1. FargoDome report - Laserfiche WebLink

Report to Cass County Commission Page 2 From the beginning, one of the great strengths of the FARGODOME has been its flexibility in being able to accommodate a wide variety of events. This diversity results in patronage from a broad cross-section of people in our community and region. Not only does this broad appeal make for good public relations, but also it brings a degree of financial stability to the operation of the facility. It is gratifying for me to report that the FARGODOME has produced an operating profit every year of its 1 O-year existence. This has been a pleasant surprise to many people in our community, especially those who may have been skeptical of the idea from its inception. There may be challenging issues in our future, however; some are becoming evident already. As recently as 2000, the FARGODOME set a record of over $700,000 of operating revenue in excess of expenses. Last year that margin was approximately $50,000. There are a number of reasons for that difference. While we have had more actual events, there has been decreased attendance at those events. Our insurance costs have increased. We have increased competition for personal entertainment dollars; two new arenas in Grand Forks and entertainment acts at nearby casinos are examples of such competition. The entertainment industry is consolidating and changing; some event promoters are negotiating for a share of event revenue that previously was reserved for the facility. A new, recently negotiated lease agreement will mean a reduction in rent revenue from NDSU for the next five years. Sales tax revenue from the one/half cent city sales tax has mirrored the national economy the last three years. Scheduled to "sunset" in 2009, the one/half cent sales tax has lagged behind the increase assumptions used in previous financial models. Past and anticipated sales tax revenue, in excess of bond debt repayment, provides for funds to be escrowed for future maintenance and capital improvements. We are hopeful and optimistic a diversified and vibrant regional economy will restore sales tax revenue to previously increasing levels. As you may recall, the FDA is in the process of doing an economic impact study of the significant effect the FARGODOME has had on our community. Final results of that study will be released this summer. Preliminary results indicate the FARGODOME's economic impact to this community has been profound! The FDA is also currently in the process of seeking proposals for a new management contract for the FARGODOME. The current contract expires June 30, 2003. RFPs have been distributed, and prospective firms have until the end of March to submit their proposal. We are currently blessed with a great staff of dedicated employees who provide exceptional service to event promoters, tenants and guests. In summary, I would like to say that I am proud, as a taxpaying citizen, to have a premier facility like the FARGODOME in our community. At our recent 10th Anniversary Celebration, we honored 30 community leaders for their vision and commitment in making the FARGODOME a reality. Not only did these leaders have the foresight and