Kent’s ShoWare Center loses $277,000 in third quarter

After keeping deficits under $30,000 the first six months of 2011, Kent's ShoWare Center lost $277,376 in the third quarter.

Fans watch the Ringling Bros. circus in September at the ShoWare Center in Kent.

Fans watch the Ringling Bros. circus in September at the ShoWare Center in Kent.

After keeping deficits under $30,000 the first six months of 2011, Kent’s ShoWare Center lost $277,376 in the third quarter.

The city-owned arena has now lost $306,410 in the first nine months with expenses of $1.85 million and revenues of $1.53 million, according to the center’s income statement.

Patrick McCluskey, ShoWare finance director, blamed smaller than expected circus crowds, a high water and sewer bill not included in the initial budget and higher maintenance and repairs costs for the larger than anticipated nine-month deficit.

McCluskey revealed the budget numbers in a presentation Oct. 27 to the Public Facilities District board, which oversees operations of the $84.5 million arena. The facility opened in January 2009 and has lost money for two consecutive years.

The arena had expenses of $608,158 and receipts of $330,782 for July through September for a deficit of $277,376, according to the income statement provided by SMG, the operator of the arena.

“There are three variances that are throwing us off a little bit from the budget,” McCluskey said. “The circus didn’t come in like we thought. We anticipated a three-ring circus and it came only as a one-ring circus so ticket sales were down as far as revenue for that event.”

The Ringling Bros. Barnum & Bailey circus brought a smaller (one-ring) show to town in September as opposed to a larger (three-ring) event that came in 2009 to Kent.

“That one-ring circus cuts down the house (attendance per night) from about 4,000 to about 2,800,” said Tim Higgins, ShoWare general manager, at the board meeting.

A larger circus includes more animals and a bigger show and arrives by train. The smaller circus uses trucks and other vehicles and costs the Ringling Bros. less money to bring to town. Ringling Bros. also did not bring the larger circus to Everett or Portland in order to cut travel costs, Higgins said.

ShoWare had a couple of unexpected costs.

“The other two areas that we were off is we had a quarterly water and sewer maintenance bill that we never anticipated in the budget,” McCluskey said. “And we had a compressor that we had to fix, so our repair and maintenance expenses are up over budget.”

McCluskey said the six-figure water and sewer bill from King County didn’t show up until this year and had not been included in the budget.

“The revenues are over budget (for the first nine months) but we anticipated them to be up more to offset repairs and maintenance,” McCluskey said.

Meanwhile, Ben Wolters, city economic and community development director, announced at the board meeting that city staff will recommend the Kent City Council approve a new three-year contract with Philadelphia-based SMG to operate the facility. The existing three-year agreement expires the end of this year.

SMG manages the day-to-day operations of the arena, including event booking, the budget, vendor selection, public relations and marketing, and event staffing.

Wolters said the contract is scheduled to go before the council’s Operations Committee Nov. 15 for approval.

Wolters also said the city reached a tentative agreement to amend the 30-year lease with the Seattle Thunderbirds hockey team about lowering prices for suites and club seats as well as allowing SMG and the city to market the suites along with the T-Birds.

“The upshot of both agreements is to put the building on more solid financial footing,” Wolters said.

The T-Birds currently sell suites for hockey and non-hockey events. The new agreement will allow SMG to sell suites and club seats for non-hockey events.

City officials set aside money each year in the city’s annual capital budget fund to cover the anticipated losses at the arena. If not needed for the arena, that money could be used to help pay for improvements to city streets, facilities and other capital projects.

The arena lost $398,000 in 2010 and $451,000 in 2009.


Talk to us

Please share your story tips by emailing editor@kentreporter.com.

To share your opinion for publication, submit a letter through our website https://www.kentreporter.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) Please keep letters to 300 words or less.

More in News

Courtesy Photo, King County
Man receives 35-year sentence for 2021 Kent killing of mother

Duane Bates borrowed pipe wrench from neighbor in beating death and later returned it

A city of Kent Public Works crew member chains up a truck Feb. 3 to help clear snow from streets. COURTESY PHOTO, City of Kent
Kent schools closed for 3rd consecutive day due to icy conditions

Kent School District cancels classes on Wednesday, Feb. 5

t
World Relief office in Kent faces challenging refugee crisis

Trump’s executive order to suspend refugee resettlement directly impacts nonprofit

Courtesy Photo, Kent School District
Kent schools closed Tuesday, Feb. 4 due to icy roads

Second consecutive day of no school due to road conditions

Courtesy Photo, City of Kent
Kent Severe Weather Shelter to be open nights of Feb. 3-7

Shelter downtown at Holy Spirit Church will operate from 9 p.m. to 7 a.m. each night

t
Kent Police hire officer who fatally shot Kansas man while on duty

Officer previously worked for Olathe Police Department; remains subject of wrongful death lawsuit

Calvin Watts. COURTESY FILE PHOTO, Kent School District
Ex-Kent schools’ superintendent Watts fired from Georgia job

Gwinnett County board terminates superintendent contract; Watts left Kent in 2021 for position

t
Medical examiner identifies Kent man, 84, killed in car crash

Robert N. Gaunce died from multiple blunt force injuries after truck flipped on its side

Corniche Washington reading an apology letter at his sentencing. Photo by Joshua Solorzano/Sound Publishing
Federal Way man sentenced in 2021 Kent bus stop murder

Corniche Washington receives nearly 23 years in shooting death of Antonio Wells.

Maleng Regional Justice Center in Kent. FILE PHOTO
Man to face sentencing in murder of girlfriend at Kent hotel

A jury convicted Phillip J. Lopez in the 2021 beating death of Amber Keith at Ramada Inn

A mobile center from Bloodworks Northwest takes blood from Enumclaw resident Andy Bremmeyer, pictured in this 2019 photo. Sound Publishing file photo
WA residents urged to donate blood due to ‘code red’ low levels

Four consecutive days of emergency low blood supplies has led to shortages needed for transfusions and treatment.