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<br />~~IIII~~ <br />CabarrusArena <br />_&Events Center _ <br /> <br />November 6, 2006 <br /> <br />Mr. Mike Downs, Deputy County Manager <br />Cabarrus County <br />65 Church Street <br />Concord, NC 28026 <br /> <br />Dear Mike, <br /> <br />We were very pleased that our Food & Beverage operation was able to show a positive improvement <br />over the previous years. We will continue to work hard at improving the quality and profitability of all <br />ofF&B functions. In order to remain competitive with the new convention center and to bring the <br />operation "up to speed" we would like to request funding for the purchase of small-wares necessary for <br />our catering operations. Small wares for our purposes can best be defmed as the necessary place settings <br />for catered dinners including silverware, glassware, china and the associated material handling <br />equipment and storage. <br /> <br />Unfortunately during the design and consulting phases of the arena's development, several components <br />of the catering "small wares" package were either eliminated or drastically reduced. This lack of <br />equipment requires us to rent the necessary equipment. This expense is generally a non-recoverable <br />event expense. Since SMG has assumed the responsibility for F&B (9 months) we have rented in excess <br />of $34,000 worth of equipment. Most, ifnot all, of this expense would have been eliminated if we had <br />owned the equipment. By eliminating this expense we will dramatically increase our profitability. <br /> <br />As part of our operating plan we are preparing for the expected shift in catering business that will come <br />with the opening of the new convention center. It is critical that we have the necessary equipment to <br />position our operation as a viable alternative. Our competitive advantage will be primarily in our <br />pricing structure. The elimination of the rental expense reduces our fixed costs so that our ability to <br />negotiate is strengthened. <br /> <br />We would like to request that the Commissioners approve our request for funding of additional small <br />wares from Superior Products. <br /> <br />Sincerely, <br /> <br />Frank Lapsley <br />General Manager <br /> <br />'f-.:) <br /> <br />P. O. Box 707 . Concord, NC 28026-0707 <br />4751 NC Hwy. 49 North' Concord, NC 28025 <br />Tel: 704/920-3976 . Fax: 704/920-3999 <br />www.cabarrusarena.com <br />