MARKETING PLAN A Little Effort Goes A Long Way Is this the first impression you want your guests to have of your facility? No it isn't. A little effort goes a long way. Spaces need to be warm and inviting. The addition of artwork, textures, proportional signage to hype upcoming events and provide ease of access for wayfinding, color, plantings and other changes to the aesthetics of this facility will improve those first impressions. As the saying goes, you never get a second chance to make a first impression. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 137 Electronic First Impressions It's the world in which we live, an immediate response and information at the ready. Whether it's the swipe of a finger, the click of a mouse or the launch of an app, more and more we are using electronic means to search, connect and do business. 'These electronic vehicles create a unique challenge in making a first impression. It's often now that a new guest to the facility will not be one you meet face-to-face for the first time, and it's more important than ever to make sure that your electronic face and your electronic first impression is the one you want to show. We have reviewed the current Knight Center website and believe there are areas for improvement and opportunites to be seized. This updated look can be expanded to include Facebook, Twitter and other social media outlets. What current visitors see when they access your website A fresh, clean and vibrant website speaks to a revitalized .Knight Center and a great first impression for your guest. 1 YIIe11.64116,413 iuo.S1'a UU C,,Ev,',R E DAMNAAl I EPOS IAN PREEIENIpti ¢ AMES, PMGM<CNTER , • emu • 'NlLhiwlNu. 1A11656.K.,G, CGITM AMES .:. KNIGHT_ N ftRNATION d CENTER:: ;CONTACT US ' 13B Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.1.8: PROPOSERS ADDRESS OF CITY OBJECTIVES Proposerrs Address of City Objectives 'Throughout this proposal, our track record and reference checks, you will find that SMG has met the objectives of dozens of venues in dozens of cities. It is this flack record and brand promise that has led to five consecutive selections by other munici- palities seeking professional management through a public bid process for the first time over the past eighteen months. In this section, we will address each of the City's objectives for the Knight Center. We have highlighted each objective below, and either commented directly, or referenced the topic if covered elsewhere in this response. A. OBJECTIVES 1. Establishment of s Highly Professional Organization The primary objective is to establish a management organization staffed with expert and experienced personnel who will manage, operate, maintain and upkeep the Center at the highest professional level of service. The proposer shall submit an organization and management plan, including, but not limited to, a list of all personnel and possible subcontractors to be assigned to the project and their respective functions, to fully address the requirements of the City and the best interest of its citizens. One of the many benefits that distinguish us from other firms, is the strength and diversity of our regional and corporate team. There are literally a dozen SMG executives that will touch this project on a regular basis, providing support and direction in all areas of revenue generationand expense management. Ours is a true corporate culture of responsibility and communication, not a loose confederation of facilities. Most critical is the way in which we have structured our company, providing parallel divisions that focus on the two primary lines of business at the Knight Center: meetings & conventions and live entertainment. Outlined in detail in this document is information on SMG's Convention Center Division and Theater & Live Entertainment Division, which are staffed by full-time industry leaders whose primary function is to provide management and booking support for the facilities we manage. You can see the relationship of this team to the on-site'team in our organizational chart, and the strategies employed in our Marketing Plan. In addition to the regional and corporate team, we have identified two extraordinary candidates for both general manager and director of sales. This team is very familiar with the south Florida market, and combine to provide the management experience, fiscal responsibility and marketing creativity that will reignite the Knight Center as current conditions require. As we delve further into the operation, we have the bench strength of professionals who have built their career with us, ready and waiting for the right promotion or geographical move. 2. Fiscal Responsibility - operate the Center in an efficient manner and minimize the .annual cost of operation while maintaining a professional level of service. In the past two years, SMG has been awarded management contracts of numerous existing facilities — large and small. In each case, we have been able to improve bottom line performance through a combination of revenue development and expense control. At the same time, we have been able to enhance the level of customer service and facility services offered. The following three case studies outline the details of each recent success story, and exemplifies the level of detail we put into analyzing current status and implementing our strategies to benefit the City. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 139 Located just minutes from downtown Chicago, McCormick Place attracts close to 3 million visitors each year. McCormick Place is comprised of four state-of-the-art buildings: the North and South Buildings, the West Building and Lakeside Center. Together, they. form what many consider to be the economic engine that powers the entire convention and tradeshow industry. Building Features: • 2.6 million sq. ft. of exhibit halls 1.2 million square feet all on one level • 173 meeting rooms 600,000 square feet of meeting room space • 4 ballrooms, 2 of which are the largest in the city • Assembly seating for 18,000 people • 4,249 seat theater (Arie Crown) • 3 theaters seating 300 each • Ceiling heights up to 50 feet • Easy access to 5,000 parking space Selecting SMG After an extensive procurement process by the Metropolitan Pier Exposition Authority, SMG was selected to manage the nation's largest and best known convention center, McCormick Place. The selection was made in March of 2011, with transition through the summer of the same year. Below are some highlights of the first nine months of operations under the SMG banner: With complete agreement from the MPEA, transitioned incumbent General Manager, David Causton, to SMG employment. This provided both continuity and institutional knowledge which was blended with SMG support systems and procedures • Reorganized management structure to speed delivery of service to the customer and make the entire organization more nimble and responsive • Transitioned more than 200 staff members in fewer than 30 days while flawlessly maintaining outstanding customer service to clients Revenue • Built from ground up a new Administration Division to replace services previously provided by the Authority (MPEA) Completed customer service training for all full time employees Transitioned accounting systems within 60 days to SMG's proprietary and industry focused system expanding management analysis capability and reporting functions to the Authority Reorganized Sales and Services departments into a new cohesive Division, streamlining communication and services to clients Improved financial performance of the operation, generating more than $3 million in savings to budget in the first 6 months of operation Created.positions in the management structure focused on Sustainability and Social'Media marketing Negotiated a $1 million agreement with American Express as part of a new comprehensive commercial rights program Reorganized IT department to speed delivery of cutting edge technical services to exhibitors at reduced cost Completed collective bargaining with unions representing the Security personnel and Operating Engineers with positive changes achieved McCormick Place / SMG Accomplishments through January 31, 2012 (six months of operations) Actual Budget Variance $20,967,151 $18,397,760 $2,569,391 Total Year -to -Date Gross Revenues are 13.96% higher than budget Expense $43,057,823 $44,431,350 $1,373,537 Total Year to Date Gross Expenses are 3.10% lower than budget Net Profit (Loss) ($22,090,672) ($26,033,600) $1,195,854 Year to Date Net Loss is 15% lower than budget 140 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.1.8: PROPOSER'S ADDRESS OF. CITY Oir;JECTIVES Ranked 20th in size by Trade Show Executive magazine. Built by the City of Detroit, it was originally opened in 1960 and named Cobo Hall in honor of former Detroit Mayor Albert E. Cobo (1950-1957). Today, Cobo Center is owned by the Detroit Regional Convention Facility Authority (DRCFA), established in 2009. The five -member Authority Board consists of one representative from each of five local government agencies. The DRCFA is currently funding a $299 million expansion and upgrade of Cobo Center that is scheduled for completion in January 2015. Building Features: • 722,500 sq. ft. of exhibit halls • 175,000 sq. ft. of meeting room space • 2.4 million sq. ft. overall • 2,200 parking spaces • Facility wide, free, 54M 802.11g Wi-Fi coverage • Detroit People Mover light rail station inside facility • High -resolution, energy efficient induction lighting Selecting SMG In October 2010, the DRCFA awarded the contract for operations management of Cobo Center to SMG after an extensive public bid process. The success of this new contract was highlighted in January 2012 when SMG and the North American International Auto Show signed an unprecedented five-year contract that keeps the auto show in the Motor City through 2017. Below are some highlights of the first twelve months of operations under the SMG banner: SMG brought in venue assessment team to create a punch list of 75 projects immediate that were programmed into SMG Smart Maintenance software and addressed in our first year Completed customer service training for all full time employees in first 60 days • Transitioned accounting systems within 60 days to SMG's proprietary and industry focused system • Certified as the largest Green Venues Michigan' facility in the state by instituting new Green building protocols • Initiated new flexible rental negotiation strategy increasing bookings by 10% in 2011 over 2010 • Increased facility revenue by $100,000 through expanding into areas of ancillary services not previously identified such as plumbing, pointing and construction • Transitioned parking from a third party vendor to an SMG department resulting in $90,000 savings • Reduced utility costs, biggest single line item by 30% • Negotiated substantive changes to labor agreements • Restructured and expanded Sales and Marketing and established structure to work with DMCVB as combined•team to double event revenue in•first year • New website launched with online ordering, saleable space for events, a full press room and webcast hosting • Launched a "New Cobo Center" brand campaign with redesigned logo, messaging strategy and brand image after customer experience research • Developed e-autofeedback customer survey system that yields a 39% return rate and average overall 97.2% positive rating of the facility COBO Center / SMG Accomplishments through September 30, 2011 (First full fiscal year under SMG) Actual Budget Variance Revenue $5,702,992 $5,056,006 $646,986 Total Year -to -Date Gross Revenues are 12.80% higher than budget Expense $14,856,632 • $15,961,718 $1,105,086 Total Year to Date Gross Expenses are 6.92% lower than budget Net Profit (Loss) ($9,153,640) ($10,905,712) $1,752,072 Year to Date Net Loss is 16.07% lower than budget ©2012 SMG Proposal for Professional Management of the James L. Knight Center 141 Punta Gorda, Florida Opened in January of 2009, and nestled in the heart of Southwest Florida on the shores of the Peace River, the Charlotte Harbor Event & Conference Center offers 44,000 square feet of event space, pristine water front views, top food service management for events of all sizes and budgets, and a heart -felt welcome from our community. If you can imagine it, we can make it happen: consumer expos and trade shows, sports tournaments, regional and national conventions, weddings, formal gatherings, and everything in between. Features • 44,000 sq. ft. • 19,800 sq. ft. Hibiscus Hall • 4 breakout rooms of 980 sq. ft. each • 1,000 person dining capacity • 1,800 seating capacity for concerts or general sessions • 15 theatrical linesets for touring events and other productions SMG Services SMG has been the operator of the Charlotte Harbor Event and Conference Center since 2009 (3 years). SMG Achievements • Greatly reduced the Event Center's subsidy and exceeded budgetary goals in first year of operation. Reorganized Event Center operations for improved efficiencies while maintain and surpassing customer service levels with increased event loads. • Established a previously absent, sales and marketing plan for the Event Center to increase bookings and ancillary income. • SMG has demonstrated active community involvement through membership in the Charlotte County Chamber of Commerce, Punta Gorda Chamber of Commerce, Charlotte County Young Professionals, Punta Gorda Kiwanis Club, and leadership roles in the Charlotte County Sports Commission and Charlotte County Boys & Girls Club. • 308 events and attendance of more than 96,000 in fiscal year 2010 142 Proposal for Professional Management of the James L. Knight Center ©2012 SMG SECTION 4.1.8: PROPOS_R'S ADDRESS Ur. CITY OBJECTIVES As with any business, bottom line challenges can be solved through top line success. We believe that the Knight Center has not fully adjusted to changing market and economic conditions, including the long-standing revenue stream from the former University of Miami agreement. In our Fiscal Plan, you can see our analysis of how much room for revenue growth we see, along with savings that start from day one with our highly competitive fee, with various options on performance based compensation. One of the most critical elements of our Fiscal Plan is, in fact, our Marketing Plan. This marketing plan is not merely a sample, but the actual plan we would implement immediately upon signing our management agreement with the City. It looks at every sector of business, from meetings and conventions to Latino concerts and traveling theatrical productions. We encourage you to read both sections of the Marketing Plan, keeping in mind that our on -site team will have full access to our National Convention Sales Network and theater & Live Entertainment Booking Team. 3. Produce Maximum Usage - maximize facility usage and Stimulate local tourism, 4. Produce Maximum Revenue - maximize revenues through the booking of events, local events, conventions, trade shows, in-house advertising sales, and any other source that may be developed. All of our sales and marketing plans are geared towards improving occupancy from all event types. A targeted entertainment booking strategy will not only build occupancy and revenues, it will enhance community enjoyment of the facilities through cultural and arts activities. A targeted convention sales strategy — taking advantage of our national client relationships and co-op promotional activities — will also increase facility occupancy, while putting `heads in beds' with our downtown hotel partners. We continue to look at every event type — from cultural and corporate events to competitive events and trade shows — that can benefit greatly from the facility's assets, location and integration with a first class Hyatt hotel. Our pro forma income statement provides a glimpse of the growth in revenue based on the new events we expect to book. SMG is not a believer in "change for change's sake", but we believe strongly in changing gears if the current business is underper- forming. If youread nothingelse, take note of the five convention venues that have picked SMG over our.competition in the past eighteen months. Call them and ask what led to our selection. More importantly, ask them about their assessment of SMG from contract negotiation to current day performance. These conversations may be all you need to validate your next move. The five venues are listed below: • McCormick Place — Chicago, IL • Cobo Center — Detroit, MI • Jekyll Island Convention Center — Jekyll Island, GA • Montego Bay Convention Centre — Montego Bay Jamaica • Oncenter — Syracuse, NY (contract commencement expected 7/1/12) In addition, we were just selected by committee to take over the Sioux Falls Convention Center (Sioux Falls, SD) from the incumbent management firm — your current manager. ©2012 SMG Proposal for Professional Management of the James L. Knight Center 143 Local Preferences No local preferences apply at this time. 144 Proposal for Professional Management of the James L. Knight Center ©2012 SMG The; 'materials ,,contained 'this; document are protected by;copyright: of SMG:502p12 SMG. -AII -rights freserved: No; partlot ;lhis'document may be7 reproduced, storedf;in ;a database and retrieval system .or 3ransmitted in, any 'forth 'or•"by;;anymeans -graphic, electronic;; photocopying,; recording, mechanical or'otherwise- without the pnorrwritten-pemiission of :SMG::. ;: ;7the.materials,contained in .this: documentincludes: data -:or. other information at Is;proprietary. and Tonfidential .information.of SMG. This infotmation shall riot;; without_' he ;pnorwntten vermission of 'SWAG, -be sused;by any.person. or entity;; except =in=;connection.:wiith ,the providing',of` consulting;4and/or management services=bySMG,or by any of.its affiliates orsutisidianes.- _3