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HomeMy WebLinkAboutCivic Center Board Minutes 2.19.26CIVIC CENTER BOARD OF MANAGERS Thursday, February 19, 2026 CENTURY CENTER – RECITAL HALL 8:30 A.M. Members Present Members Absent Aaron Perri Randy Kelly Austin Gammage Judd McNally Jill Scicchitano Canneth Lee AJ Patel Heather Goralski Matt Kahn The meeting was called to order at 8:31 a.m. by Aaron Perri Consent Agenda The Board discussed the consent agenda. Claims were removed from consideration, as additional review with legal counsel is needed to determine what is legislatively required for the Board regarding the claims process. The Board considered approval of the November 4 meeting minutes, which had been circulated in advance. A motion was made by Matt Khan and seconded by Jill Scicchitano to approve the November 4 meeting minutes. The motion carried. Judd McNally’s abstention was noted. Opening Remarks: Aaron Peri Remarks were given acknowledging the full agenda and thanking Anastasia Smith-Davis for assisting during staffing transitions. Staff were also thanked for their continued work and support during recent personnel changes. It was noted that Visit South Bend Mishawaka officially took over management duties for the Century Center on January 1, 2026, as previously negotiated by the Board. Appreciation was also expressed to the Legends Global team for assisting with a smooth transition. The Board also recognized the grand opening of the Raclin Murphy Encore Center. Appreciation was extended to Patrick Sherman and the project team for keeping the project on time and on budget. The building was noted as completed, visually impressive, and already being programmed and used. Venue Report and Financial Performance Review Dezha Moore introduced the venue report and noted that she would be joined by Kyle Neill, Senior Finance Officer, and Amber Schisler, Director of Ticketing Sales & Strategy. Kyle Neill provided a flnancial performance review for the Morris Performing Arts Center and related venues, including the Morris Performing Arts Center, Laz Parking Garages, Century Center, and Palais Royale. For the fourth quarter of 2025, the Morris Performing Arts Center hosted 14 shows. Ten of those were ticketed events, with Hadestown noted as the largest ticketed event. Four additional events were equity and community events, which were not ticketed but supported community engagement and showcased arts and theatre within South Bend. Fourth quarter revenues were reported at approximately $535,000, with expenses at approximately $505,000. Net revenue for the quarter was reported at approximately $251,000 after ticketing fees, promoter payments, and related expenses. The fourth quarter was described as stronger than the prior year, with increased interest connected to the upcoming opening of the Raclin Murphy Encore Center. Regarding the $251k, we can say that the total operating revenue/expense of $540k and $505k is all inclusive of the Morris operations. Whereas the $251k in profit mentioned is a calculation of total ticket and show revenue reduced from total show expense payouts including promoter payments and invoicing related payments. We included this to show how shows are doing in a standalone situation apart from other building operations. For 2025, total revenue was reported at approximately $2.2 million. It was noted that this figure included a subsidy of approximately $447,000 and recovered settlement funds from prior shows dating back to the fourth quarter of 2022. When removing the subsidy, the year showed an approximate $16,000 deflcit. This was noted as relatively modest compared to prior years, particularly considering expenses related to the Raclin Murphy Encore Center, elevator repairs, leaks, and other facility needs. A four-year revenue and expense review was provided. Revenues were generally reported in the range of approximately $1.1 million to $1.2 million, while expenses have gradually increased, reaching approximately $1.7 million in 2025. Increased expenses were largely attributed to the Raclin Murphy Encore Center and other building-related needs. Morris Capital Account The Morris Capital account was reviewed. It was reported that the account receives revenue from interest. In 2025, approximately $123,000 was earned in interest revenue. Since 2022, approximately $15 million has been received through grants, donations, and other charitable contributions, with most of those funds received in 2022 and 2024. The year 2023 was noted as slower, with approximately $400,000 received. Palais Royale The Palais Royale was reported to have had a relatively positive year. A signiflcant leak was noted as one of the larger expenses affecting the bottom line. The joint licensing account held by Kurt from Navarre and Dezha Moore was discussed as an emergency and miscellaneous fund for improvements, repairs, and other needs related to catering, Navarre, and the Palais Royale. With that account included, the Palais Royale showed an approximate net gain of $20,000 for the year. It was also noted that rent is expected to increase beginning in June, which should result in additional revenue. Century Center Capital Jeff Jarnecke, Executive Director of Visit South Bend Mishawaka, started the presentation with the Century Center’s FY25 performance. While he noted he did not have the speciflc detail associated with the aggregated numbers, he would be happy to obtain answers for any of the board’s questions. He noted revenues were $3,903,462 and expenses were $4,490,987, resulting in a $587,525 deficit. Jarnecke stated that is was obviously a challenging and disappointing year flnancially, but that he was confldent in the organization’s ability to deliver in a more impactful way. Jarnecke noted that St. Joseph County had a record year in tourism with more than one million in hotel demand for the first time ever. Short-term rentals added another 300,000 plus room nights to the economy. Hotel occupancy was up 14% year-over-year and averaged 60% with an average daily rate of $136. He noted this was especially important as the rest of the state was generally fiat on average daily rate and regressed by one percent on hotel demand. He highlighted the more than 141,000 room nights being generated by the AWS and Synergy Cells projects in New Carlisle along with records at the South Bend International Airport along with the Pottawatomi Zoo. The Visit South Bend Mishawaka team presented the board with a small gift celebrating the successes of the past year while thanking them for their leadership. He noted the gift refiected “The Bend” brand created by the University of Notre Dame. Jarnecke then focused on the Century Center speciflcally. He highlighted the FY26 budget that was originally shared with the board before the end of 2025 per the management agreement. He also described the projects associated with the $1.7M capital improvement plan budget. Introducing the team, Jarnecke shared background on the Visit South Bend Mishawaka staff with Becky Fletcher leading the sales team and Kari Bumgardner leading the marketing and communications team. Jarnecke concluded his presentation with the continued focus and effort by Visit South Bend Mishawaka to grow the leisure market, drive economic vitality through meetings and events, and the organization’s commitment to delivering success at the Century Center. He suggested that at the board’s next meeting he will introduce the topic of the future of the Century Center, highlighting the need for signiflcant capital infusion. Some discussion ensued, and Jarnecke thanked the board for the opportunity to present and lead the Century Center. Century Center FY26 Operating Budget Jeff Jarnecke presented the FY26 operating budget. Citing revenues of $3,358,056, Jarnecke stated the Hotel Motel Tax Board operating subsidy is $1,450,000 and operating revenues were down as the 2026 event calendar that Visit South Bend Mishawaka assumed was very soft in terms of number of events. He stated expenses would total $3,414,199 resulting in an anticipated deficit of $56,113, which was dramatically better than last year’s losses. He noted that every effort would be made to mitigate any loss and hopefully return to a position like in 2018 and 2019. Jarnecke also reintroduced the $1.7M capital improvement plan for the Century Center. He noted that less than $80,000 was spent in FY25 for improvements, so the team would work intentionally and quickly to bring the various proposed projects to completion. Jarnecke offered some additional insight to the projects stating that they were a balance of front-facing, consumer-oriented enhancements and operational improvements. Some discussion ensued before the question was called. There was a motion and second with both the budget and capital improvement plan passing unanimously. New Business The Board discussed items listed on the amended agenda, including fee structure changes. Items 8.1 and 8.2 related to fee structure changes were tabled for a future meeting. The Board also discussed the ticketing policy and Seat-Pass policy. These items were tabled for consideration at the May meeting. Board Feedback: Members requested meeting packets/proposals be distributed a week in advance. Officer Nominations: Aaron Perri and Matt Khan were elected unanimously to convenes an ad hoc committee for board officer selections. They will present officer slate at the meeting for full board approval. Adjournment There being no further business, the meeting was adjourned at 9:34 a.m. The next board meeting is scheduled for May 7, 2026 at 8:30 a.m. at the Century Center