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Cabarrus Arena Food & Beverage Management Fees for FY2014 <br />The current Food and Beverage Services Agreement between SMG, Cabarrus County, and SMG <br />Food and Beverage, LLC sets a fee schedule if SMG Food and Beverage produces a profit at the <br />Cabarrus Arena location. This schedule ties SMG Food and Beverage fees directly to <br />profitability and provides a method of distributing profits between the parties to the agreement. <br />For the fiscal year ending June 30, 2014, SMG Food and Beverage produced a $178,839 Net <br />Operating Income from operations on $667,124 in Gross Revenue at Cabarrus Arena, Applying <br />the formula specified in the Food and Beverage Services Agreement results in a fee of $33,356 <br />to SMG Food and Beverage. <br />$667,124 Gross Food & Beverage Revenue <br />x 5 % Percentage of Gross Revenue Due SMG F &B <br />$ 33,356 Food & Beverage Fee Due SMG F &B <br />The current Food and Beverage Services Agreement defines the term "Positive Net Operating <br />Income" as Net Operating Income for the fiscal year less any profitability - related fee for that <br />year. The agreement specifies that the first $50,000 of Net Operating Income remains with the <br />facility, the next $50,000 goes to SMG Food and Beverage, and anything in excess of $100,000 <br />remains with the facility. This distribution results in a total of $95,483 remaining with the <br />facility and $50,000 to SMG Food and Beverage for the fiscal year ending June 30, 2014. <br />$178,839 <br />Net Operating Income <br />-$ 33,356 <br />SMG F &B Profitability- Related Fee <br />$145,483 <br />-$ 50,000 <br />$ 95,483 <br />-$ 50,00© <br />$ 45,483 <br />Positive Net Operating Income Available for Distribution <br />ty <br />Initial Amount to Remain with Facili <br />Positive Net Operating Income Remaining for Distribution <br />To SMG Food and Beverage <br />Excess Amount to Remain with Facility <br />Attachment number 1 <br />F -8 Page 148 <br />