TITLE
Recommendation to authorize City Manager to execute an amendment to the Implementation Agreement with Aquarium of the Pacific, a California nonprofit public benefit corporation, providing up to $250,000 in fiscal year 2008 toward capital reinvestment opportunities. (District 2)
DISCUSSION
The Aquarium of the Pacific (Aquarium) is a not-for-profit educational institution that manages and operates the Aquarium on behalf of the City. Now in its sixth year of annual attendance and operating revenue increases, the Aquarium is committed to maintaining the Aquarium at a high standard of excellence for its guests, employees, and animals from its operating revenues. In addition, the Aquarium needs to present an entertaining and educational experience to every guest in order to ensure that the Aquarium remains a vibrant, healthy asset that delivers educational and economic benefits to the City, its neighborhoods, and the region.
The Aquarium began planning for growth in 2002. An independent consultant was hired to develop recommendations for improving the Aquarium's long-term financial strength, increasing revenue-generating opportunities, and expand visitor capacity. The end result of this effort was a Campus Master Plan (CMP), unveiled in January 2005.
The CMP focused on expanding capacity to 2.2 million annual visitors and growing attendance to 1.7-1.8 million visitors per year. Next, the City hired a consultant to review the Aquarium's plans and its operating performance. The consultant determined that the Aquarium operates at an above-average efficiency level compared to its peers.
The study showed the Aquarium had the second highest visitors per square foot and the highest earned income ratio among its peers. On September 20, 2005, the City Council authorized the execution of an Implementation Agreement, which served to strengthen the Aquarium's ability to secure donations. The Implementation Agreement provided, among other things, a fixed lease payment, a ...
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