NYS Olympic Regional Development Authority Board Meeting December 13, 2016

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1 NYS Olympic Regional Development Authority Board Meeting December 13, 2016 Present: Via Telephone: Excused: Also Present: Introduction: Chairman: Agenda: Minutes: Chairman: Pat Barrett, Chairman Joseph Kelly Bill Beaney Jill Broderick Cliff Donaldson Steve Hunt, ESD Kathleen Martens, OPRHP John Parete Jeff Stefanko, DEC Andy Lack Bob Flacke Ted Blazer, ORDA President/CEO Padraig Paddy Power, Director ORDA Finance The presiding Chairman thanked everyone for coming and called the meeting to order at 1:06pm. The Chairman then asked for a roll call to confirm a quorum was present. The Chairman welcomed Kathleen Martens as the representative from NYS Parks, Recreation and Historic Preservation. He then acknowledged and thanked Jay Rand and Derek Doty, representing the Town of North Elba and Randy Preston, Supervisor for the Town of Wilmington for attending. The Chairman stated that an agenda is included in the board packet. The agenda was approved as presented. On a motion by Joe Kelly, seconded by Cliff Donaldson, the minutes of the Board of Directors Meeting held on June 28, 2016, were approved. The Chairman asked Ted to give the President s Report President s Report: Ted thanked everyone for attending and gave a power point presentation that covered the following: Summer/Fall activities at the venues- Very busy summer at all venues- ORDA festivals and Oktoberfest were very successful and well attended as well as a very busy beach summer at Belleayre. Belleayre music festival is back with a change of location. Anytime Fitness held a conference at the Conference Center with 2500 attending as well as 4500 people attending an Inspire seminar. Summer sales are up $280, and Olympic Passport sales have nearly doubled.

2 Projects: o Gore New roof on Saddle Lodge High voltage work North Creek Ski Bowl now a Nordic site as well o Belleayre Tim Maxwell is the new Manager Repainted lifts Worked on beginner area New furniture in Overlook Lodge New guest service area o Whiteface Ticket area updated, more Adirondack feel New siding on Lodge Roof work Mountain bike course work o Memorial Highway Elevator project underway Repaved highway o Olympic Jumping Complex Lodge upgrades Improved dining space Senator Little secured $3m in funding o Olympic Sports Complex Shading on track- guarantees training & competition Snow factory- only 1 in the Northeast, guarantees snow o Olympic Center Compressor replaced AV upgrade for Conference Center LED lighting throughout the facility Replaced skylights In Feb. All scoreboards to be replaced o Olympic Training Center Replaced siding Sidewalk work Energy Efficiency: o Gore Solar program- 5.3 megawatts Off- site metering Receive credits toward power bill Energy efficient snow making guns Awarded Ski Magazine s Golden Eagle Award For Environmental Excellence o Whiteface 100% renewable energy supplied I am pro snow Program- all 3 mountains Energy efficient snow making guns

3 Events: Luge World Cup World Cup Bobsled & Skeleton Miracle On Ice Hockey Tornament New Year s Ski Jump Stars On Ice FIS Freestyle World Cup North American Bobsled & Skeleton InterContinental Cup Skeleton Empire State Winter Games Harlem Globetrotters Lake Placid Loppet USSA XC Junior National Championships ECAC Men s Hockey Championships Miracle On Ice Fantasy Camp Skate America 2017 NYC Winter Jam scheduled for Jan. 28th Ted, Board member Bill Beaney and David McKillip met to discuss internship opportunities. Bill stated that with the move in higher education to put the emphasis on internships- how ORDA can provide opportunities for students to intern and provide fresh eyes on the venues. Joe Kelly stated that at the last Community Advisory Panel meeting they are trying to work with schools to bring students in, particularly underprivileged students to ski at Belleayre. Community Relations Working with ROOST to promote the area At Belleayre working with different properties Jeff Byrne attending community meetings at Gore & Belleayre and CAP Working with I Love NY and SANY on NYC Media Night Ted made a presentation at the Tourism Advisory Council in NY to discuss ways in which the State can promote winter sports and attract visitors. Governor committed an additional $5 million to promote tourism in NY. Ted also met with South Korean Olympic City Organizing Committee to look at sustainability of their venues. The Chairman asked if there were any questions? Joe Kelly remarked that the new improvements to the lodge at Belleayre have been amazing- great impression and very uplifting for the clientele. Joe commended Tim Maxwell s response to suggestions made at the CAP meeting and is looking forward to a positive season ahead. Ted asked Liz Mezzetti to come up and give a Marketing Update. Liz stated that marketing is always evolving and changing. ORDA marketing teams are travelling to ski shows, using social media, cross-marketing, promotions etc. and utilizing guest survey results to indicate where opportunities are and look at pricing and program strategy order to be at the forefront of trends and to drive revenue and visitation. Our mountains have had positive growth however our goal is to see Whiteface, Gore and Belleayre visitation up 10% over the next 3 years, just a little over 3% each year. New skier conversion is critical. ORDA is working with Ad Workshop on a bold new result driven marketing campaign in order to accomplish these goals. Liz then introduced Tim Kelleher, President of Ad Workshop.

4 Tim thanked the Board and Ted for the invitation and stated that over the last 6 months Adworkshop has worked, through thorough research and data analysis, to clearly define ORDA s mountain audiences and what they are looking for in their skier visit. Adworkshop has, along with its team of marketing experts and in partnering with ORDA s marketing teams, created and implemented a data driven creative marketing strategy designed to increase visitation and revenue. Ted announced recent accolades by Ski Magazine listing Whiteface as #2 Resort in the East and Gore at #14. Ted acknowledged Olympic Center Manager Denny Allen s induction into the Lake Placid Hall of Fame. Ted then thanked all staff for their hard work. Old Business: The Chairman then asked Padraig Power to present the financial report. OLYMPIC REGIONAL DEVELOPMENT AUTHORITY FINANCIAL REPORT FOR THE SEVEN MONTHS ENDED OCTOBER 31, 2016 PRESENTED BY PADRAIG POWER DIRECTOR OF FINANCE COMPARISON OF REVENUES AND EXPENSES-SEVEN MONTHS ENDED 10/31/16 vs. 10/31/15 Total YTD operating revenues are $40,000 or 1% higher than last year at this time. Contributing significantly to this increase in revenues is the Olympic Center, up $183k or 13%, the Conference Center, up $180k or 109%, and the ORDA Store, up $33k or 15% YOY. Summer operations as a whole for the organization finished up $281k or 9% with the Memorial Highway up $186k or 28% over prior year. Decreased skiing in April is the major contributor YTD bringing some venue revenues down through October. Personal services expense (before capitalized labor) YTD is down $437k or 4% vs prior year at this time. If capital labor is factored in, personal service expense is down a total of $788k or 7% against prior year. This is directly attributable to a management focus on staffing levels and overtime management at the venue and department level. Direct wage expense is down $473k or 6% against prior year while ORDA is still facing PAC increases of 8% in health insurance expense. Total non-personal service expenses, excluding depreciation, are $561k or 12% lower than last year at this time. Much of this decrease in expense is related to tight operating budgets throughout the summer while still recovering from prior year winter. Large contributing venues to this savings are Gore, Ski Jumps, Mt. VanHoevenberg, and Belleayre all down against prior year in the amounts of $232k (30%), $107k (34%), $88k (27%), and $173k (38%), respectively. Through September 2016 there is an operating loss before depreciation of $9.017m vs. an operating loss of $10.406m through October The organization has made strides to improve its bottom line by over $1.388m or 13% vs. prior year and plans are continuing into the busy winter months to keep this on track. This is also stated prior to state and town appropriations totaling $4.792m received to date. Net non-operating income is $159k higher than last year at this time which is directly related to timing of state and town funding sources.

5 COMPARISON OF REVENUES AND EXPENSES BUDGET TO ACTUAL Total operating revenues are $328k under budget. As noted above, the summer operations have increased YOY so much of this decrease against budget can be attributed to the ski season being cut short in March Budget numbers developed early in the winter season planned for skiing/riding revenues to be significantly higher in April 2016 but weather didn t allow for this. Personal service expense, before capitalized labor, is $408k over budget. Within this figure, direct wage expense is below budget by nearly $81k or 1% but the overall increase is directly attributable to PAC increases in workers comp and health insurance, both over budget by $298k (35%), and $174k (6%), respectively. Taking into account capital labor, the organization is still seeing major success on the payroll expense side of things as total PS expenses are only $200k or 1.9% over budget YTD. Non-personal service expenses are $544k or 11% under budget. This is a large success for the organization with a focused management directive controlling the NPS spent through the summer months in preparation for the expense heavy winter. Additionally, the organizations capital budget allows for NPS spend to be controlled more aggressively while still taking the necessary steps in preparing our venues for the busy season. Net loss from operations, before depreciation, is $9.017m as of October 2016 which is a positive variance to budget of $14k. This success is directly related to savings noted above and is a promising start to winter. LOOKING FORWARD As we are all aware, the winter weather of hurt the organization financially which has carried into the new fiscal year. Although revenues were drastically down, management has been very successful in managing expenses and allowing the organization to still succeed working up to winter Since December of last year, the organization as a whole has saved nearly $1.8m in payroll expense and $2.8m in NPS expense. This has positioned the organization well for entering into a strong winter season. Although the organization has taken all available actions to decrease expenses where possible, there are still increases occurring in payroll added costs which are an ongoing concern to expense management. For FY 16-17, the organization is facing 10% increases resulting in over $1.0m in expense across health insurance, workers comp, and retirement expense. Projections for increases for FY are coming in at roughly 7% or $850k in the same PAC areas. The organization held a variety of fall festivals which showed great attendance figures as well as bolstered financials and spirits for the upcoming winter months. The Lake Placid venues held three festivals spanning three separate October weekends resulting in almost 9,000 visitors to our venues (4,600 Oktoberfest, 3,300 Flaming Leaves, and 1,100 Brewfest). Gore and Belleayre also hosted some very successful fall festivals attracting approximately 5,000 visitors to each of their two-day festivals. This has positioned the organization well for the upcoming season. With snow falling this weekend and more in the immediate future, the organization has also seen more online sales activity for advanced sales tickets. With reported trends of low consumer confidence as a result of last winter, Whiteface, Gore, & Belleayre have seen increased volumes of advanced sales tickets vs. last year which is encouraging as we enter the early winter season.

6 Through November 2016, the organization continues to realize savings on the PS and NPS expense sides against prior year as management directives have been put into place. Through two payroll cycles in the month of November, the organization is realizing savings of nearly $81k vs. prior year payroll figures over the same time period. Additionally, preliminary NPS expense numbers are down substantially for the month vs. prior year. Expected monthly savings are projected around 15% which would result in NPS savings of approximately $145k less than prior year for November which when combined with YTD savings, projections show savings totaling nearly $706k vs. prior year. On a motion by Cliff Donaldson, seconded by John Parete the Financial Report was accepted. The Chairman thanked Paddy for his report and asked Joe Kelly for an update from the Audit Committee. Joe Kelly gave an update on the Audit Committee. The Audit Committee meets on a quarterly basis- normally one hour before the regular meeting. Joe invited any Board member who was interested to attend. The Audit Committee went over Belleayre s pricing strategy, reviewed actions taken since the 2009 Comptroller s report and examined a draft audit of the World Cup Luge event. The Audit went over the budget in order to present it at the meeting and created a resolution to allow an in-house audit of ORDA s concessionaire Centerplate. Padraig stated that per the agreement we started by going back 3 years and have received 2 full fiscal years of information. He s found some very slight differences but overall very good findings and does not anticipate any glaring issues. New Business: Resolutions: Resolution #301 Resolution #302 On a motion by Joe Kelly, seconded by John Parete, the Board adopted Resolution #301 (as amended)- Resolution Approving Policy Makers for 2016/2017 On a motion by Joe Kelly, seconded by Cliff Donaldson, the Board adopted Resolution #302 (as amended)- Resolution Approving Line of Credit Renewal with a Banking Institution Resolution #303 On a motion by Joe Kelly, seconded by Cliff Donaldson, the Board adopted Resolution #297- Resolution Approving Budgets Resolution #304 On a motion by Joe Kelly, seconded by Jeff Stefanko, the Board adopted Resolution #304 (as amended)- Resolution Approving Audit of Centerplate

7 Adjournment: Before asking for a motion to adjourn the Chairman reminded the Board to turn in their Acknowledgement Of Fiduciary Responsibilities and offered the following dates for Board Meetings in March 21, June 27, September 19 and December 12 for Board Meetings in 2017 and asked that members put them in their calendars. Cliff Donaldson asked that a meeting be held at Belleayre. The Chairman said he would take it under consideration but we must keep cost in mind. On a motion by Cliff Donaldson, seconded by Joe Kelly the Board entered into Executive Session at 2:15pm to discuss a personnel matter. On a motion by Joe Kelly, seconded by Cliff Donaldson the Board went into Regular Session at 2:25pm. The Chairman stated there was no vote in Executive Session and asked for a motion to adjourn. On a motion from Cliff Donaldson, seconded by Joe Kelly, the meeting of the Olympic Regional Development Authority Board of Directors was adjourned at 2:28pm.

Mike Pratt, Interim President/CEO Padraig Paddy Power, Director ORDA Finance David McKillip, HR Director

Mike Pratt, Interim President/CEO Padraig Paddy Power, Director ORDA Finance David McKillip, HR Director NYS Olympic Regional Development Authority Board Meeting March 21, 2017 Present: Excused: Also Present: Introduction: Agenda: Minutes: Pat Barrett, Chairman Joseph Kelly Bill Beaney Jill Broderick Cliff