NYS Olympic Regional Development Authority Board Meeting September 16, 2014
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1 NYS Olympic Regional Development Authority Board Meeting September 16, 2014 Present: Via Telephone: Excused: Also Present: Introduction: Mike Pratt: Chairman: Agenda: Minutes: Pat Barrett, Chairman Joseph Kelly Jill Broderick Cliff Donaldson Bob Flacke Joe Lamb John Parete Jerry Strack Jeff Stefanko, DEC Andy Lack Roseanne Murphy, DED Harold Hagemann, OPRHP Ted Blazer, ORDA President/CEO Jeffery Byrne, ORDA Sr. VP Padraig Paddy Power, Director ORDA Finance The presiding Chairman thanked everyone for coming and thanked Mike Pratt and his staff at Gore Mountain for hosting the meeting and called the meeting to order at 1:00pm. The Chairman then asked for a roll call to confirm a quorum was present. The Chairman then asked Mike to say a few words Mike thanked everyone for attending and welcomed them to Gore Mountain. The Chairman welcomed Jeff Stefanko, new Board member representing DEC. The Chairman then acknowledged and thanked Senator Betty Little for taking the time to attend the meeting, Senator Little thanked the Chairman and thanked ORDA for everything they do. The Chairman then acknowledged and thanked Tom White, Chair of the Coalition to save Belleayre Mountain, Ron Vanselow, Supervisor for the Town of Johnsburg and Rob Zborowski and Albert Perrone from Centerplate for attending. The Chairman stated that an agenda is included in the board packet and asked if anyone would like to add any additional items to the agenda. The agenda was approved. On a motion by Cliff Donaldson, seconded by Jerry Strack, the minutes of the Board of Directors Meeting held on June 24, 2014, were approved.
2 Chairman: President s Report: The Chairman asked Ted to give the President s Report Ted thanked Mike Pratt and staff members at Gore for hosting the meeting. He then gave a power point presentation that covered the following areas: Board packets daily report o Revenue up o Belleayre beach operated in black for second straight year Aside from normal daily operations at venues, also had o Tubing on the 20k, 48, and 90k jumps $40k o Adventure park at whiteface including bag jump $98k o Skating activities up dramatically Coming this fall o Whiteface Oktoberfest o 3 rd annual Lake Placid Brewfest o Flaming Leaves Festival at Jumps o Nordic National Championships o Fall Festival at Belleayre o Harvest Fest at Gore o Bluegrass Jam at the Olympic Center o Media Night Looking ahead to major winter events o World Cup Bobsled/Skeleton o World Cup Luge o Stars on Ice o New Year s Ski Jump o World Cup Freestyle o Eastern Synchronized Skating (3,500 competitors) o Empire State Games (coalition of local governments) o Globe Trotters o ECAC Hockey o Venue events o Ski Magazine ratings Whiteface ranked 5 th overall in the East Belleayre made top 10 in snow quality (1 st in NYS) 9 th in grooming (2 nd in NYS) and 7 th for value (1 st for NYS) Gore pulled in 5 th for terrain variety (1 st in NYS), 9 th for scenery, 6 th for value and 8 th for lifts (1 st in NYS) Once again Whiteface was ranked #1 for resort activities Ted asked the Managers for an update on capital projects:
3 Mike Pratt- Gore Mountain: o Gore is entering their 81 st season o Added a high speed quad lift o New energy efficient lift drive o Multiple snowmaking upgrades to increase efficiency including 32 additional snow guns and a new snow cat. o Replaced fuel pumps o Season pass sales are up Tom Tar-Belleayre: o Overlook Lodge renovation o Bathroom renovations o New electric compressor to replace 3 diesel compressors (saving $250k in fuel) o Overlook Lodge renovations to create additional space o Pumphouse upgrades to boost water pressure and save energy o Upgraded snowmaking lines o Moved kids campus and expanded programs Aaron Kellett- Whiteface: o Main lodge base expansion o Kids Kampus lodge renovations o New Park Bully groomer (1 of 2 in the world) o New summer adventure park o Memorial Highway progressing and on modified schedule through Columbus Day o Governor Cuomo visited to observe progress o Largest investment in energy efficient snow guns Denny Allen-Olympic Center: o Made necessary electrical upgrades- more efficient and safer o New marquee o Energy saving rink cover o 1932 Rink bathroom upgrades, new lighting and flooring o Repaired roof Tony Carlino- Olympic Jumping Complex/Olympic Sports Complexo Freestyle jump repair o New pool building o New timing cable, communications line o Summer tubing o Finished shading, 1650 meters covered, energy efficient o Start building upgrades and new timing system Ted then asked Liz Mezzetti to assist with a marketing update for Winter : o Increased emphasis on finances/15% revenue increase goal. o Focused sales and marketing/marketing for all venues tied together
4 o Lots of snow predicted o Sales strategies for 2015 began in February of 2014 o 200,000 brochures have been sent out o Special promotions to increase visitation and revenue/gaining exposure in target markets o Full e-commerce platform at Gore and Belleayre o Canadian campaign o Measure and evaluate sales efforts o Co-operative projects with Ski Areas of NY (SANY) NY Skiing Days Billboards I Love NY Tour busses Media coverage o Chinese Market Most significant market size and fastest growing market Tremendous buying power Media coverage o Parallel From the Start Increase numbers of skiers/snowboarders Trademarked beginner program- guarantees to get you to the top of the mountain Digital, television, billboard, MTA and gym advertising Advertising in NY Metro gyms on all cardio machines Looking forward to a big year The Chairman asked if there were any questions, Jill Broderick asked Tony Carlino for an update on Cross Country/Biathlon venue. Tony responded summer trail maintenance is ongoing; the venue has recently acquired a Piston Bully and 7 snow mobiles. Old Business: The Chairman then asked Padraig Power to present the financial report. OLYMPIC REGIONAL DEVELOPMENT AUTHORITY FINANCIAL REPORT FOR THE FIVE MONTHS ENDED AUGUST 31, 2014 PRESENTED BY PADRAIG POWER DIRECTOR OF FINANCE COMPARISON OF REVENUES AND EXPENSES-FIVE MONTHS ENDED 8/31/14 vs. 8/31/13 Total YTD operating revenues are $246,000 or 6% higher than last year. Contributing to this increase was the Olympic Center, Mt. Van Hoevenberg, Whiteface, and the Ski Jumps with increases of $122,000, $103,000, $48,000, and $40,000 respectively. The OC had a strong summer skating program to drive summer revenue increases while Mt. Van Hoevenberg continued to grow revenues with summer rides, biathlon shooting, and
5 OSC admissions. WF introduced the Adventure Zone and increased summer activities which helped in offsetting WF Highway construction interruptions while the Ski Jumps opened extreme tubing to great success. Personal services expense (before capitalized labor) YTD is up $64,000 from last year. Although the organization has seen a large increase in Workers Comp expense of $284,000, management has worked hard to monitor personnel expense while maintaining a strong workforce dedicated to summer improvement and maintenance projects. Total non-personal service expenses, excluding depreciation, are $333,000 higher than last year at this time. $288,000 of this in attributed to contractual services pertaining to the final payment for the new POS software and the associated e-commerce platforms through Siriusware. Through August 2014 there is an operating loss before depreciation of $6.86m vs. an operating loss of $6.87m through August The organization is right on track with its progression over the same time period as last year. Our increases in revenue covered our minimal increases in expenses in the first third of the year. This is also stated prior to State and Town appropriations totaling $2.67m. Net non-operating income is $890,000 higher than last year at this time which is directly related to timing in receipt of State Appropriation money through August. COMPARISON OF REVENUES AND EXPENSES BUDGET TO ACTUAL Total operating revenues are $385,000 over budget. Whiteface, Gore, Mt. Van Hoevenberg, and the Arena all contributed to this figure coming in over budget by $190,000, $141,000, $82,000 and $80,000 respectively. A focused approach to summer revenue and operations is the contributing factor to these results. Personal service expense, before capitalized labor, is $325,000 over budget. Much of this increase can be explained by organizational wide wage increases as well as increased hours for operational updates, maintenance, and summer projects. Non-personal service expenses are $940,000 over budget. This overage can be attributed to two large factors; the first being the POS investments mentioned above, but also approximately $340,000 in expenses related to the rebuild of our ski jump pool building after being destroyed by fire. These expenses were covered by insurance funds which are reflected in the non-operating income section of the PL offsetting these expenses. Net loss from operations, before depreciation, is $6.86m as of August 2014 which is a negative variance of $870,000 against budget. This can be directly explained by the NPS increases above. FINANCIAL SUMMARY The bottom line of the organization is on par with where it was last year at this time and strides are being taken to reach our budget numbers as we move into the busy winter season. As an organization, goals were set for 15% increases in revenue organizationally
6 wide and ORDA is currently at 6.15% increase in revenues. Further growth is anticipated as we move into our revenue strong season. This summer the organization emphasized a push for enhanced revenue generation across our venues. As of 8/31/14, nearly all of the ORDA summer operations were up in visitation and revenue. Some of the highlights were as follows: o Extreme Tubing & ski jumps admission at little to no overhead investment, revenues reached over $48,000 for the summer. o Summer bobsled rides increased by $17,000 over last year o Summer skating revenues increased by $46,000 over last year o Although WF Highway felt the strain of on-going operations, the introduction of other revenue areas net an increase of over $27,000 in revenue over last summer. o Increase is season pass sales over prior year of $270,000 which is not reflected in the current financials as this is deferred revenue until the winter months. The Chairman thanked Paddy for his report and asked if there were any questions. New Business: Resolutions: Resolution #281 Resolution #282 Resolution #283 Resolution #284 On a motion by Cliff Donaldson, seconded by Jerry Strack, the Board adopted Resolution #281- Resolution Approving Line of Credit with a Banking Institution On a motion by Jerry Strack, seconded by Joe Kelly, the Board adopted Resolution #282- Resolution Adopting Certain Policies and Procedures On a motion by Joe Kelly, seconded by Jerry Strack, the Board adopted Resolution #283- Resolution Adopting Certain Policies and Procedures On a motion by Jerry Strack, seconded by Joe Kelly, the Board adopted Resolution #284- Resolution Adopting Certain Policies and Procedures Adjournment: On a motion from Jerry Strack, seconded by Joe Kelly, the meeting of the Olympic Regional Development Authority Board of Directors was adjourned at 2:16 pm.
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