2010 annual report

IOWA EVENTS CENTER • WELLS FARGO ARENA • HY VEE HALL • VETERANS MEMORIAL AUDITORIUM • POLK COUNTY CONVENTION COMPLEX • IOWA EVENTS CENTER • WELLS FARGO ARENA • HY VEE HALL • VETER-ANS MEMORIAL AUDITORIUM • POLK COUNTY CONVENTION COMPLEX • IOWA EVENTS CENTER • WELLS FARGO ARENA • HY VEE HALL • VETERANS MEMORIAL AUDITORIUM • POLK COUNTY CONVENTION COM-PLEX • IOWA EVENTS CENTER • WELLS FARGO ARENA • HY VEE HALL • VETERANS MEMORIAL AUDITORIUM • POLK COUNTY CONVENTION COMPLEX • IOWA EVENTS CENTER • WELLS FARGO ARENA • HY VEE HALL • VETERANS MEMORIAL AUDITORIUM • POLK COUNTY CONVENTION COMPLEX • IOWA EVENTS CENTER • WELLS FARGO ARENA • HY VEE HALL • VETERANS MEMORIAL AUDITORIUM • POLK COUNTY CONVENTION COMPLEX • IOWA EVENTS CENTER • WELLS FARGO ARENA • HY VEE HALL • VETERANS MEMORIAL AUDITO-RIUM • POLK COUNTY CONVENTION COMPLEX • IOWA EVENTS CENTER • WELLS FARGO ARENA • HY VEE HALL • VETERANS MEMORIAL AUDITORIUM • POLK COUNTY CONVENTION COMPLEX • IOWA EVENTS CEN CENTER • WELLS FARGO ARENA • HY VEE HALL • VETERANS MEMORIAL AUDITORIUM • POLK COUNTY CON-VENTION COMPLEX • IOWA EVENTS CENTER • WELLS FARGO ARENA • HY VEE HALL • VETERANS MEMORIAL AUDITORIUM • POLK COUNTY CONVENTION COMPLEX • IOWA EVENTS CENTER • WELLS FARGO ARENA • HY VEE HALL • VETERANS MEMORIAL AUDITORIUM • POLK COUNTY CONVENTION COMPLEX • IOWA EVEN EVENTS CENTER • WELLS FARGO ARENA • HY VEE HALL • VETERANS MEMORIAL AUDITORIUM • POLK COUN COUNTY CONVENTION COMPLEX • IOWA EVENTS CENTER • WELLS FARGO ARENA • HY VEE HALL • VETER-ANS MEMORIAL AUDITORIUM • POLK COUNTY CONVENTION COMPLEX • IOWA EVENTS CENTER

ANNUAL REPORT 2009 • 2010

Managed by

TABLE OF CONTENTS

Iowa Events Center Annual Report • 2009 2010 3

Statement of Purpose 4

Message from Matt Homan, General Manager 5

Message from Tom Hockensmith, Board of Supervisors 6

Message from Greg Edwards, CVB President & CEO 7

Summary of Accomplishments 8

Signature Events 9

Tribute to Veterans Memorial Auditorium 13

Facility Overview 14

Facility Floor Plans 15

Organizational Chart 16

Ovations Food Services 18

How You Doin’? 19

Partners 20

Client Surveys 22

Financial Performance FY July 1, 2009 - June 30, 2010 23

Market Segments 24

Community Involvement 26

Charity Committee/Community Service 27

Art at the Iowa Events Center 28

Energy Savings 29

Capital Budget 30

Going Green 31

Testimonials 32

Customer Comments 34

Future Outlook 35

Global Spectrum is committed to providing professional, full-service management of the Iowa Events Center by operating under the highest level of effi ciency and professional integrity. Global Spectrum strives to exceed all expectations set forth by Polk County, the local business community and the customers who visit the Iowa Events Center facilities.

The Iowa Events Center is a high-profi le destination for the entertainment, meeting and hospitality community, hosting events from large concerts to small conferences. Each event serves an important role, helping to assist the facility in becoming the premier destination for event organizers and meeting planners. Global Spectrum strives to provide a fi rst-class home for sports teams and a results-driven business venture for community partners by providing clean facilities, superior customer service and space to fi t any needs.

STATEMENT OF PURPOSE

Managed by

4

Iowa Events Center staff

MESSAGE FROM OUR GENERAL MANAGER

Iowa Events Center Annual Report • 2009-2010 5Iowa Events Center Annual Report • 2009-2010 5

MESSAGE FROM OUR BOARD OF SUPERVISORS

6

MESSAGE FROM OUR CVB PRESIDENT & CEO

Iowa Events Center Annual Report • 2009-2010 7

SUMMARY OF ACCOMPLISHMENTS

8

Many successful happenings occurred in the past 12 months at the Iowa Events Center. It is an exciting time in downtown Des Moines, as the Polk County Board of Supervisors have continued with plans to renovate Veterans Memorial Auditorium turning the arena space into meeting space with a ballroom. This will allow Vets to remain a part of the Iowa Events Center in the future, with construction starting in October 2010. Completion of the project is slated for January 2012 when Global Spectrum will be working to transfer operation from the Polk County Convention Complex to the renovated Vets Auditorium.

Wells Fargo Arena completed its first season without an AHL hockey tenant this past year, as the Iowa Chops were suspended from play, and the franchise has since been sold. That did not deter central Iowans from attending events at the arena, as revenues at Wells Fargo Arena were above projections for the third consecutive year. The Iowa Barnstormers and Iowa Energy continue to call Wells Fargo Arena home, and both have signed lease extensions to ensure they play in Des Moines for at least three additional seasons.

An increased number of concerts took the Wells Fargo Arena stage, with a stretch from March to May that would rival any single stretch in the arena’s history. During those three months, sold out crowds saw the Black Eyed Peas, George Straight and Reba McEntire, Elton John and AC/DC. A combined 60,000 people were witness to those four concerts.

The AQS National Quilt Show & Contest returned to the Iowa Events Center for the second straight year, and Pheasants Forever 2010 National Pheasant Fest returned in February for the first time since 2007. Both events provided tremendous economic impact for Polk County residents and promised to return to Des Moines due to the large success of their events.

In addition to the event success over the past year, two former Iowa Events Center employees received promotions to new venues within the Global Spectrum family, highlighting the continued efforts made by the Iowa Events Center staff to be a top-level training ground for future facility leaders.

All staff have become increasingly knowledgeable about the operations for the facilities thanks to teaching instruction at staff meetings each week. Not only has this increased knowledge led to a tighter knit team, but it has also contributed to eliminating waste and saving expenses throughout the budget year.

Iowa BarnstormersGeorge Strait

AQS National Quilt Show & Contest

CONCERT EVENTS

With 11 concerts coming to Wells Fargo Arena in the last year, the building has become a place for central Iowans to see the greatest acts in the industry. Over 130,000 enthusiastic fans came through the doors to see acts ranging from Britney Spears to Brad Paisley.

Wells Fargo Arena had a particularly busy April, with George Strait and Reba McEntire, AC/DC, Elton John and Christian rock group Hillsong United, all taking the stage throughout the month. Over 15,500 AC/DC fanatics rocked out to both new and classic songs, after Elton John led the arena in a greatest hits sing-a-long the night before. Some acts, such as Tim McGraw and Taylor Swift had visited Wells Fargo Arena before, while others, including Miley Cyrus and the Black Eyed Peas made an appearance for the first time.


Taylor Swift

Elton John AC/DCBlack Eyed Peas

Sold Out Crowd

FAMILY EVENTS

10

Des Moines native Shawn Johnson returned to Wells Fargo Arena again last year. The Olympic gold medalist and “Dancing with the Stars” champion was the headliner for Shawn Johnson and Friends: An Evening of Music, Dancing and Shawn. Professional dancers Mark Ballas, Derek Hough, Chelsie Hightower as well as celebrities Gilles Marini, Kristi Yamaguchi and more all joined Johnson in the special one-night performance.

WWE Monday Night Raw was televised live from Wells Fargo Arena for the first time with daytime television persona Jerry Springer as guest host. The popular WWE Raw brand had not been televised live from Des Moines since October 2004, and fans flocked to the arena to see WWE’s biggest stars.

Some family shows surpassed previous attendance records at Wells Fargo Arena, such as Monster Jam and the Professional Bull Riders. Other shows that returned to Des Moines and thrilled crowds include the Harlem Globetrotters, Disney On Ice presents Princess Classics, Sesame Street Live and Arenacross Series.

Shawn Johnson and Friends:An Evening of Music, Dancing & ShawnWWE Monday Night Raw

Disney On Ice presentsPrincess Classics

Monster Jam

Harlem Globetrotters

SPORTING EVENTS


Both Wells Fargo Arena tenants had strong seasons in 2009-2010. The Iowa Energy won a league-record 37 games to lead the Eastern Conference. The NBA D-League affiliate of the Chicago Bulls and Phoenix Suns lost in the semi-finals to the Tulsa 66ers. The Iowa Barnstormers are in the middle of their first season as a charter member of the new Arena Football League after playing the previous three seasons in the Arenafootball2 league.

In what is an annual tradition, high school wrestling and basketball fans filled the arena for a week in February and two weeks in March. Attendance was up once again for the 2010 tournaments. During the boys’ basketball tournament, fans from all over came to watch the Ames High School Little Cyclones and their two star players, Harrison Barnes, who committed to play at the University of North Carolina, and Doug McDermott, who will play for his father, Greg, at Creighton University next year. The Little Cyclones completed their second-straight perfect season and claimed the 4A title once again.

IHSAA State Wrestling Tournament

Iowa Energy Iowa Barnstormers IHSAA Boys State Basketball TournamentIGHSAU Girls State

Basketball Tournament IHSAA State Wrestling Tournament

CONVENTION EVENTS

12

The Iowa Events Center convention facilities hosted a variety of events that attracted visitors from Iowa, the Midwest and the rest of the country to Des Moines.

The AAU Junior Olympic Games were hosted in Des Moines July 2009 with 40,000 spectators and athletes converging on Des Moines. This national event generated 28,600 room nights in area hotels, and millions of dollars for the local economy. North America’s Supercorridor Coalition also met in Des Moines in June 2010, which was an event that brought together public and private sector leaders from across North America to focus on dramatic challenges the continent’s infrastructure faces.

Iowa’s Premier Wine & Food Expo also saw its second successful year, with celebrity chefs Andrew Zimmern of Travel Channel’s “Bizarre Foods” and Duff Goldman of Food Network’s “Ace of Cakes” making appearances that entertained adults and children alike. The expo also hosted an Amateur Wine Contest and a Cake Contest, in which the winner received the title of Des Moines’ Best Cake.

Pheasants Forever’s National Pheasant Fest returned to Des Moines in February 2010 after hosting the event at the Iowa Events Center for the first time in 2007. Over 20,000 hunting enthusiasts flocked to the show, which featured over 400 unique exhibitors and 900 booths.

The 26th Annual Veterans Golden Age Games, held in May, stopped in Des Moines for the first time this year. The event brought more than 600 veterans from all over the country to compete in various sports and recreational activities, from bowling to bingo, ping pong to golf.

Other reoccurring events held at the Iowa Events Center this year included: Iowa FFA, Iowa Power Farming Show, the Des Moines Home & Garden Show, Iowa Deer Classic and Iowa Pork Producers.

AQS Quilt Show & Contest

Iowa Power Farming Show

Iowa’s Premier Wine & Food Expo

TRIBUTE TO VETERANS MEMORIAL AUDITORIUM


For the past 56 years, “The Barn” has been part of Iowa’s history. Upon completion in 1954, Veterans Memorial Auditorium was one of the largest venues in the country that could host arena events and expos. Des Moines was a must-play venue for musical guests such as Elvis Presley (1956 and 1974), KISS (seven times), and Ozzy Osbourne who during his 1982 concert at Veterans Memorial Auditorium bit the head off a bat.

Vets also played a role in all of Iowa’s youth as the host of the high school state tournaments for wrestling and boys and girls basketball. Many young Iowans had a dream to play at “The Barn,” as the unique experience and large arena made lasting memories for each student-athlete that were unmatched.

In 2002 Polk County made a commitment to include Vets Auditorium as part of the Iowa Events Center, which included the construction of the brand new arena and convention center. After Polk County hired Global Spectrum to manage the complex, Vets began being used in a more diverse way, setting the stage for its future.

With the addition of Wells Fargo Arena and Hy-Vee Hall in 2005, and the evolving commitment by cities to create larger, more dynamic meeting and convention space to attract new events, Vets Auditorium will adapt again with the times and continue to serve an important purpose to the future of events held in Des Moines. Beginning in October 2010, Vets will undergo a major renovation that will add necessary meeting space and a ballroom to the existing Iowa Events Center. This transformation again shows the flexibility of the original plan for Vets and ensures that Iowans will continue to cherish the treasure that is Veterans Memorial Auditorium.

1952

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1967

1982

1993

1995

2002Representatives

of Des Moinesveterans

organizationsapprove

the idea of building aMemorial

Auditorium.

Construction on the

Auditoriumbegins on

December 15 as symbolic

shovels of earth are turned by Commission

Chairman Allen Whitfield and Des Moines

Mayor Allen W. Denny.

Veterans Memorial

Auditorium opens on

February 1 with its first event: The

Des Moines Policeman’s Ball. The first state

high school basketball

tournament at Vets are held in

March. Vetsbecame the

largest Coca-Cola

pre-mixinstallation in the

United States.Elvis performs on May 22, the first

rock ‘n’ roll concert to be held in Des

Moines.

A double bill performance

featuringAndy Williams

and Henry Mancini attracts

over 11,000 people to Vets Auditorium, a

box office record that would stand for almost ten

years.

Rock star Ozzy Osbourne

bites off the head of a bat during a concert at Vets on January 20. He was later

treated for rabies at Broadlawns

Hospital.

Veterans Memorial

Auditoriumbecomes the official water

storage facility for the

city of Des Moines during the Flood of

‘93, which left 250,000residents

without water. VeteransMemorial

Auditorium celebrates its

40th Anniversary and prepares for the first season of Des Moines’ Arena Football team, the Iowa Barnstormers.

2004

Global Spectrumis awarded the management contract for

the Iowa Events Center.

Polk County began

construction on two new facilities

(Wells FargoArena and

Hy-Vee Hall) that would combine

with Vets Auditorium and the Polk County

Convention Complex to

create the Iowa Events Center.

2010VeteransMemorial

Auditoriumrenovation

begins, adding meeting space

and a ballroom to the existingIowa Events

Center.

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FACILITY OVERVIEW

14

The Iowa Events Center boasts four dynamic facilities that each play an integral role in the success of the complex. With areas that seat 20 people for a board meeting to a large space where 17,000 of your closest friends can enjoy a concert, the Iowa Events Center really does accommodate everyone. With two facilities that have been mainstays in the Des Moines market for years (Polk County Convention Complex and Vets Auditorium) combined with two state-of-the-art facilities (Hy-Vee Hall and Wells Fargo Arena), the Iowa Events Center fi ts all budgets and needs.

The entire complex possesses an in-house team that can cater to any need a meeting planner or promoter would come across, from security services and food and beverage, to wireless internet and complete audio visual services that are offered with a preferred vendor. One-stop shopping has been a philosophy since the beginning, and the staff at the Iowa Events Center can handle any request effi ciently and effectively for your meeting attendees.

Open spaces are another common theme at the Iowa Events Center, as each pre-function space and concourse provides natural lighting through windows, showing off Des Moines’ beautiful, clean downtown. The openness also offers gathering spaces for large receptions and registration areas to allow planners to maximize space inside the meeting location.


FACILITY FLOOR PLANS

A B C D E

F G H I J

ROOM 204 ROOM 205 EXHIBIT HALL 206

133 135 137 139 141 143 145 147

134 136 138 140 142 144 146 148

LOBBY

LOCKER LOCKER

ELEVATORS

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Administrative O�cesBoardRoom

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Hy-Vee Hall Meeting Rooms 1-8

Hy-Vee HallHall B

Hy-Vee HallHall C

Iowa Events Center Hall A

Level 3: Veterans Memorial Auditorium Event Floor

Level 2: Hy-Vee Hall Exhibition Level

Level 1: Hy-Vee HallMeeting Room Level

Hy-Vee Halls B & C below

VeteransMemorial

Auditorium

Polk County Convention ComplexStreet Level

Polk County Convention ComplexSkywalk Level

Matt HomanGeneral Manager

Laurie Kemmit-FRMSenior Director ofCorporate Sales &Premium SeatingPremium Seating

Tim SavonaPremium Seating Manager

Mark GambleTechnical ServicesManager

Scott InukaiProduction Manager

Andy SchmidtIT Technician

Carlie HajduchMarketing Coordinator

Alissa CunninghamMarketing Coordinator

Sally MilliganMarketing Coordinator

Jason EvansGroup SalesCoordinator

Adam FlackDirector of Marketing (Regional)

Holly KjeldgaardAGM (Arenas)

Carrie JacksonAGM (Conventions)

Ryan ZieglerDirector of Events

Jackie HellrungEvent Manager

Zach PritchardEvent Manager

Kelly WyattEvent Manager

Mollie SammonEvent Manager

Kathy HaleyExhibitor ServicesCoordinator/EM

Brian PuzaGuest ServicesManager

Julie SwansonReceptionist

Jill RobinsonParking Manager

Linda HeckExecutive Assistant

Jolene WilderConvention Services AdministrativeAssistant

Ruth DotzenrodSales Manager-ASSN

Cyndi LorenzenSales ManagerCorporations

Jessica LorenzSales ManagerSports/Government

16

Bob NewellF & B Director Ovations

George CarpenterEngineer

Steve FrantzEngineer

James BaconEngineer

Frank EnriquezEngineer

Jim FrantzEngineer

Phil VaassenElectrician

Todd LeBelIce TechEngineer

Dennis DeanCarpenter

Derrick NestvedtBuilding Attendant

Steve CarlsonBuilding Attendant

Tim ThomasBuilding Attendant

Kurtis LakeBuilding Attendant

Julie WatertorBuilding Attendant

Josh IngleDirector of Operations

Mike KeplerOperations Supervisor

Jeff KlingOperations Supervisor

Nate LingrenOperations Supervisor

Janna KimberlinOperations Supervisor

Clyde PaceSr. Building Attendant

Al HayesChief Engineer

Bob SwansonSecurity ManagerCSC Security

Leah BeeryOperationsAdministrativeAssistant

Harold PetersonOperations Manager

Katie JohnsonHuman Resources Manager (Regional)

John EasonController

Jean BorlandAccountant

Tim SmithAccountant

Andrew DobraskaAccountant

Lisa GivensAccountant/Payroll Clerk

Diane FrischmeyerDirector of Finance

Jacqueline EatonTicket Office Manager

Jake ReichlingAssistant Ticket Office Manager

Diane HinesTicket Office Supervisor

17

OVATIONS FOOD SERVICE

18

In February 2010, Ovations entered into an agreement with Canvas, a foot vending (hawking) company based out of New York. Canvas has contracts at several venues throughout the country, including Giants Stadium in New York, the Staples Center in Los Angeles and the Sprint Center in Kansas City. Although the relationship is extremely new, the impact has been immediate, and both sides are extremely pleased with the results and future expectations. The hawkers have consistently added approximately one dollar to show per caps and since February 13th, equals an additional $143,000 to food and beverage sales.

Ovations opened a new Budweiser-themed bar on the main concourse of Wells Fargo Arena called the Budweiser Tap Room in October 2009. This new point of sale provides a unique atmosphere with post show parties and an aesthetically pleasing location that added $84,235 in revenue.

The Principal River’s Edge Restaurant continues to be a popular dining spot prior to events at Wells Fargo Arena. Even with the loss of 40 hockey games, the restaurant generated $82,042 in revenue this past fiscal year.


How You Doin?

The How You Doin? program encourages employees to go above and beyond to ensure guests at the Iowa Events Center have a memorable experience. This year’s committee included a part time employee for the first time. Each department at the Iowa Events Center had a representative on the committee.

Jolly Holiday Lights - The HYD Committee bought each part time employee a pass to Jolly Holiday Lights for them to spend some time with their families. Employees enjoyed this time with their family during a busy time of the year.

State Wrestling - Soda and popcorn vouchers were given out during one day of state wrestling tournament this year to all part time employees. This was a small token of appreciation for the long hours put in during state tournaments.

Iowa Energy - Complimentary tickets were offered to staff and their family for a game this season. Also, an opportunity to meet and receive autographs from two players before the game was made available to staff.

Employee Newletter - The committee added an explanation of one event to the monthly newsletter after it was brought to the committee’s attention that staff did not know what certain events were. The newsletter was so also sent out to part time staff who had expressed interest in receiving it for the first time.

HOW YOU DOIN’? PROGRAM

How You Doin’?TOP TEN1. Customer First

2. Golden Rule

3. Listen

4. Think “YES”

5. Be Professional

6. Positive Attitude

7. 24-Hour Rule

8. Everybody Sells

9. Enthusiasm

10. Do It Now


HYD Winners from 2009-2010

Jolly Holiday Lights

Iowa Energy game

HYD Winners


PARTNERS

Greater Des Moines Convention & Visitors Bureau

Focuses on events 18 months and out

Generated 110 leads for the Iowa Events Center representing a potential 219,588 room nights for the community Identified a potential 90 new groups/events with 238,502 new room nights

Secured 113 bookings with 70,968 room nights. These figures include 37 new bookings and 35,373 new room nights

The partnership with Iowa Events Center extends outside of Greater Des Moines. We take our pitch for Greater Des Moines on the road by participating in conferences andtradeshows, including:

∙ Religious Conference Management∙ Association (RCMA)∙ Rejuvenate∙ Direct Selling Association (DSA) ∙ Amateur Athletic Union (AAU)

Ovations Food Services

148 staff members including managers

Iowa Events Center Recap

F&B total sales budget: $3,494,093F&B total sales actuals: $3,422,898

Client commission budget: $1,288,194Client commission actuals: $1,263,285

Budgeted other income gross profit: $425,437Actual other income gross profit $616,309

Wells Fargo Arena Recap

Two highest grossing concerts since opening:∙ AC/DC $188,773∙ George Strait $175,184

Highest per/cap since opening:∙ AC/DC $13.64

New Era Tickets

Full-service ticketing company that handles all ticketing at Wells Fargo Arena

Provides revenue streams for the venue through system naming rights (Dahl’s Tickets), online and phone ticketing fees, print-at-home and ticket stock advertisers

Provided paperless ticketing services for concerts throughout the past year: Miley Cyrus, Bruce Springsteen and Justin Bieber

Tickets sold through outlets∙ 142,075 tickets on www.dahlstickets. com∙ 20,286 tickets through 866-55-DAHLS∙ 20,049 tickets at Dahl’s Foods outlets

New Era Tickets is powered by Paciolin, Inc. which is a leading provider of venue ticketing software solutions and was recently acquired by Comcast- Spectacor, parent company of venue manager Global Spectrum.

Front Row Marketing

Front Row Marketing develops, implements, and manages the sale of key revenue sources at the Iowa Events Center including premium seating, naming rights, venue advertising, sponsorship and vendor rights

Generated approximately $1.2 million in sponsorship dollars

Manages approximately $1.1 million in premium seating dollars

Supplement $431,539 in rentals.

Seven press box rental packages for concerts totalling 423 people and $58,156

Seven suite rental packages for concerts totalling 207 people and $39,614

20


PARTNERS

Markey’s Rental & Staging

As the preferred vendor of audio visual equipment, Markey’s Rental & Staging is responsible for making many events at the Iowa Events Center stand out.

Their net revenue for this year was $185,000 for Iowa Events Center (on gross customer billing of over $600,000).

May 2010 was the highest AV gross billing month ever. This was immediately superseded by June as the highest billing month.

Markey’s currently has three full time employees at the Iowa Events Center. (supplemented by a 16 full time and part time staff at Des Moines branch office)

CSC Security

Des Moines office: 296 active guards

Worked 134 events at the Iowa Events Center

Bob Swanson, Iowa Events Center Security Manager/CSC Branch Manager was named runner up Branch Manager of the year for 2009.

CSC Security expanded its relationship with Global Spectrum through partner-ships with the Philadelphia Union and Liacouras Center in Philadelphia.

45 branch offices across the United States and Canada.

CSC Security’s International division provided services and security screening services for the 2010 Winter Olympics in Vancouver, Canada. This marked the 7th Olympic games for which CSC has provided specialized services.

Iowa Energy

The Iowa Energy is host to the High School Hoops Series, that puts local high school teams on the Wells Fargo Arena court prior to Energy games.

Averaged 1,865 fans per game this season, which is an increase from last year.

Made the NBA-D League playoffs for the second year in a row.

Three Energy players received call ups to NBA rosters during the 2009-2010 season:

Othyus Jeffers – Utah JazzCartier Martin – Washington WizardsEarl Barron - New York Knicks

Iowa Barnstormers

The Iowa Barnstormers became a part of the new Arena Football League, which combined teams from the old AFL and AF2 Leagues this past season.

Inducted Kurt Warner into the Iowa Barnstormers Hall of Fame.

Made the second round of the playoffs in their second season of operation since returning to Arena Football.

Averaged over 6,920 fans per game.

Play eight home games per season at Wells Fargo Arena.


CLIENT SURVEYS

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4.60 4.58 4.62 4.56 4.544.42

4.60 4.55 4.614.44

The performance of the Iowa Events Center is measured through the use of a Customer Service Satisfaction Survey. The survey is given to event organizers for each event held at Hy-Vee Hall and the Polk County Convention Complex. Clients were asked a series of questions to rate their overall event experience. The results of the survey are based on 131 responses with a combined overall score of 4.596 out of 5.

FINANCIAL PERFORMANCE FY JULY 1, 2009 - JUNE 30, 2010


ACTUAL BUDGET VARIANCE

Number of Events 489 452 37

Attendance 1,285,790 1,218,422 67,368

Net Rental Income $2,210,610 $2,208,080 $2,530

Net Service Income (Loss) $(528,750) $117,387 $(646,137)

DIRECT EVENT INCOME $1,681,860 $2,325,467 $(643,607)

Net Surcharge/Commission Revenue $1,555,046 $1,231,148 $323,898

Net Ancillary Income $4,651,104 $4,331,374 $319,730

NET EVENT OPERATING INCOME $7,888,010 $7,887,989 $21

TOTAL INDIRECT EXPENSES* $9,060,790 $9,834,591 $773,801

Other Income $2,606,306 $2,800,664 $(194,358)

Net Building Operations Income (Loss)

$1,433,526 $854,062 $579,464

The past 12 months have provided significant financial rewards for Polk County, outlined below in the FY performance statement from July 1, 2009 – June 30, 2010. The Iowa Events Center staff continues to work extremely hard to manage the facilities responsibly in regards to revenues and expenses. When expenses are incurred, Polk County and State of Iowa companies have largely been the beneficiary of those expenses as a focus for the staff is working with local companies.

∙ This is the best financial results to date for the Iowa Events Center.

∙ Veteran’s Memorial Auditorium finished the year with a profit.

∙ Reduced indirect expense by 8% compared to budget.

∙ Year end resulted in a surplus of $579,464.

$536,563 of which was a profit to Polk County. This amount constitutes the highest amount to date.

Pictured below: A check presented to Polk County on July 21 in the sum of $536,563

*Monies paid to Iowa companies - $3,175,000 *Monies paid to Polk County companies - $2,210,000

MARKET SEGMENT: WELLS FARGO ARENA

24

Attendance by Event Type Event Mix by Type Net Income by Event Type

The sports category includes high school and college tournaments, Iowa Energy basketball and Iowa Barnstormers football. The sports category represented 48 percent of the events held at Wells Fargo Arena, compared to 59 percent last year. It accounted for 52 percent of the attendance and 31 percent of our net income. Concerts represented 13 percent of the events held at Wells Fargo Arena and accounted for 53 percent of the net event income. This is up six percent from last year.

Special Events Concerts Motorsports Family Shows Sports

MARKET SEGMENT: VETERANS MEMORIAL AUDITORIUM, HY-VEE HALL & POLK COUNTY CONVENTION COMPLEX


Special events represent 36 percent of our event mix, 26 percent of our gross revenue, 40 percent in attendance and 26 percent of our net income. This is an eight percent increase in the category for net income over last year. This is mostly due to the bookings of religious and government groups.

Attendance by Event Type Event Mix by Type

Net Income by Event Type Gross Revenue by Event Type

Tradeshows

Consumer Shows

Banquets

Meetings

Special Events

Conventions

Circus/Concerts/Sports

Engineer Job ShadowingThe Iowa Events Center engineering department partnered with Vatterott College in a job shadowing experience for their students. This gives each student the opportunity to work directly with key engineering staff to gain real job experience. Al Hayes, chief engineer, works with groups of students one day per month, conducting tours of the building systems and describing the day to day job responsibilities. Each student can see how the systems at the IEC are used in this unique work environment.

Each student then will volunteer four hours to help assist with light job duties around the buildings. This can consist of several different types of jobs in a safe work environment. The symbiotic relationship between Vatterott College and the IEC staff has proven to be a huge success over the past year. This program will continue to grow next year by possibly adding engineering interns for day to day job duties.

Non-profit organizationThis year the Iowa Events Center has given $173,500 back to local groups that participated in the Post-Event Clean Up Fundraising Program and working concession stands. Many of these groups are youth ball teams, service organizations or college sorority/fraternities.

Not for profit groups staff concession stands, and the groups use this for fundraising purposes. It is a win/win program for both sides. The groups get to work together in a fun environment to earn cash in a quick manner, and it has proved to be a great alternative to bake sales and car washes. Once a group is signed up, they go through an orientation and training session. From there, a list of events is sent out and groups are asked to sign up and say how many people they can provide. Groups are guaranteed at least $8 per hour per person, but that rarely comes into play. The group takes home roughly ten percent of net sales (varies between eight and ten percent based on stand and product sales).

COMMUNITY INVOLVEMENT

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Vatterott College tour

Vatterott College tour

Concession non-profit organization Concession non-profit organization


CHARITY COMMITTEE/COMMUNITY SERVICE


Community involvement is very important to the Iowa Events Center staff as they continue to build business partnerships and support local community organizations that play a vital role in the community. Between ticket dona-tions for silent auctions, buying local products, sponsoring local events and volunteering time to assist others, Iowa Events Center employees maintain a lasting impression on the Des Moines community.

From September 3-7 the Global Spectrum staff took part in Meals from the Heartland, where they packaged meals for the hungry. They also participated in a clothes drive during the month of September where 29 bags of clothing were donated to the local Central Iowa Shelter and Services.

October 2 was Lee National Denim Day and the local team contributed $210 to the event.

From November 9 through December 9, canned food and non-perishable items were collected and boxed for pick up by the Holiday Food Project and the Crisis Fund. They sorted and packaged the food donated and put in 1,000 baskets to be delivered to the elderly households who do not have a means of transportation. We collected 400 items for this event.

During the month of December the Iowa Events Center adopted a family where $200 in household, personal hygiene and baby items were bought and donated to Children & Families of Iowa Foundation.

For the third year in a row, members of the Iowa Events Center ticket office and their families volunteered in the Wish Village at Jolly Holiday Lights. They assisted Santa by taking photos with the children, providing coffee and hot chocolate and selling Make a Wish Merchandise.

Jeans for Charity took place throughout the whole year and contributions went to charities voted on by employees.

March 30 was the Iowa Events Center’s Annual Blood Drive. Thirteen people regisitered, ten gave whole blood, two donated double red cells and three were first time donors. A total of 32 patients received life saving transfusions because of our blood donors.

Over 20 people represented the Iowa Events Center Water Station on Saturday, June 5 voluteering for Dam to Dam, Iowa’s Distant Classic 20 kilometer race.

Jeans for Charity

Dam to Dam

Meals from the Heartland

Holiday Food Project


ART AT IOWA EVENTS CENTER

“A Veterans Prayer for Eternal Peace”

“Until the Woods Began to Move” “Janet Hart Heineke, Ankeny Art Center”

“Janet Hart Heineke, Ankeny Art Center”

“Tim Wirth, Ankeny Art Center”

Reproduction of “Autumn, New Hampshire

“Wheat Penny”, 2009 “Great Seal of the Stateof Iowa”, November 2009

“Strawberry”, July 2009 “Great Seal of the Stateof Iowa”, November 2009

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The engineering department at the Iowa Events Center has done an incredible job reducing energy usage. The ongoing efforts of Al Hayes and Jim Bacon along with the entire engineering department have reduced the Iowa Events Center usage by nearly 25 percent over the last four years. The process starts with the Square D energy monitoring system allowing staff to see “real time” usage for each system in each building. The lead engineer will then “drop off” usage during peak days to limit the monthly peak demand. This is critical in reducing monthly energy costs. This practice also makes each engineer and operations staff aware of the efforts to reduce energy day to day. It is common practice to turn off unnecessary lights and systems unrelated to events when possible. This reduces our kWh readings during the month for additional savings. In addition to kWh reduction and peak demand, time is spent reducing gas usage. The reduction in “therm” charges has helped over the last few years. This comes from management of the hot water temperatures and cycling of the boilers when they are not needed. A guard is stationed at the roll up doors during event move in and move out periods. They keep the doors closed as much as possible to limit the amount of cold air rushing into the building. The “therms per day” average usage has been reduced by 37 percent over the past four years. This specific management of energy has proven to be vital in the Iowa Events Center making budget year after year.

ENERGY SAVINGS


Cost per month Therms per day

Iowa Events Center - Energy Metering ProjectThe meter project was completed in June with the addition of two gas meters, four Onicon BTU meters and one Onicon BTU Flow Meter. The work will also include installation of a Trane BCU to supply integration to the Metasys system through BACnet over IP. The installation of the meters and hardware will give the Iowa Events Center a clear meter reading between Veterans Memorial Auditorium, Hy Vee Hall and Wells Fargo Arena. This will give the Iowa Events Center a clear budget utility usage number for each building as opposed to an estimating system now in place.

Iowa Events Center - Network Automation Engines (NAE)The Johnson Controls system used at the Iowa Events Center uses seven NAE’s to disperse information to each controlling segment. The NAE’s were in need of replacement due to a Microsoft mandatory update. The NAE’s will allow for current and future system updates that are necessary to operate our systems.

Veterans Memorial Auditorium - Skywalk Roof ReplacementThe skywalk roof that leads south of Veterans Memorial Auditorium was in need of replacement due to age. The roof lasted over 20 years with limited issues, but in the past two years the membrane began to leak in numerous locations that could not be repaired. The existing rock ballast and EPDM roof was removed and disposed of and a new 60 mil fully adhered EPDM roof was installed. The new EPDM roof should give us an additional 20 years of life.

Iowa Hall of Pride - Chilled Water CoilThe York 60 ton condensing unit that supplies cooling to the Iowa Hall of Pride was in desperate need of replacement due to a design flaw. The unit was placed about 100 feet too far from its designed location, causing significant oil return issues. This caused a number of compressors to fail. The fix was to eliminate the York 60 ton unit and replace this with a chilled water loop that tapped into the existing chilled water loop. The new system has been running well with a significant reduction in cost to cool the space due to the increased energy efficiency of the chilled water loop.

Polk County Convention Complex - Escalator RebuildThe aging hitachi escalators have been in service for 24 years without any major repairs or rebuilds. The need to rebuild two of the four escalators was necessary due to the limited parts availability and the fabrication necessary to remanufacture outdated parts. The project consisted of removal and re-fabrication of all handrail drive rollers, drive sprockets, idler sprockets, escalator handrails and handrail drive chains. This will give the escalators the necessary reliability needed during our events through 2011.

Polk County Convention Complex - Chiller RepairThe aging chiller at the PLEX was in need of several repair parts for the upcoming cooling season in 2010. The repairs consisted of replacing the purge unit, replacing the guide vane block and replacing the oil heater thermostat. These repairs should get us through the summer of 2011 cooling season before moving out of the PLEX to the remodeled Veterans Memorial Auditorium.

CAPITAL BUDGET

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GOING GREEN


Several green initiatives have been implemented at the Iowa Events Center in the last year. It is estimated that this ongoing effort will save an excess of $125,000 a year as a result of these actions.

In Hy-Vee Hall 216 florescent light fixtures were installed, replacing mercury halide lights. This has saved $1,500 per month in energy costs.

Various recycling efforts have also emerged. The Iowa Events Center obtained a baler that allows the recycling of cardboard materials. Paper is being recycled at each individual desk and in all copy rooms. Cans and bottles are being recycled in all break rooms, in the suites and on the concourses at Wells Fargo Arena. Additionally, all high mercury composition lamps and light bulbs are being recycled throughout the complex.

Ambient light sensors were installed in the lobby of Veterans Memorial Auditorium and in all restrooms at Wells Fargo Arena. Standard T8 lamps are also being replaced with energy savers.

During the summer months the facilities participate with energy curtailment through Mid-American Energy. During the hottest days of the year, as Mid-American approaches their peak, we lower the kwh at the buildings and run off a generator. This produces 1.2 megawatt in energy that lowers demand during those critical hours.

The generators are powered by the Iowa Events Center’s own fuel oil tanks.

Environmentally friendly chemicals are being used to clean the venues, including Alpha HP, a universal cleaner for windows, counter tops and other similar surfaces. (Crew is used for toilets/urinals and Glance, a non-ammonia glass cleaner.)

During events in which the upper concourse is not being used, lights are turned off using only emergency lighting. This saves $3,500 per year in electric costs.

Continuing efforts are being made to ensure the Iowa Events Center is implementing new eco-friendly and energy efficient initiatives. In Hy-Vee Hall trap guards will be installed to eliminate the need to charge traps weekly, reducing our domestic water usage by 480,000 gallons per year. We will continue to find areas to use this system throughout the IEC to further reduce our need for treated water.

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TESTIMONIALS


TESTIMONIALS

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Rhonda Phillips, Iowa Right to Life says:September 8, 2009Your staff ’s desire to accommodate our needs and do so withcourtesy and humor were very much appreciated.

Kanan Kappelman, Iowa Department of Economic Development says:October 6, 2009Staff was very flexible, courteous and a pleasure to work with. Thank you very much for great customer service.

Karen Austin, Iowa Women and Money Conference says:October 17, 2009I appreciate the professionalism of the staff. We worked hard to provide a free event to hundreds of people and sometimes that meant negotiations what we wanted to do with what we could afford. All staff worked well with us and as a result we had excellent feedback from our participants!

Mike Hooper, HBO Services, Inc says:October 20, 2009We were very pleased with everything!

Beth Gibbons, Greater Des Moines Habitat for Humanity says:November 5, 2009I was very concerned when our staff contacts changed two weeks before our event. The staff at the Iowa Events Center turned out to be GREAT! The entire staff seemed to make every effort to find a solution to challenges and make our evening a success!

Kathy Enyart, Iowa State Dance/Drill Team Association says:December 4, 2009All guest service personnel did an excellent job!

Ryan Haas, Midwest Cage Championship says:January 16, 2010I deal with Jessica, Kelly and Jake the most, so they are always at the top of my list to say good things about. They literally make everything so easy and enjoyable. They can and will solve any and all issues to make everything so good. All staff do their part and make the Iowa Events Center one strong and best team! Thank you ALL!

Kendra Daly, BRAVO says:February 6, 2010My direct contact was with Kelly and Ryan. Both of which were highly efficient, attentive, professional and personable. Perfect! Thank you.

Rick Wulkow, State Wrestling Tournament says:February 17, 2010Your staff is very responsive and courteous. Great partnership!

John Overton, Girls State Basketball Tournament says:March 1, 2010You run a great house. Your people are just great to work with. I thank you for the scoreboard. Great job with the parking of buses and spectators.

Carol Rude, AVIVA Finance Town Hall says:March 23, 2010Thank you for making our event such a great success. Your staff was wonderful to work with!

CUSTOMER COMMENTS


Global Spectrum is excited to enter into an extremely important time in the Convention industry with the Iowa Events Center. Beginning in October 2010, construction will start on a project that will transform Veterans Memorial Auditorium from its current state into a new, revitalized meeting and convention space. This reconfigured space will greatly enhance the Iowa Events Center in the eyes of meeting planners nationwide, as Des Moines continues to elevate its profile as an affordable, safe meeting location.

During the construction phase, staff is working with existing clients to accommodate their meetings and conventions in the best possible way, utilizing creative space at each of the facilities to ensure all of our clients know the Iowa Events Center will continue to be their best option for future events.

National events have increased throughout the history of the Iowa Events Center, and the next year will continue to host these attractive events. The Gold Wing Riders Association kicked off the 2010/2011 year with a multi-day event in July, and for the third year in a row, the AQS National Quilt Expo & Contest will happen in October.

Wells Fargo Arena continues to defy the odds as entertainment fans in Central Iowa show up in record numbers for sporting events, family shows and concerts at the Arena. The Radio City Christmas Spectacular promises to bring thousands to downtown Des Moines this November, and the Iowa Energy and Iowa Barnstormers continue to call Wells Fargo Arena their home. As crowds flock to The Well, the staff will strive to take the necessary steps to welcome each guest with unmatched customer service and provide a once-in-a-lifetime experience for each person that walks into the facility.

In June, the NCAA awarded Wells Fargo Arena the chance to host the 2013 NCAA Division I Wrestling Championships March 21-23, 2013. The championship was a crown jewel for the Greater Des Moines area to attract for the arena, and all parties that were part of the bid are excited to work toward this event in 2013. The host school will be Iowa State University, while Global Spectrum, Polk County, the Big 12 Conference, the Greater Des Moines Convention and Visitors Bureau and the Des Moines Area Sports Commission will all assist to make sure the event is a success.

FUTURE OUTLOOK


Pictured above and below: 2013 NCAA Division I Wrestling Championship press conference

Proposed rendering of the new Meeting Level hallway

Proposed rendering of the new Grand Ballroompre-function area

Proposed rendering of the new Grand Ballroom

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2010 annual report