AG 2017 12 18 - Laserfiche WebLink

Home Browse Search

& EVENTS CENTER Cabarrus Arena Food & Beverage Management Fees for FY2017 The current Food and Beverage Services Agreement between SMG, Cabarrus County, and SMG Food and Beverage, LLC sets a fee schedule if SMG Food and Beverage produces a profit at the Cabarrus Arena location. This schedule ties SMG Food and Beverage fees directly to profitability and provides a method of distributing profits between the parties to the agreement. For the fiscal year ending June 30, 2017, SMG Food and Beverage produced $82,555 Net Operating Income from operations on $663,038 in Gross Revenue at Cabarrus Arena. Applying the formula specified in the Food and Beverage Services Agreement results in a fee of $33,152 to SMG Food and Beverage. $663,038 Gross Food & Beverage Revenue x 5% Percentage of Gross Revenue Due SMG`F&B $ 33,152 Food & Beverage Fee Due SMG F&B The current Food and Beverage Services Agreement defines the term "Positive Net Operating Income" as Net Operating Income for the fiscal year less any profitability -related 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 $49,403 remaining with the facility and none to SMG Food and Beverage for the fiscal year ending June 30, 2017. $ 82,555 Net Operating Income -$ 33.152 SMG F&B Profitability -Related Fee $ 49,403 Positive Net Operating Income Available for Distribution - Amounts Less Than $50,000 Remain with the Facility U- 663,0;ab % 0-U5= 33,152•-+ U•* Attachment number l\n F-6 Page 90