AG 2010 11 15 - Laserfiche WebLink

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Cabarrus Arena Food & Beverage Incentives for FY2010 The current Food and Beverage Services Agreement between SMG, Cabarrus County, and SMG Food and Beverage, LLC sets an incentive schedule if SMG Food and Beverage produces a profit at the Cabarrus Arena location. This schedule ties SMG Food and Beverage incentives directly to profitability and provides a method of distributing profits between the parties to the agreement. Incentive Fee For the fiscal year ending June 30, 2010, SMG Food and Beverage produced a $98,697 Net Operating Income from operations on $519,735 in Gross Revenue at Cabarrus Arena. Applying the formula specified in the Food and Beverage Services Agreement results in an incentive of $25,987 to SMG Food and Beverage. $519,735 Gross Food & Beverage Revenue x 5% Percentage of Gross Revenue Due SMG F &B $ 25,987 Food & Beverage Incentive Due SMG F &B Profit Distribution The current Food and Beverage Services Agreement defines the term "Positive Net Operating Income" as Net Operating Income for the fiscal year less any Incentive Fee for that year. The agreement specifies that the first $50,000 of Net Operating Income remains with the facility, the next $50,000 goes to SMG Food and Beverage, and anything in excess of $100,000 remains with the facility. This distribution results in a total of $50,000 remaining with the facility and $22,710 to SMG Food and Beverage for the fiscal year ending June 30, 2010. $98,697 Net Operating Income - $25,987 SMG F &B Incentive Fee $72,710 Positive Net Operating Income Available for Distribution -$ 50,000 Initial Amount to Remain with Facility $ 22,710 Positive Net Operating Income Remaining for Distribution To SMG Food and Beverage Attachment number 1 Page 59 F -2