If the month of June proves to be an accurate indicator, the city-owned ShoWare Center might be finally turning the corner when it comes to making money.
City of Kent and arena officials were excited to see the ShoWare Center made $1,120 in the month of June when budget projections estimated a loss, according to the income statement released last week by SMG, which manages the facility.
“In June, we actually made money compared to a loss we expected of $53,000,” said Mike Miller, chairman of the city’s Public Facilities District that helps oversee arena operations. “We had a positive variance of $54,000 for the month of June.”
The arena, which opened in 2009, still lost $173,617 for the first six months of this year. The center had expenses of $1.24 million and income of $1.07 million. The arena lost money in April ($43,620) and May ($61,429), but the losses were less than projected. Revenue is coming in at about $6,000 more than budgeted for the first six months.
Losses for the first six months of 2014 were $319,000, which included about $130,000 for unexpected repairs to the ice compressor that makes the ice for the arena floor.
“I was very pleased,” said Miller at a July 30 Public Facilities District meeting about the income statement. “It’s really encouraging to see that kind of variance for the month of June and for the first six months – that’s good news.”
The arena had rental income of $130,000 in June from 26 events, including 16 high school and college graduations. A big moneymaker turned out to be a June 7 appearance by Theresa Caputo, psychic and star of the hit TLC television show, “Long Island Medium,” that drew more than 5,000 fans.
“It’s been a good six months,” said Tim Higgins, ShoWare general manager. “And the next six months with (Disney on Ice) Frozen and all of the other events, we’re going to have a good year. We’re seeing the ShoWare Center is building itself and getting a lot of traction in the marketplace. People know ShoWare Center. You mention ShoWare Center and people know exactly where it’s at.”
Ben Wolters, city economic and community development director who helps oversee arena operations, agreed with Higgins.
“We’re really starting to see the signs of the building getting recognized in the marketplace what we call getting traction,” Wolters said. “That means more and more people are aware that ShoWare Center is in the marketplace. That extends beyond the region into the national market. We’re really starting to turn the corner from the negative impact of the Great Recession – having opened in the midst of the Great Recession – and not having that honeymoon period to market and highlight the building. We’ve gotten past that.”
Even with so many other venues in the Seattle-Tacoma-Everett area, Kent officials are gaining confidence in the $84.5 million arena that holds 6,100 people.
“We’re starting to show as the market improves and the economy improves the building is starting to catch our fair share of that growth and in some cases more than perhaps other buildings are,” Wolters said. “I will always consider as much as we can get as our fair share. But it does reflect we are operating in a highly competitive market – with 24 venues within 50 miles – but we’re starting to compete exceedingly well within that marketplace. It’s encouraging to see and all the while we are doing that while providing a venue for a wide variety of community events.”
Miller added that the city also took in $116,000 in the first six months from its admissions tax, a fee added to each ticket sold that goes back to the city.
“There is a loss of $173,000 but the additional revenues we generated, which we wouldn’t have if ShoWare wasn’t in business is $116,000,” Miller said. “So if you look at it that way, we had a loss of $57,000 for the first six months.”
ShoWare officials expect solid revenue numbers the rest of the year partly because of 12 Disney On Ice Frozen shows from Nov. 11-16 that will attract more than 30,000 people based on heavy pre-sales of tickets. The arena also expects to draw lots of people to the Ringling Bros. and Barnum & Bailey circus Sept. 24-27 and has sold out the Scorpions concert on Oct. 9.
ShoWare Center revenue losses
(first six months of each year)
2015: $173,617
2014: $319,963
2013: $132,000
2012: $290,741
2011: $29,034
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