Annual Report Contents

2018 - 2019 ANNUAL REPORT CONTENTS

STATEMENT OF PURPOSE 3

MESSAGE FROM GENERAL MANAGER 4

MESSAGE FROM GREATER GRAND FORKS CONVENTION AND VISITORS BUREAU 5

INTRODUCING OUR TEAM 6

FACILITY PROJECTS 7

CONVENTION CENTER OVERVIEW 8

ARENA OVERVIEW 10

MARKETING SEGMENTS 11

FIGHTING HAWKS FOOTBALL 12

SUMMARY OF ACCOMPLISHMENTS 13

COMMUNITY INVOLVEMENT 14

FINANCIALS 15

FUTURE OUTLOOK 16

2 Simply put, without (the Alerus Center staff), our awesome "event wouldn’t have been possible. Working with you was a great experience and I appreciate the staff always being available and ready to help. " Colby Smith | UND ROTC

STATEMENT OF PURPOSE

The mission of Alerus Center is to provide premier entertainment and

events that stimulate economic impact and improve the quality of life

for Grand Forks area citizens.

3 I am pleased to present our Alerus Center FY-2018 Annual Report. FY-2018 proved to be an outstanding year for Spectra and Alerus Center. We completed the year showing an overall profit of $310,074, which was a swing to the bottom line of over $700,000.00 over 2017.

Spectra hosted 427 events at Alerus Center attracting an attendance of over 243,000 from January 1, 2018 through December 31, 2018, which was an increase of 101 events over 2017 and approximately 50,000 guests through the doors. It was the first year in the facility’s history that we hosted 3 major concerts that each had over 8,500 in paid attendance and we broke several facility records with our Metallica concert in September. In addition to our financial success, event organizers who booked their meetings, conventions and trade shows at Alerus Center provided Spectra with high marks through Customer Satisfaction Surveys, stating that 94% of clients would recommend Alerus Center to a colleague.

As always, our success would not be possible without such a talented Alerus Center staff and I would like to personally thank them for all of their continued hard work and dedication!

Lastly, a huge thank you to the Events Center Commission and the City of Grand Forks for their constant support, leadership and guidance! Thank you, Grand Forks, for an outstanding year at Alerus Center.

ANNA ROSBURG, GENERAL MANAGER Spectra Venue Management – Alerus Center

4 As soon as Spectra was contracted as the management company for the Alerus Center, they hit the ground running. First on the list was the hiring of an exceptional general manager, Anna Rosburg. Following that, Anna and Spectra worked together to put together a team of dedicated professionals. This team has taken this building to another level as a premier convention and event center. ...this has

been the most The primary goal of the Greater Grand Forks Convention & Visitors “ Bureau is to attract visitors to our community. It is imperative we have successful “ strong partnerships with our venues such as the Alerus Center. In my 16-year tenure as director at the CVB, I am happy to report this has been partnership I the most successful partnership I have witnessed. have witnessed. Some recent Alerus Center wins, which have had a tremendous impact on Grand Forks include: • Attracting the FIRST Robotics Great Northern Regional Competition for the first time in Grand Forks and then securing an additional three-year contract. • First-ever Big-Ticket Giveaway during the Season of Giving program, which generated thousands of contacts to market future events. • The largest variety of events, concerts and shows we have ever seen at the venue. • Securing the record-breaking Metallica concert, which had direct spending impact of $1.5 million (Destinations International Economic & Direct Spending Impact Calculator).

I continue to be amazed by the level of commitment and the creativity of the Alerus Center and Spectra team. I am a proud to be a commission member with such strong leadership and excited, as a CVB representative, for the future potential for Greater Grand Forks.

JULIE RYGG, EXECUTIVE DIRECTOR Greater Grand Forks Convention & Visitors Bureau

5 INTRODUCING OUR TEAM

ANNA ROSBURG | General Manager DANIEL MELISE | Assistant GM/Director of Operations MARKETING RILEY SIMENSON | Director of Marketing DEREK HOFFERT | Director of Partnerships

EVENT SERVICES DAN ANGE | Director of Events POLINA SELINEVICH | Event Manager BRIAN FARIS | Event Manager ERICA ANDERSON | Event Manager

BOX OFFICE COLE JOHNSON | Ticket Office Manager

6 FACILITY PROJECTS

HVAC updating heating and cooling in our prefunction entry ways, adding a cooling component to suite level and adding heating to entry 2 and 3

PORTABLE RADIOS we upgraded our portable radios from analog to digital and added LED screens to administration/full time radios. Also added repeaters to allow better coverage for all channels.

MARQUEES initiated design on 2 exterior marquees and LED digital signage to concourse bridges

CHARGING STATIONS 6 new charging stations were ordered and installed by a paid sponsor

LIGHTING upgraded all exterior lighting and upgraded interior lighting that had not been covered under last years project

LACTATION SUITE The Lactation Suite sponsored by Plains Chiropractic and Acupuncture provides a private, welcoming environment to mothers and is a comfortable place to nurse, express breastmilk and care for their babies

BULLY BREW EXPRESS Bully Brew Coffee opened their Bully Brew Express location at Alerus Center during select events to enhance our guests’ experience in our building by offering specialty drinks, homemade treats, and more

FLOWER PLANTERS Partnered with Greenworks to revitalize and rejuvenate the planters outside our entrances with a bright and flowery makeover.

7 CONVENTION CENTER OVERVIEW

2018 EVENTS TO HIGHLIGHT 123,722 GREAT NORTHERN REGIONAL FIRST ROBOTICS COMPETITION TOTAL ATTENDANCE This is a free event to attend, and showcases 47 FIRST robotics teams traveling from as far away as Missouri. 400+ FIRST Robotics EVENTS

FEATURES Catering offered exclusively by Spectra

Elegance, tradition, flexibility, and technology – never before has the Northern region experienced the coming together of these features as they blend at Alerus Center

University of North Dakota FEAST OF NATIONS The University of North Dakota’s first ever Feast of Nations was held in 1961. Organized by students in UND’s International Organization, it started as a small group of people preparing a dinner in order to share their cultures. The Feast of Nations has now grown into the biggest multicultural event in the region. This is a celebration of culture, community and diversity. Alerus Center’s Chef provides a 4 course meal for 1,000 attendees that offers a taste of the world.

University of North Dakota

8 SIOUX AWARDS The Sioux Award is the highest honor given by the UND Alumni Association & Foundation for achievement, service, and loyalty. Since its inception in 1962, this distinguished award has been presented to leaders in government and business, high achievers in various professions, and alumni who have dedicated their lives to service for others. In 2018, Sioux Awards honored Phil Jackson.

University of North Dakota Thank you for all your help " making this event so fun! Always above and beyond what we expect, thank you! " Kathryn Sundby | CHS AG Services

2018 Democratic-NPL State Convention

9 ARENA OVERVIEW

22,000 CAPACITY

HOME TO NORTH DAKOTA FOOTBALL

TICKETED 123,043 ARENA METALLICA TOTAL ATTENDANCE 19 EVENTS BROKE 4 BUILDING RECORDS

HIGHEST-GROSSING FOOD AND BEVERAGE SALES FIRST TIME HIGHEST-GROSSING MERCHANDISE SALES in building’s history to have HIGHEST-GROSSING TICKET SALES HIGHEST-GROSSING PARTNERSHIPS REVENUE 3 CONCERTS EACH HAVING OVER 8,500 PAID ATTENDANCE BIG SHOWS INCLUDED Metallica

Thomas Rhett

Five Finger Death Punch & Shinedown BUILDING OPENED IN FEBRUARY 2001 Jurassic Quest Rodney Carrington 10 MARKETING SEGMENTS

I want to reach out and say THANKS 27.8% 5.6% " to all the staff at the Alerus who 11.1% made our Thanksgiving Feast such a success. We have heard nothing but great comments from the food, the EVENT MIX space itself, and the wait staff. They TYPE did a wonderful job making this a special day for area senior citizens! 11.1% " Colette Iseminger | Grand Forks Senior Center

44.4%

1.8% 39% 2.8% 13,783 ATTENDED JURASSIC QUEST

ATTENDANCE

17.8%

38.6%

2.2% -6.5% 33.7%

COMEDY

EVENT CONCERT INCOME FAMILY SHOW

SPORTING EVENT 52.1% 18.5% HAPPY HARRY'S BEER & BACON FESTIVAL 11 FIGHTING HAWKS FOOTBALL

PHOTO BY RUSSELL HONS

9,336 AVERAGE HOME ATTENDANCE UND FOOTBALL SAW ITS 1,000,000 FAN THROUGH ALERUS CENTER'S DOORS 46,682 TOTAL ATTENDANCE Nickel Trophy on-site before being permanently displayed at the North Dakota Heritage Center FINISHED 6-5 TRANSITIONING TO MISSOURI VALLEY CONFERENCE INTRODUCED More regional games and bigger rivalries to come

BRAND NEW MASCOT 12 SUMMARY OF ACCOMPLISHMENTS

We were so pleased with all " of the work you and your staff put forth for our event on Saturday. I received many positive remarks from the attendees, including our owners!! Thanks again for all the hard work! " Mary Vein, ACME Tools University of North Dakota

PREMIUM SEATING $214,817 IN REVENUE ADVERTISING PARTNERS $467,170 IN REVENUE

GETTING SOCIAL

Grew from 13,419 likes to 32,528 likes

Grew from 1,433 followers AWARDS & NOMINATIONS to 1,652 followers

VENUE OF THE YEAR

SPECTRA OUTSTANDING CLIENT COMMITMENT Launched Instagram Account gained 633 followers NOMINATED FOR GENERAL MANAGER OF THE YEAR

Employees are participating on Community events our the following boards: staff attended: Grand Forks/East Grand Forks Altru Gala Chamber of Commerce Chamber of Commerce Annual Dinner Greater Grand Forks Convention & Visitors Bureau State of the Base Grand Forks Event Center Commission Wake Up To UND Greater Grand Forks Young Humane Society Fundraiser Professionals Advisory Board Community Foundation Dinner

13 COMMUNITY INVOLVEMENT

SEASON OF GIVING The Spectra team at Alerus Center focused on a season of giving, sharing, and promoting social good. Each event highlighted amazing people, charities, and causes with the goal of generating fundraising dollars, raising awareness, and spreading holiday cheer in the Greater Grand Forks Area Community.

NOVEMBER 13 – DECEMBER 27

Food Drive Feed the Pets Blood Drive Drive-In Movie Night “Stuff the Sleigh” Gift Drive Breakfast with Santa Big Ticket Giveaway Ticket Donation

Annual event where children in our community can participate in a free Easter Egg Hunt EASTER EGG for their chance to win prizes! Families can also enjoy breakfast, inflatable games, the cup cake walk, cookie decorating, photo booth, face painting and more! Best of all, the Easter SCRAMBLE Bunny is on site all day and available for photos!

14 FINANCIALS

CONVENTION CENTER ARENA EVENTS ALERUS CENTER

ACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE

# OF EVENTS 403 389 14 24 48 (24) 427 437 (10)

GENERAL ATTENDANCE 123,722 217,250 (93,528) 107,698 169,000 (61,302) 231,420 386,250 (154,830)

DIRECT EVENT INCOME $693,345 $1,240,280 ($546,935) ($371,863) $350,370 ($722,233) $312,482 $1,590,650 ($1,269,168)

FACILIY FEE $6,980 $50,353 ($43,373) $171,546 $69,032 $102,514 $178,526 $119,385 $59,141

SUITE REVENUE $ - $ - $ - $41,831 $ - $41,831 $41,831 $ - $41,115

NET TICKETING REVENUE $ - $60,625 ($60,625) $331,022 $178,416 $152,606 $331,022 $239,041 $91,981

NET ANCILLARY INCOME $1,085,076 $363,067 $722,009 $784,905 $440,716 $344,189 $1,869,981 $803,783 $1,066,198

$1,785,401 $1,714,325 $71,076 $957,441 $1,038,534 ($81,093) $2,742,842 $2,752,859 ($10,017)

OTHER INCOME ($69,210) $21,778 ($90,988)

PARTNERSHIPS $498,825 $585,396 ($86,571)

UND RENT $198,261 $198,261 $ -

HOSPITALITY TAX $576,495 $478,425 $98,070

TOTAL INDIRECT $3,637,140 $3,801,429 $164,289 EXPENSES

NET OPERATING INCOME $1,785,401 $1,714,325 $71,076 $957,441 $1,038,534 ($81,093) $310,073 $235,290 $74,783 (LOSS)

15 FUTURE OUTLOOK

As we look back over the past 12 months and look forward into the foreseeable future, Spectra remains optimistic that Alerus Center will continue to drive economic impact and bring in diverse content to enhance the quality of life for Grand Forks area citizens. Over the next 12 months in the arena, we will host the 5th annual Happy Harry’s Beer & Bacon Festival, Jurassic Quest, Dierks Bentley, Harlem Globetrotters, Monster Trucks, Jo Koy, Cheap Trick, six home University of North Dakota Fighting Hawks football games and more. In the conference center, we will host over 20 conventions, over 40 weddings, over 20 consumer shows, and over 100 meetings, including the 2019 International Spectra Box Office, Sales, and Marketing conference in June.

We look forward to many pivotal points in 2019 with our tenant team and naming rights partner contract negotiations, as well as significant capital projects including planning for the field turf replacement and marquee project; all of which will allow us to positively position Alerus Center for the future.

Spectra looks forward to continuing to drive economic impact and enhance the quality of life for the Grand Forks community through hosting additional events and enhancing the customer experience at each event.

ANNA ROSBURG, GENERAL MANAGER Spectra Venue Management – Alerus Center 16