All public assembly venues share a common thread in their mission statements or public purpose: to fill all available seats or fill all meeting room and exhibit space as frequently as possible. Why not sell all of the seats or floor space? Some public assembly venues may have financial profit as their primary focus while others may concentrate more on providing programming that best serves the communitys needs. The concept of selling every seat may be literally applied to arenas. With respect to convention centers, the goal may be to attract convention and multi-day meetings that bring large numbers of out-of-town attendees who spend new money in the community, thereby stimulating the local economy. Of course it must be recognized that other types of public assembly venues may attract out-of-town audiences from outside the taxing jurisdiction who also spend new money.

National Recreation and Park Association Annual Convention

-rental fee (move-in, move-out, and event days) (approximate total rental fee of $45,000 food and beverage commissions (banquets, meeting-room breaks, etc.)

-rentals (exhibit materials, AV equipment, etc.)

-39 Labor charge-backs

Bruno Mars Concert

-Venue rental fee (6% of gross ticket sales) (average ticket price of $75)

-ticket service charges and commissions

-concessions commission (% of gross sales)

-merchandise commission (% of gross sales)

-broadcast origination fee (flat flee of 2,000)

-labor charge-backs

-parking revenue

-only limited room nights would be generated, as concert attendees will be mostly locals

Based on the information provided:

1. Determine which of the two events will generate the greater amount of ancillary revenues for the complex.
2. Determine which of the two events will create greater positive economic impact for the metropolitan community.
3. Formulate for the board of directors a written recommendation regarding which event should be confirmed. Include at least 3 persuasive points to support your recommendation.