South Okanagan Events Centre Complex - 2021 Operating Budget Endorsed by the Advisory Committee
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South Okanagan Events Centre Complex
2021 Operating Budget
Endorsed by the Advisory Committee
SOUTH OKANAGAN EVENTS CENTRE COMPLEX
The four facilities operated by Spectra Venue Management
South Okanagan Events Centre Penticton Trade and Convention Centre
Okanagan Hockey School Training Centre
2
Memorial Ice Arena
2020 SOEC COMPLEX FIRST QUARTER KEY EVENT HIGHLIGHTS
Successfully hosted and executed the following events prior to COVID-19 (47 events total)
– 14 Regular Vees Games
– 3 Playoff Vees Games
– Harlem Globetrotters
– Brad Paisley
– Old Dominion
– We Will Rock You
– Celtic Illusion
– Paw Patrol Live! (3 shows)
– Kidz Bop World Tour
– 4th Annual Family Day Public Skate
– CSSHL Tournament
– Canadian Home Show
– 2 Banquets
– 5 Special Events
– 11 Meetings
**2020 first quarter was our highest revenue grossing to date**
3
2020 SOEC COMPLEX KEY ACCOMPLISHMENTS
• Sold out Brad Paisley show is projected to be the biggest show of 2020.
• Attracting 3 family shows, last family show occurred in 2016.
• CSSHL Tournament had a significant financial impact and economic impact, even though the tournament occurred
for 7 out of the 10 days.
• Launched into summer projects in the spring, completed a backlog of all types of projects, maintenance and
upgrades within all departments.
• Successfully hosted multiple events during the COVID-19 pandemic.
• Ability to support the City of Penticton and Community for virtual events such as Canada Day Celebration.
• Successfully re-opening the walking track with a booking system and an appropriate COVID Safety Plan.
• Continued collaboration with Travel Penticton and Penticton Lakeside Resort to promote Penticton as a meeting
and convention destination.
• New rubber floors in Memorial Arena hallways and dressing rooms.
• Brand new digital marquees installed at the Penticton Trade and Convention Centre.
• Continuous work in progress on the upgrading of the Food and Beverage point of sales system.
– Scheduled to be completed by December 2020
• Complex transition to one Event Booking system, VenueOps.
– Scheduled to be completed by end of 2020 4
SOEC COMPLEX CHALLENGES
• As one of the largest employers in Penticton of part-time staff, a few of our biggest challenges will be
attaining and retaining qualified employees after such a long closure due to COVID.
• Overall increase to cleaning, building and housekeeping expenses due to COVID.
• Next phase of minimum wage increase in June 2021 means an unavoidable 4% increase to our part-time
labour budget.
– Employer Health Tax direct increase to salaries and labour expense by 1.95%
• As venue and equipment gets older, repairs and maintenance expense increases.
– Fleet maintenance expense increased by 53% from 2018 to 2019
• Creating and implementing procedures and policies for staff and fans to run events based on the proper
COVID-19 and Interior Health protocols to maintain high quality customer service, event experience and a
safe workplace.
• Increase in the complex commercial general liability insurance expenses.
– Increase of 48% from 2019 to 2020
• In order to resume 100% capacity facility operations to run large events including sports, concerts,
conventions etc., BC will need to move into Phase 4 of the re-opening plan which is conditional on at least
one of three factors:
– Wide vaccination, community immunity, broad successful treatments
5
2020 SOEC COMPLEX - Q2 TO Q4 KEY EVENT HIGHLIGHTS
Successfully hosted and executed the following events during COVID-19 with very strict COVID protocols
– BC Wildfire Firefighters
» Off-site feeding of structural fire fighters who were protecting structures during the Christie Mountain Fire
» Accommodating and feeding the fire fighters who were completing the mop up of the wildfire at the Convention Centre
– Okanagan Hockey Summer Camps
» Ice service rentals at the SOEC and OHG Training Centre
» Provided food and beverage service to hockey players for the month of July and August at the PTCC
– Penticton High School Graduation (3 day ceremony)
» Our first socially distanced event
– Okanagan Cup – BCHL Exhibition Tournament
» Marketing team successfully recorded and streamed the tournament to fans online
– Change of Pace Movie Shoot
» Provided food and beverage service to cast and extras
– Continuous Ice Hockey Rentals to OHG, Penticton Minor Hockey and other user groups
» Implemented proper hockey training with approved COVID Safety Plans from the groups
– Miscellaneous meetings
» 22 various meetings from April to October, with a Food and Beverage component, lasting more than 1 day
– Special Events
» Rancho Vignola
» Artisan’s Christmas Market
» Roller Derby
– To be determined events in November and December
» Christmas Luncheons
» 10-12 meetings space rentals with food and beverage
6
2020 SOEC COMPLEX COVID-19 FINANCIAL IMPACT
Rebooked Events
– Beef Industry Council of Canada to 2021
– BC Water and Waste Association Conference and Trade Show to 2023
– Educational Facility Manager’s Association Conference and Trade Show is booked from 2021-2025, tentative from 2026-2030
– Elvis Festival to 2021
– Jazz Fest to 2021
– VegFest to 2021
– Helicat Conference to 2021
– Canadian Avalanche Conference to 2021
– Bridge to 2021
– Young Stars to 2021
– ZZ Top to 2021
– Saints and Sinners to 2021
– Mascot Games to 2021
– Okanagan Valley Throwdown to 2021
– Fest of Ale to 2021
– BC Hockey Hall of Fame to 2021
– RV Show 2021
7
SOEC COMPLEX HISTORICAL AND FUTURE CITY FUNDING TREND
$2,400,000.00
$2,200,000.00
PRE-COVID CITY $2,000,000.00
FUNDING
$1,800,000.00
PROJECTION
$1,600,000.00
CURRENT
$1,400,000.00
PROJECTION OF
CITY FUNDING $1,200,000.00
$1,000,000.00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
The efficiency of event performance has impacted the overall financials positively, however, the rising
cost of part-time labour, employer health tax, liability insurance and repairs and maintenance of all
buildings has impacted the overall financials negatively, therefore, these items are budgeted
appropriately for 2021. 8
2020 SOEC COMPLEX COVID-19 REVENUE IMPACT
Confirmed Event Gross Revenue Loss Confirmed Event Operating Income Loss
$1,567,103.16 $596,871.54
Postponed Event Gross Revenue to 2021-2023 Postponed Event Operating Income Loss to 2021-2023
$1,521,939.71 $361,064.71
TOTAL EVENT GROSS REVENUE LOSS FOR 2020 TOTAL EVENT OPERATING INCOME LOSS FOR 2020
$3,089,042.87 $957,936.25
Rink Program Revenue Loss: $141,978.95
Suite/Club Lease Revenue Loss: $191,951.00
Advertising Revenue Loss: $155,000.00
Other Revenue Loss (ATM, Order Fees, Suite Rentals): $61,000.00
Total Other Revenue Loss: $549,938.95
Total Estimated Gross Revenue Impact: $3,638,981.82
Total Estimated Net Revenue Impact: $1,507,875.20
Revenue loss does not include events that may have been pending for sale.
The SOEC Complex had 6 event offers pending for 2020 and 12 holds for potential summer/fall/winter 2020 events.
9
SOEC COMPLEX SAVINGS & INDUSTRY RECOVERY TIMELINE
• On average, 25-30% in utilities was saved from March – October.
– Ice plants were shut down for 2 months.
• Temporary layoffs of 98% of our part-time staff, and 31% of our full-time staff.
• Projecting to save 1.11M in indirect expenses, 23%.
• Food and beverage spoilage was minimal.
• Initial optimism for 2020 Q4 events have declined. As of July, one in three event planners believe they’ll plan fewer events
for the next 12-18 months, changing the recovery time line to sometime between 2021 Q2 or Q3.
• Projection is to fully recover by 2023-2024.
• 2021 budget closely mimics 2020, as we had a strong 2020 Q1, we are projecting to have a strong 2021 Q4.
– Budgeted 25% of projected gross revenue in Q1, 50% in Q2, 75% in Q3 and Q4.
10SOEC COMPLEX
Event Operating Income 1,754,298 1,804,298 468,812 1,292,871
Other Income 1,745,690 1,715,690 1,182,358 1,351,053
Indirect Expenses
Executive 165,569 165,569 149,159 164,878
Marketing/Sales 609,104 584,104 405,604 474,279
Finance 271,271 271,271 225,006 266,872
Events 304,872 294,872 217,872 305,361
Ops 1,844,241 1,824,241 1,372,604 1,673,602
Food and Beverage 572,588 587,588 362,209 571,329
Vees 547,588 547,588 383,771 532,437
Box Office 149,000 149,000 127,758 138,338
Overhead 439,110 454,110 436,610 445,820
Total Indirect Expenses 4,903,343 4,878,343 3,680,593 4,572,123
Net Operating Income -1,403,355 -1,358,355 -2,029,423 -1,928,199
Facility Surcharge Paid to City 77,810 77,810 32,768 36,667
Net Income (Loss) -1,481,165 -1,436,165 -2,062,191 -1,964,866
11South Okanagan Event Centre
Event Operating Income 941,011 213,628 594,566
Other Income 1,041,300 619,639 686,446
Indirect Expenses
Executive 93,463 89,463 92,151
Marketing/Sales 317,725 244,225 224,180
Finance 170,102 151,837 185,411
Events 223,083 181,083 223,491
Ops 933,323 638,686 838,841
Food and Beverage 308,669 203,290 327,437
Vees 547,588 383,771 532,437
Box Office 149,000 127,758 138,338
Overhead 257,396 257,396 257,742
Total Indirect Expenses 3,000,349 2,277,509 2,820,028
Net Operating Income -1,018,038 -1,444,242 -1,539,016
*Facility Surcharge Paid to City 77,810 32,768 36,667
Net Income (Loss) -1,095,848 -1,477,010 -1,575,683
*Helps fund future capital enhancements
**Revenue cycle in line with hockey season, August to July.
***Sales cycle, March, booking into Fall
****Budget in line with Western Canadian Event Centre’s 12Penticton Trade and Convention Centre
Event Operating Income 813,287 255,184 698,305
Other Income 22,000 12,585 12,000
Indirect Expenses
Executive 53,326 40,826 53,700
Marketing/Sales 291,379 161,379 250,100
Finance 79,625 51,625 63,042
Events 81,789 36,789 81,870
Ops 306,046 129,046 255,540
Food and Beverage 263,919 158,919 243,891
Vees 0 0 0
Box Office 0 0 0
Overhead 151,714 139,214 158,078
Total Indirect Expenses 1,227,798 717,798 1,106,221
Net Operating Income -392,511 -450,029 -395,916
Facility Surcharge Paid to City 0 0 0
Net Income (Loss) -392,511 -450,029 -395,916
*Revenue cycle, April-August, with large scale conventions, tradeshows etc.
**Sales cycle for large scale events, post-covid booking into 2022, 2023, 2024
13OHS Training Centre
Event Operating Income 0 0 0
Other Income 396,725 318,425 375,513
Indirect Expenses
Executive 9,435 9,435 9,514
Marketing/Sales 0 0 0
Finance 10,772 10,772 8,813
Events
Ops
0
252,985
0
252,985
0
243,813
Memorial Arena
Food and Beverage 0 0 0
Vees 0 0 0
Box Office 0 0 0
Overhead 17,000 22,000 17,000 Event Operating Income 0 0 0
Total Indirect Expenses 290,192 295,192 279,140
Other Income 285,665 231,710 277,095
Net Operating Income 106,533 23,233 96,373
Indirect Expenses
Executive 9,435 9,435 9,514
Net Income (Loss) 106,533 23,233 96,373
Marketing/Sales 0 0 0
Finance 10,772 10,772 8,813
Events 0 0 0
Ops 351,887 351,887 335,409
Food and Beverage 0 0 0
Vees 0 0 0
Box Office 0 0 0
Overhead 13,000 18,000 13,000
Total Indirect Expenses 385,094 390,094 366,736
Net Operating Income -99,429 -158,384 -89,641
Net Income (Loss) -99,429 -158,384 -89,641
14SOEC COMPLEX 2021-2022 GOALS
• Be prepared at a moment’s notice have the ability to host full capacity events once again.
• Seek opportunities in booking events from new industries.
• Continuous work in digital innovation and social media.
• Providing clients with new incentives, innovative digital advertisements and packages to encourage ongoing
communication and support.
• Focusing on relationships with third party planners, clients, associations and promoters.
• Continuous advertisement of having the ability to provide a big space, for small events while maintaining proper
safety measures.
• Continue to work closely with Travel Penticton and tourism partners to promote Penticton as a MICE (Meetings,
Incentives, Conventions and Exhibitions) destination through strategic sales and marketing initiatives, focusing
on third party meeting planners and associations.
• Support prospective, past and current clients (under contract) through personalized calls and initiatives.
• While promoting our large meeting and exhibit space, create and sell socially distanced banquet and meeting
packages to serve the local market’s needs driving short term revenue.
• Collaborate with the City of Penticton’s Sport Tourism Manager to create incentivizing bids for future large scale
sporting events.
15OUR FOCUS AND VISION
• Recapture the industry, as Penticton is uniquely positioned.
– Continue to grow our presence with the Okanagan Valley both locally and nationally.
– Activate positive working relationships with top promoters and event planners in North America showcasing our
valuable market, which can support world-class events, leading to an increase in repeat show bookings and annual
events.
– Continue to contribute towards the successful renewal of all partnership agreements and premium seating license
agreement with an appropriate client appreciation strategy.
– Increase our brand recognition and destination optimization, while highlighting the value and experience.
– Maintain all four facilities efficiently.
– Grow future event operating income, and decrease expenses by increasing event efficiencies which are booked into
future years.
– Bid for multiple day events which will create profound economic impact for the South Okanagan such as: Young
Stars, CSSHL, Cirque du Soleil, National Junior Hockey Tournament, BC Water and Waste Convention, BC Cattlemen’s
Convention
• Offer event package deals with other Spectra Venues, such as: Abbotsford Sports Centre, Vancouver Island Conference
Centre, Encana Centre in Dawson Creek, Mosaic Place in Moose Jaw.
• The event industry will be high once COVID is over, as there will be pent up demand for artists to tour and events to
occur once again.
• Focus on booking events that attract larger crowds to maximize revenues such as: heavy metal, country and classic rock.
• Book complex wide events which will have a higher value, volume and financial impact, while utilizing all four facilities.
• Complete and plan for future capital projects to enhance our facilities and experience to have the
ability to attract more promoters and planners to our complex.
• Work closely with our tenants (Okanagan Hockey Group and Penticton Vees) to bring high profile
events to the Okanagan.
16THANK YOU
17THAT Council approve in
principle the South Okanagan
Events Centre proposed
budget, subject to final
review.
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