NYS Olympic Regional Development Authority Board Meeting September 28, 2011

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1 NYS Olympic Regional Development Authority Board Meeting September 28, 2011 Present: Excused: Also Present: Introduction: Agenda: Minutes: Chairman: President s Report: Pat Barrett, Chairman Cliff Donaldson Bob Flacke Ed Weibrecht Jerry Strack Harold Hagemann, OPRHP Serge Lussi, Joe Martens, Peter Wohl Ted Blazer, ORDA President/CEO Jeff Byrne, ORDA Sr. Vice President Jim Amell Marvin and Company The presiding Chairman thanked everyone for coming and called the meeting to order at 2:06 P.M. The Chairman then asked for a roll call to confirm a quorum was present. 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 as presented. On a motion by Jerry Strack, seconded by Ed Weibrecht, the minutes of the Board of Directors Meeting held on June 21, 2011 were approved. The Chairman asked Ted Blazer to give the President s Report Ted Blazer, President/CEO welcomed the Board, members of the press and ORDA staff, and thanked everyone for attending. Ted then reviewed upcoming events: Summer recap Wide variety of events and activities for our guests Rain and flooding effected revenues o We are down against last year but up against two years ago by like amounts 124k vs 157k Late summer affected by Irene

2 Payroll is up and so is spending do to recovery, capital maintenance and Centerplate projects. Insurance, FEMA and grant/centerplate capital reimbursement revenue will balance this out We are preparing for a busy fall and winter o Plenty of athletic and cultural events o Oktoberfest/flaming leaves/gore Mt Harvest Fest o National team sliding at OSC - Oct o NYC media night with SANY o Division I hockey RPIi, Union, St Lawrence, Clarkson o Holiday events to include stars on ice masters ski jump o World cup freestyle o Lake Placid Loppett o NYC parks event with SANY and new partners o Empire state games o World championships in bobsled/skeleton o Harlem globe trotter o Americas cup bobsled/skeleton (2) o FIBT drivers school o NCAA division III hockey Gore Marketing push o 21 different show type events over the next 2 months, with sales events in Syracuse, Rochester, Toronto, Albany, Saratoga Springs, Buffalo, Ottawa, Montreal, Hudson, New Jersey, Hartford, NYC, and Boston. o Hosting an early season ESWA event to prime writers. o Concentrating on corporate and regional sales with Chamber of Commerce networking. o Promotions with Coke and Price Chopper to help drive day trips. o Packaging with over 100 properties to help drive destination business. o Minimizing radio and TV in order to do more on web. Print is cooperative or enhanced with trade locally. o Centerplate/ORDA improvements drive new excitement Whiteface/Lake Placid focus o Road warriors Albany/Saratoga Syracuse Ottawa, Toronto, Montreal partnering with Warren Miller o 20 ski shows o Similar focus as last year and theme o Phili digital billboards through trade o Nascar and formula I advertising Montreal o Canadian push again this year o Snow guarantee

3 Builds consumer confidence Builds loyalty o TV, Radio, Print, magazine, outdoor (digital, MTA platforms) and interactive web advertising o Drive around billboards in Canada o Hotel package plans focus o Centerplate and ORDA related improvements o There is a buzz out there re predictions for a snowy winter Centerplate doing great.food, quality, response.work at facilities is exciting Jeff Byrne update on Empire Winter Games Flood damage most at Whiteface,culverts, trail repairs, paving, pump house one clean up-transformer-motor control installation Work continues on blue print projects.bruce/mike/tony/denny Conference center mostly complete some work outside on plaza Bob is having continuing back problems and with a car accident in addition-he did a great job bring the project to closure Coke update o Right to negotiate per old agreement ongoing for three months o TOP sponsor of USOC ORDA-USOC agreement re TOP sponsors o Coincides with Centerplate term o Long term commitment very good terms great marketing components increased revenue potential o Jeff Potter and staff did a great job with negotiations o Could we have a motion for CEO to enter into agreement Ardelle Sanderson 10-4 at 2 Thanks to staff for recovery efforts and hard work this summer Thanks to Denny Allen and his crew for getting the Conference Center up and running There being no comments, Chairman Barrett commended Ted and the ORDA staff for volunteering in Keene to help those affected by Hurricane Irene. Chairman Martens asked Jim Amell to make the financial report. Jim Amell offered the following:

4 OLYMPIC REGIONAL DEVELOPMENT AUTHORITY FINANCIAL REPORT FOR THE FIVE MONTHS ENDED AUGUST 31, 2011 PRESENTED BY JIM AMELL, CPA MARVIN AND CO COMPARISON OF REVENUES AND EXPENSES- FIVE MONTHS ENDED 8/31/11 vs. 8/31/10 Total operating revenues are $223,900 higher than last year, primarily due to Sponsorship revenue (note-last year, the USOC and other sponsorship agreements which have not yet been signed and therefore not billed). Activities Income is $43,000 less (4%) than last year. Personal service expense (before capitalized labor) for fiscal 2011/12 increased by $243,800 (4.68%) from 2010/11. Hourly labor costs are nearly $100,000 higher in part due to flood cleanup. Payroll added costs increased by $152,200 (9.4%) primarily workers comp. Last year there was a workers comp credit that lowered the cost. Health insurance increased by 4.9%. After deducting capitalized labor, net personal services increased by $338,000 from last year. Total non-personal service expenses, excluding depreciation, are $196,400 higher (6.8%) than last year. Supplies/materials and utilities/fuel accounted show the largest increases from last year, while event expense is $152,600 lower. Some of the increases are flood related, some result from increased maintenance this year needed because of several years of reductions. Electric delivery charges have increased, especially at Gore Through August 2011 there is an operating loss before depreciation of $5.065 million vs. an operating loss of $4.755 million through August Non-operating income/expense is $2.690 million through August 2011 a decrease of $403,000 from last year. The State appropriation is $567,400 lower while the Town appropriation is $172,500 higher than last year. The total State appropriation for the fiscal year is $300k lower than last year, and the timing of payments is behind too. Capital contributions are $3.68 million year to date, primarily the ESD construction grant.

5 COMPARISON OF REVENUES AND EXPENSES-BUDGET TO ACTUAL Total operating revenues are $156,800 under budget. Activities under budget by nearly $340,000. Personal service expense, before capitalized labor, is $261,900 over budget, and net of capitalized labor is $308,000 over budget. Non-personal service expenses $18,000 under budget. Utility expense is the largest item under budget, by $82,000; supplies & materials is $168,000 over budget. Net loss from operations, before depreciation, is $446,700 behind budget. Non-operating income/expense is $1,045,000 under budget due to the lower State appropriation. STATEMENT OF CASH FLOWS Operations used cash of $351,422 Investing and capital activities provided cash of $916,947 Financing activities used cash of $486,164. Overall, unrestricted cash and cash equivalents increased by $79,361 from 3/31/11. Chairman Barrett thanked Jim for his report and asked if there were any questions or comments. There being none, the Chairman moved on to New Business. New Business: Chairman Barrett notified the Board that he had received a letter from the Supervisor of the Town of North Elba stating that the ORDA appropriation for 2012 would be reduced by $150,000. He told the Board that he and Ted would be working on this over the next few months and would report back. Bob Flacke made several comments: >He described the history of ORDA and relationship between private/government sector/local government >Appreciates the Towns situation however now is not the time to reduce the appropriation >ORDA has a tough job to do and the staff does a fine job, but support from the Town is necessary since ORDA is not a wealthy operation >Ted works hard with budget officials to keep ORDA going this is a bitter pill >We may be forced with raising rates for Town users, reducing staff, etc >Asks the Town to reconsider

6 Derek Doty representing the Town said that while the Town wants to carry its weight, they have lost $175,000 that the state used to give them for ORDA. With the 2% property tax cap, they can no longer afford to fund ORDA at the level it is at. Bob commented that there may not be enough money to operate and that ORDA can t afford to let any money to go by us. Chairman Barrett thanked them both for a healthy conversation. Several reports followed from Managers of Gore, Whiteface and the Olympic Center regarding all the efforts that were underway at the venues. Repairs from two floods occupied many of the facilities. Projects from the ESD $3.6m grant were reviewed as well as Centerplate capital improvements. Robert from Centerplate was commended for helping to get projects underway. Chairman Barrett commented that we were very fortunate to have support from Albany. Ed Weibrecht questioned whether any winter projects were in jeopardy due to the flooding to which Ted answered no. Ted mentioned the 9-11 exhibit that is on display in the 1980 rink and thanked Cliff Donaldson for all he did to make it happen and for help with the set up. Ted commented on the Belleayre situation and that not much had changed since the last meeting. Belleayre was a shelter and food kitchen during Hurricane Irene and the staff there did a commendable job managing the situation. Bob Flacke commented that great care must be given regarding the cost of their operations and that we have our own challenges and must be careful not to overextend. For the winter, Belleayre operations will remain the same under DEC. Ed commented that it is a wise decision to stay close to home this year. On a motion from Jerry Strack and seconded by Ed Weibrecht, the Board went into Executive Session to discuss a contract issue. All were in favor. The Board returned to regular session at 3:12 and under a motion from Cliff Donaldson and seconded by Jerry Strack. Chairman Barrett asked for a motion to adopt the ORDA Mission Statement. Ed Weibrecht made the motion and Jerry Strack seconded. All were in favor. A motion to adjourn was offered by Cliff Donaldson, seconded by Harold Hagemann. The meeting adjourned at 3:16 P.M.

NYS Olympic Regional Development Authority Board Meeting September 30, 2010

NYS Olympic Regional Development Authority Board Meeting September 30, 2010 Present: Excused: Also Present: Introduction: Agenda: Minutes: Chairman: President s Report: Joe Martens, Chairman Bob Flacke