Exhibit M - Town of Cary

Koka Booth Amphitheatre
2012-2013 Annual Management Plan
Review
(November 2011 – October 2012)
Report By Becky Colwell
SMG – General Manager – Booth Amphitheatre
September 21, 2012
Introduction:
SMG, the world leader in venue management, has partnered with the Town of Cary
and Booth Amphitheatre since the facility opened in 2001. In June of 2012, SMG
was awarded a two-year extension of the management contract for the Town of
Cary’s Booth Amphitheatre spanning years 2013 and 2014.
The Booth Amphitheatre SMG team oversees all venue bookings and operations.
SMG’s contract administrator for the venue is the Town of Cary’s Cultural Arts
Manager and together a comprehensive management plan is created every year for
the Amphitheatre.
The Amphitheatre management goals, adopted by Town Council in 2001, are as
follows:
1. Provide performances by nationally acclaimed artists.
2. Continue to offer, develop and expand opportunities with the North Carolina Symphony
Orchestra.
3. Develop a Summer Theatre program specifically designed for the Amphitheatre.
4. Develop partnerships for performances with quality local, regional and statewide
performing arts organizations.
5. Develop festivals that provide community participation and help establish a community
identity.
6. Develop a rental program for the use of the Amphitheatre space that does not compete
with performance times.
7. Provide cooperative opportunities with the Amphitheatre “neighbors”.
8. Provide revenues that more than offset the operating costs.
In 2012 SMG made concentrated efforts to address each of these goals. This report
will address a review of the 2012 season and our plan to approach the management
goals during the 2013 season.
In reading the management plan please note that revenue numbers are “net”
revenue figures and include expenses and revenue from tickets, concessions, rent
and ancillaries. Attendance figures referenced in this report reflect both the “drop”
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and “paid” ticket counts. Drop counts assist in determining the actual number of
guests visiting the facility to include paid tickets and patrons with complimentary
tickets. The paid counts reflect only the number of tickets that have been sold for
an event. Several events may have higher ticket sales than drop counts as patrons
might purchase a ticket for an event but for some reason not attend the event.
SMG uses the drop count to account for the total annual attendance.
2012 REVIEW
Goal # 1: Provide performances by nationally acclaimed artists
SMG has had a preferred promoter-booking contract for Booth Amphitheatre since
the 2002 season. The preferred promoter from 2002 – 2008 was House of Blues
Concerts, which operated under the Live Nation corporate umbrella for the last two
years of the agreement. After the 2008 event season, SMG issued a request for a
proposal for national promoters and recommended to the Town of Cary a new
promoter partnership with the Nashville, TN based promoter Outback Concerts.
Outback Concerts is now completing their fourth full season with Booth
Amphitheatre, and for the fourth year in a row they have met their contractual
agreement of presenting a minimum of ten nationally acclaimed artists.
SMG structured the 2012 booking agreement in a manner that included Outback
Concerts assuming 100% of the financial risk on each event. A required number of
ten events are included in the contract to ensure that the Amphitheatre is active
and that the public has a variety of events to attend. Outback Concerts will incur
financial penalties of $10,000 per show if the contracted number of concerts is not
met. If Outback Concerts exceeds the contracted number of events, then the
Amphitheatre will provide a reduced rental fee and an increase in ancillary revenue
percentage back to Outback Concerts for each event beyond the contracted ten
shows.
Outback has made efforts to confirm a variety of events for the Amphitheatre to
include country, rock and eclectic artists. Competition in the market has increased
with several area venues such as the downtown Raleigh Amphitheatre, Durham
Performing Arts Center, Museum of Art and even the new amphitheatre in
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Greensboro competing for the same acts. SMG and Outback have seen this
competition drive talent fees up and venues are being compared on capacities, fan
experience and elements such as sound level requirements. Despite the
competition, Outback was still able to confirm 10 concerts; however, the season
took longer to confirm than in years past.
SMG also worked with local promoters interested in bringing national talent to the
Amphitheatre during the 2012 event season. In a first year endeavor, SMG and
Outback Concerts worked with local non-profit Band Together to produce and book
the B52’s benefit concert. SMG also helped secure a live broadcast of Garrison
Keillor’s Prairie Home Companion by working with local radio station, WUNC. For a
fourth year, Booth Amphitheatre has contracted with local promoter, The Dome
Group, to produce the Soul Picnic which took place on September 15th, 2012.
In addition to Outback’s concerts and local promoter concerts, SMG budgeted to
produce three events for the Amphitheatre. This money is only used if our Preferred
Promoter has not produced their contracted amount of shows or if the Amphitheatre
does not have enough variety in programming. SMG elected to risk a small portion
of these budgeted funds to co-promote the ABBA concert with Outback Concerts.
SMG also chose to risk a minimal amount of money on the Sound of Music Sing-ALong event and the creation of the Jazz and Bluegrass Series. Details on these
events have been included in our goal addressing our movie series and regional
performing artists.
By working with both Outback Concerts and local promoters, SMG was able to
confirm a total of twelve nationally acclaimed concerts in 2012. Attendance for
Booth Amphitheatre concerts is projected to be up 16% and revenue increased
12% as compared to figures reported in the 2011 management report. The threat
of rain and thunderstorms has been a factor with several performances this year;
however, if cancellations can be avoided due to weather, SMG expects the
projected numbers will be met.
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2012 Nationally Acclaimed Artist Events Chart:
Goal # 2: Continue to offer, develop and expand opportunities with
the North Carolina Symphony
SMG continued to work closely with the North Carolina Symphony (NCS) to increase
attendance and ticket revenue for the entire Summerfest Series. The 2012
agreement between the Amphitheatre and the Symphony was designed to increase
revenue streams and decrease the financial risk for the venue associated with
producing this seven show series. The Symphony agreement included a payment of
$5,000 - $6,000 per show by the Symphony, used to help offset Amphitheatre
expenses associated with presenting the Summerfest events. Two Summerfest
events reflected a co-promotional agreement from the Amphitheatre that included
the venue assisting with talent fee costs and sharing in ticket revenue. SMG did
recommend to the Symphony to cut the fireworks element that was included in the
2011 programming. It was a higher than budgeted expense and the element didn’t
produce additional concert attendees. In the 2012 budget SMG recommended to
continue budgeting for the Symphony series at a loss, to acknowledge that
historically the Summerfest series has not been able to break even despite being a
valuable community event. However, due to tight expense budget constraints, a
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slight increase in ticket prices and relatively good weather, the Summerfest season
was able to turn a profit in 2012.
In addition to the NCS Summerfest events in 2012, the Symphony performs for the
annual 4th of July Celebration. This event is free to the public and is sponsored by
the Town of Cary.
The chart below outlines the attendance and revenue results from each Summerfest
event. Attendance figures for the 2012 Summerfest series (excluding 4th of July)
saw a minimal decrease in attendance compared to Summerfest attendance figures
in 2011. Revenue figures, however, demonstrated a positive trend with the
Amphitheatre recognizing a profit of $13,081 as compared to the loss of $11,164
reflected in 2011.
2012 North Carolina Symphony Summerfest Event Chart:
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Goal # 3: Develop a Summer Theatre program specifically designed
for the Amphitheatre
To address the goal for Theatre and the need for consistent programming, SMG and
the Town of Cary Cultural Arts Division has again organized a team of local theatre
professionals (producer, director, costume designer, set designer and actors) to
produce a rendition of William Shakespeare’s, Romeo & Juliet. This is the third year
the Amphitheatre has produced a theatre event. The event is scheduled to occur
over the course of three days the first week of October.
Since this program is still in its developmental years, SMG is aware that it takes
time to cultivate different programming elements and increase audience awareness.
SMG budgeted a similar financial loss for the 2012 event budget as in 2011 for
theatre. A strong marketing campaign and public relations effort is underway to
support this third year endeavor and includes a concentrated effort to tie in with
local schools for participation. SMG has added a matinee show to the schedule to
encourage high school and junior high classes to attend the show. The show is the
classic Romeo & Juliet performance with a civil war setting so both English and
History teachers can take advantage of the performance. At the time of this report
the event has not yet occurred.
2012 Theatre Chart:
Goal # 4: Develop partnerships for performances with quality local,
regional and statewide performing arts organizations
SMG continued to foster its relationships with area performing arts organizations
during the 2012 event season. Groups such as the Triangle Wind Ensemble, Green
Hope High School and The Cary Town Band (4th of July performance) collaborated
to produce both free and ticketed concerts. These events are in partnership with
the Town’s Parks, Recreation and Resource Department (PRCR) and are budgeted
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to breakeven. They have historically demonstrated a small profit but in the event
they are in a loss position, the non-profit group reimburses the Amphitheatre for
expenses not recovered from sponsorships or ticket sales.
The two new music series SMG created to fill musical genres currently not
addressed through our national act schedule; the Hob Nob Jazz Series and Pickin’
In The Pines Bluegrass Series are also reflected in the chart below. The Bluegrass
Series has been scheduled for September and at the time of this report two of the
four concerts have been produced reflecting positive revenue numbers.
Goal # 5: Develop festivals that provide community participation and
help establish a community identity
SMG has developed and/or booked several community festivals since the opening of
Booth Amphitheatre. Festivals in 2012 include, The Chili Brew Festival, The Great
Grapes! Wine and Music Festival and the Beer-Bourbon-BBQ Festival (2 days).
These festivals are “rentals” where the Amphitheatre receives a rental fee and
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expense reimbursement. Additionally, there are Town of Cary sponsored festivals to
include Basakhi Mela and Diwali where the rental fee is waived but the non-profit
groups are responsible for all event-related expenses.
The Chili Brew Festival was a new entry for the Amphitheatre this season. The
festival was held in March and featured various flavors of chili, beers and music.
The event was a great success for its first year with 2000 people in attendance.
The Great Grapes! Wine and Music Festival featuring all North Carolina wines was
held in April 2012 and again proved to be a successful endeavor for the
Amphitheatre with 4,000 in attendance. The promoter for the Great Grapes festival
also produces the Beer–Bourbon-BBQ Festival, which realized an attendance of
7,000 over the course of their 2-day festival.
Basakhi Mela was scheduled to occur in May for the second year. This festival
celebrates Indian tradition surrounding “Harvest Time”. Unfortunately the Basakhi
Mela festival was cut short due to threatening storms and the event was not able to
be rescheduled and tickets were refunded.
The La Ley Festival, sponsored by the Curtis Media La Ley radio station, which has
typically been held in August, opted not to return in 2012. The station is
experiencing a lot of growth statewide and resources were not available this year to
produce the event.
The EID Festival, a Town of Cary sponsored event also opted to not return to the
Amphitheatre this season but instead explore options for smaller venues.
The annual Diwali Festival, India’s Festival of Lights Celebration is scheduled to
return this October. The Town of Cary also sponsors this event and for several
years now this event has been able to produce enough revenue on its own to cover
venue expenses.
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2012 Community Festivals Chart
Goal # 6: Develop a rental program for the use of the Amphitheatre
space that does not compete with performance times
There are several areas of the Amphitheatre available for companies and private
citizens to rent depending on the size of the group and their needs. During the
2012 season, the Amphitheatre received many rental inquires from local community
citizens, non-profit and for-profit organizations. Rental dates are coordinated for
days when a concert or festival has not been previously confirmed. Rental fees
remained consistent from 2011 to 2012 for both the for-profit & non-profit
bookings. The rental rate of the entire venue is $5,000 (non-profit/Cary resident
rate is $3,000) and the Crescent area rental rate is $3,000 ($1500 non-profit/Cary
resident rate). SMG also offers a smaller space and rental fee for groups of 100 or
less for the Backstage Patio. The fee for this area is $1500 ($750 non-profit/Cary
resident rate). Groups interested in a small space and usages of the lake greenway
for fundraising walks are able to take advantage of this rental space and its
affordability.
The Town of Cary uses the Amphitheatre for groups such as the Chamber of
Commerce - Honor a Teacher program, Cary Road Race and Volunteer Picnic. The
Town sponsors these events and the rent of the Amphitheatre may be waived.
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2012 Rental Plan recap
Goal # 7: Provide cooperative opportunities with the Amphitheatre
“neighbors”
SMG continued to incorporate the Amphitheatre Advisory Committee into the 2012
season activities. This committee assists in promoting the Amphitheatre as a viable
cultural and entertainment facility to Town of Cary citizens as well as merchants,
vendors and performers.
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The committee consists of six Appointed Members, two Town Staff Department
liaisons, six At-large members and one Committee Chairperson. The appointed
member positions include a representative from the Town of Cary Cultural Arts
Committee, Neighborhood Associations from the three residential areas surrounding
the venue, the North Carolina Symphony and Teen Council. The Town Staff include
a representative from PRCR and the Amphitheatre General Manager. The at-large
positions are open to citizens who apply annually for committee membership and
include one person from the neighboring business partner, Spectrum Properties.
The committee meets once a month and provides feedback to SMG and Town staff
regarding the types of events the Amphitheatre should host, ideas on how to
improve operational policies and aids in marketing events coming to the
Amphitheatre. Committee members are also active at each event by working the
Guest Services Booth and driving the Courtesy Shuttle. They are on hand to answer
patron questions about the Amphitheatre and Town. Committee members also
spearhead our lawn chair rental program, which raises money for the Parks
Recreation and Cultural Resources scholarship program.
The 2012 Amphitheatre Committee Members Include:
Beth Pleasant – Spectrum Properties, Sandy Bearrows – Regency Park Estates, Jim Bustrack
– TOC Cultural Arts Committee, Paul Nowicki – Regency Hills, Roy Gemberling – Lions Gate,
Sue Guenther – North Carolina Symphony, Sarah Leehr – Chair person, Jean Baxter – At
Large, Jennifer Hall – At-Large, Benjamin Smith– At-Large, Sonali Luniya – At-Large, Tad
Doering – At-Large, Cary Teen Council Representative, Amphitheatre General Manager,
Town of Cary Staff from the Parks, Recreation and Cultural Resources Department and an
additional 8 people that attend meetings and serve as volunteers.
The advisory committee also helps structure the neighbor card program that allows
both residential and business neighbors to attend select Amphitheatre events for
free or with a discount. The card registration took place at the box office and 454
neighbor cards were distributed with 396 to business neighbors and 58 to
residential neighbors.
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Movies By Moonlight Series
The outdoor movie series continues to be a popular event to attend. WakeMed is
the series sponsor for the sixth year. Movie rates are kids twelve and under free
and $3 for adults. All patrons are allowed to bring their own picnic items. A portion
of each paid ticket (.75 cents) supports WakeMed and their Children’s Hospital.
The movie series has traditionally been held on Thursday evenings; however, in
2012 SMG opted to move the movie nights to Fridays and Saturdays. This change
was prompted by a need to increase nightly attendance. The average nightly
attendance did demonstrate an increase; however, due to severe heat and
thunderstorms, a few movie nights were canceled completely or were rescheduled.
For a second year SMG elected to present the Sound of Music Sing-A-Long. This
classic movie was featured on the big screen with words for every song on display
for the crowd to follow along. SMG partnered with Mix 101.5 to help promote the
show and serve as the “host” for the night. The venue drew a large crowd of 2,010
in attendance and the feedback was very positive. The event this year was able to
demonstrate a profit of $1,992 as compared to the loss reflected in year one of
$3,408.
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SMG is bringing back the fall movie festival, “A Reel-ly Scary Cary”, for a fourth
year this October. In 2011 the series attracted 1,040 patrons and SMG budgeted
the series to breakeven; however, the series realized a loss of $3,000 in 2011. The
series was well executed but was hampered by inclement weather (cold and rain)
on several event nights thus affecting attendance. Several props have been
purchased over the last three years that can be re-used so fewer expenses are
expected with the 2012 series. The film festival will take place during the last week
of October and features classic and current suspense thrillers. The series is modeled
after the summer movie series with a ticket price of $3/adults and kids twelve and
under free. Patrons are allowed to bring their own picnic dinners.
Sound Levels at Amphitheatre
Since the Amphitheatre started hosting national acts with amplified sound systems,
sound levels and their impact on nearby residents have been a concern for both
SMG and Town Staff. In response to concerns expressed by residents living in the
nearby neighborhoods, SMG initiated a sound study in the fall of 2003 and a reevaluation again in 2010.
The 2010 sound evaluation recommended the dba level at the venue increase from
92 dba to 95 dba measured at 100’ from the stage for five-minute averages. A
recommendation to move the sound measuring microphone from the front of house
mix to the Crescent was also made. By using a microphone at the crescent rather
than the front of house mix position, tour sound engineers can mix the stage sound
properly, thus improving the sound quality inside the venue. The measurements at
the Crescent reflect a more consistent measure of sound emissions at all times.
A recommendation for a questionnaire SMG staff could use when speaking to callers
who are making a complaint regarding sound levels was also implemented. The
questionnaire asks specific detailed questions on what the callers are experiencing
in their homes; for example, do they hear more bass or are they hearing vocals.
This information is then relayed to the Venue manager and Sound Technicians.
SMG continues to send weekly updates to the three adjacent neighborhoods
informing them of event load-in times, sound checks, set-time and expected
attendance so that they will know when the Amphitheatre will be active.
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As of this report date, five neighboring residents have reported ten sound and
curfew concerns. One call was associated with the Furthur concert and the other
concerns were tied to the Alan Jackson concert and Soul Picnic Festival. Neighbors
stated they could hear the concert at their homes and/or they just wanted to reconfirm the curfew time. What these neighbors say they hear more than anything
are the DJ’s who they perceive to be yelling into the microphones. Thus far, the
stage performers have not been in violation of the venue sound parameters that
result in financial penalties. A summary of the event audio readings is listed below.
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Goal # 8: Provide revenues that more than offset the operating costs
During the management contract of Booth Amphitheatre, SMG has continued with
several revenue generating and expense reduction efforts (food & beverage sales,
season tickets, sponsorships, preferred parking fees and lawn chair rentals) to
improve bottom line results.
The Amphitheatre season ticket program continues with the “Mini Pack” program
and VIP table options. SMG brought this offering to consumers again in the fall of
2011. The mini pack allows the patrons to pick and choose the shows they want to
attend. So as to not affect the overall attendance capacity at each show, SMG only
allows a limited number of these packages to be sold. SMG was able to secure sales
for over 90% of these packages. SMG also added one full-time sales position during
the 2012 season to help increase season ticket and group sales awareness and
revenue for the venue.
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SMG continues to present the venue programming vision and branding
opportunities associated with the Amphitheatre by working with companies such as
Pepsi, Michelob Ultra, Rex Healthcare, Hob Nob Wine, Barefoot Wine and WakeMed
to enter into sponsorship contracts with the venue. Sponsorship revenues in 2012
were $96,500. In light of the country’s continued current economic position, SMG
was gratified to retain the majority of partners at some sponsorship level and even
add in a few new clients.
SMG elected to change ticketing companies in 2012 by contracting with locally
owned and operated Etix. This change afforded patrons lower ticketing fees (22%
reduction compared to Ticketmaster fees) and the venue received higher rebates
(23% more than with Ticketmaster). The ticketing move has been a positive one for
the venue and the contract is in place for an additional four years.
Additional Revenue Sources:
For the second season, SMG staff handled parking operations at the venue this
season. SMG hired parking staff and purchased parking equipment during the offseason in 2011 in efforts to reduce cost expenditures in this area at each event.
The 2012 parking operations cost has been reduced by 25% since bringing
operations in house.
Preferred Parking – SMG continued to offer a preferred parking lot located directly
outside the main entrance for patrons interested in parking up front for a fee. If
patrons want to park up front they can pay $10 to do so, otherwise they can park
for free in select parking lots surrounding the Amphitheatre. Despite private
parking lots adjacent to the Amphitheatre charging additional fees to patrons
parking in their lots, SMG has not recognized a decrease in the venue operated
preferred parking lot and revenue.
SMG also continued with the lawn chair rental program in 2012. The lawn chairs,
sponsored by Rex Healthcare, were available at each show for a rental fee of $5. A
dollar from each rental fee is dedicated to the Parks, Recreation and Cultural
Resources scholarship fund and $1,916 has been recognized thus far. Revenue
sources for the Amphitheatre also stem from Etix rebates, ATM service fees,
merchandise sales and facility maintenance fees.
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In addition to addressing each of the Amphitheatre management goals, SMG
focuses on other areas of venue operations to include venue branding, customer
service, food and beverage sales and capital improvements.
Venue Branding:
SMG continues to work with local media groups to consistently increase public
awareness of the venue and our 12 seasons in the market. Media relationships in
2012 included a partnership with WRAL-FM (Mix 101.5), Clear Channel Radio
(G105, 93.9, and 100.7), Curtis Media Group, The Independent Weekly, The Cary
News, The News & Observer, Cary Citizen.com, Twitter and Face Book. In addition
to media outlets within the Triangle, Outback Concerts utilized several outer
markets such as Wilmington, Morehead City, Greensboro, New Bern and WinstonSalem to advertise their concerts. SMG staff members also helped blanket the
Triangle with flyers, posters and ticket promotions in an effort to promote the
Amphitheatre’s season.
The Amphitheatre e-newsletter continues to offer an extensive marketing element
for venue events. SMG staff uses this weekly e-newsletter as a tool to inform the
public of events coming to the Amphitheatre. The e-newsletter features information
on ticket prices, sponsors, Amphitheatre policies, ticket discounts, etc. Patrons find
the e-newsletter user friendly as they can click on a direct link to purchase tickets
to events. Patrons of the Amphitheatre can sign up via the website
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(www.BoothAmphitheatre.com) to receive this newsletter. The Amphitheatre has
over 50,000 e-newsletter subscribers, close to 7,000 Facebook Fans and 700
Twitter followers.
Customer Service Efforts:
SMG continued to survey patrons that attend ticketed events through our on-line
surveys and through in person surveys at select events. These surveys are
specifically designed to solicit feedback on operations of the venue to include
programming, parking, event staff, box office procedures, sound quality, pricing,
food/beverage options, etc. Response rates are affected by demographics (age,
gender, etc).
SMG has compiled all of the customer service feedback and made notes on the
three items we continue to be praised for and need to improve upon.
Top 3 things people like best about Booth Amphitheatre:
1. Environment and Scenery
2. Staff friendliness
3. Variety of food and beverage offerings
Top 3 areas of improvement suggested by patrons:
1. Decrease the wait time in concession lines
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x
SMG is exploring the options of installing a Point of Sale System that will
aid in speed of service at both the windows and table seating
2. Improved signage efforts for restrooms, smoking areas, will-call lines and
roadway directions when leaving the venue
x
SMG will create additional signage to help in each of the areas for the
2013 season.
3. Tent over the sound board blocking view of the stage.
x
SMG will investigate the possibility of a “clear” tent to place over the mix
position on event days when weather may impact this area. We will also
explore alternate seating options for patrons so their view of the stage is
not impeded.
Keeping in mind the value of our guests and safety concerns remaining a top
priority, SMG elected to renew our weather monitoring service in 2012. The system
allows Amphitheatre management officials and event promoters to more accurately
determine when negative weather may impact a performance. The system provides
email, text messages and phone calls from meteorologists informing the venue of
area wind activity, lightning threats and rain occurring within 10 miles of the venue.
The purpose of the system also allows Amphitheatre officials to communicate with
patrons regarding negative weather conditions in a timely manner.
Food and Beverage Operations:
As in 2011, SMG contracted with locally owned Food & Beverage Operator, Classic
Sports Catering, to manage all concession operations at Booth Amphitheatre for the
2012 event season.
The Amphitheatre’s current food/beverage policy includes allowing patrons to bring
in picnics for all Symphony events, movie nights and select festivals/concerts. While
attending most concerts, patrons are not allowed to bring in their own picnics.
These food policies affect event revenue; however, SMG does not recommend that
these policies change at this time.
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The food/beverage agreement with Classic Sports Catering includes the
Amphitheatre obtaining a minimum of 25% of revenue from each event.
During the event season SMG and Classic Sports Catering meet weekly to discuss
the menu offerings at the Amphitheatre. Our mutual goal is to provide a wide
variety of items, increase the points of sale and decrease the wait time so that
patrons can enjoy the main stage activity. Below is a copy of the 2012 menu at
Booth Amphitheatre that demonstrates the full use of the buildings and equipment.
If patrons can’t find anything to their liking on the venue menu, they can still visit
our Picnic in the Park partner’s websites to pre-order a picnic dinner. These dinners
are then delivered to the venue for patrons to pick up at the event. In 2012 the
picnic-in-the-park partners included Jimmy V’s, Dickey’s BBQ, WholeFoods and
Wasabi. Gross sales from our Picnic in the Park vendors are $74,216 to date.
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SMG’s Pine Needle Pub area is still a designated smoking area and Classic Sports
Catering promotes special craft beers in this area. These concession offerings
together with a small stage featuring acoustic acts continue to add another
interactive area for our patrons to enjoy.
SMG receives a percentage of net revenue (after taxes) from both Classic Sports
Catering and 3rd party vendors (i.e. Lumpy’s Ice Cream) at each event. This chart
outlines the “per head” spending trend in food and beverage since 2010 for each
event series.
2010 – 2012 Per Cap Comparison Chart
Capital Equipment Expenditures
The following is a list of capital equipment items approved for SMG to purchase for
the 2012 event season.
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Amphitheatre Sound System – The Amphitheatre Sound System has been in
service for the past eleven years and is need of repair works. Several speakers in
the stage roof, crescent roof and on the lawn require refurbishment or replacement
completely. Cost = $14,442
Amphitheatre Lighting System – The lighting system is the same age as the
sound system and it too needs repair work so that it can function at optimum
levels. Stage light fixtures in the roof and in the spotlight towers need replacing.
Cost = $14,168
Stage Communication System – The intercom system is used by technicians to
talk to each during performances for sound, light and performance cues. The
current system is broken and corroded and in need of repair Cost = $5,567
Stage Chain Motors – SMG recommended the purchase of two half-ton motors to
help in the ease of installing lighting and sound rigs at each show. Cost = $3,638
2012 Booth Amphitheatre Financial Overview:
The 2012 approved indirect operating expense budget was $946,441. This included
full-time employee salaries, seasonal/contracted employee wages, operations,
production services, postage, stationary, marketing, utilities, insurance, uniforms,
signage and licenses. As of September 21, 2012 the actual 2012 indirect operating
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expenses are forecasted to be $861,097. SMG monitors the monthly cash flow and
expenses and reduces expenditures throughout the season when possible.
A combined effort of reducing the indirect operating expenses and maximizing
revenue streams from concerts, rentals, season tickets, sponsorships and
miscellaneous ancillary accounts has resulted in the Amphitheatre projecting an
annual attendance of 111,978 and a loss of ($126,690) compared to the SMG
budgeted Amphitheatre loss of ($168,191). An audit performed by an independent
auditor is planned for December of 2012 and the actual Amphitheatre profit & loss
statement will be provided to the Town of Cary at that time.
To account for current Amphitheatre concert industry trends, the economy and
competition, SMG has developed a comprehensive plan to address each
Amphitheatre goal in 2013. The action plan is listed below.
2013 Booth Amphitheatre Action Plan
Goal # 1: Provide performances by nationally acclaimed artists
SMG has elected to renew the booking agreement with concert promoter Outback
Concerts with an increased emphasis on promoting more rock/younger
demographic events. The agreement again secures a guaranteed number of events
and a financial structure that includes the Amphitheatre absorbing zero risk in
producing each event.
SMG recommends that three of the national acts be granted a sound level grace of
3 db from the established 95 db to 98 db. SMG and our promoter, Outback
Concerts, believe that this 3-db grace will attract more of the rock and younger
demographic artists to play the Amphitheatre. These types of artists typically
attract higher attendance figures and greater revenue streams for the venue. The
Cultural Arts Manager for the Town would have final approval on all db grace
requests.
SMG is also recommending that the Amphitheatre budget continue to include
funding to co-promote concerts/events in 2013. The goal for these budgeted events
is to further enhance the programming offered by the Amphitheatre to Town of
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Cary citizens. This money will only be at risk if SMG determines the venue does not
have enough variety or number of shows scheduled for the season.
2013 Performances by Nationally Acclaimed Artist Budget:
Goal # 2: Continue to offer, develop and expand opportunities with
the North Carolina Symphony
SMG recommends renewing the same deal points used in 2012 for the 2013
Summerfest season. The goal for all parties is to provide quality programming at
affordable ticket prices and operating, at minimum, a break-even point. SMG will
continue to budget conservatively with projected attendance and revenues
comparable to 2012 numbers.
As part of our annual partnership, SMG would again recommend the Amphitheatre
continue to partner with the North Carolina Symphony on producing at least two
events with guest artists. SMG recommends that $30,000 be budgeted to support
these guest artists. These added funds assist the Symphony in providing artists that
may attract a wider audience to the Summerfest Series.
2013 Symphony Planned Events:
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Goal # 3: Develop a Summer Theatre program specifically designed
for the Amphitheatre.
SMG recommends that theatre return in 2013 and again utilize the talent that
exists in our community. SMG and Cultural Arts staff will investigate potential
grants and sponsorships that may help fund the theatre production in 2013 but
recommend the budget for this endeavor continue to reflect similar revenue and
attendance figures experienced in previous years.
2013 Theatrical Planned Event:
Goal # 4: Develop partnerships for performances with quality local,
regional and statewide performing arts organizations
SMG will again reach out to quality local, regional and statewide performing arts
organizations for collaborations with Booth Amphitheatre. Organizations such as the
Triangle Wind Ensemble and local performing arts organizations are just examples
of the groups SMG will seek partnerships in 2013. SMG is budgeting for these
partnerships with performing arts organizations to breakeven.
2013 Partnerships with Performing Arts Organizations:
PROJECTED EVENTS
2013 PROJECTED ATTENDANCE
2013 PROJECTED NET REVENUE
3 performances
1,000 per event
Breakeven
TOTALS
3,000
Breakeven
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Goal # 5: Develop festivals that provide community participation and
help establish a community identity
SMG is recommending that a combination of festivals from outside promoters and
locally based non-profit groups return in 2013. A sampling of the events that SMG
recommends return in 2013 includes the Chili Festival, Wine Festival, the Diwali
Festival and the Beer-Bourbon-BBQ Festival.
2013 FESTIVALS:
Goal # 6: Develop a rental program for the use of the Amphitheatre
space that does not compete with performance times
SMG does not recommend changing the rental fees for Booth Amphitheatre in
2013. The venue rental packet used in 2012 worked well in explaining to potential
clients the fees for space, operations, cleaning, catering, etc. The following fees and
procedures will remain in place for 2013.
Rental Fees – The fee to rent the entire venue is $5,000 or $3,000 for
non-profits/Cary Residents; Additional smaller areas available for rent
include the Crescent at $3,000 or $1,500 for non-profits/Cary Residents
and the Backstage Patio at $1,250 or $750 for non-profits/Cary Residents.
Booking the Venue - Booking priority is given to events presented by
Booth Amphitheatre, The Town of Cary and Booth Amphitheatre’s
preferred promoter, Outback Concerts. For all other rental events, a
courtesy “hold” can be placed on dates as requested but dates will be
confirmed or contracted no sooner than outlined below:
o
Private Rentals – No sooner than 45 days in advance of event
date
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o
Public Rentals – No sooner than four months in advance of event
date
o
Concession Policies – The Amphitheatre has a contracted food &
beverage operator and all catering requests are routed through
them for each event.
o
Costs for services such as parking, security, cleaning, etc –
These costs are based on hours required and range from $10 per
person/hour to $25 per person/hour.
o
Ticketing costs and procedures – There is no cost for using the
Amphitheatre ticketing system but there are costs associated with
printing ticket stock and the personnel required to sell tickets at
each event.
o
Marketing support available from the venue – SMG will
incorporate all public events into the general venue schedule by
including information on weekly e-blasts and
www.boothamphitheatre.com.
2013 Rentals:
EVENT NAME
2013 PROJECTED ATTENDANCE
2013 PROJECTED NET
REVENUE
10 Rentals
750 Per Event
$3,000 Per Event
10 Town of Cary Sponsored Events
1,000 Per Event
Breakeven
TOTALS
17,500
$30,000
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Goal # 7: Provide cooperative opportunities with the Amphitheatre
“neighbors”
SMG will continue to work with the Advisory Committee on exploring new events to
bring to the venue, improving customer service efforts and re-evaluating the
“Neighbor Card” program and its purpose.
The Movies by Moonlight series will return in 2013 as it continues to be a
community favorite year after year. SMG is budgeting for 10 films again and 5 films
for the “Reel-ly Scary Cary” Film series in October 2013. SMG would also like to
bring two Sing– A-Long events back to the venue in 2013.
2013 Movies By Moonlight:
EVENT NAME
2013 PROJECTED
2013 PROJECTED NET REVENUE
ATTENDANCE
8 Movies
500 Per Event
$750 Per Event
Scary Cary Movie Series
2,500 For Series
Breakeven
2 Sing-A-Long Events
2,500 Per Event
$5,000 Per Event
TOTALS
11,500
$16,000
Goal # 8: Provide revenues that more than offset the operating costs
Balancing revenue and expenses has always been a goal for SMG while still
providing a mix of programming between national acts and community festivals.
The management plan for 2013, although conservative, is again designed to further
reduce expenses and increase revenue.
SMG will continue to solicit additional sponsors to help offset the venue operating
expenses. We will also continue to work with our promoters on enhancing our
affordable yet profitable season ticket program.
SMG will continue to work with ETIX as our ticketing partner as our contract spans
years 2012 – 2016. The ticketing contract provides reduced ticketing fees to our
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patrons and increased revenues to the venue. SMG is excited to keep the ticketing
business local as Etix is based in Morrisville and they have the ability to give the
venue more hands on assistance.
SMG recommends keeping the management of parking services under the SMG
umbrella of services verses outsourcing this operation to a 3rd party in 2013. SMG
has more control over parking costs and the level of customer service provided to
patrons.
SMG and Classic Sports Catering will evaluate the food and beverage operations at
the conclusion of the 2012 event season. The contract is up for renewal and
together will determine the direction our operations should go. Food and beverage
revenue is a major component of the Amphitheatre budget and requires continued
close examination.
In planning for the 2013 indirect operating budget, SMG is including costs for venue
marking, promotions, office supplies and maintenance needs for venue signage and
operating equipment.
2013 Capital Equipment Expenditures
SMG is analyzing future capital projects that will be necessary to efficiently operate
the venue in the next five to ten years. Items under evaluation include the
installation of office space at the venue. SMG currently operates out of offices
located in the Herb Young Community Center making day-to-day management of
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the venue a challenge. The existing chairs and tables on the crescent will need to
be replaced in the next few years along with the venue’s movie screen. SMG would
also like to have a thorough assessment completed of the venues entire sound and
light system to determine what upgrades may be necessary in the next 5 – 10
years.
For the 2013 season SMG is requesting funding for two Capital project items, a
Point of Sale Food & Beverage system (POS) and a venue wide WiFi upgrade. The
POS item will increase the speed of service for patrons seated at the tables on the
crescent as well as patrons visiting the Cobblestone Courtyard building. The system
allows the servers to take orders at the table and send the order electronically to
the kitchen quickly. With the service time increasing, additional sale orders are
expected resulting in higher concession revenue at each event. Additional revenues
earned from this capital investment are projected to pay for the investment within a
two year period.
The second capital request of venue wide WiFi is needed for the proposed POS item
to work efficiently. SMG can also offer WiFi service to vendors at each festival for a
fee, generating an additional revenue source for the venue. There will also be an
opportunity to generate revenue by selling ad space on the Amphitheatre WiFi
entrance page. The total cost of the requested WiFi investment is $25,000 but the
contractor has offered a $5,000 reduction in exchange for a KBA sponsorship.
Conclusion:
Over the course of seven months SMG is estimating that over 111,978 people will
have visited the Amphitheatre in 2012 to attend 74 events consisting of concerts,
festivals, movie nights, live theatre, non-profit fundraisers and private events.
The chart below demonstrates the trends for the Amphitheatre since 2010.
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As we move into Booth Amphitheatre’s 13th year of operation, SMG shares in the
Town of Cary’s commitment to providing a world-class facility for its citizens. SMG
will continue to offer dynamic programming at affordable prices with excellent
customer service!
Becky Colwell
General Manager Booth Amphitheatre– SMG
Attachments:
2013 Budgeted Income Statement
2012 Summary of Usage
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