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Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
June 6, 2007
To the Honorable, the Assembly:
As required by s.
13.94(1)(dm), Wis. Stats., we have completed our annual financial audit of State Fair Park. We have issued an unqualified opinion on State Fair Park's fiscal year (FY) 2005‐06 financial statements. In addition, we have continued to monitor State Fair Park's financial condition and its efforts to improve its financial performance.
In FY 2005‐06, State Fair Park's expenditures exceeded revenues by $1.7 million, increasing the fairgrounds' accumulated cash deficit to $11.5 million. As part of efforts to improve State Fair Park's financial condition, agency officials have restructured the fairgrounds' financial relationships with two other facilities that operate on the fairgrounds: the Milwaukee Mile and the Pettit National Ice Center.
In December 2005, State Fair Park entered into an agreement with a private promoter to operate the Milwaukee Mile racetrack. The promoter acquired all promotional rights to the racetrack in exchange for an annual license fee. This license fee will provide State Fair Park with between $1.7 million and $1.8 million per year over the 18‐year term of the agreement.
In January 2007, the Pettit Center was sold to its managing not‐for‐profit corporation for nearly $5.6 million. Proceeds from the sale will be used to fund remaining debt service payments, which at the time of the sale were $5.7 million. As a condition of the sale, State Fair Park waived $1.0 million in past‐due rent, which had been outstanding since June 30, 2004.
We appreciate the courtesy and cooperation extended to us by the staff of State Fair Park. A response from State Fair Park's executive director follows the appendix.
Respectfully submitted,
Janice Mueller
State Auditor
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Representative Petrowski moved that the Assembly stand adjourned until 10:00 A.M. on Thursday, June 14.
The question was: Shall the Assembly stand adjourned?
Motion carried.
The Assembly stood adjourned.
11:46 A.M.
