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Cabarrus Arena Management Fees for FY2018 <br />The management agreement between Cabarets County and SMG outlines fees for SMG related to certain <br />performance thresholds. This total fee is composed of a quantitative portion relating to Gross Operating <br />Revenue and a qualitative portion relating to more subjective performance measures. <br />Ouantitative Fee <br />For the year ending June 30, 2018, SMG surpassed the $1,413,312 Gross Operating Revenue threshold that <br />triggers the quantitative fee. Gross Operating Revenue for the year was $1,430,314. In accordance with the <br />management agreement, SMG should receive a quantitative fee which is the lesser of fifteen percent of Gross <br />Operating Revenue in excess of the threshold or a quantitative fee cap equal to seventy-five percent of the base <br />fee. <br />The calculated quantitative fee based on Gross Operating Revenue in excess of the threshold is as follows: <br />$ 1,430,314 Gross Operating Revenue <br />- $ 1.413.312 Fee Threshold <br />$ 17,002 Gross Operating Revenue in Excess of Fee Threshold <br />x 15% Percentage of Excess Revenue Available for Fee <br />S 2,550 Potential Quantitative Fee for FY 2018 <br />The calculation to determine the quantitative fee cap is: <br />$103,130 Base Management Fee <br />x 75% Cap Percentage <br />$77,348 Maximum Possible Quantitative Fee <br />Based on these calculations and the current management agreement, the quantitative fee due SMG for fiscal <br />year 2018 is $2,550. <br />Oualitative Fee <br />For the fiscal year ending June 30, 2018, Cabarrus County staff awarded SMG ninety-six of a possible one <br />hundred points in the subjective performance areas of customer service, maintenance and operations, and <br />overall management. Applying the formulas outlined in the management agreement results in a qualitative fee <br />to SMG of $24,752. <br />$25,783 Maximum Qualitative Fee per Agreement <br />x 96% Percentage of Total Points Awarded to SMG <br />$24,752 Qualitative Fee Due SMG <br />Total Manaeement Fees Due SMG <br />The total of all the performance -related management fees due SMG is $27,302. This includes the Quantitative <br />Fee of $2,550 and Qualitative Fee of $24,752 described above. <br />Page 96 <br />