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CITY OF SOUTH BEND OFFICE OF THE CLERK back in 2016 when the Morris hosted three (3) weeks of Wicked, a presentation of Wicked, we returned more than $400,000 to the General Fund. So, we're anticipating a very good year so it's a conservative approach relative to revenue. He continued, On the expense side of it, you're going to see a four percent (4%) decrease. That four percent (4%) decrease is accounted for by a number of efficiencies that we're now able to realize within the Venues Division by the sharing of resources between the Century Center and Morris as well as then some accounting relative to personnel. With that, it brings us to just around $100,000 net operating loss for fiscal year 2020. That's being planned for and that is a significant decrease in terms of a year over year comparison from what we presented to you in 2018 for the 2019 budget. Again, largely being able to realize some efficiencies on the expense side of it as well as we're anticipating a very good year on the revenue side. He went on, Concerning more on the Palais side of it, the next slide that's before you(referencing a slide in a presentation which is available in the City Clerk's Office) focuses on the Palais side. The Palais has a $2.5 million dollar economic impact on the community. Navarre Hospitality remains our operator so they not only execute the events but they sell the space on our behalf as well. We're not delivering top line revenue like we expect, and we need to within the next space. That's being built off of around fifty(50) events this year. In our minds,we need to be somewhere between that sixty-five(65)and seventy(70)number within the Palais so we're falling short of our expectation but we're working with the Navarre team in coming up with strategies to adjust that going forward. You are seeing an anticipated decrease of what we have on the books already for 2020 on the revenue side of it. He continued, But on the expense side we are going to shift our personnel. That conversation and that discussion with the folks at Navarre, they understand things cannot remain the same. We're going to realize some of those efficiencies that I mentioned and reassign staff within the Venues Division to better account for and right-size our operation within the Palais. All of that though, we're pleased to be able to decrease the reliance on the General Fund and decrease our anticipated net operating loss to around $142,000 next year as part of the 2020 budget. That information in detail on the Palais operation is on page fourteen (14) within the packet that's before you. Councilmember White, I'm happy to take any questions related to Morris and the Performing Arts Center. Committee Chair White opened the floor to questions from Council Members regarding the Palais and the Morris. Committeemember John Voorde stated, On my way in I asked about the new seating in the Morris and you said that that's anticipated. Probably not next year though, correct? Mr. Jarnecke replied, We are working on some renders right now of what the building and the construction work would look like. We haven't announced the number associated with the campaign. We plan to privately fundraise dollars associated with the celebration of the next one- hundred(100)years. So,what we're anticipating with that is a capital campaign that would launch later this year that we would seek benefactors and donors to participate in that program.That would not only address probably in some part mechanicals and those sorts of things within the building that are going to be needing replacement, but also re-imagining the plaza area upfront, re- imagining the box office area,new seats within the theater,new LED lighting,new other elements EXCELLENCE ; ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 I 0574.235.5567 www.southbendin.gov 3