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HomeMy WebLinkAbout05.13.26 Meeting MinutesCIVIC CENTER BOARD OF MANAGERS Wednesday, May 13, 2026 Century Center – Recital Hall 8:30 AM Members Present Members Absent Aaron Perri Jill Scicchitano Heather Goralski Canneth Lee Judd McNally Randy Kelly The meeting was called to order at 8:30 AM by Aaron Perri. Consent Agenda The Board discussed the consent agenda. Item VI, “Board Review and Approval or Awareness Resolution” was removed from consideration. The Board considered approval of the February 19 meeting minutes and the agenda, which had been circulated in advance, with the removal of Item VI. A motion was made by Canneth Lee and seconded by Matt Kahn to approve the agenda and the February 19 meeting minutes. The motion carried. Randy Kelly’s absence was acknowledged. Appreciation was noted to Darius Garner and Dezha Moore for their work in completing all edits suggested by Randy Kelly. Opening Remarks: Aaron Perri Remarks were given, first noting appreciation for everyone’s flexibility in the scheduling of the meeting. Aaron Perri acknowledged that the circumstances surrounding the meeting were “a little wonky.” He expressed his disappointment but noted that efforts related to staffing changes would help get things back on track. He stated that there are high levels of expectations not only for the Board, but also from the community, for professionalism and strong execution. He believes that the Board will get there. The business of the venues was noted. Across the board, the venues all had a busy spring. The Century Center hosted volleyball in the Great Hall, which had not previously been seen. The Morris was busy with the Symphony and various other performances, while Equity in Arts (EIA) has been similarly busy. It was noted that there would not be an update on any major renovation. It was noted that it was great to have everything up and functioning. It was acknowledged that improvements to the Century Center were noticed, from smell to soft seating. It was acknowledged that both the Board and the Mayor received notice that Austin Gammage will be stepping down from the Board. Austin felt that, at this time, he would be better suited to present arts and coordinated arts, and that his other endeavors sometimes presented conflicts with being a member of the Board. His resignation leaves a vacant seat that is appointed by the Common Council. It was noted that Canneth Lee and the Council have already begun conversations regarding the replacement for Austin Gammage. It was acknowledged that Jordan Gathers is no longer with the City of South Bend in his role as Executive Director of Venues Parks & Arts (VPA). It was noted that Deputy Chief of Staff Allie Dolz-Lane is serving in the interim role. The floor was yielded to Interim Executive Director Allie Dolz-Lane. She noted her support and continuity as the work is carried out. She expressed gratitude for Jordan Gathers’ years of leadership and service. She noted that interviews are underway for the permanent director position. She looks forward to sharing an update with the Board, but in the interim, she will continue to lead and uphold integrity to ensure the work is completed while supporting VPA leadership. She thanked the Board for its stewardship and direction, especially during transitional times. She ended by expressing gratitude for the hard work the Board is doing. Venue Report and Financial Performance Review Dezha Moore, Chief of Venues & Promotions, introduced the venue report and noted that Kyle Neill, Senior Financial Officer, and Amber Schisler, Director of Ticketing Sales & Strategy, would also provide updates in that order, with her finishing the report. Financial Summary Area / Venue Reporting Period Revenue Expenses Net / Notes Morris Performing Arts Center (MPAC) Fund 602 FY26 As of: April 23, 2026 $379,350 $450,067 ($70,715) Palais Royale Div. 221 FY26 As of: April 23, 2026 $39,727 $30,651 $9,076 Joint Licensing: $34,552 Morris Performing Arts Center Kyle Neill wanted to showcase the Q1 forecast compared with actual revenue and expenses. To date, there have been 25 shows, with year-to-date revenue of $379,350, year-to-date expenses of $450,067, and a deficit of $70,715. It was noted that January was a slower month, with only two shows, along with preparations for the opening of the Raclin Murphy Encore Center. Kyle Neill stated that in February, revenue did not increase, but there were fewer expenses due to the completion of the Raclin Murphy Encore Center. He noted that there was some profit due to that. In March, MPAC broke even. He noted that it was neither a good month nor a bad one. Kyle Neill acknowledged that in Q2 there will be two Broadway shows, Clue and Beetlejuice. It was noted that, apart from Q4, Q2 will be a significant revenue driver because of the two Broadway shows. Palais Royale Kyle Neill noted that there is currently $34,552 in the joint licensing account between the Morris Performing Arts Center and Navarre Hospitality. It was stated that the Palais Royale is currently sitting at a $9,076 surplus for the year. Morris Performing Arts Center Capital Account – Fund 416 No projects are currently underway. Raclin Murphy Encore Center Phase 1 is complete. The Capital Fund cash balance is $66,008.92. Century Center Capital Account – Fund 671 No projects were underway during the first three months of the year. The reserve cash balance is $1,952,744.40. Moving into Q2 and beyond, some projects will be getting started. Board Questions and Discussion Concerning Financial Report The Board asked why the salaried wages budget line varied so much from month to month. Kyle Neill noted that in January there were a few shifts at the Morris Performing Arts Center. Three positions became open: Operations Manager, Assistant Director of Ticket Sales & Strategy, and Administrative Assistant. The impact was mostly seen in February, rather than January, due to final wages being paid out from January. It was noted that there would be a dip in February and March, but the line should return to what was originally budgeted in April with the filling of positions. Kyle Neill also noted that the biggest change in expenses would be attributed to the opening of the Raclin Murphy Encore Center and the introduction of new utility bills. He also noted that security for that side of the complex is a new expense. He noted that nothing else should significantly fluctuate expenses other than building materials and maintenance. The Board asked whether there was a rolling forecast. Kyle Neill assured the Board that one had been prepared and was included in the board packet. It was noted that in the forecast, actuals are highlighted in green while the projection for the remainder of the year is highlighted in blue. It was noted that the two main revenue drivers on the rolling forecast are ticketing fees and other services. It was noted that the summer months are slower, but with Clue and Beetlejuice, there will be a bump. Kyle Neill acknowledged the bump from $6,000 to $16,000 in utilities from January to February due to the opening of the Raclin Murphy Encore Center. Thirty-three percent was originally budgeted, but it is looking like it will actually be closer to fifty percent. Security for non-show rentals is a new expense, along with an increase in trash removal. The Board asked whether the rolling forecast projects a loss this year. Kyle Neill confirmed that projection, with hopes that there will be opportunities to close the gap through shows and rental opportunities. Dezha Moore stated that she would address that in her presentation. The Board wanted to know how many inquiries have been received about booking the Raclin Murphy Encore Center, as well as the rental rates. Dezha Moore stated that the team has been busy booking the spaces in the Raclin Murphy Encore Center. Now that the Operations Manager position has been filled, the campaign to promote and book the space has started through the work and efforts of Fernando Briones. Dezha Moore noted the rental prices for the Raclin Murphy Encore Center as follows: Monday through Thursday, $465; Friday, $950; and Saturday, $1,850. The Board inquired about the occupancy size of the Raclin Murphy Encore Center. Dezha Moore noted that the first-floor lobby holds 150 people. The lounge on the second floor holds 75 people. The second-floor lobby holds approximately 150 people, with the Equity in Arts classroom holding 50 people. MPAC Tickets Fees Structure and Proposal for Improvement The floor was yielded to Amber Schisler, Director of Ticket Sales & Strategy. It was noted that a presentation on ticketing fees and structure had previously been presented, but there were some questions surrounding it. Amber Schisler also wanted to present some case studies and options for restructuring fees. The question, “Why do we need fees?” was asked. It was noted that in 2025, fees made up 39.5% of revenue and helped fund core operations. Amber Schisler stated how ticketing works. The venue provides the facility plus full ticketing services to promoters. The promoter keeps ticket sales while the venue retains fees, unless the event is co- promoted or self-promoted. The ticketing fees then cover operations, staffing, and ticketing costs. It was noted that patrons do not see the breakdown of ticketing fees while shopping for tickets. Patrons only see an “all-in price.” The current breakdown is a sliding scale/ranged fee, historic fee of $4.75, and a credit card fee of 3.95%, rounded to the nearest quarter. It was noted that other possible strategies include a small fee for walk-up sales, a larger phone/online fee than 20%, a hybrid model with a static base fee and lesser percentage, and a flat fee, which would impact lower-priced tickets the most. Amber Schisler presented three case studies. Each one presented additional revenue for the theatre through ticket fees. • 20% online/phone and 8% walk-up would take the 2025 actual of $422,427.90 to $491,363.40. • 25% online only would take the 2025 actual of $422,427.90 to $535,046.75. • $7 base fee plus 10% online would take the 2025 actual of $422,427.90 to $580,251. • Flat fee per online ticket: o $10 per online ticket would take the 2025 actual of $422,427.90 to $520,419. o $12 per online ticket would take the 2025 actual of $422,427.90 to $672,828. o $15 per online ticket would take the 2025 actual of $422,427.90 to $789,785. It was noted that the box office wants to incentivize in-person purchases to help mitigate fraud. All fraud has come through the secondary marketplace. In-person purchasing has not generated any fraudulent ticket purchases. Amber Schisler noted that her recommendation is a $7 flat fee plus 10% for online, kiosk, and phone transactions. This would be easy to calculate, would not disproportionately impact VIP patrons, and would incentivize in-person transactions. A motion to change the fee structure to a $7 base fee plus 10% online was made by Matt Kahn and seconded by AJ Patel. The motion carried. 3D Secure Verification of Online Credit Card Transaction Amber Schisler stated that 3DS will help mitigate chargebacks and ticketing fraud. It was noted that this system is used for hotel rooms, airline ticket purchases, and large or high-risk purchases made online. It will be an extra verification point to ensure that no aliases are being used in purchasing tickets. This fee would be charged by eTix. Patrons would enter card information on the eTix checkout page; the gateway checks whether the card is enrolled in 3DS; the bank silently authenticates via device/browser and may prompt fingerprint, Face ID, or one- time passcode verification. It was noted by the Board that many venues are switching to this. It was also noted by the Board that many hotels are using this system. A motion to approve the usage of 3DS was made by Judd McNally and seconded by Canneth Lee. The motion carried. Morris Performing Arts/Raclin Murphy Encore Center/Palais Royale Overview Dezha Moore gave a Q1 performance snapshot. It was noted that there were events in Q1, with attendance higher than what has been seen in the past, totaling 18,750 patrons in attendance. Revenue performed better in Q1 than it has in the past, with the understanding that it is still slightly behind where it was projected to be at this time of year. Expenses are 21% of the budget, and it was noted that expenses are being monitored. It was shared that being aggressive with marketing and promotion will be a tool utilized to gain traction. The team is working with marketing to push shows that are already booked, while also refreshing the promoter package to garner interest from more promoters and talent. It was shared that a bump in revenue will come from the three-performance run of Clue and the five-performance run of Beetlejuice. In Q4, the add-on show, The Grinch, will be rehearsing at the Morris for 11 days, bringing in an additional $25,000 in revenue. It was noted that this revenue was unexpected. Dezha Moore shared that there will be a close look at expenses and part-time staffing, along with utilities for the Raclin Murphy Encore Center. She noted that it is currently budget season, so the work to be proactive has already begun, looking at the budget for the upcoming year. The Board wanted to know how the non-revenue events are being paid for. It was noted that non-revenue events are being paid out of the Equity in Arts account strings. The Morris is covering the security fees because of the lower budget provided to Equity in Arts. The Board wanted to know how to attract more talent and promoters. The question of whether the Morris needs to do more self-promoted acts was raised. Dezha Moore wants to be more competitive with tour routes and have conversations regarding how to get the Morris on tour routes. Dezha Moore stated that the team is working diligently on engaging promoters and talent to make the Morris a venue that they want to come to. Dezha Moore also stated that the Morris has been more aggressive with buying shows and co-promoted shows. The Board stated that the organization might have to bet on itself and get into the promoting business. The thought is that if the Morris becomes more aggressive and breaks even, promoters will see this and add South Bend as a stop more often. Dezha Moore gave a brief overview of the events happening at the Palais Royale and Equity in Arts, along with a welcome to the new staff at the Morris Performing Arts Center. Century Center Performance / Capital Update Jeff Jarnecke, Executive Director of Visit South Bend Mishawaka, started the presentation with the Century Center’s FY26 Q1 performance update. It was noted that the revenue for Q1 is $713,251; expenses are $834,294; with a deficit of ($124,043). Jeff Jarnecke noted that a significant part of the deficit was snow removal, moving from City-managed to managed through Visit South Bend Mishawaka. It was noted that the rolling forecast for Q2 has revenue of $3,207,073; expenses at $3,302,447; with a deficit of ($95,368). It was noted that July is historically slow, but the team is working to book events to close the deficit gap. Staffing is also being reviewed as another way to help close the gap. Jeff Jarnecke gave a project update, noting what has been completed, what is still in the process of being completed, and what is on hold at this time. There has also been major cleaning to make sure the space is presentable and attracts events. It was noted that there are 30 definite events, 21 tentative events, and seven prospective events. There were two capital requests being asked of the Board. The first was Goose Control, a non- lethal laser solution to control goose movement on the island, totaling $17,000. The second was a license plate recognition solution to monetize and control the parking lot, totaling $50,000. A motion was made by Matt Kahn and seconded by Jill Scicchitano to approve the capital requests. The motion carried. Jeff Jarnecke presented the options for the future of the Century Center. • Demolition o Demolish the Century Center entirely and replace it with a new riverfront development. • Maintain Status Quo o Continue to subsidize operations and provide capital support to maintain building infrastructure. • Moderate Investment o $20 million to $30 million infusion, updating the entire building and infilling the Great Hall. • Significant Investment o $100 million-plus to update the entire building and add additional square footage. The Board deferred this item to the Buildings and Grounds Committee for discussion. Officer Nominations / Committee Updates Matthew Kahn, Nominating Committee, presented the slate for Board nominations: • Jill Scicchitano – President • Randy Kelly – Vice President • Judd McNally – Treasurer • Heather Goralski – Secretary • Aaron Perri – Immediate Past President There was a motion to accept the slate of nominations, moved by AJ Patel and seconded by Canneth Lee. The motion carried. Adjournment There being no further business, the meeting was adjourned. The next board meeting is scheduled for August 27 at 8:30 AM.