Seasons of Celebration
2012 Annual Report
MarylandStadium Authority
Seasons of Celebration
Camden Yards is aglow in orange for post-season play.
Even Cal shows a touch of tangerine when the September sun sets over left field.
S e a S o n S o f C e l e b r a t i o n
2 0 1 2 a n n u a l r e p o r t
Our• Toplan,finance,buildandmanagesporTsand
enTerTainmenTfaciliTiesinmaryland.
• provideenjoymenT,enrichmenT,educaTionandbusinessopporTuniTiesforciTizens.
• developparTnershipswiThlocalgovernmenTs,universiTies,privaTeenTerprise,andThecommuniTy.
OurThemarylandstadiumauthorityismorethanthenameimplies.ourprojectspromotehistoricpreservation,adaptivereuse,communityredevelopment,culturalarts,andcivicpride.msahasthelatitudetonegotiatewithothergovernmentjurisdictionsanddepartmentswithinthestate.Thisincludescreatingpublic-privatepartnershipsforfinancingandoperatingfacilities.
Themarylandstadiumauthorityisacatalystforimprovingqualityoflifeandcreatingaclimatewhereindustrycanflourish. everyprojectundertakenbymsahascontributedtothecommunitywhereitislocated,andthelocaleconomyithelpssupport.
Themarylandstadiumauthorityrepresentsmorethanbuildings. ourcontinuinglegacyisfoundinactivitiesandattractionsthatentertain,educateandenrichthemarylandexperienceforthosewholiveandvisithere. ourprojectsprovidealinkwithourpastandaninvestmentinourfuture.Theyofferopportunitiesforourbusinesssectorwhileprovidingenjoyableexperiencesforcitizensofallages.
Table of
Chairman’s Letter ....................................2
twenty years at Camden yards...........3
the team pLayer .........................................7
offiCe of sports marketing .................. 13
a year at the yards ................................. 15
projeCts and studies ..............................23
growing a garden of greats ...........29
board of direCtors ................................30
on deCk ......................................................34
2012 finanCiaL statement .....................36
the benefaCtor ......... inside baCk Cover
Front cover: Fans cheer the last out
of the last regular season game of 2012. Final score:
Orioles 6 / Red Sox 3
Back cover: Not the Village People, but
joyous Ravens fans (and one Texans ringer,) prior
to the January 15th playoff game at M&T Bank Stadium
Contents
Mission
Vision
1
miChaeL j. frenzExecutive Director
M a r y l a n d S t a d i u M a u t h o r i t y
S e a S o n S o f C e l e b r a t i o n
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sincerely,
johnmortoniii,chairman
Thiswasourfirstcelebrationinayearthatincludedaravensplayoffgame,20thanniversaryoforiolepark,spectacularsailabrationfestivities,oriolespost-seasonrun,returnofinternationalsoccer,andyetanotherwinningravensseasonthatledtothesuperbowl.
Themarylandstadiumauthorityplayedasupportingroleineachofthesehighprofilestories.weenjoyedabanneryearourselvesaswepromotedadditionalusesofourcomplex,providedenvironmentalenhancementstoouroperationsandfacilities,andwelcomedmoremarylandersandvisitorstoourcampuswithavarietyofcommunityeventsandactivities.
maintainingandimprovingthisiconicvenueisourmandate.weaccomplishedagreatdealin2012throughenhancementstooriolepark.aninfluxofvisitorscelebratedthenewamenitiesalongwiththeresurgenceoftheorioles.
ourgreatestresponsibility,however,isthesafetyandsecurityofourtenantsandvisitors.This,too,isreflectedinourfacilityimprovements,partnerships,andpoliciesenactedin2012.
wehavealotmoretolookforwardtoin2013andbeyond,andinviteyoutoenjoythejourneywithus.
Chairman’s
SeaSonS of CelebrationS2012 began aT camden yards wiTh The sTar-spangledbannerraisedoverveTeransmemorialTocommemoraTeThewarof1812bicenTennial.asoneofThemosTvisible––andvisiTed--sTaTeproperTiesinmaryland,wehelpedseTTheToneforayearofsTaTewidefesTiviTies.
Letter
S e a S o n S o f C e l e b r a t i o n
“Someone once said
that art is the creation
of something that
previously wasn’t
there, but something
that the future will
make necessary. That
is Camden Yards.”
Buck Showalter, Opening Day 2012
sincerely,
johnmortoniii,chairman
Thanks to off-season
improvements which lowered the railing, the
Flag Court became a
popular viewing area. Standing room ticket-holders elbowed
their way into position as soon as the gates opened for playoff
games.
Almost unimaginable in April, a playoff game at home in October electrifies the fan base.
Twenty Years atCamden YardsThe 20Th anniversary season of oriole park aT camdenyards—TheballparkThaTforeverchangedbaseball—wasoneoriolesfanswon’TsoonforgeT.wehonoredlegendsandcelebraTedaposTseasonberTh,ThrillingsupporTersThroughouTbalTimoreandallofbirdland.
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M a r y l a n d S t a d i u M a u t h o r i t y
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“Oriole Park at Camden Yards, now the tenth
oldest park in baseball, remains the standard
bearer by which all new ballparks are judged, and
thanks to the cooperation between the Maryland
Stadium Authority and the Orioles, we expect it
will remain so for decades to come.”peterangelos
Opening Day, 2012Photo by Todd Olszweski
Boog Powell and Miss Catherine, ballpark fixtures
since 1992, marvel at the crowds streaming in two
hours before the game.
Seen in late summer, Oriole Park is especially inviting. The
newly-accessible picnic area and statuary garden created
a public park, connecting the stadium complex to a revitalized
downtown and expanding university campus.
As the Oriole flies — Birdland reaches in every direction.
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t w e n t y y e a r S a t C a M d e n y a r d S
“More than
2.1 million
fans enjoyed
this beautiful
ballpark, which
was enhanced
this year with
amenities such
as the Roof
Deck, Dempsey’s
Brew Pub and
Restaurant,
and the
Orioles Legends
sculpture area.”peterangelos
These Sox fans grabbed rooftop rail seats just as
soon as the gates opened.
Even though the Orioles are in New York, these Grand
Prix visitors are following them from the rooftop deck.
The new rooftop deck and lower railing over the bullpens were
instant favorites for fan viewing.
They filled quickly when the
Eutaw Street gates opened.
M a r y l a n d S t a d i u M a u t h o r i t y
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“All of these
improvements
were completed
to benefit all fans
at the ballpark, as
well as for those
visiting the park
on non-game days
or during the
off-season.”peterangelosIt didn’t take long for
Dempsey’s Brew Pub in the Warehouse to become
a favorite neighborhood sports bar. By the end of
the 2012 season, it was the place for locals and
convention-goers to stop in and watch the O’s on
the road. Here, a roomful of regulars cheer the
home team as they play their first post-season
game in Texas.
Well after baseball season, the statue garden is still an attraction
to Baltimore visitors. Here, Brooks Robinson is flanked by two of the beautiful red maples that give the
park an autumn glow.
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#1 ranked Virginia defeats #3 ranked Cornell in overtime in the second of three Face-Off Classic matches. 17,138 fans attended over a full day of lacrosse at M&T Bank Stadium
The Face-Off Classic, featuring top NCAA teams in double or triple header events, has been a tradition at M&T Bank Stadium since 2007. It will return in 2013.
t h e t e a M p l a y e r
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The Team
TwenTy years afTer oriole park opened as aTranscendenTmodelforurbanredevelopmenT,camdenyardshasevolvedinToaninTernaTionallyrecognizedsporTscomplex.
Player
Tomarylandresidentsandvisitors,thisstate-ownedfacilityismuchmore–atransitcenterandvenuewhereactivitiesandeventsoccuryearround.Themarylandstadiumauthorityandourtenantpartnerstakegreatprideintheroleweplayasastageformanypublicgatherings,largeandsmall.camdenyardsisacommunityassetandteamplayerinservingcitizensofmaryland.
Even in early March, lacrosse tailgating
goes on. These revelers, here for
the Konica Minolta Face-off Classic,
are not deterred by the frigid weather.
Do the math:Konica Minolta Face-Off ClassicMarch 8, 2012$1.27 million spending10 equivalent jobs$529,000 total earnings$98,000 state taxes$34,000 local taxesCrossroads Consulting
M a r y l a n d S t a d i u M a u t h o r i t y
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8 M a r y l a n d S t a d i u M a u t h o r i t y
The field at M&T is fitted with a natural grass pitch to meet
international standards.
SoCCerinTernaTional soccer reTurned To m&T bank sTadium in 2012 wiTha “friendly” maTch beTween liverpool and ToTTenham fooTballclubsofTheenglishpremierleague.supporTersfromaroundThecounTrycameTocheerTheirsides.
Do the math:Tottenham-Liverpool SoccerJuly 28, 2012$6.3+ million spending70 equivalent jobs$2.7+ million total earnings$582,000 state taxes$148,000 local taxesCrossroads Consulting
In addition to cheers and chants, Liverpool fans sing
their theme song.
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Sodding the field at M&T was nothing compared
to the landscaping required for the return
of Monster Trucks. For the second consecutive year, this family-friendly event delighted children
of all ages.
monSter jam
BmW anD exotic car festival
In September, a BMW & Exotic Car Festival took place with all proceeds going to the Wounded Warrior Project.
Beautiful weather and the convenient location made the turnout much greater than expected. The BMW show will
be returning in 2013.
No one enjoys an afternoon at Camden Yards
more than these helpers
Do the math:Monster Jam, June 2, 2012$2.6+ million spending30 equivalent jobs$1.7 million total earnings$195,000 state taxes$55,000 local taxesCrossroads Consulting
M a r y l a n d S t a d i u M a u t h o r i t y
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Grand prix of baltimoredespiTehavingjusTThreemonThsToorganizeamulTi-milliondollarevenT,TheTeamofraceonandandreTTimarkeTingmanaged To pull off The second annual grand prix ofbalTimore. many of The acTiviTies and aTTracTions weresTagedaTcamdenyards.
Ryan Hunter-Reay takes the lead after a brief rain delay. Television
cameras at Turn 8 captured this iconic view of the Camden complex
Watching exotic sports cars get assembled was an
entertaining part of the event.
The Warehouse defines the length of Pit Lane, with the
Baltimore Convention Center terrace providing a perfect VIP
viewing area.
Do the math:Economic Impact of the 2012 Grand Prix of Baltimore
Over 131,000 spectators
58% from outside Baltimore area; 32% from outside Maryland
64% of tickets purchased by non-locals, representing $2.88 in new money brought to area.
Total business volume impact of the 2012 Grand Prix of Baltimore is estimated at $42,300,930.
Government revenues generated as a result of the 2012 Grand Prix are calculated at $2,642,500.
Source: Forward Analytics
2 0 1 2 a n n u a l r e p o r t 11
Community ServiCe
Charity walks, fund raisers, and community awareness
events are held at the Camden Yards complex throughout
the year. “Breath Deep,” benefiting research and
treatment for lung cancer, was held in Oriole Park.
Families and friends of lung cancer patients fill the stands before
participating in a walk around the warning track
on a beautiful fall morning.
On August 2, 2012, M&T Bank Stadium was the setting for the first Baltimore Project Homeless Connect, a large one-day homeless outreach effort that connected more than 1,000 homeless individuals and families with medical and dental care, legal and benefit advice, and hosts of other services.
This event was sponsored by the Office of the Mayor and United Way of Central Maryland. Hundreds of volunteers helped match the homeless with their needs and counseling for other benefits.
The stadium was an ideal location because of its access to light rail, buses and shuttles. It is also large enough to accommodate the number of clients and volunteers who participated.
t h e t e a M p l a y e r
M a r y l a n d S t a d i u M a u t h o r i t y
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S e a S o n S o f C e l e b r a t i o nS e a S o n S o f C e l e b r a t i o n
The entire complex is used for Marathon staging, from registration at M&T Bank Stadium to
the festival in the parking lots and supporter sections in the picnic areas.
Community has always been the focus of the Baltimore Marathon. This year, local artist (and MICA
student) Grant Lindahl drew a chalk mural to greet runners as they reached the finish line. He left pieces
of chalk nearby for supporters to add messages of encouragement on the last stretch of the course.
baltimore marathon
As they pass Oriole Park, runners can see the finish line
Do the math:Baltimore Running Festival generated an estimated $38.6 million, $8.1million more than the 2011 race.
A total of 26,100 runners participated – 1,100 more than in 2011. In all, 50 states and 24 countries were represented in the 2012 field.
The 2012 Running Festival also raised $1.7 million for charity, a new record for the organization.
Source: Regional Economic Studies Institute at Towson University.
This young lady is a proud
Marylander, but about 40% of participants
are from out of state, making the economic impact even
greater.
S e a S o n S o f C e l e b r a t i o n
2 0 1 2 a n n u a l r e p o r t 13
Terry Hasseltine, Director of Office of Sports Marketing, delivering a message on the
economic benefits of sports travel.
Office of
TheofficeofsporTsmarkeTingwascreaTedbyThemarylandsTadiumauThoriTyanddeparTmenTofbusinessandeconomicdevelopmenTin2007ToaTTracTandpromoTesporTsevenTsandrecreaTionalopporTuniTiesThroughouTThesTaTe.
in2012,TheofficeofsporTsmarkeTingenjoyedsuccessinbringingnewevenTsTomaryland.TogeTherwiTh Their Team maryland parTners, osm focused on righTs-holders and organizers of amaTeuraThleTic,olympicqualifyingandyouThTournamenTs.
ThislucraTivesegmenTofTheTourismmarkeTbringsmulTipleTeamswiThfamiliesandfriendsToThesTaTeforseveraldaysaTaTime.
Sports Marketing
In 2012, the Colonial Athletic Association men’s basketball tournament was
awarded to Baltimore for 2014-16. In addition to local excitement, this
represents $6.5 million in economic impact, $500,000 in tax revenue and 5,500
hotel rooms each year.
2012 USATF National Junior Olympic Track & Field Championships were held at Morgan State University in 2012.
More than 8,400 athletes from all over the country came to Baltimore for a week in July 2012. It was their largest event to date.
M a r y l a n d S t a d i u M a u t h o r i t y
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The Office of Sports Marketing was instrumental in organizing the “Challenge at Musket Ridge” for the Ladies Professional Golf Association’s
Symetra Tour in August 2012.
The governing body for the new Olympic sport of BMX will be holding the East Coast Nationals at Chesapeake BMX in Severn, June 14-16, 2013. This is a major qualifier for national ranking, and is expected to draw a large field of competitors.
OSM assisted marketing efforts to expand existing Maryland-based tournaments, such as the Columbia Invitational, an elite soccer club event. The Columbia Invitational, sanctioned by the national governing body, grew from 325 teams in 2011 to 500 teams from throughout the mid-Atlantic region over the 2012 Memorial Day weekend.
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S e a S o n S o f C e l e b r a t i o n
2 0 1 2 a n n u a l r e p o r t 15
S e a S o n S o f C e l e b r a t i o n
A Year at thein2012,marylandsTadiumauThoriTyimplemenTedimprovemenTsinoperaTions,services,andfaciliTiesaroundThecomplexThaTwillcarryinTo2013andbeyond.
Safety firStofall maryland sTadiumauThoriTy’s responsibiliTiesaT camdenyards, The mosT imporTanT is securiTy – of The valuable sTaTe
properTyinoursTewardshipandThesafeTyofallThosewhoworkandvisiThere.
Maryland Stadium Authority and the Baltimore Orioles helped advance the
Department of Homeland Security’s message to all citizens congregated in
public places. The “See Something, Say Something” reminders appeared Opening
Day as vertical banners, video board announcements, and transit placards.
Yards
“Security is our
Highest Priority”
johnmorton Chairman,
Maryland Stadium Authority
Multi-agency task forces meet regularly at the Camden Yards complex because of its size and proximity to many jurisdictions. This
particular seminar on surveillance techniques, held in the Ravens press room, was sponsored by the Department of Homeland
Security. By hosting these training sessions, MSA is able to include security staff that would otherwise not have the opportunity to attend.
2 0 1 2 a n n u a l r e p o r t16
Outfitted in bright yellow shirts, the security team is a visible presence throughout the complex.
The use of bicycles gives them increased mobility and shortens response time.
One of the most ambitious projects completed during the off-season was a new security control center at M&T Bank Stadium. The original center, almost 15 years old, could no longer accommodate the safety, security, and facilities representatives and new technology needed to
meet response standards.
The new security control offers enhanced communication and surveillance capabilities.
on Deck for2013
In 2013, the Oriole Park Security Control Center in the stadium
will be updated.
These Baltimore City officers use the lower stadium lots for training. The courses are modified for motorcycle and dirt bike testing as well.
C a M d e n y a r d S
2 0 1 2 a n n u a l r e p o r t 17
Finance Director David Raith studies bids during MSA’s bond refinancing in May. Prudent management of the agency portfolio has saved millions in interest through the years.
C a M d e n y a r d S
TheproperTy and porTfolio managemenT; mainTenance and improvemenT of camdenyardsarekeyresponsibiliTiesofmarylandsTadiumauThoriTy.Theygofarbeyondday-To-dayoperaTions,involvingsTraTegyandinnovaTionTomaximizeourasseTsandminimizeourexpendiTures.2012wasanoTherbanneryearforrevenuegeneraTionandexpensereducTiondueToaddiTionalevenTs,increasedaTTendance,properTyredevelopmenT,resourceconservaTion,andbondrefinancing.
Producers
Property Management–whileitishardtotop100%occupancy,whichthewarehouseachievedin2011,ourtenantamenitiesincreasedin2012withtheadditionofdempsey’sbrewpubandrestaurantonopeningday.
Parking–withoutaddinganyasphalt,thecamdenyardsparkinglotsincreasedtheirnetrevenueby10%in2012–againofalmost$200,000intotal.
onefactorisanincreaseinmonthlyparkers,includingnewclientsfromnearbymajoremployers.anotheristhe
increaseinoriolesattendance(includingtwopost-seasonsellouts.)
Thelargestportioncamefromparkinglotrentals–hostingspecialevents,stagingsatelliteshuttlesorprovidingstorageforconventionexhibitors.
The Eutaw Street Market is a welcome addition to the Warehouse for tenants and commuters. The Market offers a variety of quick meal options and sundries during regular hours, and carry-out
beverages and snacks during games.
Do the math:
In 2012, refinancing $29 million in tax-exempt and taxable bonds yielded interest rates of 0.43% to 2.5%. This will save MSA $520,000 annually or $5.355 million over the remainder of the term.
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The handsome period signs added to the Warehouse
façade in 2012 give greater visibility to Camden Yards
and help promote it as a year-round destination.
Increased attendance at Oriole games and greater demand for cellular service necessitated additional antennae. This one was installed in left field near the end of the season, along with a larger dish on the roof. While this improved service, a more comprehensive solution is on tap for 2013.
The Warehouse is still generating revenue on the roof. Vince
Steier is seen here with some of his tenants, a network of telecommunication devices that lease space.
Do the math:
Maryland Stadium Authority, which takes 8% of ticket revenues via the admission tax, received a welcome windfall in 2012, thanks to our winning teams and the post-season games they hosted.
The Ravens 2012 Division Playoff in January generated $ $745,000.
The Orioles two division games in October yielded $454,866.
2 0 1 2 a n n u a l r e p o r t 19
C a M d e n y a r d S
on Deck for2013
MSA is currently soliciting bids to host a distributed antenna system in Oriole Park. Verizon, who installed a DAS in M&T Bank Stadium in 2011, is
expected to extend the service to at least one co-locater (provider)
in 2013.These contracts will significantly increase MSA’s hosting revenues.
Lots G-H are leased several times a year for product demonstrations on road courses like this. MSA also makes the space available to law enforcement partners for testing and training with their vehicles.
Camden Yards has hosted its share of beautiful brides over the past twenty years, but none lovelier than Nicole
Sherry -- Head Groundskeeper for the Orioles.
2012 was another banner year for catered events at the complex, with a record number of proms, weddings,
reunions, and parties taking place around the complex.
One of the Warehouse’s original
tenants, XL Health, had a growth spurt of its own in 2012.
Governor O’Malley came for the
announcement when they
merged with insurance giant
UnitedHealth Group to bring 335 new health care service jobs to the State of Maryland.
S e a S o n S o f C e l e b r a t i o n
20 M a r y l a n d S t a d i u M a u t h o r i t y
environmental SenSitivityasoneofThemosTvisiblepublicfaciliTiesinThesTaTe,camdenyardsservesasamodelforbesTpracTicesinresourceconservaTion,recycling,sTormwaTermanagemenT,andenvironmenTallysensiTivelandscaping.ourefforTsreflecTThegoalsofTheo’malleyadminisTraTionToreduceenergyconsumpTionandincreaserecycling.
in2012,weappliedadapTivereuseandinnovaTiveTechnologyToreducecosTs,eliminaTewasTe,and limiTwaTerconsumpTion. wealsoconTinued efforTsToreplacehighmainTenanceTurfwiThnaTivevegeTaTionandperennialsThaTsTemrunoffandabsorbsTormwaTermoreeffecTively.
These irises are not only lovely (and color-appropriate,) they are an important defense against erosion caused by stormwater draining from the adjacent parking lots. Together with the rocks and grasses, they provide a breakwater for the rain garden that absorbs runoff instead of silting the watershed.
These native beautyberry shrubs not only celebrate football season with their vivid purple blooms, they stabilize the surface at a one-time problem area around the fuel pumps.
In early spring, a failing swale that drained directly into the Middle Branch was replanted,
incorporating more pervious soil and hardy ornamental grasses. By late summer, the
grasses were established enough to withstand even the wrath of superstorm Sandy. They
now provide an attractive border to the nearby Gwynns Falls Trail.
Before
Now
2 0 1 2 a n n u a l r e p o r t 21
C a M d e n y a r d S
enerGy reduCtionmsasuppliesregularenergyconsumpTionfiguresToThesTaTeofmaryland.
These graphs and pie charTs show how significanTly energyconsumpTion dropped in 2012, and how iT conTinues To fall aswe enhance our conservaTion pracTices, originally ouTlined ingovernoro’malley’sempowermarylandprogram.
TheseongoingreporTsfromThefaciliTiesinourcomplexareposTedonlineaTThemarylanddeparTmenTofgeneralserviceswebsiTeaT:hTTp://www.dgs.maryland.gov/energy/energydaTabasepublic.hTml.
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in2012,recyclingatcamdenyardsincreasedfrom388tonsto485tons--aremarkable25%.increasedorioleattendanceandimprovedprocessesatbothstadiumsmadethispossible.
Thespikeispartofabroadertrendthathasseenrecycling
increase50%since2008.msaworkswithallcontractors,partners,tenantsandthirdpartyeventstoensurerecyclingplansareinplacebeforetheyenterthecomplex.
msaandourpartnersareregardedasindustryleaders
inrecycling.in2012,thegreensportsallianceinvitedrepresentativesofmsa,ravens,andoriolestoasummersummitatthewhitehousetoexchangeideaswithotherstadiumoperatorstomakesportsfacilitiesmoreeco-friendly.
reCyClinG
Joining the “Green Team” tailgate patrol this year were several of Baltimore City’s “Green Schools.” These student volunteers shared their enthusiasm
for recycling as they greeted incoming fans.
Parking lot patrols were key to retrieving recyclables and making “Green Team” efforts so successful this year.
Susan Thorman, MSA’s Director of Baseball Operations and Facilities, and Tom Orsulak, Orioles Director of Food Services, visit Chesapeake Compost Works. Vinnie Bevivino, left, shows them how compost is generated in an old Curtis Bay rail barn. The Oriole and MSA hope to establish a composting pilot program in 2013.
on Deck for2013
· A composting pilot program at Oriole Park· An orientation with all new MSA hires
about recycling policies.· A study on the recycling habits of fans at
Oriole Park to determine ways to improve our current recycling efforts.
· A recycling committee, comprised of representatives from MSA, Ravens and Orioles, which meets semi-annually to discuss recycling best practices and ways to improve.
2 0 1 2 a n n u a l r e p o r t 23
p r o j e C t S a n d S t u d i e S
oCean City Convention Center expanSionindecember,2007,TheTownofoceanciTyaskedThesTadiumauThoriTyTo conducT a feasibiliTy sTudy for anoTher expansion of TheirconvenTioncenTer.
Thestudyevaluatedtheexistingstructure,thecurrentconventionmarket,optionsforcapitalimprovements,andthescopeforaperformingartscenter.
Thefeasibilitystudywasreleasedindecember,2008andinaugust,2010,theoceancitycouncilapprovedplansforan$8.9millionexpansionofballroomand
exhibitionspace.Thisprojectbrokegroundinaugust,2011andwascompleted–ontimeandwithinbudget–inoctober2012
Project executive: Gary a. mcGuiGan
assistant Project manaGer: tiara roBertson
(Phase ii) Project cost: $14 million
estimateD comPletion Date: 2014
onnovember7,2011,theoceancitycouncilapprovedplansforanadditional$14millionauditoriumthatincludestwotiersoffixedseating,dressingrooms,andaticketofficeandconcessionarea.
The1,248-seatperformingartsvenuewillbeamajorupgradeovertheconventionhall’sexistingballroomandstage.
Thisproposalwasapprovedbythemarylandgeneralassemblyduringtheir2012session.itiscurrentlyindesignandwillbebidin2013.
Mayor Rick Meehan and members of the Ocean City
Town Council officially open the new Convention Center
expansion in November. The expanse of windows
overlooking the bay created a breathtaking sunset view
in addition to providing critically needed space to
hold multiple events.
The second part of the Ocean City Convention Center Expansion will be this versatile performing space, envisioned as a year-round amenity for visitors and residents alike.
This phase is currently in design. Construction is expected to begin in Fall 2013, and the and the project completed in 2014.
M a r y l a n d S t a d i u M a u t h o r i t y
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Coppin State univerSity ComplexThe sTadium auThoriTy compleTed consTrucTion of The $134,000,000physicaleducaTioncomplexaTcoppinsTaTeuniversiTyin2010onTimeandapproximaTely$3millionunderbudgeT.
“The projects Maryland Stadium
Authority managed at Coppin
have been transformational – not
just for our campus, but the West
Baltimore Community we serve.”
dr.maqboolpatelAssociate Vice President for Administration and Finance
Coppin State University
The old Coppin Center was demolished in 2011.
Thisprovidednecessaryfundingtodemolishtheold110,000sq.ft.coppincenterandredevelopittoincludegreenspace,lawnareas,newlandscape/hardscape,sitelighting,andparking.
Thisproject,locatedadjacenttothenewlyrenovatedcampusquad,beganinoctober2011andwasplantedinearlyspring2012.
coPPin center Demolition
Project executive: Gary a. mcGuiGan
Project Director: eric johnson
DesiGn/construction BuDGet: $2.3 million
construction manaGer: BrouGhton construction
architect: horD, coPlan, & macht
With the demolition complete, environmentally-sensitive landscaping was installed in May to define the campus quad. Project was completed on time, on budget.
2 0 1 2 a n n u a l r e p o r t 25
p r o j e C t S a n d S t u d i e S
StudieSin2012,marylandsTadiumauThoriTycompleTedseveralsTudiesrequesTedbylocaljurisdicTionsTodeTermineThemarkeTshareandpoTenTialcosTofprojecTsunderconsideraTion.
newrequesTsforsTudiesToevaluaTeleaseTerms,managemenTsTrucTure,and faciliTy upgrades were received in 2012, as well as requesTs forfurThersTudiesondesignandcosTesTimaTes.
wiComiCo County studyinseptember2010,wicomicocountyrequestedthestadiumauthoritytoperformastudyontheiragingyouthandciviccenterinsalisbury.
crossroadsconsultingperformedthepreliminarymarketstudytoevaluatetheexistingfacility,itsuses,andwhetheritiseconomicallyfeasibletorenovateandexpanditorbuildanewone.
Thestudy,releasedinjanuary2012,recommendedrenovatingtheexistingfacilityandexpandingballroomandexhibitspaceinsteadofbuildinganewfacility.
“A Maryland
Stadium Authority
feasibility study has
become the ‘Good
Housekeeping Seal
of Approval’ when
the state considers
investing in
proposed projects.”
fredpuddester,Former MSA Chairman
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City of frederiCk ConferenCe Center studyinjuly2011,mayorrandymcclementoffrederickrequestedmsatoreviewandupdatea2008studycommissionedbythecityforahotel/conferencecenterprojectenvisionedforthedowntownbusinessdistrict.
Thestudyupdate,releasedinjuly2012,waspreparedbycrossroadsconsultantsandhospitalityandgamingsolutionsundercontracttothestadiumauthority.itconcludesthatfrederickhassufficientmarketdemandforafull-service,200-roombrandedhotelwith15,000squarefeetofmeetingspaceindowntownfrederick.
Thestudyfoundthatthehotelwhenstabilizedwillgenerateapproximately52,600roomnights,280jobs,and$25millionineconomicimpact.
basedonresearchandanalysisofthegrowingmarketandpopularityoffrederick,crossroadsdeterminedthecommunitywouldbenefitonmanylevelsfromahotel/conferencecenterinthedowntownhistoricdistrict––includingthecreationof280permanent,full-timejobsthatwouldcreate$9millioninpersonalearningsandincreasedactivityintheretail/hospitalityoutlets.
troy park tennis and sports Center studyinsummer2011,howardcountyexecutivekenulmanrequestedthestadiumauthoritytoconductamarketandeconomicstudytodeterminethefeasibilityoftheTroyparkTennisandsportscenter,aprojectproposedbytheTennispatronsofhowardcounty.
Thescopeofthe$75,000studywastodetermineeconomicprojections,andpossibleappropriateadditionalprogramelements.
Themarketstudy,releasedinapril2012,determinedtherearerelativelyfewtop-tiereventswhichrequireafacilityofthismagnitude.whilethereismarketdemandfromdiverseusers,itisnotsufficienttooffsetthecostsofon-goingoperationsanddebtservice.
2 0 1 2 a n n u a l r e p o r t 27
p r o j e C t S a n d S t u d i e S
maryLand horse park studyinaugust2011,themarylanddepartmentofagricultureaskedmsatoperformaviabilitystudyforamarylandhorseparkbasedontheextensivestudyperformedin2006onaspecificsite.
Themarylandhorseindustryboard,adivisionofmda,wantedtodetermineifthisreportisstillapplicabletothecurrentmarketandeconomybeforepursuingtheprojectagain.
phasei,releasedinnovember2012,foundthedevelopmentofamarylandhorseparkcontinuestobevitaltothegrowthofthestate’shorseindustry,butofferssomenewapproachestotheinitialstudy.
Thatstudyrecommendedbuildingalargecentralfacilitysimilartothekentuckyhorseparkinlexington,kentucky.Thenewstudyfindsthatmarylandalreadyhasmanyoftheessentialcomponentsforsuchaparkatexistingfacilities.
Thenewstudysuggeststhatanewhorseparkcanbemadeupofasystemofexistingandperhapsupgradedequinefacilitiesacrossthestatethatcanbelinkedtogetherandoperatecooperativelyratherthanasstrictlyindividualvenues.whilesuggestingthatalinkedsystemwouldlikelyworkformaryland,thestudymakesnoconclusiverecommendationonactualimplementationandleavesthedooropentootherpossibilities.
phaseiiofthestudywillinvestigatehowtomaximizetheuseofthestate’scurrentequinefacilitiesandhowthesefacilitiescouldattractnationalandinternationalevents,competitions,andvisitorstomaryland.
phaseiiwillbegininearly2013.itisfundedjointlybythemhibandthemarylanddepartmentofbusinessandeconomicdevelopment.
show pLaCe arena and prinCe george’s County equestrian Center studyindecember2011,maryland-nationalcapitalparksandplanningcommissionofficiallyrequestedmsatostudytheoperationsoftheshowplacearenaandequestriancenterinuppermarlboro.
The$40,000study,fundedbythem-ncppc,willevaluatethepotentialoftheexistingfacilityandmakerecommendationshowoperationsandmarketingcanbeimproved.
anadditional$55,000studywillexaminemanagementpracticesandgovernancestructureofallfacilities.
Thesestudieswillbeconductedinconjunctionwithprincegeorge’scountydepartmentofrecreationandparks.Theyareexpectedtobecompletedin2013.
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bowie LaCrosse stadium / youth sports CompLexinfebruary2012,themaryland-nationalcapitalparksandplanningcommissionrequestedmarylandstadiumauthoritytoperformamarket/economicstudyonthepotentialofalacrossestadiumtohousetheprofessionalchesapeakebayhawksmllfranchise,andanchoranadjacentyouthsportscomplexthatwouldaccommodateamateurleaguesandtournaments.
Thestudy,releasedonfebruary8,2013,focusesontheexistinggreenbranchathleticcomplexnearbowiebaysoxstadium.
basedonthefindingsoftheinitialstudy,m-ncppcrequestedthestadiumauthoritytoperformasecondstudytodeterminethescopeandprogramelements,developadesign,determinepotentialpublicprivatesectorfundingpartners,anddeviseamanagementstrategy.
iftherequestisapproved,phaseiiofthestudywillbefundedbym-ncppc.
arthur perdue stadiuminjune2012,wicomicocountyrequestedmarylandstadiumauthoritytoperformamarketandeconomicstudyofarthurperduestadium,homeoftheoriolesaffiliateshorebirds,todeterminehowrevenuescanbeincreasedinthecounty-ownedfacility.Thestudywilldeterminewhatenhancementsandamenitiesarenecessarytokeepthefacilitycompetitiveinthemarketandretaintheteamwhentheleaseexpiresin2015.Thestudyisbeingperformedbycrossroadsconsultingservices,inc.itisexpectedtobereleasedinearly2013.
2 0 1 2 a n n u a l r e p o r t 29
S e a S o n S o f C e l e b r a t i o n
Growing a Gardenof GreatsinaddiTionTobeinganinTernaTionallyrecognizedsporTsfaciliTy,camdenyardsisapopularpublicpark.in2012,ourcampuswasenhancedwiThaTimelesslegacyThaThasbecomeaninsTanTvisiToraTTracTion.
off-seasonmodificationstothebullpenpicnicareamadeitaccessibletothepublicduringdaylighthours,affordingabeautifulviewofthefield.aspartofthe20thseasoncelebrations,astatueofeachoriolehalloffamerwas
unveiledeverymonthinadedicationceremony.
Thenew“gardenofgreats”becameoneofthemostpopularmeetingplacesinthestadium,andafocalpointoftherevitalizedeutawstreetcorridor.
Brooks Robinson
Cal Ripken, Jr.
Overlooking the Field of Dreams
Eddie Murray
Frank Robinson
Earl Weaver
Jim Palmer
M a r y l a n d S t a d i u M a u t h o r i t y
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john morton iii, Chairman johnmortoniiiwasappointedtothemarylandstadiumauthorityboardonjuly1,2008.onnovember7,2008,governormartino'malleyselectedhimtosucceedfrederickw.puddesteraschairman.
mr.morton,aseniorbusinessandfinancialservicesexecutive,bringsextensiveexperiencetothemsaboardincludinghavingservedasceoandpresidentofthreemajorfinancialinstitutions,asaboardmemberforfourpubliccorporationsandasaleaderinbusiness,professional,educationalandcivicorganizations.
from1996to2006,mr.mortonservedinvariouscapacitieswiththebankofamerica/nationsbank,includinghisroleaspresidentofthemid-atlanticregionfrom1997to2001,andaspresidentofpremierbankfrom2001to2005.
priortohisservicewithbankofamerica,mr.mortonwaschairman,ceoandpresidentoftheboatmen'snationalbankofst.louis,missouri,thefarmandhomefinancialcorporationofkansascity,missouriandwiththeperpetualfinancialcorporationofmclean,virginia.
mr.mortonalsohasservedaschairmanofthegreaterbaltimorecommittee,asdirectoroftheuniversityofmarylandcollegeparkfoundation,andascommitteechairmanoftheefforttobringthe2012olympicstothewashington/baltimoreregion.mr.mortoncurrentlyisadirectorwiththeu.s.navalacademyathleticandscholarshipprograms.hewasinstrumentalinraisingfundsforthecommunityactivitiesassociatedwiththe2000army-navygameinbaltimore.
mr.mortonisa1967nuclearsciencegraduateoftheu.snavalacademy.heearnedamasterofbusinessadministrationdegreefromharvarduniversityin1973.
Board ofDirectorsThe maryland sTadium auThoriTy is governed by a sevenmember board of direcTors, who serve sTaggered fouryearTerms.sixdirecTorsareappoinTedbyThegovernor,wiThoneappoinTedbyThemayorofbalTimore.
2 0 1 2 a n n u a l r e p o r t 31
Directors
joseph C. bryCejosephc.bryceisagovernmentrelationsspecialistwithmaniscanninginannapolis.priortojoiningthefirm,heservedsixyearsasseniorpolicyandlegislativeadvisortogovernoro’malley.
mr.brycewastheassociatevicechancellorforgovernmentrelationsattheuniversitysystemofmaryland.hehasalsoservedasthechieflegislativeofficerforgovernorparrisn.glendening,thelegislativeassistanttosenatepresidentThomasv.mikemiller,jr.,andwasanassociateatcovington&burling.
mr.bryceisa1989magnacumlaudegraduateoftheuniversityofmaryland,anda1993summacumlaudegraduateofgeorgetownuniversitylawcenter,wherehefinishedfirstinhisgraduatingclass.
Leonard j. attman leonardj.attmanwasappointedasamemberofthemarylandstadiumauthorityonjuly1,2005.presidentofattmanpropertiescompany,mr.attmanhasmorethanfourdecadesofexperienceinresidentialandcommercialrealestatedevelopment.hisprofessionalexperienceincludesthedevelopmentofapartmentcommunities,individualhomedevelopments,shoppingcentersandarecreationalpark.
mr.attmanattendedtheuniversityofmaryland.hisinvolvementinprofessional,civicandphilanthropicorganizationsincludesmembershipontheboardsofsinaihospital,theshosanas.cardinhighschool,bethTfilohbrotherhood,theboardofdirectorsofthereginaldf.lewismuseumandthesignal13foundationforthebaltimorecitypolicedepartment.inadditionheactivelyparticipatesintheactivitiesofmanyotherorganizationsincludingtheadvisoryboardfortheshockTraumaunitattheuniversityofmarylandmedicalsystems.mr.attmanwasthefounderandservesaschairmanoftheboardofdirectorsoffuturecarewhichmanagesninenursinghomefacilitiesservingmorethan1,300patientsandprovidingemploymentformorethan1,500people.
M S a b o a r d
M a r y l a n d S t a d i u M a u t h o r i t y
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32
john p. CoaLejohnp.coalewasappointedamemberofthemarylandstadiumauthorityonjuly1,2012.alifelongmarylander,mr.coalewasborninbaltimoreandnowresidesinhistoricannapolis.hisgrandfatherwasoneofthepartnerswhopurchasedthest.louisbrownsfranchisein1954andbroughtthemtobaltimoreastheorioles.
mr.coalegraduatedfromtheuniversityofmarylandin1969andreceivedajurisdoctoratefromuniversityofbaltimorein1972.heestablishedaninternationaltortpracticeandbecameanationalleaderinthelitigationagainstthetobaccoindustry,servingaschiefnegotiatorinthehistoricalfinancialsettlementwiththestates.
mr.coalehasservedasanadvisortopresidentbillclinton,governormartino’malley,andsenatorjohnmccain.
althoughsemi-retired,hecontinuestopracticelawwithcoale,cooleyinwashington,dcandservesontheboardoftheuniversityofmarylandmedicalsystem.
weLdon h. Lathamweldonlathamisaseniorpartnerinthewashington,dcofficeofjacksonlewisllp.herepresentsfortune200companies,andfederal,state,andlocalgovernmentagenciesinavarietyoflegalmatters,includingcorporatediversitycounseling,employmentlaw,andgovernmentrelations.
mr.lathamservesascounseltothepepsicoglobaldiversityandinclusiongovernancecouncilandtheomnicomgroupdiversityadvisorycommittee.heisamemberofthenationalemploymentlawcouncilandeconomicclubofwashington.
mr.lathamservedasassistantgeneralcounsel,whitehouseofficeofmanagementandbudget;generaldeputyassistantsecretary,departmentofhousingandurbandevelopment;memberofthedefensedepartmentadvisorycommitteeonprocurementandTechnicaldatarights;civilianaidetothesecretaryofthearmy;memberoftheu.s.smallbusinessadministrationnationaladvisorycouncil.
mr.lathamisanadjunctprofessoroflawatthegeorgetownuniversitylawcenterandaformerguestprofessoratboththeuniversityofvirginiaandhowarduniversityschoolsoflaw.mr.lathamholdsab.a.inbusinessadministrationfromhowarduniversity,aj.d.fromgeorgetownuniversitylawcenter.
2 0 1 2 a n n u a l r e p o r t 33
M S a b o a r d
kaLiope parthemos kaliopeparthemosisbaltimoredeputymayorofeconomicandneighborhooddevelopment.ms.parthemosoversees17agencies,includingthoseinvolvedineconomicdevelopment,transportationandtourism.priortoacceptingtheseresponsibilitiesin2010,msparthemoswasdeputychiefofstaffforthepresidentofcitycouncil,nowmayor,stephanierawlings-blake.shewasappointedthecity’srepresentativetothemsaboardbymayorrawlings-blakeinapril,2010.
ms.parthemoshasabachelorofsciencedegreefromuniversityofmaryland,baltimorecountyandjurisdoctoratefromuniversityofmarylandschooloflaw.sheservedasapublicdefenderforfiveyearsandalsoasafostercarecaseworkerpriortoworkinginthecityadministration.
manervia w. riddiCk manerviaw.riddickisseniorvicepresidentforbusinessdevelopmentandpublicaffairsatstrategicsolutionscenter,inc,awashingtonareagovernmentandbusinesssupportservicesconsultingfirm.sheservesasssc’steamleaderonmajorenergyservicesprojectsfornationalandinternationalclients.
beforeherretirement,mrs.riddickwasthedirectorofpublicaffairsforwashingtongas.heroccupationalbackgroundandexperienceincluderegulatory,legislative,community,andconsumerdevelopment.shewasavicepresidentandgeneralmanagerofmetrovisionofprincegeorge’scounty,thelocalcabletelevisioncompanywhichisnowafranchiseofcomcast,inc.
mrs.riddickheldnumerouspositionswiththeu.s.departmentofjustice,fromspecialassistanttotheassistantattorneygeneraltonationaldirectorofpolicyplanningandcoordinationfortheofficeofjuvenilejusticedelinquencyprevention.mrs.riddickalsohasanextensivehistoryofsocialandcivicvolunteerservice,whichincludestheboardofdirectorsandexecutivecommitteeofnexushealth,chairofthemarylandcenterboard,andmemberofthefoundationboardfornorfolkstateuniversity.
herpastaffiliationsalsoincludeboardleadershipwiththemarylandandprincegeorge’scountychambersofcommerce.
mrs.riddickisagraduateofnorfolkstateuniversityandfurthergraduatestudyinurbanplanningandpublicadministrationatolddominionuniversity,innorfolk,va.
on Deck for2013
34
A new kind of 5K fun will be coming to Camden Yards in 2013. The “Color Run” splashes
participants with pigment at every kilometer and a rainbow blast at the finish line. More fun than
pre-K finger painting and every bit as messy, this family event will take place in May.
International soccer will return to M&T Bank Stadium with the CONCACAF Gold Cup tournament in July. Two matches will be held featuring national teams from North American and Caribbean countries.
The pageantry of college football returns to Camden Yards as the University of Maryland
takes on West Virginia September 21, 2013.
Justin Timberlake, Jay-Z Tour To Make Baltimore StopConcert will be held in August at M&T Bank Stadium.
on Deck for2014
35
The NCAA Men’s Lacrosse Championship will return to M&T Bank Stadium over Memorial Day Weekend in 2014. This tournament is a great favorite with youth lacrosse clubs and school teams. Activities for youngsters are located throughout the complex.
The United States Naval Academy will play two games at M&T Bank Stadium in the fall of 2014. The first is August 30th against Big Ten
powerhouse Ohio State.
University of Maryland will be returning to M&T Bank Stadium in October.
“America’s Game” between Army and Navy will take place December 13th.
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2012 Financial
wehaveauditedtheaccompanyingstatementofnetassetsofthemarylandstadiumauthority(theauthority),acomponentunitofthestateofmaryland,asofjune30,2012,andtherelatedstatementsofrevenue,expenses,andchangeinnetassets,andcashflowsfortheyearthenended.Thesefinancialstatementsaretheresponsibilityoftheauthority’smanagement.ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.
weconductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheunitedstatesofamerica.Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.webelievethatourauditprovidesareasonablebasisforouropinion.
inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,thefinancialpositionoftheauthorityasofjune30,2012,andthechangesinitsfinancialpositionanditscashflowsfortheyearthenendedinconformitywithaccountingprinciplesgenerallyacceptedintheunitedstatesofamerica.
accountingprinciplesgenerallyacceptedintheunitedstatesofamericarequirethatmanagement’sdiscussionandanalysisbepresentedtosupplementthebasicfinancialstatements.suchinformation,althoughnotpartofthebasicfinancialstatements,isrequiredbythegovernmentaccountingstandardsboard,whoconsidersittobeanessentialpartoffinancialreportingforplacingthebasicfinancialstatementsinanappropriateoperational,economic,orhistoricalcontext.wehaveappliedcertainlimitedprocedurestotherequiredsupplementaryinformationinaccordancewithauditingstandardsgenerallyacceptedintheunitedstatesofamerica,whichconsistedofinquiresofmanagementaboutthemethodsofpreparingtheinformationandcomparingtheinformationforconsistencywithmanagement’sresponsestoourinquiries,thebasicfinancialstatements,andotherknowledgeweobtainedduringourauditofthebasicfinancialstatements.wedonotexpressanopinionorprovideanyassuranceontheinformationbecausethelimitedproceduresdonotprovideuswithevidencesufficienttoexpressanopinionorprovideanyassurance.
SB & Company, LLC Certified Public Accountants huntvalley,marylandseptember27,2012
report of independent publiC aCCountantS
Totheboardofthemarylandstadiumauthority
Statement
2 0 1 2 a n n u a l r e p o r t 37
Statement2 0 1 2 f i n a n C i a l S t a t e M e n t
manaGement’S diSCuSSion and analySiS
Overview of the Financial Statements and Financial Analysis
Themarylandstadiumauthority(theauthority),acomponentunitofthestateofmaryland,ishonoredtopresentthefiscalyear2012financialstatements.Theauthority’sresponsibilitiesincludeoperationofthebaseballandfootballstadiums,theb&owarehouseandcamdenstationlocatedatcamdenyards,oversightofseveralconventioncenters,andconstructionmanagementforvariousprojectsthroughoutthestateofmaryland.
Therearethreefinancialstatementspresentedforthereader:thestatementofnetassets;thestatementofrevenue,expensesandchangeinnetassets;andthestatementofcashflows.
Statement of Net Assets
Theauthority’sstatementofnetassetspresentstheassets,liabilities,andthenetassetsasofjune30,2012.Thestatementofnetassetsprovidesthereaderwithafinancialpictureoftheauthority’sassets(currentandnoncurrent),liabilities(currentandnoncurrent),andnetassets(assetsminusliabilities)orthefinancialpositionoftheauthorityattheendofthefiscalyear.
fromtheinformationpresented,theuserofthestatementofnetassetsisabletodeterminetheassetsavailableforthecontinuingoperationsoftheauthority.Theuserisalsoabletodeterminewhatcashandcashequivalentsareavailableandamountsowedtoandbytheauthority.Thepurposeofthestatementofnetassetsistoshowtheuserwhatisavailableforfutureneedsoftheauthority.
Thenetassetsaredividedintofourcategories.Thefirstcategory,“investedincapitalassets,”reflectstheauthority’sinvestmentfurnitureandequipmentandfacilityrights.Thesecondcategory,“restrictedfordebtservice,”representsfundsheldbytheauthoritywiththerestrictedpurposeofpayingdebtserviceontheoutstandingbonds.Thethirdcategory,“restrictedforcapitalassets,”isfundsavailableforuseonspecificprojectsonly.Thefinalcategory,“unrestricted,”isavailablefundsheldbythecomptroller’sofficeatthestateofmarylandlesstheliabilityrelatedtotheinterestrateswap.
belowisacomparisonofthestatementsofnetsassetsasofjune30,2012and2011:
As of June 30, 2012 2011ASSETS currentassets $47,686,961 $43,162,436capitalassets,net 132,249,467 151,928,189othernoncurrentassets 193,644,193 202,352,039Total Assets 373,580,621 397,442,664 LIABILITIES currentliabilities 34,851,387 31,449,886noncurrentliabilities 252,948,707 267,912,332Total Liabilities 287,800,094 299,362,218 NET ASSETS investedincapitalassets 89,655,981 119,632,015restrictedfordebtservice 3,030,919 3,985,118restrictedforcapitalassets 4,372,323 3,104,560unrestricted (11,278,696) (28,641,247)Total Net Assets $ 85,780,527 $ 98,080,446
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38
duringfiscalyear2012,totalassetsfortheauthoritydecreasedfromtheprioryearbyapproximately$23.8milliondollars,dueto:1)cash,cashequivalentsandrestrictedinvestmentsincreasedapproximately$4.3millionasaresultofcollectionofaccountsreceivablesandunspentrestrictedinvestment;2)capitalleasesreceivabledecreasedbyapproximately$3.1millionwhichincludesa$0.6millionincreaseinrestrictedcashandcashequivalentsthatareavailabletobeusedforcapitalprojectsanddebtservice,anincreasefornewcapitalreceivablesof$16.9millionandadecreaseof$20.0millionfor2012principalpaymentreceived;and3)intangibleassetsdecreasedby$17.6millionasaresultofanincreaseincapitalimprovementstothecamdenyardscomplexof$11.9million,adecreaseof$16.7millionforcapitalleasesandadecreaseof$12.8millionfordepreciationanddisposals.
Thedecreaseinnetaccountsreceivableofapproximately$3.7millionistheresultofthefollowing:paymentsreceivedandthewriteoffofbalanceduefromthebaltimoreracingdevelopmentllcforreimbursementofcostsrelatedtoimprovementstothecamdenyardsfor$2.7million,adeclineinoriolerentforbehindhomeplateadvertisingof$0.1million,adeclineof$0.8millionofreimbursementsfromthebaltimoreravens,adeclineinticketsinthefourthquarterof2012of$0.4millionandanincreaseof$0.4millionforotherreceivableandadjustmentstotheallowanceforbaddebt.deferredfinancingcostsdecreasedapproximately$0.9millionasaresultof$0.7millionbeingcapitalizedfromtheissuanceoftheseries2011revenueandtheseriesa&bbonds,adeclineof$1.4millionforthedisposalofthebalancesrelatedtotheseries1998aandseries1999bondsplustheliquidityproviderandadecreaseof$0.2millionforthe2012amortization.notesreceivabledecreasedby$0.1millionresultingfromanincreaseof$0.3millionrelatedtotherenovationsofsuiteslesstheprincipalpaymentsmadeof$0.4million.prepaidexpensesdeclined$0.7millionforinterestexpenserelatedto2012paidin2011.finally,furnitureandequipmentdecreasedbyapproximately$2.1millionbecauseofthecurrentyear’sdepreciationof$2.1million.
Totalliabilitiesforthefiscalyear2012decreasedbyapproximately$11.6million.interestandaccountspayableforfiscalyear2012decreasedbyapproximately$0.8million.Thereasonsforthedecreasearetheinterestpayableaccruedinfiscalyear2012decreaseby$0.9millionmainlyrelatedtotherefundingofthedebtserviceseries1998aand1999bondsandanincreaseintradepayablesof$0.1million.deferredrevenuedecreasedbyapproximately$0.9millionasaresultofdeferredrevenuebeingrecognizedasincomeinfiscalyear2012of$0.3millionandthewriteoffof$0.6millionrelatedtobaltimoreracingdevelopment.Therewasanincreaseintheequipment,financing,andleaserevenuebondsofapproximately$9.7millionasaresultnewdebtandbondpremiumtotalingfor$114.2millionand$104.5millionusedtodefeasetheseries1998aandseries1999bondsandpaidtowardstheoutstandingprincipalontheleaserevenuebonds.finallyforfiscalyear2012,thederivativeliabilitydecreasedby$19.6millionasaresultoftheterminationoftheaigcreditlocalswapagreementandthechangeinthefairmarketvaluesofderivatives.
Statement of Net Assets (continued)
Statement of Revenue, Expenses and Change in Net Assets
belowisacomparisonofthestatementsofrevenue,expenses,andchangeinnetsassetsfortheyearsendingjune30,2012and2011:
For the Years Ended June 30, 2012 2011
operatingrevenue $34,225,994 $31,602,181operatingexpenses 43,655,216 41,134,610 operatingloss (9,429,222) (9,532,429)nonoperatingexpenses (21,026,971) (17,487,697) lossbeforecontributions (30,456,193) (27,020,126)contributionsfromprimaryandlocalgovernmentsandothersources 18,156,274 22,034,970
decreaseinnetassets (12,299,919) (4,985,156)netassetsatbeginningofyear 98,080,446 103,065,602Net Assets at End of Year $ 85,780,527 $ 98,080,446
2 0 1 2 a n n u a l r e p o r t 39
2 0 1 2 f i n a n C i a l S t a t e M e n t
Thechangeinnetassetsasseenonthestatementofnetassetsisbasedontheactivitythatispresentedonthestatementofrevenue,expenses,andchangeinnetassets.
Thepresentationofthestatementofrevenue,expenses,andchangeinnetassetsdisclosestherevenueandexpensesfortheauthorityduringfiscalyear2012.Therevenueandexpensesarepresentedinoperatingandnonoperatingcategories.
attheendoffiscalyear2012,thestatementofrevenue,expensesandchangeinnetassetsdiscloseda$12.3milliondecreasetonetassets.Thefollowinginformationexplainsthedecreasetonetassets.
operatingrevenuegeneratedatthecamdenyardssportscomplexforfiscalyear2012totaled$34.2million.Thematerialpercentageoftherevenuereceivedbytheauthorityrelatetotheoperationofthestadiums.Thebaltimoreorioles’rentisbaseduponapercentageofrevenuestreamsformulaandthebaltimoreravenspay100%oftheoperatingandmaintenanceexpensesofthefootballstadium.Thisaccountsforapproximately$14.6millionoftherevenueforfiscalyear2012.
Theteamsarerequiredtopaya10%ticketchargetothestateofmarylandofwhichtheauthorityreceives8%andbaltimorecityreceives2%.Therevenuefromtheadmissiontaxesforbothteamswasapproximately$9.8million.
locatedatthecamdenyardssportscomplexaretheb&owarehouseandcamdenstationthatwererenovatedforofficeandmuseumspace.Therearecurrentlytenantsrentingmorethan220,000squarefeetthat,combinedwithseveralcellularantennasites,generateapproximately$3.9millionayear.otherrevenuefromthecamdenyardssportscomplexincludeparkingreceiptsfromnon-gamedays,othernon-professionalevents,cateringcommissions,trademarkrevenue,constructionmanagementfeesforotherconstructionprojectsnotpartofthecamdenyardssportscomplexandadjustmentstocapitalassets,whichtotalapproximately$6.0millionforfiscalyear2012.
non-operatingrevenueforfiscalyear2012was$1.1millionwhichisgeneratedbyseveralsources.in2007,thebaltimoreravenspaid$1.7milliononthepaymentoptionofthechillerandgeneratorplants.aportionofthesesavingsisrecognizedasrevenueeachyear.in2011,thebaltimoreracingdevelopmentwastopayatwelvepercent(12%)returnonthecapitalinvestmentmadebytheauthorityofapproximately$2.0million.Thisreturnwouldbepaidoverfiveyears.forfiscalyear2012,thisfigurewasapproximately$0.4million.Thesecondsourceofnon-operatingrevenueisinvestmentincomereceivedonmoneyheldbytrusteesonvariousbondissuances,fromanoutstandingnotefromthebaltimoreoriolesandtheamortizationofbondpremiums.itapproximates$0.7millionforfiscalyear2012.
overall,revenueforfiscalyear2012increasedbyapproximately$2.6millionfromrevenueinfiscalyear2011duetoadecreaseinoriolesrentof$0.1million,increaseinadmissiontaxesofapproximately$0.8millionastheresultofhigherticketssalesandprices,increaseinbaltimoreravens’contributionof$1.2millionforhigheroperatingandutilitycosts,$0.1milliondecreasefromwarehouseandstadiumrentalrevenue,anda$0.6millionincreaseinmiscellaneoussalesandparkingrevenues.
netoperatingexpensesincreased$2.5millionforfiscalyear2012.explanationsfortheincreaseinfiscalyear2012areasfollows:
• duringfiscalyear2012,utilitycostsforthecamdenyardscomplexincreasedby$1.0million.Theauthorityreceivedenergyrebatesof$0.8millionin2011andtherewasacostincreaseof$0.2millioncomparingtofiscalyear2011.
• contractualservicesdecreasedby$2.0millionmainlyrelatedtobuildingrepairsnotneededinfiscalyear2012.• depreciationexpenseincreasedby$1.3millionbecauseofthenumberofcapitalprojectscompletedoverpast
severalyears.• miscellaneousexpensesincreasedby$1.8millionasaresultofthewriteoffofthebaltimoreracingdevelopment
receivable.• fixedchargesincreased$0.3millionaresultofhighercostsrelatedtotheliquidityservicesforthevariableratedebt.• salariesandwagesincreased$0.1millionforaone-timebonuspaidtofull-timeemployeesandhigherbenefitcosts.
non-operatingexpensesincreasedby$2.8millioninfiscalyear2012.Therewasadecreaseininterestexpenseof$0.9millionrelatedlowerinterestrates.investmentincomeincreasedby$0.6millionresultingfrominterestearnedonnotesreceivabledeclining$0.2millionandamortizationofbondpremiumsincreasedby$0.8million.Thestate’sshareoftheoperatingdeficitforthebaltimoreconventionandoceancityconventioncentersdecreasedby$2.4millionaresultofdecreasedcosts.contributionstoprimarygovernmentincreasedby$1.8millionbecausetherewasnostaterentpaymentmadein2011.finally,thechangeintheliabilityduetothefairvalueofthehedgeincreasedby$5.7million.
Statement of Revenue, Expenses and Change in Net Assets (continued)
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Statement of Revenue, Expenses and Change in Net Assets (continued)
Theauthorityalsoreceivedappropriationsfromthestateofmarylandtobeusedforseveralpurposes.anappropriationwasmadefortheoutstandingcapitalleasereceivablesduefromthestateofmaryland.Themoneyreceivedfromthestateofmarylandalongwith$1.0millionreceivedyearlyfrombaltimorecityisusedtopaythedebtserviceontheoutstandingbondsissuedbytheauthority.Theauthorityalsohasacontractualobligationtopayone-halfoftheoperatingdeficitsattheoceancityconventioncenterandtwo-thirdsoftheoperatingdeficitofthebaltimorecityconventioncenter.further,theauthorityisrequiredtocontributeannuallytoanimprovementfundfortheoceancityandbaltimorecityconventioncentersof$50,000and$200,000,respectively.Thetotalofthesecontributionsforfiscalyear2012wasapproximately$18.2million.
Statement of Cash Flows
Thelaststatementpresentedisthestatementofcashflows.Thestatementpresentsdetailedinformationabouttheactivitiesinvolvingcash,andthestatementisbrokendownintofiveparts.Thefirstpartofthestatementrelatestotheoperatingcashflowandshowsthenetcashusedtooperatethecamdenyardssportscomplex;thesecondrelatestothecashflowresultingfromnoncapitalfinancingactivities;thethirdrelatestocashflowfromcapitalandrelatedfinancingactivities;thefourthrelatestothecashflowfrominvestingactivities;andthefifthreconcilesthenetcashusedtotheoperatinglossonthestatementofrevenue,expenses,andchangeinnetassets.
belowisacomparisonofthestatementsofcashflowsasofjune30,2012and2011:
For the Years Ended June 30, 2012 2011
cashflowsfrom: operatingactivities $9,714,657 $1,910,445noncapitalfinancingactivities (105,913,515) (19,898,490)capitalandrelatedfinancingactivities 112,853,433 5,322,483investingactivities (12,725,114) 12,594,768 netdecreaseincashandcashequivalents 3,929,461 (70,794)cashandcashequivalents,beginningofyear 2,310,296 2,381,090Cash and Cash Equivalents, End of Year $ 6,239,757 $ 2,310,296
Capital Assets and Debt Administration
Theauthorityhad$11.9millionofadditionstocapitalassetsin2012.Theauthorityhadanincreaseindebtduring2011of$114.1millionduetotheseries2011camdenyardsrevenueandseries2011a&brefundingbondissuances.debtwasalsodecreasedbyprincipalpaymentsanddefeasementoftheseries1998aandseries1999bondsof$104.5million.
Economic Outlook
Theauthorityisnotawareofanyfacts,decisionsorconditionsthatwillhaveasignificantimpactonthefinancialconditionsduringthefiscalyearbeyondthoseunforeseensituationsthatwillhavethesameglobaleffectonvirtuallyalltypesofbusinessoperations.
Theauthorityhasthesupportofthemarylandgeneralassemblyforitscurrentactivities.Theauthoritywillcontinuetomonitorrevenueandcloselywatchexpenditurestothebestofitsability.
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ASSETS
currenTasseTscashandcashequivalents $6,239,757restrictedinvestments 7,403,242accountsreceivable,net 7,638,810duefromprimarygovernment 3,384,727interestreceivable 172,244notereceivable,currentportion 488,181capitalleasesreceivable,currentportion 22,360,000Total Current Assets 47,686,961noncurrenTasseTsprepaidexpensesandotherassets 49,828notereceivable,netofcurrentportion 3,939,458capitalleasesreceivable,netofcurrentportion 188,306,167deferredfinancingcosts,net 1,348,740capitalassets:furnitureandequipment,net 7,299,488intangibleassets,net 124,949,979netcapitalassets 132,249,467Total Noncurrent Assets 325,893,660 Total Assets 373,580,621
LIABILITIES
currenTliabiliTiesaccountspayableandaccruedexpenses 8,240,804interestpayable 1,802,449deferredrevenue 176,357bondspayableandcapitalleases,currentportion 24,631,778Total Current Liabilities 34,851,387noncurrenTliabiliTiesaccruedexpenses,netofcurrentportion 976,013bondspayableandcapitalleases,net 229,275,599deferredrevenue 705,427interestrateswapliability 21,991,668Total Noncurrent Liabilities 252,948,707
Total Liabilities 287,800,094
NET ASSETS
investedincapitalassets 89,655,981restrictedfordebtservice 3,030,919restrictedforcapitalassets 4,372,323unrestricted (11,278,696) Total Net Assets $ 85,780,527
Statement of net aSSetS
year endedjune 30, 2012
Theaccompanyingnotesareanintegralpartofthisfinancialstatement.
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operaTingrevenuebaltimoreorioles’rent $5,479,504baltimoreravens’contributions 9,075,671admissiontaxes 10,332,250warehouserents 3,880,644cateringcommissions 574,552parkingrevenue 2,093,253miscellaneoussales 2,790,120Total Operating Revenue 34,225,994operaTingexpensessalariesandwages 7,718,708Telephoneandpostage 56,068Travel 43,333utilities 4,165,761vehicleexpense 67,657contractualservices 11,652,984parking 1,429,590suppliesandmaterials 719,039depreciationandamortization 14,912,464fixedcharges 587,579miscellaneous 2,302,033Total Operating Expenses 43,655,216operaTingloss (9,429,222)
nonoperaTing(expenses)revenuecontributionstoothersforoperatingdeficitandcapitalimprovements (5,099,102)contributiontoprimarygovernment (1,750,000)investmentincome 1,191,040changeinfairmarketvalueofswaps (107,735)interestexpense (15,261,174)Total Non Operating Expenses (21,026,971)lossbeforecontributions (30,456,193)Contributions from Primary Governments 18,156,274changeinnetassets (12,299,919)Totalnetassets,beginningofyear 98,080,446Total Net Asset, End of Year $ 85,780,527
Statement of revenue, expenSeS, and ChanGe in net aSSetS
year ended june 30, 2012
Theaccompanyingnotesareanintegralpartofthisfinancialstatement.
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cashflowsfromoperaTingacTiviTiesreceiptsfromcamdenyards $37,657,397paymentstoemployeesandrelateddisbursements (7,749,605)paymentstosuppliers (20,193,135)Net Cash From Operating Activities 9,714,657
cashflowsfromnoncapiTalfinancingacTiviTiescontributionsfromprimarygovernments 17,406,274conventioncenteroperatingdeficitandcapitalimprovements (4,863,693)principalpaidonbondspayableandcapitalleases (103,737,858)interestpayments (14,718,238)Net Cash From Noncapital Financing Activities (105,913,515)cashflowsfromcapiTalandrelaTedfinancingacTiviTiespurchasesofcapitalassets 3,255,769proceedsfromcapitalleasesreceivable 3,147,664proceedsfromdebtissuance 106,450,000Net Cash From Capital and Related Financing Activities 112,853,433cashflowsfrominvesTingacTiviTiespurchaseofinvestments (14,011,968)interestoninvestments 961,031proceedsfromnotereceivable 325,823Net Cash From Investing Activities (12,725,114)netchangeincashandcashequivalents 3,929,461cashandcashequivalents,beginningofyear 2,310,296Cash and Cash Equivalents, End of Year (including restricted cash of $72,085) $ 6,239,757adjusTmenTsToreconcileneToperaTinglossTocashflowsfromoperaTingacTiviTiesoperatingloss $(9,429,222)adjustmentstoreconcileoperatingloss:depreciationandamortization 14,912,464effectsofchangesinnon-cashoperatingassetsandliabilities:accountsreceivables 3,431,618duefromprimarygovernment (214)accountspayable 663,289prepaidexpenses 136,722Net Cash From Operating Activities $ 9,714,657
Statement of CaSh flowS
year ended june 30, 2012
Theaccompanyingnotesareanintegralpartofthisfinancialstatement.
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1. NATURE OF OPERATIONS
Themarylandstadiumauthority(theauthority)wasestablishedbylegislationenactedbythestateofmaryland(thestate),effectivejuly1,1986,(annotatedcode1957,sections13701through13722ofthefinancialinstitutionsarticle),toselectasiteanddevelopfinancingalternativesforstadiumfacilitiesinthebaltimoremetropolitanarea.effectivejuly1,1987,thelawwasamended(chapter123,1987lawsofmaryland)toenabletheconstructionofnewfacilities,includingbaseballandfootballstadiums,inthecamdenyardsareaofbaltimorecity(thecity).Theamendmentalsoestablishedthattheauthorityisanindependentunitintheexecutivebranchofthestategovernment.
during2009generalassemblysession,thegeneralassemblymovetheauthorityfromthefinancialinstitutionsarticletothenewlycreatedeconomicdevelopmentarticle,sections10-601to10-658.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity Theauthorityisacomponentunitofthestateofmaryland.Theauthorityisgovernedbyaboard,sixmembersof
whichareappointedbythegovernorofthestateofmarylandandonememberbeingappointedbythemayorofbaltimorecitywiththeconsentofthemarylandstatesenate.
Measurement Focus and Basis of Accounting Theaccompanyingfinancialstatementsoftheauthorityarereportedusingtheeconomicresourcesmeasurement
focusandtheaccrualbasisofaccounting.revenueisrecordedwhenearnedandexpensesarerecordedwhenaliabilityisincurred,regardlessofthetimingofrelatedcashflows.grantsandsimilaritemsarerecognizedasrevenueassoonasalleligibilityrequirementsimposedbytheproviderhavebeenmet.
Theauthorityhastheoptionundergovernmentalaccountingstandardsboard(gasb)statementno.20,Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, toelecttoapplyallfinancialaccountingstandardsboard(fasb)pronouncementsissuedafternovember30,1989,unlessfasbconflictswithgasb.Theauthorityhaselectedtonotapplyfasbpronouncementsissuedafternovember30,1989.
indecember2010,thegovernmentalaccountingstandardsboard(gasb)issuedstatementno.62(gasb62)Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements whichintendedtoenhancetheusefulnessofthecodificationofgovernmentalaccountingandfinancialreportingstandardsbyincorporatingguidancethatpreviouslycouldonlybefoundincertainfasbandaicpapronouncements.Therequirementsofthegasb62areeffectiveforfinancialstatementsforperiodsbeginningafterdecember15,2011.earlierapplicationisencouraged.Theauthorityhasevaluatedtheimpactofthegasb62anddidnotexpectamaterialimpactonthefinancialstatements.
Theauthoritydistinguishesoperatingrevenueandexpensesfromnonoperatingitems.operatingrevenueandexpensesgenerallyresultfromprovidingservicesandproducinganddeliveringgoodsinconnectionwiththeauthority’sprincipalongoingoperations.revenueandexpensesnotmeetingthisdefinitionarereportedasnonoperatingrevenueandexpenses.
Cash Equivalents TheauthorityconsidersallcashondepositwiththeTreasuryorfinancialinstitutionstobecashequivalentsaswellas
allhighlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorless.
Investments investmentsarestatedatfairvalue.sharesofmoneymarketmutualfundsarevaluedatquotedmarketprices,which
representthenetvalueofsharesheldbytheauthorityasofyear-end.
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Capital Assets furnitureandequipmentarestatedatcostanddepreciatedusingthestraight-linemethodoverthreetotenyears.
Thecapitalizationthresholdforallcapitalassetsis$1,000.
intangibleassetsarecapitalizedatcostandamortizedusingthestraight-linebasisoverlifeoftherelatedcontracts.
Capital Leases Receivable underthetermsofthemasterlease,principalandinterestpaymentsontheauthority’sleaserevenuebondsare
paidbythestatewhendue.Theauthorityhasestablishedacapitalleasereceivableequaltothefutureprincipalpayments,lessanyunspentproceeds,onitsoutstandingdebt.
Deferred Financing Costsfinancingcostsassociatedwiththeissuanceofbondsandnotesaredeferredandamortizedoverthelifeofthedebtusingtheeffectiveinterestmethod.amortizationexpensewas$172,758fortheyearendedjune30,2012,andisrecordedininterestexpenseintheaccompanyingfinancialstatements.accumulatedamortizationwas$1,294,109asofjune30,2012.
Project AdvancesTheauthorityisoverseeingprojectsforvariousstateuniversitiesandlocaljurisdictions.advancesarereceivedtopayforexpensesincurredortobeincurred.unexpendedadvancesarenotthepropertyoftheauthorityandarerecordedasliabilities.Therewerenoadvancesoutstandingasofjune30,2012.
Use of Restricted Assets whenanexpenseisincurred,theauthorityfirstappliesresourcesavailablefromtheapplicablerestrictedassets
beforeapplyingresourcesfromunrestrictedassets.Theauthority’sassetsarerestrictedinaccordancewithsections13-715,13-716,13-717,13-717.1,and13-717.2ofthefinancialinstitutionsarticleoftheannotatedcodeofmaryland.
New Pronouncements Thegasbissuedstatementno.65,itemspreviouslyreportedasassetsandliabilities,effectiveforfinancial
statementsforperiodsbeginningafterdecember15,2012,statementno.67,financialreportingforpensionplans-anamendmentofgasbstatementno.25,effectiveforfinancialstatementsforperiodsbeginningafterjune15,2014,andstatementno.68accountingandfinancialreportingforpensions-anamendmentofgasbstatementno.27,effectiveforfinancialstatementsforperiodsbeginningafterjune15,2013.Theauthorityisstillintheprocessofdeterminingtheeffectofimplementingthesegasbstatementsandwilladoptthesegasbstatementsbeforetheeffectivedate.
3. DEPOSITS AND INVESTMENTS
asofjune30,2012,theauthorityhadcashondepositinaninternalpooledcashaccountwiththemarylandstateTreasurer(theTreasurer).TheTreasurermaintainstheseandothermarylandstateagencyfundsonapooledbasisinaccordancewiththeannotatedcodeofthestateofmaryland.ThestateTreasurer’sofficeinvestspooledcashbalancesdaily.Theinvestmentconsistedofdirectpurchasesofsecuritiesorrepurchaseagreements.Thetotalofthecashaccountswas$5,675,035asofjune30,2012.
Thecarryingvalueofotherdepositsasofjune30,2012,andtheassociatedbankbalanceswere$564,722,whichwerecoveredbyfederaldepositoryinsurance.
asofjune30,2012,theauthorityhad$339,043ofunspentmasterequipmentandenergyperformanceleasefinancingsheldwiththestateTreasurerrestrictedforthepurchaseofequipment.ThesefundsareinvestedbythestateTreasurer.
asofjune30,2012,theauthorityhadabalanceof$7,064,200infundsheldbytrusteesforvariousbondseries.Thebankofnewyorkheld$5,861,205andm&Tbankheld$1,202,995.asofjune30,2012,thesebalanceswereinvestedinvariousmoneymarketmutualfundaccountswhichmatureinlessthanayear.Themoneymarketfundsusedbym&Tbankandthebankofnewyorkareratedaaabymoody’sandaaabys&p.
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3. DEPOSITS AND INVESTMENTS (continued)
asofjune30,2012,m&Tbankhadthefollowinginvestmentsandmaturities:
Investment Maturities (in Years)
Investment Type Value Less than 1 1-5 6-10 11-15 More than 15moneymarket $1,202,995 $1,202,995 - - - -
asofjune30,2012,thebankofnewyorkheldthefollowinginvestmentsandmaturities:
Investment Maturities (in Years) Investment Type Value Less than 1 1-5 6-10 11-15 More than 15moneymarket $5,861,205 $5,861,205 - - - -
Theauthorityisrestrictedbythetrustindentureforeachbondissuanceastothetypeofinvestmentsthatcanbeutilized.alltransactionsmustbecompletedbythestateofmarylandTreasurer’soffice.
Interest rate riskinterestrateriskistheriskthatchangesininterestratesthatwilladverselyaffectthefairvalueofaninvestment.
Theauthorityhasnoformalinvestmentpolicythatlimitsinvestmentmaturitiesasameansofmanagingitsexposuretofairvaluelossesarisingfromchangesininterestrates.
Custodial credit riskforaninvestment,custodialcreditriskistheriskthat,intheeventofthefailureofthecounterparty,theauthoritywouldnotbeabletorecoverthevalueofitsinvestmentsorcollateralsecuritiesthatareinthepossessionofanoutsideparty.investmentsecuritiesareexposedtocustodialriskifthesecuritiesareuninsured,arenotregisteredinthenameoftheauthority,andareheldbyeither(a)thecounterpartyor(b)thecounterparty’strustdepartmentoragentbutnotintheauthority’sname.
noneoftheauthority’srestrictedinvestmentsareexposedtocustodialcreditrisk.
Credit riskcreditriskistheriskthatanissuerorothercounterpartytoaninvestmentthatwillnotfulfillitsobligations.
Foreign currency riskforeigncurrencyriskistheriskthatchangesinexchangeratesthatwilladverselyaffectthefairvalueofaninvestment.
Theauthorityisnotexposedtoanymaterialamountofforeigncurrencyrisk.
Concentration of credit riskconcentrationofcreditriskistheriskoflossattributedtothemagnitudeoftheauthority’sinvestmentinthesecuritiesofasingleissuer.
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4. ACCOUNTS RECEIVABLE
accountsreceivableasofjune30,2012,consistedofthefollowing:
baltimoreorioles $4,314,179cityofbaltimore 508,000baltimoreravens 1,781,323other 1,035,308Total $ 7,638,810
5. NOTE RECEIVABLE
undertheorioles’lease,theoriolesshallreimbursetheauthorityforamountsadvancedtoequip,furnishandrenovateprivatesuitesinorioleparkatcamdenyards.privatesuiteconstructioncostsarerepayableovera30-yearperiodandfurnishingandrenovationcostsoverafive-yearperiodwithinterestat6.5%,whichwasadjustedonapril1,2012,totheprimerateofinterestplus1.75%.interestincomefortheyearendedjune30,2012,was$262,392.
futurenotereceivablepaymentstobereceivedasofjune30,2012,wereasfollows:
For the Years Ending June 30, 2013 $488,1812014 488,1812015 488,1812016 429,6202017 410,9662018-2022 2,054,8282023 67,682Total $ 4,427,639
6. CAPITAL LEASES RECEIVABLE
asofjune30,2012,thecapitalleasesreceivableconsistedofthefollowing:
Totalminimumleasepaymentstobereceived $272,885,617less:unearnedinterestincomerangingfrom2%to6.25% 60,800,617principalbalanceonoutstandingdebt 212,085,000less:liquidassetstobeusedinconstruction 1,418,833Total $ 210,666,167
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6. CAPITAL LEASES RECEIVABLE (continued)
futureminimumleasepaymentstobereceivedasofjune30,2012,wereasfollows:
For the Years Ending June 30, 2012 $32,202,2692013 32,228,6752014 30,926,3112015 25,882,9662016 24,541,9052017-2021 95,238,3612022-2026 31,865,130Total $ 272,885,617
capitalleasesreceivableactivityfortheyearendedjune30,2012,wasasfollows:
Beginning Balance Principal Reductions Ending BalancecapiTalleasesreceivable camdenyards $158,254,075 $(4,052,974) $162,307,049baltimorecityconvctr 17,520,550 4,180,661 13,339,889oceancityconvctr 6,551,224 1,186,267 5,364,957montgomerycounty 17,000,000 1,005,000 15,995,000hippodrome 14,487,981 828,719 13,659,262Capital Leases Receivable $ 213,813,830 $ 3,147,673 $ 210,666,157
7. CAPITAL ASSETS
furnitureandequipmentandintangibleassetsactivityfortheyearendedjune30,2012,wasasfollows:
Beginning Balance Additions Reductions Ending BalancecapiTalasseTs:furnitureandequipment $20,857,123 $28,994 $- $20,886,117less:accumulateddepreciation 11,456,223 2,130,406 - 13,586,629Capital Assets, Net $ 9,400,900 $ (2,101,412) $- $ 7,299,488 inTangibleasseTs: facilityrights $284,176,537 $11,925,298 $16,722,975 $279,378,860less:accumulateddepreciation 141,649,248 12,779,633 - 154,428,881Intangible Assets, Net $ 142,527,289 $ (854,335) $ 16,722,975 $ 124,949,979
Thefacilityrightsrelatetotheauthority’srightsinvariousfacilitiesthattheauthorityconstructedorrenovated.Theserightsareintangiblesandarebeingamortizedoverthetermsofagreementswiththerespectivefacilities.
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8. BONDS PAYABLE AND CAPITAL LEASES
bondspayableandcapitalleasesasofjune30,2012,consistedofthefollowing:
leaserevenuebondspayable: 2002series:issued$10,250,000injuly2002at3.0%to5.7%perannum,dueinvaryinginstallmentsthroughseptember15,2013 $2,410,0002002series:issued$20,250,000injuly2002at5.0%to6.25%perannum,dueinvaryinginstallmentsthroughjune15,2022 13,660,0002003series:issued$23,185,000injanuary2003at2.0%to5.0%perannum,dueinvaryinginstallmentsthroughjune15,2024 15,995,0002004series:issued$8,730,000infebruary2004at3.0%to5.21%perannum,dueinvaryinginstallationsthroughdecember15,2024 7,240,0002006series:issued$31,600,000indecember2006atavariablerate;dueinvaryinginstallmentsthroughdecember15,2014 13,555,0002007series:issued$73,500,000infebruary2007atavariablerate;dueinvaryinginstallmentsthroughmarch1,2026 60,775,0002011series:issued$6,630,000inmarch2011at2.25%perannum,dueinvaryinginstallmentsthroughdecember15,2015 5,395,0002011aseries:issued$31,435,000indecember2011at0.8%to3.1%perannum,dueinvaryinginstallmentsthroughdecember15,2019 31,435,0002011bseries:issued$62,915,000indecember2011at1.5%to5.0%perannum,dueinvaryinginstallmentsthroughdecember15,2019 61,620,000Lease revenue bonds payable 212,085,000
revenuebondspayable: 2010series:issued$10,000,000inapril2010at2.90%annum,dueinvaryinginstallmentsthroughdecember15,2013 9,245,0002010series:issued$11,100,000inaugust2011at1.32%annum,dueinvaryinginstallmentsthroughdecember15,2015 11,100,000
capiTalleases:2007masterequipmentleasefinancingindecember2007at5.6%rate,dueinvaryinginstallmentsthroughjanuary1,2018 2,312,5842011masterequipmentleasefinancinginapril2011at5.35%rate,dueinvaryinginstallmentsthroughjanuary1,2020 3,493,8492010masterenergyperformancecontractlease-purchaseagreementinjanuary2011at4.09%rate,dueinvaryinginstallmentsthroughjuly1,2022 2,228,8282010masterenergyperformancecontractlease-purchaseagreementinjanuary2011at6.11%rate,dueinvaryinginstallmentsthroughjuly1,2022 5,492,766subtotal 245,958,027mealoan,1.0%dueinvaryinginstallmentsthroughjuly2021 1,000,000subtotalleaserevenuebond,revenuebondspayableandcapitalleases $246,958,027plusunamortizedpremium(includesunamortizedpremiumsrelatedtobothseriesof2002,2003andthe2004revenuebondspayableof$2,813,$52,645,$1,234,and$78,respectively,asofjune30,2011) 7,019,413lessunamortizeddiscount(includesunamortizeddiscountrelatingtothe1995and1996revenuebondspayableof$9,999and$62,488,respectively,asofjune30,2011) (70,063)Net Bonds Payable and Capital Leases $ 253,907,377
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8. BONDS PAYABLE AND CAPITAL LEASES (continued)
ondecember15,1998,theauthorityissuedthetaxablesportsfacilitiesleaserevenuerefundingbonds,series1998aandb,toretire,togetherwithcertainotherfunds,theauthority’ssportsfacilitiesleaserevenuenotes,series1989c,andtopayrelatedfinancingandissuancecosts.principalandinterestontheseries1998aandbbondsarepayableprimarilyfromthebasicrenttobepaidbythestateunderthemasterlease.Theinterestratesfortheseries1998aandbbondsarebasedonthe30-dayusdlibor,whichisresetweekly.
ondecember9,1999,theauthorityissuedthetax-exemptsportsfacilitiesleaserevenuerefundingbonds,series1999,toretire,togetherwithcertainotherfunds,theseries1989dbonds.Theseries1989dbondswereusedtofinancetheconstructionoforioleparkatcamdenyardsandinparttorefinancethecostsofacquiringandpreparingthepropertyatthesite.Theinterestratefortheseries1989dbondsisbasedonthe30-dayusdlibor,whichisresetweekly.
onjuly10,2002,theauthorityissuedtaxablesportsfacilitiesleaserevenuebonds,series2002,toretire,the2001bondanticipationnotes.principalandinterestarepayableprimarilyfromthebasicrenttobepaidbythestateunderthemasterlease.interestispayablesemiannuallyatratesvaryingfrom3.0%to5.7%perannum.Thebondsmatureseriallyinvaryingamountsthroughseptember15,2013.
onjuly10,2002,theauthorityissuedtaxablehippodromeperformingartscenterTaxablerevenuebonds,series2002,tofinance,togetherwithcertainotherfunds,renovationofthehippodromeperformingartscenter.principalandinterestarepayableprimarilyfromthebasicrenttobepaidbythestateunderthemasterlease.interestispayablesemiannuallyatratesvaryingfrom5.0%to6.25%perannum.Thebondsrequireasinkingfundredemptionbeginningjune15,2014.
onjanuary14,2003,theauthorityissuedtax-exemptmontgomerycountyconferencecenterleaserevenuebonds,series2003,tofinance,togetherwithcertainotherfunds,constructionofthemontgomerycountyconferencecenter.principalandinterestarepayableprimarilyfromthebasicrenttobepaidbythestateunderthemasterlease.
interestispayablesemiannuallyatratesvaryingfrom2.0%to5.0%perannum.Thebondsmatureseriallyinvaryingamountsthroughjune15,2024.
onmarch2,2004,theauthorityissuedtaxablecamdenstationleaserevenuebonds,series2004,torenovatecamdenstationlocatedatcamdenyards.principalandinterestarepayableprimarilyfromthebasicrenttobepaidbythestateofmarylandunderthemasterleaseagreement.interestispayablesemiannuallyatratesvaryingfrom3.0%to5.21%perannum.Thebondsmatureinvaryingamountsthroughdecember15,2024.
ondecember9,2006,theauthorityissuedtheTaxexemptbaltimoreconventioncenterleaserevenuerefundingbonds,series2006,toretiretheseries1994bonds.Theseries1994bonds,(alongwithothersources)wereusedtofinancetheconstructionoftheexpansionofthebaltimoreconventioncenter.Theinterestratefortheseries2006bondsiscalculatedweeklybyitsremarketingagentusingthe30dayusdlibor.
onfebruary1,2007,theauthorityissuedtheTax-exemptsportsfacilitiesleaserevenuerefundingbondsfootballstadiumissue,series2007,toretiretheseries1996bonds.Theseries1996bondswereusedtofinancetheconstructionofthefootballstadiumatthecamdenyardscomplex.Theinterestratefortheseries2007bondsiscalculatedweeklybytheremarketingagentusingthe30dayusdlibor.
indecember2007,theauthorityreceivedboardofpublicwork’sapprovaltoborrow$3.5millionfromthestateofmarylandmasterequipmentleasefinancingprogram.principalandinterestarepayablefromexcessrevenuegeneratedatthecamdenyardscomplex.interestispayablesemiannuallyattherateof5.6%perannum.Thisfinancingissettomatureonjanuary1,2018.aspartofthesettlementagreementbetweentheauthorityandthebaltimoreorioleslimitedpartnershipdatedseptember2007,theauthoritywasallowedtoborrow$250,000fromthesupplementalimprovementsfundwiththeconsentofthebaltimoreorioleslimitedpartnership.Theauthoritymustrepaytheloanwithinthreeyearsoftheborrowingat0%interest.Thefullamountborrowedwillbepaidbackbyaugust2012.
innovember2009,theauthorityenteredintoacontractwithpepcoenergyservicestoprovideenergyupgradesandenhancementstoorioleparkatcamdenyardsandthewarehouse.Theenergyupgradesandenhancementswillcostapproximately$6.0million.Theauthorityisfinancingthecostsunderthestate’senergyperformancecontractlease-purchaseagreementover12years.interestispayablesemiannuallyattherateof6.11%perannum.Thisfinancingissettomatureonjuly1,2022.
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8. BONDS PAYABLE AND CAPITAL LEASES (continued)
innovember2009,theauthorityenteredintoacontractwithpepcoenergyservicestoprovideenergyupgradesandenhancementstom&Tbankstadium.Theenergyupgradesandenhancementswillcostapproximately$2.4million.Theauthorityisfinancingcostsunderthestate’senergyperformancecontractlease-purchaseagreementover12years.interestispayablesemiannuallyattherateof4.09%perannum.Thisfinancingissettomatureonjuly1,2022.
Theauthorityandthebaltimoreravensagreedtopurchaseandinstall$9.6millionofnewaudioandvideoequipmentfundedby$5.6millionfromthebaltimoreravensand$4.0millionfromtheauthority.Theauthority’ssharewasfinancedunderthestate’smasterequipmentlease-purchaseprograminapril2011andamortizedover10years.interestispayablesemiannuallyattherateof5.35%perannum.Thisfinancingissettomatureonjanuary1,2020.
onapril15,2010,theauthorityissuedsportsfacilitiesTaxablerevenuebonds,series2010,torenovateorioleparklocatedatcamdenyards.principalandinterestarepayableprimarilyfromlotteryproceedsreceivedbytheauthority.interestispayablesemiannuallyatarateof2.9%perannum.Thebondsmaturedecember15,2013.
onmarch16,2011,theauthorityissuedtheoceancityconventioncenterexpansionleaserevenuerefundingbond,series2011intheamountof$6.6million.proceedswereusedtorefundtheoutstandingbalanceoftheseries1995,$6.5million,alongwith$125,000forclosingcosts.interestispayablesemiannuallyattherateof2.25%perannum.Thebondmaturesdecember15,2015.Theapproximatedifferenceintheseries1995andseries2011debtservicepaymentis$0.4million.Thisresultedinapresentvaluesavingsataninterestrateof2.25%of$0.4million.
onaugust17,2011,theauthorityissuedsportsfacilitiesTaxablerevenuebonds,series2011,torenovateorioleparkandthewarehouselocatedatcamdenyards.principalandinterestarepayableprimarilyfromlotteryproceedsreceivedbytheauthority.interestispayablesemiannuallyatarateof1.32%perannum.Thebondsmaturedecember15,2014.
ondecember21,2011,theauthorityissuesthesportsfacilitiesleaserevenuerefundingbonds(baseballstadiumissue)series2011a(federallyTaxable)andthesportsfacilitiesleaserevenuerefundingbonds(baseballstadiumissue),series2011b(alternativeminimumTax)of$31.4millionand$62.9millionrespectively.Theproceedsplusbondpremiumof$7.7millionwereusedtorefundtheoutstandingbalanceoftheseries1998a,$11.0million,theoutstandingbalanceoftheseries1999,$70.6million,theterminationfeetoterminatetheinterestrateswapagreementwithaigfinancialcorporation,$19.7millionandissuancecostsof$0.7million.Theapproximatelydifferenceintheseries1998aandtheseries1999comparedwiththeseries2011aandseries2011bis$1.9million.Thisresultedinapresentvaluesavingsattheinterestrateof2.09%of$1.7million.
debtservicerequirementssubsequenttojune30,2012,wereasfollows:
For the Years Ending June 30, Principal Maturities Interest Total2013 24,631,778 10,969,531 35,601,3092014 34,124,167 9,875,664 43,999,8312015 34,510,217 8,574,141 43,084,3582016 20,595,127 7,368,718 27,963,8452017 20,159,115 6,463,669 26,622,7842018-2022 84,516,047 18,246,983 102,763,0302023-2026 28,421,476 3,933,387 32,354,963Total $ 246,958,027 $ 65,432,093 $ 312,390,120
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9. NONCURRENT LIABILITIES
noncurrentliabilityactivityfortheyearendedjune30,2012,wasasfollows:
Beginning Amounts Due Balance Additions Reductions Ending Balance Within One Year
compensatedabsences $871,673 $334,934 $482,049 $724,558 $35,000workers’compensation 200,036 265,000 126,036 339,000 52,545revenuebondsandcapitalleasepayable,net 244,230,168 114,163,801 104,486,592 253,907,377 24,631,778deferredrevenue 1,763,227 - 881,443 881,784 176,357interestrateswapliability 41,591,454 790,960 20,390,746 21,991,668 -Total $ 288,656,558 $115,554,695 $126,366,866 $277,844,387 $ 24,895,680
10. DEFERRED REVENUE
Theauthorityreceivedanadvancepaymentforitsportionofachillerandgeneratorplantfromthebaltimoreravensthatwouldbeincludedinitsfutureoperating.Theauthoritywillreceivea12%returnfromthebaltimoreracingdevelopment,llctoreimbursetheauthorityforimprovementsdoneatthecamdenyardscomplex.revenuetoberecognizedinsubsequentyearsasofjune30,2012,willbeasfollows:
For the Years Ending June 30, 2013 176,3572014 176,3572015 176,3572016 176,3572017 176,357Total $ 881,784
Theadvancedpaymentisrecordedasdeferredrevenueasofjune30,2012,andwillberecognizedasrevenueduringthefollowingyears.
11. INCOME FROM STATE AND MUNICIPAL SOURCES
contributionsfromtheprimarygovernmentrepresentspaymentsreceivedfromthestateofmarylandunderthemasterleaseandotheragreementstofunddebtservice,operatingdeficits,andcertaindevelopmentcostsforvariousauthorityprojects.
duringtheyearendedjune30,2012,baltimorecitymadeanannualcontributionof$1millionpertheannotatedcodeestablishingtheauthority.ThecityfundsareinvestedwiththestateTreasurerforthepurposeofretiringtheauthority’sdebtincurredtoconstructorioleparkatcamdenyards.
12. VALUATION OF INTEREST RATE SWAP AGREEMENT
Objective of the Interest Rate Swaps. Theauthorityenteredintofourinterestrateswapsforthepurposeofhedgingorfixingitsinterestexpenseassociatedwiththeauthority’sseries1998,1999,2006and2007bondissuances.
Theauthorityreceived$15,522,129and$3,313,500,onapril1,1996,andjune10,1998,respectively,pursuanttotheaboveswapagreementsaspremiumsontheswapagreements.Theswappremiumswereusedtowardthecostofconstructingthefootballstadium.inaddition,semiannualliquidityfeeswererequiredfortheoctober1,1993,swapagreementundertheliquidityguaranteeagreementthroughtheissuedateofthenewvariableratedebt.
Thefees,whichtotaled$760,762,areincludedindeferredfinancingcostsandarebeingamortizedoverthelifeofthenewvariableratedebt.
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12. VALUATION OF INTEREST RATE SWAP AGREEMENT (continued)
ondecember9,1999,theauthorityissued,inaccordancewiththeoctober1,1993swapagreement,tax-exemptvariableratebonds,series1999,toretirethe$121,380,000ofoutstandingseries1989dbonds.Thisrefundingresultedinanexcessofthereacquisitionpriceoverthenetcarryingamountoftheolddebtof$3,467,367.Thisdifference,whichisreportedasadeductionfromleaserevenuebondspayable,isbeingamortizedtointerestexpensethroughtheyear2019,thelifeofthenewbonds.Theauthoritycompletedtherefundingtoreduceitsdebtservicepaymentsby$1,727,891andtoobtainaneconomicgainof$10,323,329.
Terms.Thenotionalamountsoftheswapsmatchtheprincipalamountsoftheassociatedbondissues.Theauthority’sswapagreementscontainscheduledreductionstotheoutstandingnotionalamountsthatmatchscheduledprincipalreductionintheassociateddebt.Theterms,includingthefairvaluesandcreditratingsontheswapcounterpartiesasofjune30,2012,areasfollows:
Terms.Thenotionalamountsoftheswapsmatchtheprincipalamountsoftheassociatedbondissues.Theauthority’sswapagreementscontainscheduledreductionstotheoutstandingnotionalamountsthatmatchscheduledprincipalreductionintheassociateddebt.Theterms,includingthefairvaluesandcreditratingsontheswapcounterpartiesasofjune30,2011,areasfollows:
Fixed Variable Swap Counter- Associated Notional Effective Rate Rate Fair Termination partyBond Issue Amount Date Paid Recieved Values Date Ratingseries2006 $13,475,000 12/05/08 5.875%** sifma*** $(1,143,275) 12/15/2014 a2/a+/aseries2007 60,540,000 12/05/08 5.69%to5.80** sifma*** (20,848,393) 3/1/2026 a2/a+/aTotal $ 74,015,000 $(21,991,668)
* calculatedratebaseduponthefixedpaymentsestablishedintheswapagreementsdividedbythenotionalamountoutstandingateachfixedratepaymentdate.series2006swaphasonerate(5.875%)forthefinaltwomaturitiesofthe2006bonds.
** whenbarclaysbankplcbecamethereplacementswapprovider,thevariableratethattheauthorityreceiveschangedfromtheratepaidontheassociatedtax-exemptvariableratebondissuetoaratebasedonchangesonthesifmaindex.
Thetablebelowsetsforthasummaryofchangesinfairvaluefortheyearendedjune30,2012,andthefairvalueasofjune30,2012.
Change in Fair Value Fair Value as of June 30, 2011 Classification Fair Value Classification Amount
Fair value hedge payfixedinterestrateswap changein $(107,735) swapvaluation $21,891,668 fairmarket liability valueofswaps
Fair Value.becauseinterestrateshavedeclinedfromratesthatwereineffectondatestheswapswereenteredinto,allswapshaveanegativefairvalueasofjune30,2012.Thefairvaluesoftheswapsweredevelopedbyanindependentvaluationconsultanttotheauthoritythatdoesnothaveavestedinterestintheswaps,usingamarketacceptedmethodsimilartothezerocouponmethodexamplepermittedbyaccountingprinciplesgenerallyacceptedintheunitedstatesofcalculatingfairvalue.Themethodologyusedconsistsofcalculatingthefuturenetsettlementpaymentsrequiredbytheswapagreement,assumingthatthecurrentforwardratesimpliedbytheyieldcurvecorrectlyanticipatefuturespotinterestrates.Thesepaymentsarethendiscountedusingthespotratesimpliedbythecurrentyieldcurveforhypotheticalzerocouponbondsdueonthedateofeachfuturenetsettlementdateoftheswap.
1998A Swap and 1999 Swap Termination.ondecember21,2011,theauthorityrefundedthe1998aand1999bondswiththeseries2011aandbbonds.Theswapsassociatedwiththeseries1998aand1999bondswereterminated.byreplacingthevariableratebondswiththefixedratebondsandterminatingtheswaps,theauthorityeliminatedtherisksinherentwithbothvariableratedebtandswaps.Theunamortizedportionofthedeferredfinancingcostfortheseries1998aand1999bondsof$598,957werealsowrittenoff.
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Credit Risk.asofjune30,2012,theauthoritywasnotexposedtocreditriskbecausetheswapshadanegativefairvalue.however,shouldinterestrateschangeandthevalueoftheswapsbecomepositive,theauthoritywouldbeexposedtocreditriskintheamountequaltotheswaps’fairvalue.barclaysbankplc,thecounterpartytotheconventioncenterswapandthefootballswapwasrateda+bystandardandpoor’s,a2bymoody’sinvestorsservice,andabyfitchasofjune30,2012.iftheauthority’sratingsfordebtsecuredbythemasterleasewiththestateofmarylandfallbelowbbb+orbaa1bys&pandmoody’soraresuspended,thefairvalueoftheswapwillbefullycollateralizedbytheauthoritywithcashorsecurities.collateralwouldbepostedwithanindependentthirdpartycustodian.Theauthoritywasratedaa+bystandardandpoor’s,aa2bymoody’sinvestorsserviceandaabyfitchasofjune30,2012.
12. VALUATION OF INTEREST RATE SWAP AGREEMENT (continued)
Basis Risk.basisriskistheriskthattheinterestratepaidbytheauthorityonunderlyingvariableratebondstobondholdersdiffersfromthevariableswapratereceivedfromtheapplicablecounterparty.Theswapsbothhedgetax-exemptrisk,andthereforeasofjune30,2012withregardtax-exemptinterestrisk,theyarenotexposedtobasisrisksincetheauthorityreceivesavariableratebasedonthesifmaswapindextooffsetthevariableratetheauthoritypaysonitsbonds.
Termination Risk. Theswapagreementsprovideforcertaineventsthatcouldcausethecounterpartiesortheauthoritytoterminatetheswaps.Theswapsmaybeterminatedbythecounterpartiesortheauthorityiftheotherpartyfailstoperformunderthetermsoftheswapagreements.iftheswapsareterminated,theauthoritywouldnolongerhavesyntheticfixedrateobligations.also,ifatthetimeofterminationofoneofitsswaps,theswaphasanegativefairvalue,theauthoritywouldbeliabletothecounterpartyforapaymentequaltotheswap’sfairvalue.
Swap Payments and Associated Debt. asratesvary,variable-ratebondsinterestpaymentsandnetswappaymentswillvary.Theseamountsassumethatthecurrentinterestratesonvariableratebondsandthecurrentreferenceratesofhedgingderivativeinstrumentswillremainthesamefortheirterm.astheseratesvary,interestpaymentsonvariableratebondsandnetreceipts/paymentsonthehedgingderivativeinstrumentswillvary.Theswap-netinterestcolumnreflectsonlynetreceipts/paymentsonderivativeinstruments,thenetswappaymentsareasfollows:
variable–raTebonds(1)
For the Fiscal Years Ending Bond Swap - Net June 30, Principal Interest(2) Interest(3) Total2013 $7,230,000 $118,928 $4,012,727 $11,361,6552014 7,650,000 107,360 3,606,598 11,363,9582015 8,065,000 95,120 3,174,661 11,334,7812016 3,485,000 82,216 2,863,851 6,431,0672017 3,685,000 76,640 2,670,850 6,432,4902018 3,890,000 70,744 2,466,710 6,427,4542019 4,115,000 64,520 2,250,872 6,430,3922020 4,350,000 57,936 2,022,502 6,430,4382021 4,595,000 50,976 1,781,043 6,427,0192022 4,860,000 43,624 1,525,937 6,429,5612023 5,140,000 35,848 1,256,070 6,431,9182024 5,435,000 27,624 968,045 6,430,6692025 5,750,000 18,928 663,441 6,432,3692026 6,080,000 9,728 341,134 6,430,862Total $74,330,000 $860,192 $29,604,441 $104,794,633
(1) includesprincipaldueonthebonds,interestdueonthebondsandnetswappayments(fixedrateinterestpaidlessvariablerateinterestreceivedbasedontheoutstandingnotionalamountoftheswap)ontheconventioncenterswapandfootballswapagreementsandrelatedbonds.
(2) asofjune30,2012,theauthority’stax-exemptvariableratefordebtservicerequirementsbondswas0.16%.
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13. RISK MANAGEMENT
Theauthorityisexposedtovariousrisksoflossrelatedtotorts;theftof,damageto,anddestructionofassets;errorsandomissions;injuriestoandillnessofemployees;andnaturaldisasters.Theauthorityparticipatesinthestate’svariousself-insuranceprograms.Thestateisself-insuredforgeneralliability,propertyandcasualty,workers’compensation,environmentalandantitrustliabilitiesandcertainemployeehealthbenefits.
Thestateallocatesthecostofprovidingclaimsservicingandclaimpaymentsbycharginga“premium”totheauthoritybasedonapercentageoftheauthority’sestimatedcurrentyearpayrollorbasedontheaveragelossexperiencedbytheauthority.Thischargeconsidersrecenttrendsinactualclaimsexperiencedbythestateasawholeandmakesprovisionsforcatastrophiclosses.
Therehavebeennosignificantreductionsininsurancecoveragefromtheprioryear.additionally,settlementshavenotexceededinsurancecoverageforthepastthreefiscalyears.
14. OPERATING LEASES
leaserentalincome
Theauthorityhasleasedcertainofficespaceinthecamdenyardswarehousetovarioustenantswithtermsrangingfrom3yearsto20years.Thefutureminimumleaserentalstobereceivedonnoncancelableoperatingleasesasofjune30,2012,wereasfollows:
For the Years Ending June 30, Amount2013 3,772,8302014 3,694,5762015 3,893,5852016 2,540,7272017 800,8862018-2022 1,789,2532023-2026 1,549,571Total $ 18,041,428
leaserentalincomefortheyearendedjune30,2012,was$3,880,644.
15. RETIREMENT PLANS
Maryland State Retirement and Pension SystemTheauthoritycontributestotheretirementandpensionsystemofmaryland(thesystem),establishedbythestatetoprovidepensionbenefitsforstateemployeesofvariousparticipatingentitieswithinthestate.althoughthesystemisanagent,multiple-employerpublicemployeeretirementsystem,thesystemdoesnotperformaseparatevaluationfortheauthority,andtheauthority’sonlyobligationtothesystemisitsrequiredannualcontribution.Thesystempreparesaseparatecomprehensiveannualfinancialreport,whichcanbeobtainedfromtheretirementandpensionsystemofmarylandatthestateofficebuilding,120eastbaltimorestreet,baltimore,maryland21202.
Funding Policy Theauthority’srequiredcontributionisbaseduponapercentageofcoveredpayrollbasedonthestate’sallocationofitsannualcost.Theentryagenormalcostmethodistheactuarialcostmethodused.boththeauthorityandcoveredemployeesarerequiredbystatestatutetocontributetothesystem.Theemployeescontributefrom2%to5%ofcompensation,asdefined,dependingontheparticipant’splan.Theauthoritymadeitsrequiredcontributionduringfiscalyearsendedjune30,2012and2011,of$608,196and$593,577respectively.
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15. RETIREMENT PLANS (continued)
Other Post-Employment Benefitsmembersofthestateretirementandpensionsystemofmaryland(thestatesystem)andtheirdependentsareprovidedpostemploymenthealthcarebenefitsthroughthestateemployeeandretireehealthandwelfarebenefitsprogramTheplanisacostsharingdefinedbenefithealthcareplanestablishedbythestatepersonnelandpensionsarticle,section2-501through2-516oftheannotatedcodeofmaryland.Theplanisself-insuredtoprovidemedical,hospitalization,prescriptiondruganddentalinsurancebenefitstoeligiblestateemployees,retirees,andtheirdependents.Thestatedoesnotdistinguishemployeesbyemployer/stateagency.instead,thestateallocatesthepostemploymenthealthcarecoststoallparticipatingemployers.
financialinformationfortheplanisincludedinthestateofmarylandcomprehensiveannualfinancialreport,whichcanbeobtainedfromthecomptrollerofmaryland,louisl.goldsteinTreasurybuilding,annapolis,md21404.
aseparateactuarialvaluationisnotperformedbytheauthority.Theauthority’sonlyobligationtotheplanisitsrequiredannualcontribution.Therewasnorequiredcontributionfortheyearendedjune30,2012.
Plan Description
Theauthority’semployeesaremembersoftheplan.membersmayenrollandparticipateinthehealthbenefitsoptionsiftheretireeendedstateservicewithatleast10yearsofcreditableservicewithinfiveyearsbeforetheageatwhichavestedretirementallowancewouldbeginoriftheretireeendedstateservicewithatleast16yearsofcreditableservice.
Funding Policybeginninginfiscalyear2008,statelawrequiresthestate’sdepartmentofbudgetandmanagementtotransferanysubsidyreceivedasaresultofthefederalmedicareprescriptiondrugimprovementandmodernizationactof2003orsimilarsubsidytotheopebTrusttoprefundopebbenefits.Tofurtherprefundbenefits,duringfiscalyear2008,thestatetransferredfromthestatereservefunddedicatedpurposeaccount.additionally,thestateisrequiredbylawtoprovidefundingeachyearfortheplanforthestate’sshareofthepay-as-you-goamountnecessarytoprovidecurrentbenefitstoactiveandretiredemployeesandtheirdependents.fundsmayalsobeseparatelyappropriatedinthestate’sbudgetfortransfertotheopebTrust.
basedoncurrentpractice,thestatesubsidizesapproximately50%to85%ofcoveredmedical,dental,prescriptionandhospitalizationcostsdependingonthetypeofinsuranceplan.Thestateassessesasurchargeforpostemploymenthealthcarebenefits,whichisbasedonhealthcareinsurancechargesforcurrentemployees.costsforpostretirementbenefitsareforstateofmarylandretirees.
formerauthorityemployeeswhoarereceivingretirementbenefitsmayparticipateinthestate’shealthcareinsuranceplans.Theseplans,whichprovideinsurancecoverageformedical,dentalandhospitalcosts,arefundedcurrentlybythepaymentofpremiumstothecarriersand,understatepolicy,arecontributory.substantially,allemployeesbecomeeligibleforthesebenefitswhentheyretirewithpensionbenefits.
16. LITIGATION
inthenormalcourseofoperations,certainclaimshavebeenbroughtagainsttheauthority,whichareinvariousstagesofresolution.managementbelievesthattheultimateresolutionoftheclaimswillnothaveamaterialadverseeffectontheauthority’sfinancialposition.
The Benefactor
in2012wecelebratedthelifeofartmodell,themanwhobroughtnflfootballbacktobaltimoretwelveyearsafterthemayflowervansdeparted.
artmodell’scontributionstothecityofbaltimorewerenotlimitedtothefranchiserelocation.heandhiswifepatwereknownfortheirphilanthropy,withgenerouscontributionstotheperformingartsandeducationalopportunitiesfortheunderprivileged.
itwasaltogetherfittingthattheravenstributetotheirfounderwasnationallytelevisedonthefirstmondaynightofthe2012season.duringhismanyyearsofteamownership,artmodellhelpedbrokerthenfl’spartnershipwithtelevision.healsorecognizedthesingularfocusthatmondaynightfootballcouldbringtothegame,andchampionedtheconceptthatbecameanentertainmentevent.
althoughhecametobaltimoreintheautumnofhislife,artmodelllivedthatseasontoitsfullest.
weasacity,state,andsportsfacilityarethericherforit.
“He gave us our Sundays back.”John Moag
Art Modell with Stadium Authority Chairman John Moag at the stadium groundbreaking in 1995.
A heartfelt tribute on Opening Night, 2012.
Seasons of Celebration
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