The financial losses at the city-owned ShoWare Center continued in the third quarter of 2016 but remained lower than projections.
The arena lost $312,298 through the first nine months of the year, according to the income statement released last month by SMG, which operates the events center. SMG projected losses at the start of the year of $682,183 through the third quarter.
“It looks really good,” said Tim Higgins, SMG general manager, in a phone interview. “It’s lining up similar to last year. We’re feeling good about the end of the year.”
A strong final quarter in 2015 helped the ShoWare Center finish last year with losses of $261,438, the lowest deficit since the 6,100-seat arena opened in 2009. The arena lost a record $752,325 in 2014.
“The rolling forecast indicates we are on track to have another good year as the number of events and ticket sales remain strong,” said Ben Wolters, city economic and community development director, in an email.
SMG and city officials expect strong ticket sales from Disney On Ice, which wrapped up a six-day stay on Monday, and several more concerts (Amy Grant & Michael W. Smith Christmas celebration; Hometown Holiday country show; and Bret Michaels Rock the Arena Tour) in the final two months to put the financial losses at $289, 555 this year, similar to 2015. SMG will release the 2016 income statement in late January.
“Disney On Ice sold well, and the concerts are doing well,” Higgins said.
The crowds at Disney On Ice last year helped ShoWare Center turn a profit of $142,000 in the fourth quarter after the arena had lost $391,383 through the first nine months.
This year, the Seattle Thunderbirds junior hockey team, the anchor tenant, advanced far in the Western Hockey League playoffs in the spring to help boost revenues at the $84.5 million arena with additional home games that were not part of the budget forecast. A sellout crowd of 6,000 at the Dolly Parton concert also brought in extra dollars.
Fans at concerts and hockey games are known to spend lots of money on concessions, which increased the food and beer sales. Food sales brought in $542,349 for the first nine months, about $207,000 above projections. Beer sales were at $686,681, nearly $230,000 higher than budget.
The amount of rental income hit $738,609 through the third quarter compared to a budget of $587,540.
The arena had a first-quarter profit of $57,897 this year, more than $30,000 higher than projections.
City officials set aside money each year in the city’s annual capital budget fund to cover the anticipated losses at the arena. The ShoWare Center has an estimated $25 million economic impact per year to Kent because of money people spend at restaurants and other businesses, according to city staff.
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