The public assembly facility industry encompasses many different types of venues. It includes stadiums, arenas, convention centers, performing arts facilities and can be argued to include movie theaters, race tracks, parks and any facility used for the purpose of the general public or special interest groups to congregate for various purposes. The reasons for the use of the various facilities is many, stemming from entertainment, political, educational, philanthropic, sports, special interest, social, and product introduction or promotion. The traditional public facility is divided into three main types of ownership; public, private and a combination of the two. Additionally the facilities can be managed in the same manor.
Most public facilities have been traditionally financed through the use of General Obligation Bonds, Revenue Bonds or Sales Taxes. Today many public-private financing vehicles have been established to create a partnership between the two.
Beyond the uses of the traditional public assembly facilities they serve many greater purposes that the mere providing of a facility to stage various types of events. Their purposes to list a few are to be an economic catalyst, to enhance current economic conditions and to spur future development. These facilities also add to the tax base of a community by increasing property values and taxes such as, sales, hotel/motel, alcohol, as well as corporate and various others. These multi-use centers provide an economic engine to bring in business that otherwise would not be attracted to the community, as well as provide entertainment, cultural, political, social, religious and other such events to the community, which bring about community pride as well.
Traditionally most facilities have not generated an operational profit and require tax dollars to support the operation and in most cases debt service. Today however many communities expect facilities to at least break even or generate an operational profit. As a result of this more creative ideas have flourished in the industry relative to financing and operation of public facilities. Most managers have had exceeding pressure put on them to make their facilities operate more efficiently and generate more profit. As a result of these demands private management has evolved to circumvent cumbersome public policies and procedures. Additionally sharing of construction and operational cost with private developers, naming rights, bringing services in house and creating new profit centers are all ideas that are being explored and implemented.
The building, managing, and operating of public facilities has created a new environment in which to operate. The environment is much more competitive, profit oriented, and bottom line motivated. The political pressures, news media coverage, tight labor markets, increasing federal regulations, litigious nature of society and influx of an international workforce will continue to challenge today’s communities and operators of public facilities. It is an industry in motion, where success will be propelled by a constantly changing marketplace and the ability of communities and operators to adjust to the change, be creative, innovative and constantly seek out new and better ways of arriving at success.
In these posts I will attempt to discuss various subjects concerning the management and operation of a public assembly facility. It will provide an overview of subjects related to the philosophy of management, contributions to the community, personnel, labor relations, marketing, financial and contract management. We shall also explore facility maintenance, housekeeping, security, event staging, production, food service and upper management’s role of delivering excellent customer service.