Figures Are In For Arena Center

October 17, 2003
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GRAND RAPIDS — The audited figures for DeVos Place and Van Andel Arena show that the most recent fiscal year wasn’t as strong for both buildings as the previous year.

Still, the arena had a surplus of $1.59 million for the year that ended on June 30. In FY02, that figure was $1.66 million.

DeVos Place, which operated as the Grand Center for most of the fiscal year, lost $241,765 in FY03. In FY02, the convention center lost $60,000.

Those numbers resulted in a total surplus for both buildings of $1.35 million.

“Those numbers are much better than I anticipated,” said SMG general manager Rich MacKeigan.

The surplus for both buildings in FY02 was $1.6 million.

SMG saw its management fee for DeVos Place decline.

In FY02, the company earned $305,069 for running the building, a payment that included an incentive fee of $80,069. But SMG had its total payment drop to $264,181 for the most recent fiscal year with an incentive fee of just $36,706.

“They share in the downfall,” said County Fiscal Services Director Robert White.

SMG receives 20 percent of the first $1 million in excess revenue over expenses and 25 percent of the excess that tops $1 million. With revenue down for DeVos Place, the incentive payment to SMG was also down.

In contrast, SMG earned $366,942 for operating the arena for the fiscal year — a figure only $3,000 less than the previous year.

At the end of the current fiscal year’s first quarter, the arena had $335,243 in net revenue over expenses.

Net revenue for DeVos Place, however, was nearly $411, 000 under expenses for the same period. But SMG Director of Finance Chris Machuta said income to the convention center would pick up once the exhibit space opens in December.

Deloitte & Touche performed the FY03 audits for both buildings.     

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