DeVos Place Loss Less
GRAND RAPIDS — With the fiscal year ending this week, it looks like DeVos Place will lose $1.09 million and Van Andel Arena will close the year with a surplus of $1.43 million.
At least that is where both buildings stand financially after 11 months of the current fiscal year. In May,
The good news is the fiscal-year red ink spilling from
The Convention and Arena Authority approved the FY06 budgets for the convention center and the arena last week.
On the revenue side, both buildings are expecting more event income for the upcoming fiscal year. The forecast has that revenue source rising by over $50,000 at
Convention and Visitors Bureau President Steve Wilson said revenue to the county’s lodging excise tax has risen for each of the first four months of this year over last year’s figures, a sign that more visitors are coming here.
Amway Grand Plaza Hotel President Joseph Tomaselli added that occupancy at the downtown Courtyard by Marriott and the
The arena forecast has an increase of $115,000 in event income coming from family shows, such as the skating tours, and roughly $100,000 less from sporting events. Not having a college hockey tournament in the building next March will account for much of that reduced income to the arena from sports.
As for expenses, operational costs for
SMG Director of Finance Chris Machuta said the new fiscal year should be the last year the convention center has an increase in projected expenses, with new staff members aboard and maintenance costs rising as warranties expire.
SMG General Manager Rich MacKeigan said this summer should be the most active the buildings have had in years. DeVos Performance Hall will be open for the first summer in three years and arena bookings are up for July and August over the past few years.
Most notably, Bruce Springsteen will play the arena on Aug. 3 — but only to 8,500 paying customers, which is about 3,500 less than the building’s concert capacity.
Green Day drew the arena’s second-largest concert crowd in May, as part of its American Idiot tour, and fell just short of selling 13,000 tickets. The band, however, did sell $135,000 worth of merchandise at the show — the most of any artist that has played the building.
CAA members also approved a new wheelchair policy for
“It’s really a nice service to offer and in my experience people really appreciate it,” said Lew Chamberlin, CAA board member.
CVB Vice President of Sales George Helmstead said 159 conventions and tradeshows have been booked at
The final bill for the construction of
“We’re done,” said Dale Sommers, who represented the CAA on the four-year project. “It was a good ride.”
|# of Events in FY06||FY06 Event Income||FY05 Event Income||Change From FY05-FY06|
|Van Andel Arena||# of Events in FY06||FY06 Event Income||FY05 Event Income||Change From FY05-FY06|
Source: SMG FY06 Operating Budgets, June 2005.