00:00:04,530	The battery kept dying. Do you have 11:00? I have 11. Go for it. Good morning. It’s 11:00 on the 6th of May. This is the, uh, Bismarck Event Center authority board meeting. We’re in the Tom Baker room of the city county building. We will call the meeting to order first. If we can call roll.

00:00:28,000	Member Grossman. Here. Kostelecky here Tomanek here. Mayor Schmitz here. Wilson here. Wachter here. All right. First item is public comment. Anyone who wish to speak to an item on this agenda or the prior meeting agenda, please come forward. Identify yourself and state what you’re talking about and sign in. A second call for public comment.

00:00:54,730	A third and final call for public comment. Seeing no one, hearing no one online, the public comment period is now closed. Item three is approval of minutes from last meeting. Move to approve. I’ll second. Is there any discussion? Hearing none. We’ll call roll. Grossman. Yes. Kostelecky Yes. Tomanek. Yes. Mayor. Schmitz. Yes. Wilson. Yes. Gardner. Sorry. Wachter. Yes.

00:01:30,500	Okay. Next item is to receive the Event Center financial report. And I will just say that I spoke with Eric last week, and he. I saw him walk in. So I know he’s here. So the report is abbreviated again.

00:01:46,730	And I suggested that he even make a request that we try to move the meeting back by maybe a week to give him an overlay in the future. More time to complete the monthly financial report so we can have more current financial information. But, Eric, you’ve got some information to present. So yes, I do.

00:02:10,530	Um, mayor, uh, board members, as I was walking down the stairs this morning, for the meeting, it dawned on me. I put so much thought in the last two months. Um, looking from an income expense, um, perspective, I have failed to ever present balance sheet related items to you for the event center.

00:02:30,900	Um, so I will work on that for the next go round. So you have an idea of what our balance sheet accounts look like, where our receivables are. Payables. Um, for a snapshot in time and as well as our cash.

00:02:46,870	Um, but looking at the information that was in your packet, again, like the mayor had mentioned, this is abbreviated as of April 29th. Um, midday. And so the one comment I will make from last month to this month, um, Sue Wald, who was at the event center, is now, uh, a fiscal services, um, staff member here at the city still has made great strides in getting caught up in recognizing our revenues and our expenses, our show

00:03:11,970	settlements, and those types of things that have taken place February and March that due to the volume of things that were going on and the, uh, abbreviated staff roster that they had to work with, um, we were a little bit behind.

00:03:30,870	Um, so looking at these financials, you’ll see a, uh, a fairly significant jump looking at our, our operating revenues for the event center as a whole. Um, and that’s due to the efforts of, of Sue and the event center staff trying to get all of the things done that they can prior to the transition.

00:03:47,170	With OPG taking place on May 1st. Um, we’re not done yet. Um, we still have. I think, about 4 or 5 events yet that, uh, have taken place towards the end of April, that we’re working through. Um, getting those things built out. And I think the estimated revenue is somewhere probably around 30, 35,000 that we’re not seeing.

00:04:09,730	Um, for those activities, looking at this time frame. Would have what all the expenses be in, though. Generally, yes, all of our expenses that we have taken care of, whether it’s advertising, payroll, um, those regular operating expenses would be recognized in this already. Okay.

00:04:35,530	Um, so I guess just holistically, um, for the event center for all all three buildings, um. The overall operating income for the year to this point is about 179,000. A little bit more than that. If you remember, that was a negative number. Um, in March when we reported we’re actually up about $284,000.

00:04:59,330	And that’s a direct result of getting all of those events. Um, build out, reconciled and and taken care of. Um, you’ll notice, um, at the bottom, we’re starting to see some motel hotel transfer money coming in. That’s the 25% of our, uh, 2% occupancy tax that goes towards the event center to help fund their operations.

00:05:25,600	Um, initially at the beginning of the year, the first part of that money goes to the city to help cover the administrative costs. Um, associated with maintaining that money. Um, and then the 25% will, will come to the event center operationally.

00:05:43,800	Um, every month through the remainder of the year, there ends up there does end up being about ten, 11 payments of that, um, annually for that. But the first amount is about 6800 bucks. Um, and then you’ll notice the lodging, liquor, food, that number increased that debt repayment.

00:06:04,470	We we put in 1/12 of the annual principal and interest payment on the exhibit hall expansion. Um, so specifically looking at the arena and the exhibit hall. That number for operating income is about just under 215,000. At this point in time, that’s an increase of about 280,000 from the last report at the April meeting.

00:06:30,600	Um, I mean, as you know, with the schedule, there was a lot of events that were taking place in the arena in the exhibit hall. Um, in March and April, state basketball, WDA basketball, those types of things. We’re now getting those things reconciled and looking. Um, they’re accounted for in the financials. And then just real briefly with the bill, they’re still operating at a loss.

00:06:52,470	Um, currently at the year, which is generally to be expected. Um, given the nature of the building and the type of performances that go on there, it did have a decrease in the loss. So we actually had a gain of about $3,700 at the bill from the last reporting period. So. Okay. Does anyone have questions of Eric? Go ahead. Chad.

00:07:18,000	Eric, I just want to thank you for all the efforts that you put into this. So I appreciate it. From our last meeting to today. These are the parades. So thank you for. Yep. For everything. Absolutely.

00:07:34,230	And then I guess I forgot one thing to, um, the mayor at last meeting had asked that I include the lodging, liquor, food, cash balance at the bottom. Um, that is the amount of money that we use to pay down the debt, as well as the capital projects for the event center. Um, looking at that number, as of last week, it was about 9.1 million.

00:07:55,530	Um, obviously, we have a a large HVAC project going on in the next. Well, this year, in the next couple of years, that, uh, we’ll be utilizing the majority of that. But lots of wayfinding project. Yes. And the wayfinding project. And we may have a few others that are going to come forward to us. Yep. So I would expect.

00:08:14,730	Um, I’ll continue to include that number as, as this financial report goes on. And, and we figure out what that looks like with, with city staff, myself or with staff and how we’re going to report these financials going forward to the board. Um, but I’ll continue to include that.

00:08:34,600	But know that we’ll see that number fluctuate generally down quite significantly over the next couple of years. So and is that as that goes on with providing the balance sheet or statement of net assets, that’s going to give us a bit of a look into some of that too.

00:08:47,800	But it might not be bad to start scheduling out as we get ideas of what those costs are going to be in the timing. Uh, for the HVAC in particular, because that’s the big item. So that this board can see what that looks like. Okay. As Jeff and his team at, um get that more refined and as bids start going. Sure.

00:09:09,100	And maybe we can even show the ins and outs of in that particular cash account. Sure. It’s restricted. So I think it would be good to see that. Anybody else have comments? Jason.

00:09:31,230	Maybe, if I may, just for the for the board’s awareness, uh, I did receive an email from Jeff Hubbell, uh, earlier this week with a proposed bidding schedule for the HVAC and the lighting projects. Um, he’s got Monday, June 22nd. Documents do. Um, advertisement for bid a few weeks. Then on July 13th would be the bid opening. Okay. So July 13th. Yes. Correct. July 13th. Okay. If there are no other questions for Eric. Thank you. Eric.

00:09:54,600	You bet. I know, I do think this will be a time. If. Would it be okay with this board if we delayed or moved our meeting from the first Wednesday to the second Wednesday? That would give everybody a bit more time.

00:10:09,530	We’re never going to be perfect, but at least there would be more reconciliation done. And hopefully it gives time to get a more true cut off at the end of the month. Yeah. Does that give you enough.

00:10:31,330	Time one week or is two weeks better? I mean, I can pretty much assure you, if we met in the third week, we would always have the previous month taken care of, recognizing the work that is going to have to do to prepare their part of it.

00:10:50,070	And then for us as, as city staff, to be able to get that entered into our accounting software, to give a comprehensive picture, because there are certain aspects of this operation that the city of Bismarck is still going to have to issue, um, payments to OPG or to capital construction vendors. And recognizing those things. Um, so by the third week, I can pretty much guarantee that would take place, depending on how the calendar falls. The second week.

00:11:12,900	We still may run into some issues, but it’s less likely than meeting the first Wednesday. It’s almost impossible for us to get it done. So what I’m hearing you’re saying is we would have more accurate information on the third week versus the second. For sure. So you would have a complete monthly picture. Mayor. Board members. It doesn’t matter to me.

00:11:33,370	My only concern going into June is that’s going to be almost two months before we meet again. Um, I might suggest that we maybe try to have a special meeting in two weeks, if possible. It can be done just to get the financial statements, and we can do it by teams. Um, just so we kind of get to a regular cadence that’s appropriate. And.

00:11:57,730	Go ahead. Mayor, board members. I think that’s a good idea. I think we’ll have a meeting coming up. That way we can get into a rhythm. And then, um, and then the third week so you can get all the information compiled. So I might ask for a motion for both those changes to be more appropriate.

00:12:18,370	We kind of jumped ahead. That’s number seven on our agenda. Well, regular meeting date discussion. We’re being really efficient today. But. Well. If I can just offer I would prefer the third Wednesday. I’ve got a significant conflict on the second and fourth Wednesdays following city Commission meetings.

00:12:35,330	So if if the third Wednesday of every month works for everyone else’s schedule, I would prefer that one. Sounds like that works better for finance as well. Yeah, okay. So I think I’m sorry I jumped ahead. That’s okay.

00:12:51,730	It was kind of tied to this, so, um, if I think it would be appropriate if we had a motion to a request, a special meeting, and to to change our regular cadence to the third Wednesday. So I would like to, um, have a motion to move our advisory board meetings monthly to the third Wednesday of each month.

00:13:13,800	And in the month of May to have a special meeting towards the end of May or the first week of June to cover whatever we would need to do in that interim time frame. Could you could you repeat the first part of that motion? Sorry. I’d like to move the, uh, Bismarck Event Center. Authority board monthly meeting to the third Wednesday of each month. I’ll second.

00:13:41,900	Is there any discussion? Um, just to clarify, are we also going to make a part of this motion? The special meeting in two weeks? That’s what she was referring to. But. Yeah. Yes. Um, and it’s mostly for the financial report, but I guess if there’s something else that came up, we’ll get noticed. The meeting agenda.

00:14:01,100	Maybe. Just for what it’s worth. Um, Whitney would pull the authority board members for the best date and time. Um, so we don’t know exactly when that will be, but I would anticipate an email either by the end of the day or tomorrow. Um, gauging everyone’s availability, recognizing, um, board member Gardner’s not here also.

00:14:19,530	So any further discussion? If not, we’ll call roll. Mayor Schmitz. Yes. Wilson. Yes. Grossman. Yes. Kostelecky Yes. Tomanek. Yes. Wachter. Yes. Okay. Next item is mission and vision statement. Discussion. Um. I think, Jen, you’ve had some comments that have been provided to everybody else, and I’m just open to what everybody would like to see.

00:14:53,970	There is a printed copy of the various ones that were offered for discussion from the two meetings ago, and I think Jen’s comments are included in the packet here. Yes, there we go. Mayor and board members. I still kind of like the first one best.

00:15:30,000	I think that was the one that, um, Chad had worked on. Unless the rest of you think that’s maybe a little bit long. But I do kind of think it covers everything. So mayor and board members, my only comment to that would be mission statements typically are a little shorter. Yeah. You know, and so, um, and.

00:15:54,900	Yes, is it is this more of a vision statement? It is a vision statement, as I. Yeah, exactly. You know, and I was was playing around with a few of them. And of course, I didn’t email them because I forgot.

00:16:15,170	But, um, some of the couple ones that I found, um, one very simple connecting people, elevating experience, strengthening community. So I was trying to figure the whole reason for this board. What is what is our call it three pillars. What are the three things that we want to do as this board have that as our mission statement. And then within our vision statement.

00:16:32,900	Now you can expand on those three or 4 or 2 pillars, whatever the group would decide. Good. Could you repeat that? Joel? Connecting people. Elevating experience, strengthening community. Is it through there? Through our meetings? The the themes that and everything that we’ve talked about? It kind of seems like those are our three things. I might be missing one.

00:17:04,270	Maybe the economic development component that kind of carries through in a few of these. I don’t know if that’s that’s always been a, I guess, one of the tenets of the Event Center is that it brings events and it brings people together, but it brings money to the community. And I was trying to get through, strengthen, strengthen community.

00:17:24,500	We could just if we wanted to add this final phrase, um, something to the effect of economic development, it could say something like, um, to promote or promote economic growth. Yeah. So you’d have four phrases. It’s still a little bit long, but more it’s still more succinct.

00:17:47,070	I think actually, I think the mission, the quote unquote mission statement that’s listed first is more in line then to be with the vision to tie to that. Um, and that I like that as, as a vision statement, I don’t know, but don’t want to dominate things here. Right.

00:18:07,270	In the vision statement does include events that drive economic growth. So maybe it doesn’t need to be part of the the mission statement because it could become part of that longer vision statement. So. But I think the vision statement or the, the, the short mission is kind of what people are going to see the most. I like it it’s it’s snappy. I do too.

00:18:33,370	I mean, I would entertain a motion of some portion or we could just redraft, craft them and then next meeting that could be part of our agenda. Just the final adoption and have just the final two. Mission and vision statements. Maybe that makes more sense. I don’t. Know.

00:18:52,230	Um, mayor, board members, I would I think that’s a good idea. I think we should come back to the next meeting with the final version of it. That way we can make sure everything’s worded. Okay. I guess, Jason, that’s on you. Not a problem. Okay. Uh, item six, and this is a request.

00:19:17,170	So, um, it’s of G and the Dominion LLC contract discussions. Um, Chad, I’ll let you. You brought it. So. Yeah. Uh, mayor. Uh. Members, when started operations, they did not, uh, they weren’t unable to get the North Dakota state liquor license portion of their liquor license.

00:19:45,600	Um, they got it completed, but they still haven’t heard back from the state of North Dakota, and it would have delayed their ability to sell alcohol beverages at the facility.

00:20:06,970	So, um, they had reached out to one of the entities that I have called the domain, which has a class D liquor license, and we had come to an agreement and made arrangements to work with the city, uh, through the through special use or special event permits for the events that that are going to be held at the event center.

00:20:26,800	And, um, to assist them so they could not have a lapse in the ability to, uh, to sell alcoholic beverages while they’re waiting for the, the, the, uh, state to issue their license. I felt that because of my involvement, uh, on this board and with the event center, um, I was a little uneasy about, um, I wanted to make sure that this was disclosed to all of you. So you knew. I knew about it in case you heard something about it.

00:20:46,870	From from somebody that, um, you knew what was going on with it. So I had requested that this be put on the agenda so I could disclose this to you, and, um, and have the ability to, uh, if you have any concerns or questions, just so you know, what’s going. On.

00:21:02,100	So the only question I have, and it’s more of, again, for transparency, is what’s the economic relationship, uh, for them utilizing the license. So, um, they are ordering directly through the distributors because of the way that the law is, they have to debit our operating account.

00:21:24,730	Um, we are going to wait until the end of the month, and then we’ll issue an invoice to OPG for that. Um, we also have costs associated with the permits that we obtain from the city.

00:21:48,530	And then to cover overhead, uh, there’s been quite a bit of work with this, uh, having my, somebody in my office deal with filling out forms and submitting stuff to the city. Uh, we, uh, included a 10% above cost. Um. For our time for doing that. Okay. So. And I just think that was important for the transparency to be out there. So. Questions. Um.

00:22:15,800	And if anybody has any concerns about that or feels like that’s an unfair arrangement, I would I would rather just have the discussion up front and deal with it now than, than have it be something that anybody’s upset about. So. Go ahead Jason. Maybe just for the rest of the authority board.

00:22:37,630	So the process that the domain went through is a very common process that the city administration department facilitates. So many of the businesses that hold an alcohol license have the ability to do a special event, which is essentially an off site location where they are providing alcoholic beverages. And so it’s a as I mentioned, it’s very common. We have a pretty streamlined application process that we go through.

00:22:58,170	And if I had to guess, I’d say on average were somewhere north of 150 special event permits on an annual basis. And so, again, this isn’t a it’s unique in that the timing for OB didn’t line up with the obtaining the city license and the state license necessary to operate.

00:23:14,170	But in this case, the domain isn’t doing anything out of the ordinary that many, many other businesses in our community are doing on a regular basis. So just for a little context, there.

00:23:34,600	So I and this is already in effect, but I do think we should ratify it, um, with a vote that we feel it’s an appropriate arm’s length transaction. Um, my opinion, I think it’s only, only fair that that happened. I don’t know that the 10% margin. I have no idea if that’s I lo I think it’s reasonable. Like there’s a cost involved on the domain side that isn’t otherwise. Covered. There’s no question about. That.

00:24:03,800	So when are we anticipating the state license and city license to go through? I’m looking at maybe Brad’s got an answer for that one. So all of the paperwork has been submitted. We’re just waiting on background checks to come back from the states of Wyoming and Montana.

00:24:23,600	As soon as they receive that background, those background checks, then we will be issued the license. All the permit card has been done. The fees have been paid. We’re just waiting on on those states to give back the background information. And our permit was submitted a month ago.

00:24:45,530	So it’s been a cause of of the background check, uh, information not being sent to the proper location by the state of North Dakota. And, um, push that that process way back. So we’re working with the state and checking every day to see when they have that information. So this is going to be a very short term arrangement. Correct. Yep yep yep yep.

00:25:04,700	This isn’t something that just for transparency that need to be put out to bids or anything like that or not.. No. Doug, help me out. What is the number of days allowed for a special event permit? I believe it’s seven. Okay. And then. Uh, the domain has been applying for each event individually, so there’s no complications there.

00:25:29,800	Yeah. So again, it’s to to maybe elaborate on that a little bit. It’s following the exact same process that we would be doing for any special event permit for any other business in the community. Okay. So okay. All right.

00:25:44,270	And if there’s, if there’s an issue with the 10%, I mean, we could just keep track of time and build an hourly rate for what my staff has been doing. Or if it’s a real issue, I’ll donate the 10% to a charity. But I don’t want there to be any issues with anything. So. Um, I don’t have a problem with the 10%.

00:26:06,630	I think understanding that each special event license only lasts seven days helps me fill in the gaps of the time that’s going into it. Um, I appreciate your ability to support the event center during and during this time frame. I would entertain a motion to ratify because it’s already been entered into. And then I would ask that Chad not vote.

00:26:37,100	I’d make a motion to ratify the what exactly are we? I do. The the contract between. Yeah and domain LLC. For alcohol use, utilization of their alcohol license. All right. So I make a motion to ratify the Or contract between Teague and Domain, LLC for the use of special permit alcohol. Excuse me. Mayor, is.

00:27:08,000	There an actual contract or is it just an agreement? Chad can respond to that. I don’t know what. It is. So we have we do have an agreement for the use of the of of the license. Um, so it’s for the use of the license.

00:27:27,500	There’s also some indemnification, uh, language in there in case something would happen and, uh, a requirement for insurance and the standard things that you would see in an agreement like that. Okay. Thank you. Okay. I have a motion. A second. Okay. Jason. Is there any further discussion? Mayor and I am going to abstain when it comes time to vote.

00:27:49,170	But I am wondering that if it wouldn’t be in the best. And I’m not trying to complicate things, but I wonder before we vote. Um, if the agreement shouldn’t actually be distributed to the members so they can actually see what it is so that they know exactly what they’re voting on.

00:28:07,270	That is a fair request. Um, we could ratify. We could you could withdraw the motion and we could ratify it at the next meeting. The special meeting? That would probably be best to actually, Chad, if we did put that out in front.

00:28:25,630	Plus, it’ll give more transparency when the vote occurs because people can look at it. I guess if somebody else wants to come in and offer the their liquor license for less money, they could do that. But I’d be surprised. With a timeline of doing that at our next event.

00:28:47,800	Would that pause or delay the use of the liquor license event license during upcoming events? Could we possibly do it via an email vote or a teams meeting? I would mayor, um, Jen members, I think, you know, we have the agreement in place. We have the all the permits and everything that we need.

00:29:14,170	And um, my opinion would be that, uh, I don’t think there’s any we’re not jeopardizing anything by winning the two weeks to ratify, but, um. So I think the only thing that would be that’s in question, it would be, is the compensation portion back to the domain, because everything else is passed through cost.

00:29:38,530	And we’re not going to we’re not going to be invoicing anything until, uh, you know, at the end of the month. So we should have plenty of time, but we don’t want to hit them with an invoice after invoice after invoice. We’re just going to try to make it easy and simple. And and so what what I we will not invoice anything until after this has been ratified.

00:29:56,170	Okay. So we should. I can withdraw. Okay. And where was the second. Jason. My notes said Sherry had it. Okay, okay. So no action. It will be on the special meeting agenda. All right. Um, moving to the next item, the 2026 year budget.

00:30:23,870	And, uh, we’ve been provided some of that information. This is obviously as an estimate of what’s going to happen. But Brad and team have done some work. Um, knowing that, you know, the first three and a half months of the year were big months at at the facilities from a revenue standpoint. So I just want us to ask. Ourselves, I want to all right.

00:30:58,170	We’ve got copies. That’d be great if we could pass. Okay. Yeah. I just wanted to put it up on the board. Oh, if not, we can just. I can just read off of it. There we go. There’s. Mr. mayor, um, authority board members.

00:31:31,630	Uh, first, I’d like to say it’s, uh. It’s great to be here as a representative of OPG, but more as a representative of the Bismarck Event Center. Um, I would like to introduce or have our our league, uh, support staff who’s been here on the finance end of it.

00:31:50,470	I’d like them to stand up and introduce ourselves, and they’ll kind of give you a brief synopsis of what they’re doing here in Bismarck to help provide on on that end. So you want to go first? Hi. Good morning. I’m Karla marzouk. Um, I am in Louisiana, so I’m a remote director of field finance. I help onboard the new buildings.

00:32:08,730	I help when there’s a missing finance director. Or if the finance team gets behind. So I helped, um, my supervisor, Jessica, interview and hired the accounting team for Bismarck. I’m excited about that because it’s like you’re starting your team fresh. There’s people that you picked. They’re doing very well.

00:32:25,330	We started two weeks ago with the accounting team on property. Um, Elizabeth is our county manager. She was two weeks ago. Brendan is going to be our staff accountant, and we have our director of finance here with us today. This is Tanya. I cannot tell you. I cannot pronounce her last name. Yes.

00:32:40,330	Um, so I’m gonna let Tanya pronounce her last name and give you a little bit of her history. Would you mind coming to the podium? Oh. I’m sorry. That’s okay. Yeah. For anybody viewing online or otherwise, they wouldn’t be able to hear all the good things you just said. All right. Hello. I am Tanya Bergoglio. I’m from Connecticut.

00:32:57,970	I have been the director of finance at a building there for the past six years. Um, so I’m really, um, you know, familiar with Oakview Group and how we do things. Um, I’m excited to start here and be the director of finance. And, um, it looks like we have a good team, a good starting piece. Um, you know, it’s gonna need some training.

00:33:19,600	New, new systems that need to be put in place. But I have a great feeling about everything that we’re going to do at this building, so I’m excited. Okay. Mayor, members of the advisory board, Anna Rosberg. Um, I am the district general manager.

00:33:39,730	I’ve met all of you multiple times now through the business development process based in Grand Forks. Oversee most of the cold states for OPG. Um, excited that we’re finally here and we’re in and we’ve got a good start. We’ve got a lot of resources come in the last couple of weeks and a lot more coming up.

00:33:52,900	So, um, and there’s been some show announcements which are which are great. So I think we’ve got a lot of positive momentum. Um, and as you know, my job is just to support Brad and the team and anything we need and connect to OBD resources. So looking forward to it. Thanks. All right. Thank you.

00:34:10,630	Um, as we as we jump into this, um, this has been a process that we’ve been working on now for what, at least a month? Karla and I will say that that Carla has has been the one to dive deep into it. Um, we’ve we’ve worked hand in hand. Um, it is a process.

00:34:29,330	Um, and so really tried to hone in on the information that we had available. Um, not saying that. I mean, obviously this is a is a roadmap. This is obviously we’ll try to hit these goals and these marks as much as we can with the understanding that there will be changes to it as we get into it.

00:34:47,370	So as you look at this, um, what we have here is the combined budget for all the buildings. Um, we do break those buildings out, um, in direct expense wise, into 50, 40 and 10% 50 for the arena, 40 for the exhibit hall, and 10% for the bell. And that means that all of our indirect expenses are divided by that way.

00:35:11,000	And that would be all the lines where it says indirect expenses are okay. And you can see that Carla has it. It has it expanded out that way. All right.

00:35:28,600	Um, we really tried to to delve into the events and try to get an idea of the history of, of what these events were making for us and tried to go, given what we had currently on the calendar, to, to, you know, hone in and figure out what we had as far as, as event income. So as you can see there, um, we we’ve got concerts, we’ve got the convention shows and the exhibit hall.

00:35:46,730	And then we kind of have the family shows that are in the belt. Those are net figures. Those are not gross dollars. Those are net figures. All right. So, um, you know, not a lot of extra income there, given what we currently have on the books.

00:36:08,870	So you go down to the, to the, the indirect, you can look at the gross profit of, of those events, that total event profit is, is, you know, just a little bit over $1 million. You add sponsorship dollars that we currently kind of have on the books. And so you’re looking at revenues in this year of about $1.35 million. Now we go down to the indirect expenses.

00:36:29,730	That’s everything that takes to operate our facilities. And again, this was based upon the history that we have right now. All right. You know, with the reduced staffing, with the reduced numbers that have been utilized for the past couple of years.

00:36:50,700	And, um, you know, the biggest change you will see here is, is with the wages and the benefits. And that is due to the, the fact that we’ve had to add positions. We’ve had to add three positions in finance. We’ve had to add, um, where our other positions helped me out here. Carla. The operations, events, sales. So we added events. Team. All right.

00:37:15,600	Director of events and event manager. Yes. Oh. Thank you. Um, those were added positions that did not exist before, but were needed, given the scope of of what we need.

00:37:40,170	Um, case in point, the previous sales manager was also the event manager for all the events going on in the complex, which that’s that’s a big responsibility and thus not able to really do what we would say, an adequate job in either area. Uh, you know, a lot, lot of duties with that. So, you know, in looking at that, those added positions. All right.

00:38:03,630	Um, which include, um, the new director of operations as well, uh, really come to a total of about over that, that period of about $600,000. And that’s the big difference on our salaries right there. The rest of those expenses were taken utilizing what we had from past history. I will tell you right now that that is really, really streamlined and really cut to bare bones.

00:38:28,870	So, I mean, if you look at operations, materials and supplies, there’s only $32,000 in there. If you look at facility operations, there’s only $125,000 for a for a complex this big. Um, that is bare bones. So and obviously that’s, you know, that’s basic equipment, that’s basic supplies, that’s basic maintenance.

00:38:50,170	Uh, just to try to keep the building, uh, you know, at the at in its current condition. So then you had the avg management fee in there, which is a set fee for this year. There’s no quantitative. There’s no qualitative, um, in this, this year. So, um, we’re only paying the management feedback dog. And that’s it.

00:39:10,330	And it came out with uh, with a net operating loss of about $1.119 million. So I guess I will open up the questions now. Concerns. Uh, there is the the workup on if we look at it here below, and I think you have it in your packets as well, just of how we came to all those numbers.

00:39:39,700	Thank you. Just for online. So. So sorry. You can see these are the events and how we worked out to to get to those those revenue numbers.

00:40:04,170	And that’s everything that we had on the books that doesn’t you know, we did budget for some more events, but we were very conservative with that. If you look at the bottom there, it says large open concert, large open concert, medium open concerts, small open concert. All right. That’s what we filled in, thinking that we could bring this year. And we have announced, uh, six new shows in the past two weeks.

00:40:21,870	So we pretty much have all that covered right now. But trying to be very conservative with it. Go ahead. Chad. Uh, mayor members. Brad. Thank you.

00:40:39,870	Have you done a break even analysis to determine exactly, uh, to kind of come up with, uh, the targets that you have to hit to get us to a break even as far as number of concerts, you know, all the different type of event categories. We haven’t yet, Chad, just because we don’t really have the history as well as we get in. Um, that’s I think that is something that we will strive to do here fairly soon.

00:40:55,530	Um, fortunately, with this year, it gives us time to get our feet set, kind of get an idea of what’s out there in the market and what we can really obtain to bring in. Um, yeah, we want to look at those dollars and those cents as we move forward here in the next few months.

00:41:10,470	Um, that will give us a better perspective of where we’re at and what we have to do. Again, can we get those large end concerts or are we going to be more in the medium, in the small type of events? Also, what kind of events we can

00:41:23,370	create? So yeah, I mean, it’s a work in progress. Um, again, this is conservative. Hopefully we’re not much worse than this, but that’s kind of where we’re at the moment. And knowing that 2027 is going to look different, because that’s.

00:41:42,800	So I mean, fortunately, with the eight month stub year, it really gives us a chance to kind of get honed in and figure that out. With January 1st being full guns. Aboard 2027. Or excuse me, 27, we missed that year a lot. Okay, other questions. I think. I think this does give us something to start to compare to.

00:42:06,530	It’s a roadmap, but knowing we’ve got some moving parts still. Yeah. And just the additional employees, that’s really the the factor that is swaying where we’re at. So Brad, glad you’re here. We’re excited to have you here. Um, so just for clarification, in these these open concerts, this these two large open and for medium, those are filled with the we’re.

00:42:28,770	The one large open is, uh, the three mediums are. And the one small is. Okay. So you still have one large open to fill. Correct. One medium open to fill. Correct. Can you, can you get more because like look just looking at, you know, like using looking at the arena.

00:42:44,600	So we have a we have an event there in May. And then the next event is August. Yep. So we have. So trying to fill June and. July is really tough. It is really tough. Yeah. Okay. What what we’re looking at now is November and December dates. And mostly spring and fall of 2027. Right.

00:43:06,900	And in the booking world year 12 to 18 months in advance. Okay. Had to ask the question. No, that’s okay. Um, but yes, we do have certain events in the pipeline that we’re working on for for November and December to fill those slots.

00:43:27,230	So, um, the announced shows that I can talk about here are red clay straps, which is that that large, large show for us. Um, home free, which will be in the bell. Um, Charlie Behrens, which is was listed right there. Uh, Tracy Lawrence. Um, who which was announced last week. And then tomorrow we have another.

00:43:51,430	No, no, it’s this morning at 10:00, so I can actually announce it. Um, we have Theory of a Deadman coming in August. That’s a heavy metal act. And that was just announced at 10 a.m. this morning. Yes. So and again, we do have others in the pipeline that we’re working on. Okay. Thanks, Brad. You’re welcome. Any other questions? Okay. Um, then we’ve got other business.

00:44:22,630	My question would be to Jason. Is it would it be appropriate to move number 11 ahead of the executive session? I think that would be beneficial for everybody at the table if we rather than adjourn into executive session and then come back and finish up.

00:44:38,500	So if you need a motion to that effect, I’d be happy to do that. But if we can just have general consensus at the table that I grab number 11 right now, I think that’s fine. Consensus is there that we can move to the the discussion of KPIs, and then other business will follow.

00:44:52,100	And then we can go to executive session. So, um, Jason, you had those conversations. So yes. Thank you, Mr. Mayor. Authority board members, the last page of your printed packet. Or if you’re looking online, it’s the attachment for number 11 on the agenda.

00:45:11,800	It was added a little late to the agenda, primarily because I just received this information Monday. Uh, this is a result of the consultants with JLL, uh, Dan Fenton and Mitch Savino continuing to work with representatives from OPG, uh, as part of the contract. We had all agreed that, uh, there was value in having KPIs as part of the overall performance metrics.

00:45:30,530	And the draft that we have here is by no means finalized, but I wanted to put it in front of all of you for just generation of discussion.

00:45:46,530	Um, don’t need to do it today, but, uh, thoughts on that final column, whether all five items are weighted the same at 20% or if, uh, if there’s desire to wait, certain things over one another, whether it be event mix is a higher priority than customer service survey results. I think that’s part of the discussion that we can have here at the table.

00:46:06,170	Um, but just didn’t want to lose sight of this one. I wanted to bring it forward. So everybody had, uh, had an awareness. And if there are comments or feedback, I’d be certainly glad to take that back to Dan. And I know he will continue to work with Rick from OB to, um, get this thing to the point where we’re all comfortable.

00:46:23,870	But if there’s thoughts or ideas on what’s here, I’d be happy to make those notes and get those back to Dan and Mitch so they can continue that work. And my understanding, mayor and members, is this is somewhat supposed to be after a stabilized year. It’s not for now.

00:46:44,370	It’s after staff is up and running and they got a good handle on the building and moving forward. Is that correct? That was my recollection. And then also, if I recall, there was a desire to perhaps look at these annually if there are priorities that change or areas that we would prefer to focus on.

00:47:01,370	Um, there could be additional KPIs, or maybe there are things that we don’t see as much value in in the future. That and there might be other emerging topics that we would want to address. Mayor, board members, I, I looked over these, um, when we first got the packet, and I do have a couple of comments.

00:47:17,270	Um, that one, as we’re talking about how to weight these, um, there’s one in here where I don’t really want to give any weight to, to be honest. Is the financial performance, the gross revenue? Um, you know, them will be getting the income and expenses every month. And as a requirement.

00:47:39,170	So to put any weight to them, providing financial, uh, the financials of the of the Event center, um, they have to do that anyway. And so just buy them giving us the financials. Um, no offense.

00:48:04,270	Um, I don’t know if I could, if I would want that as a KPI that we would wait for any type of, uh, qualitative quantitative performance goals would be my comment. And there was I was trying to look back through my notes. There was a I know that when we met with Avg, we decided to remove some KPIs that maybe didn’t quite make sense. Or maybe they were ambiguous.

00:48:23,370	If you remember the meeting at the Civic Center, um, I can’t remember which ones were removed. So I wasn’t able to attend that particular portion of the days they were here. But I don’t have necessarily any concern of how we wait. You know, the the monthly reporting component. I think it’s still an important piece.

00:48:47,530	Maybe it has a lower weighting. I, I, I personally feel like, hey, we’re going to get to the net income that’s going to be a part of the, you know, those all matter. But event mix is important because that’s going to drive economic impact. And so if I were I would not weight them all equally.

00:49:05,530	Um, my thoughts are is the economic impact. One probably gets a higher weighting than the rest do just because it’s it’s important to the community, but it’s also going to be driven by how that event mix is.

00:49:22,100	So I would argue that, you know, if I were going to throw numbers out there for people to consider, I’d say maybe a 30% waiting to the economic impact, probably at 20 to the event mix and then split the balance in some other fashion across the other three, just because I think the event mix is what’s going to help drive the economic value or, uh, benefit to us.

00:49:41,630	It’s also going to help the convention visitor bureau component because it’s important to to what they’re doing and how they’re going to help this all go. So it probably helps Jen in the lore as well. And every business in the community. I don’t know how the Oakview Group will view that weighting, but I don’t think they’re all equal.

00:50:10,170	Mayor, uh, board members, I had a little bit of a different idea when I was thinking about the KPIs. I agree that all of these are important, but I was hoping that we would develop. And maybe there’s separate KPIs within the financial performance, uh, net income, whether we do that or not.

00:50:32,170	But I’d like to have, um, a goal for the revenue. I’d like to have a. A percentage to hit for operating costs. And I’d like to track labor separately. Uh, have an expectation as to that. We have to keep labor out or below a certain amount.

00:50:58,800	Um, and then somehow, way the net income we can have, you know, good net income every month. But if we don’t set a KPI to the labor, then that income will never, I mean, could potentially not be good enough. So I think it’s a this is a really good start what we have here. But I think we need to, uh, maybe get into the weeds a little bit more.

00:51:29,730	So, Jason, can you work with Mitch and Dan potentially maybe breaking apart or developing if it’s sub performance factors? Um, within the financial performance, you could probably we could probably list those as components I might give away to give more credibility to how they’re when they’re scored, like the the breakout of them.

00:51:57,000	Yeah definitely. I can take these notes back and, uh, share with him. And, um, if there’s an update for next month, we’ll bring it back and keep going. Any other comments? Members? Okay. Uh, is there any other business before we go into executive session? Okay. Hearing none, I would entertain a motion to enter into executive session.

00:52:29,530	I’ll make a motion that we enter into executive session on North Dakota century code 4404. Dash 18.41 to discuss privileged information. Second. Any discussion hearing none will call. Roll. Kostelecky. Yes. Tomanek. Yes. Mayor Schmitz. Yes. Wilson. Yes. Grossman. Yes. And. Wachter.