2016-299-Minutes for Meeting June 01,2016 Recorded 6/27/2016NANCYUBLANKENSHIP,FCOUNTY CLERKDS CJ 2016.299
COMMISSIONERS' JOURNAL 06/21/2016 02:04:09 PM
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For Recording Stamp Only
Deschutes County Board of Commissioners
1300 NW Wall St., Bend, OR 97701-1960
(541) 388-6570 - Fax (541) 385-3202 - www.deschutes.ora
MINUTES OF BUDGET MEETING
DESCHUTES COUNTY BOARD OF COMMISSIONERS
Wednesday, June 1, 2016
Allen Room, Deschutes Services Building
Present were Commissioners Anthony DeBone, Alan Unger, and TammyBaney.
Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy
County Administrator; Mike Maier, Jimm Burton and Bruce Barrett, citizen
members of the Budget Committee; Wayne Lowry and Loni Burk, Finance; Dan
Despotopulos and Tracy Scott, Fair & Expo Center; and Steve Curley and Bill
Kuhn, Fair Board.
Meeting minutes were taken by Elyse West, Risk Management
The topic of discussion was Fair & Expo Budget
Chair Bruce Barrett opened the meeting at 9: 00a. m.
Dan Despotopulos, Director of the Deschutes County Fair & Expo Center introduced
himself and Tracy Scott, Assistant Manager of the Fair & Expo Center. Mr.
Despotopulos said that the County Fair Board was recently expanded from five to seven
members. Two of the new members were present, introduced as Bill Kuhn and Steve
Curley. Mr. Kuhn stated he manages the commercial loan operations for Bank of the
Cascades in Central Oregon. Mr. Curley stated he is the director of the Small Business
Development Center at Central Oregon Community College.
Minutes of Budget Meeting
Wednesday, June 1, 2016 Page 1 of 5
Commissioner Unger said they appointed these two members to the Fair Board and
increased its size with the intent to bring more expertise to the Fair & Expo Center.
Mr. Despotopulos said he would give a brief overview of the Fair & Expo Center
activity over this past year and talk about next year's budget. In 2015, three staff retired
and one resigned—representing nearly half of their FTE staff. On April 18'', they hired
the last replacement. Last week one of their contract employees who worked sound at
the Deschutes County Fair since 1955, Grover Earp, announced his departure.
The Transient Room Tax (TRT) passed and Fair & Expo began receiving it in 2014, at
which point they changed their business model. All food and beverage transitioned to
in -house --which was discussed with the Budget Committee and supported by all resorts
and TRT collectors. Tracy Scott was hired in an internal recruitment to assist with the
changes and has exceled. The top result for searching "America's Greatest County Fair"
in the MSN search bar produces the Deschutes County Fair & Expo webpage. With the
TRT, they increased their marketing from approximately $30,000 annually to nearly
$400,000, and the webpage redevelopment was one of their first projects. Tracking has
shown that the primary mode of advertising that leads people to the Fair & Expo Center
is the internet. In 2016 they added forty-one new events, and have twenty-four events
booked in 2017 thus far. This business movement has been influenced greatly by the
TRT.
With the increase of events, the economic impact has increased to a $43,000,000 impact
for this year. This is based on the same formula of hotel/motel numbers used by local
organizations, and does not include incidental items. A handout was dispersed referring
to the events and the audiences they attracted (Exhibit 1). The community impact is
also increasing. They are hosting five high-school graduations this summer and have
begun a $200 fee for each school to help with facility preparation and tear -down. The
RV Park at the Fair & Expo Center has been gaining momentum in the last ten years of
its existence and is running about $150,000 ahead of budget this year. Tracy Scott
manages the RV Park and oversees its staff. The park has been sold out the last three
out of four weeks.
A second handout showed the number of events at the Fair 7 Expo Center over the past
few years and what is projected for the future (Exhibit 2). Proposals are out for eighty-
eight new events between now and 2020. More focus has gone on conventions and
advertising; and six months ago Sports Venue Magazine voted them the number one
venue by reader's choice. One of the inserts in the publication was given as a handout
(Exhibit 3).
Moving forward, a portion of the TRT will be used to make improvements on the
facility to attract more business. Also seen in the budget, is $95,000 to hire an outside
consultant to look at overall plan and to give input of broader possibilities in sales and
business. In 2014 they hired their first FTE in fifteen years: a food and beverage
Minutes of Budget Meeting Wednesday, June 1, 2016 Page 2 of 5
manager. It is in the budget now to hire a sales and marketing assistant.
Fair & Expo is close to acquiring another 140 acres. They hired a company to complete
a feasibility study for a sports complex, which will also look at the existing
infrastructure. They are also working with three additional partners—COVA, Visit
Bend, and the City of Bend. The University of Oregon did a preliminary feasibility
study by studying national research on sports complexes and their community impact.
The study produced positive feedback and showed the sporting market to be significant
for the venue.
Bruce Barrett asked about strategy for reserves and improvements, with the increased
activity. The lack of reserves was discussed in past years and he wondered if there was a
renewed strategy in place.
Mr. Despotopulos said they do have money put in a reserve fund for next year. Using
some of the reserves last year, they upgraded their entire fire alarm system and replaced
a dishwasher, which added up to $125,000 but it didn't impact the budget. Their main
strategy is to increase events. The marketing plan has already produced good results in
its first couple years: reviewing how many events can be held at one time, new event
possibilities, and other factors. He stated that putting 9% in reserves would be their goal
and would work toward 10%. The studies performed advised to reserve 2.5 million
dollars a year. He doesn't anticipate reaching that goal, as this is the first year they've
seen this type of success. With last year's internal audit results, they restructured the
food and beverage programs and implemented new software and cash registers for
better recording. The mortgage retires in 2017.
Commissioner Baney asked what funds the TRT affects.
Wayne Lowry answered that it is divided among line 601: RV Park, line 618: Fair &
Expo Center, and line 619: Annual Fair Fund.
Tom Anderson pointed out that the TRT does not come directly to the fairgrounds, but
that expenses must first be approved by Mr. Lowry and Jeanine Faria.
Commissioner Baney asked Mr. Despotopulos if he anticipates a business plan as a
result from the consultant and the timeline for it.
Mr. Despotopulos agreed that is the plan.
Mr. Anderson said they are in the initial steps of the consultant search. The plan will be
implemented next fiscal year and there may be discussion first with the BOCC and the
fair board before finalizing the scope of the study.
Commissioner DeBone asked if there is a general fund transfer for capital reserve as in
Minutes of Budget Meeting Wednesday, June 1, 2016 Page 3 of 5
the past.
Mr. Anderson answered that there is $250,000 transferring from the general fund into
the reserve fund, which is down from the past. Building up the reserve at lesser amount
was considered appropriate in initial budget discussions.
Mr. Lowry stated this could be seen on page 321 in the capital reserve. With the new
business, it is expected that revenues will reach the point to contribute to reserve.
Commissioner Baney said it would be beneficial to look at five-year projections with
consideration to new events and increased revenue.
Mr. Lowry added that with the new business, current staff numbers may not be enough
and there is currently a large reliance on temp agency help. Future operating cost for
staff may need to be considered.
Commissioner DeBone stated he would support starting a conversation in the
community to determine if a supporting tax rate would be a good idea.
Mr. Maier said that planning to have an end game of the reserve amount would be a
good idea and ensure the general fund supports it.
Commissioner Baney stated she would like to see a spreadsheet that would show costs
and fund transfer possibilities.
Bill Kuhn said they could make a schedule that shows what aspects of the building will
need future improvement and what the reoccurring capital expenditures would be.
Steve Curley said that an inspector could look at the facility to determine what will last
for what amount of time.
Being no further discussion, the session ended at 9:40 a.m.
Minutes of Budget Meeting Wednesday, June 1, 2016 Page 4 of 5
DATED this ?i%/ Day of 2016 for the
Deschutes County Board of Commissioners.°
ATTEST SIGNATURES:
Recording Secretary
Minutes of Budget Meeting
Alae U,�gc�, Chair
Tammy Baney, Vice Ci
at -V94,
Anthony DeBone, Commissioner
Wednesday, June 1, 2016 Page 5 of 5
Deschutes Fair & Expo
Sales Overview
August 2014 through July 2016DCFE has contracted 22 new Livestock Event, 18 new
Tradeshow/Conference/Banquets and 12 new Sporting Events. (A few are listed below)
Livestock / Equestrian Events
Oregon Reinng Horse Shows
Arnerican Dairy Goat Association National Show
High Desert Quarter Horse
Charmayne James World Champion Barrel Racing Clinics
High Desert Stampede
ERA Rodeo Tour
Oregon High Desert Horse Expo
Suilivan Stock Show University
CMSA Cowboy Mounted Shooting Association Show
Buck Brannaman lnternational Horse Clinician
Alpaca Breeders lnvitational
Sporting Events
Northwest Basketball Championships
PushEnterphses—ChaUengeof[hampionsTour
Kids Obstacle Challenge
Nitro Circus
NCRC — National Cave Rescue Camp
Bids out for:
USA Taekwondo
LAX USA Lacrosse Tourriament
National Collegiate Table Tennis Tournament
Events have grown over this time frame 13%, Option years are blocked and Proposals have been sent
88 new events through fiscal year 2020.
Largest growth has been seen in the Livestock/Equestrian & Sporting Markets. The greatest ROl 15 also
Estimate of Economic Impact
Nacional Nit yGoal f>5 -57K
Oregon Reining Horse Show $90K
FarWest Morgan Horse Show $339K
Oregon Wrestling Cassic $4.3MM
Oregon State Basketball Championships $1I0K
USA BMX Nationals $2.2K8K8
MTBKC Dog Show $720K
With greater ability to advertise nationally as well as have destination spotlights and editorial features in
American Livestock Magazine as well as Destination Sports Management, Deschutes Fair & Expo is on
the Radar of National Sports Commissions as well as Livestock show promoters.
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THE AMERICAN BICYCLE ASSOCIATION
2016 USA BMX Great Northwest Nationals
Participation Report
April 8th - April 10th
1 AZ 27
2 CA 396
3 CO 1
4 FL 1
5 HI 1
6 (D 29
7 KS 1
8 MA 2
9 MN 1
10 MT 2
11 NV 32
12 NY 11
13 OR
14 TX
15 UT
16 WA
17 WY
18 Australia
19 Canada �
20 Columbia
21 New Zealand
221
4
32
215
2
1
49
TOTAL 1,021
Spectators per
Participant
Total Participants
3.2 3,267.2
1,021
Total Attendance 4,288.2
Total Estimated Room
Nights (2.5 Room Nights Per
Participant)
2,552.5
DESTINATION MANAGEMENT
Essential Planning & Location Strategies for Sports Event Organizers
1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111
'Do ItAll' in
Deschutes
By Peter Francesconi
AN EXPO CENTER LOCATED ON A FAIRGROUNDS will certainly
strike sports organizers as a great place for equestrian and rodeo events. Deschutes
Fair and Expo Center, however, has planners thi nking outside the show ring.
This multi-purpose arena
located in Redmond, Oregon,
can host everything from
wrestling to motor sports,
from gymnastics to basketball,
and much more. In fact, not
only does the De- schutes Fair
and Expo Center have sur-
prises at every turn, but its
Central Oregon location has its
own share of de- I ights in store
for event owners and or-
ganizers, athletes, families and
fans.
Roxia Thornton Todoroff,
director of sales for the
Deschutes Fair and Expo
Center says, "Our slogan is,
'We really can do it all.
"Sports events organizers will
be amazed at everything we
have to offer at our facility. But
that's not all. This part of the
state is amazing as well."
Central Oregon, east of the
Cascade Range, is a unique
area of the country, not at all
like the rainy areas on the west
side of the Cascades closer to
the Pacific. In fact, this high
desert, at 3,000 feet, gets about
300 days of sunshine a year,
with annual precipitation
under 10 inches -
much of it in the form of snow in the
winter.
"We're the sunny side of the state,"
Todoroff says. "You just can't beat our
weather here, which is great for all the
outdoor events we can accommodate." (In
fact, the area gets so much sunshine that
solar panels were placed on the roof of
the Expo Center's largest building to gen-
erate power.)
Multi-purpose Buildings
The Deschutes Fair and Expo Center
itself is unique, too. The 132 -acre site is
home to Oregon's largest annual county
fair and features nearly 200,000 square
feet of flexible indoor space, a 95,000 -
square -foot barn complex, three arenas
and more than 75 acres oflawns.
The largest building is the Bank of the
Cascades Center, a multi-purpose indoor
arena that constitutes some 279,000
square feet of space under one roof, ca-
pable of hosting virtually any type ofper-
formance or competition and handling
10,000 spectators for a concert, 4,000 for
a rodeo and 5,000 for basketball. The
center is wired for TV broadcast and has
a built-in sound system, wi-fi, score-
board, concessions and lockerrooms.
The Three Sisters Conference and
Convention Center consists of three ven-
ues that can be configured in a variety of
set-ups. All have built-in sound systems
and wi-fi. North Sister and South Sister
are 9,416 square feet each, and Middle
Sister is 14,904. Within the Three Sisters
is a 5,000 square -foot kitchen designed
to handle multiple catering and conces-
sion events.
The High Desert Activity
Center is a multi-purpose
building complete with cli-
mate control, sound and
restrooms. The open floor plan
offers nearly 12,700 square
feet of column -free space.
The Barn Complex has four
enclosed barns and one covered,
all designed for multi-purpose
use with blacktop flooring. The
complex has stabling for 400
horses. It also features four
arenas, including the Juniper
Arena, which offers covered
grandstand seating for 2,500
with bleacher seating for 1,000,
and the fully covered Sagebrush
Arena with seating for 1,500.
The Deschutes Fair and
Expo Center is designed on a
circular plot; the center is
never more than 300 yards
from any spot. This beautiful
"Center Court" has a water
feature in a natural landscape
set- ting on about 3.6 acres,
with beautifully manicured
lawns, ponds, a cascading wa-
terfall and windmill.
Reprinted with Permission from SPORTS DESTINATION MANAGEMENT
Indoor and Outdoor Events
Beyond equestrian, rodeo, livestock and agriculture
events, the center's appeal forsports of all types, for
all age groups, has caught the eye of sports event
organizers. "We have a wide variety of events here,"
Todoroff says. "Currently, we've been hosting
wrestling tournaments in our Bank of the Cascades
indoor arena, and we've even had the Portland
Trailblazers here to play some of their preseason NBA
games. We're also well-suited to host martial arts,
gymnastics, competitive cheer -really any indoor
events."
The Bank of the Cascades Center has permanent
stadium seating for 4,000, and the finished concrete
floor means any type of floor covering or course can
be laid down. In addition to a basketball floor, for
instance, the center can host roller derby, and even
bring in an ice rink for hockey and other skating
events. The center also moves in dirt and hosts the
Great North- west BMX Nationals. The venue is ideal
for motor sports, including motocross, arena -cross and
monster truck rallies. The site also contains an off-
road race track in its overall 320 acres.
General Manager Dan Despotopulos says there's
untapped potential in the vast, well -manicured
grounds and lawns. "With about 130 acres of
surrounding grass fields, we have the ability to host
all types of outdoor sports as well -soccer, lacrosse,
rugby, football, field hockey, you name it.
"Plus, we have a huge area for parking," he adds.
"Not only can we fit 4,000 cars at the front of the
facility, but we have an ad- ditional 100 acres we can
use, so parking is never an issue, and it's always
free." There's also a year-round RV park right on the
property, offering 106 sites with fullhook-ups.
Natural Beauty
The view from the facility is unparal- leled, with
a panorama of seven snow-
capped mountain peaks that include
Mount Bachelor, the Three Sisters,
Broken Top and Mount Jefferson. There
are also views of Smith Rock, one of the
world's premier rock -climbing destina-
tions.
"Central Oregon is known as the play-
ground for the Northwest," says Despo-
topulos. In fact, there is so much to do in
the area that athletes and families will have
no problem keeping occupied off the field
or competition floor. Day trips offer an in-
credible array of activities, such as hiking,
biking and mountain biking; kayaking, ca-
noeing and paddle -boarding on the stun-
ning lakes; whitewater rafting and tubing;
hunting and fishing (particularly trout,
salmon and steelhead).
In the winter there are plenty of places
for snow sports, including Mount Bache-
lor, a world-class ski resort that's about 40
minutes away on the eastern edge of the
Cascade Range. In addition to the fresh
mountain air, the high -desert climate pro-
vides some of the driest powder in the Pa-
cific Northwest -perfect for skiing.
Many might not realize the area is also
a golf Mecca. In the Redmond area,
golfers can play a round on award-winning
courses, Juniper and Eagle Crest, not just
in the summer, but in the spring and fall.
Diehard golfers also can hit the links dur-
ing the occasional mild winter day, making
golf a possibility year-round. The award-
winning Juniper Golf course named "Best
Place to Play in Oregon" four times by
Golf Digest.
Other attractions include the High
Desert Museum, a must -see for all ages,
with wild eagles, owls, otters, bobcat, lynx
and other animals featured in their natural
habitats. There are more than 300 fasci-
nating lava tube caves in Central Oregon,
and the vibrant reds, yellows and golds of
the Painted Hills are an incredible sight.
Redmond also has a great appreciation
for art and culture, which, in fact, has a
sports connection: Nike founder Phil
Knight and his wife started the city's foray
into public art with two donations that led
to the creation of the Redmond Arts Com-
mission and Redmond Commission for
Art in Public Places.
Central Hub
The Deschutes Fair and Expo Center is
in the center of the state, at the hub of
three counties -Deschutes, Jefferson and
Crook. It's 15 minutes from Bencl, the
largest city in Central Oregon. Travel is
also convenient; Deschutes Fair and Expo
Center is directly adjacent to the Redmond
Airport and within a few hours' drive of
major cities in the Northwest.
The area has restaurants and lodging
options to suit all tastes and budgets, in-
cluding half a dozen resort properties.
While two hotels sit right next to the Expo
Center, there are nearly 5,000 room s avail-
able within a 15 -mile radius
"We work very closely with all of our
tourism partners to make sure events com-
ing into the area find exactly what they
need," Todoroff says. The staff will help
with finding lodging, putting together
bids, seeking out discounts, and more.
"We like to say, 'We really can do it
all!"' she adds. "That doesn't just apply to
the Deschutes Fair and Expo Center. For
sports events and visitors, this area really
can do it all, too."
For more information about the
Deschutes Fair and Expo Center, visit
www.expo.deschutes.org or call 541-
548-2711. sono
Reprinted with Permission from SPORTS DESTINATION
MANAGEMENT
WeReally CanDo It
All! "
• 320 Acre Expo Center site
• 75 plus acres of lawns
• 100 acres of parking
• 4,000 —10,000 seat Bank
of the Cascades Center
• NBA Regulation Basketball
Court & Scoreboard
• 200,000 plus sq. ft. flexible
indoor Event Space
• 1 indoor, 2 covered & 1 outdoor
Livestock Arenas
• Off Road Race Track for
motorsports
• Onsite - Ful! Service Expo
RV Park
• Catering & Concessions
North America's Premier Sports Center Located in Beautiful Redmond, Oregon
,qui rr,Co, 1t 1a3ur,a �tti .
expo.deschutes.org
541-548-2711