Arena Revenue On Track
GRAND RAPIDS — Halfway through the fiscal year, revenue to Van Andel Arena was on track with the forecast. DeVos Place was also performing well in relation to the budget, but ancillary income to the convention center was a bit disappointing for the second quarter.
SMG Director of Finance Chris Machuta said ancillary income to the building was lagging behind the forecast by about $100,000. At the end of December, the fiscal year’s midpoint, DeVos Place had lost almost $279,000.
“We still need to do a little bit of work to reach our forecast,” he said.
Machuta is hoping the catch-up will take place over the third quarter when the building hosts a lengthy series of consumer shows through March that could hike ancillary income from equipment rentals and other services. But he also noted the consumer-show season didn’t get off to a great start last month, as attendance to an RV show and Autorama were off from last year’s figures.
“We’re still showing growth over FY07, just not the growth we had hoped for,” said Machuta.
At the midpoint of the 2007 fiscal year, DeVos Place was $356,000 in the red. So thus far the current fiscal year has had a revenue improvement of $77,000 over the last one.
The SMG budget, issued last June, projected the convention center would lose $675,000 for the fiscal year.
“We absolutely feel the arena can overcome the shortfall at DeVos Place,” said SMG Regional General Manager Rich MacKeigan, who directs daily operations at both buildings.
Van Andel Arena had a surplus of $625,000 midway through the fiscal year, and is on track to meet the $1.2 million margin that was forecast for the building last summer.
“At the arena, it is rocking right now,” said MacKeigan. “In May, we have the potential for five or six concerts.”