We are collecting revenue from Tribal Memberships ($1.1 million to date). So far, this is our sole source of income for 2021. The Board had budgeted membership revenue at $1.4 million, so we have about $300,000 more to collect. The Executive Director and Deputy Executive Director along with our Accounting Department implemented cost saving measures, but have yet to cut any of the contractor costs owing to the new Biden Administration and NIGA’s advocacy efforts with the various Covid Relief legislative packages. Fiscal Year 2021 The biggest challenge today is NIGA’s lack of income revenue past September 2021. Even more problematic, NIGA has large financial commitments (>$800,000) due in October and November as down payments for the 2022 Tradeshow in Anaheim. These are upfront costs owed to the Convention Center and Hotels in order to meet the long lead times of Tradeshow operations. (Ie.. signage/marketing, food orders, Hotels and Convention Center security deposits, other items) NIGA simply will not have enough operating cash to finish 2021 operationally and provide 2022 Tradeshow outlays. We are looking at the Clarion loan(s) and potentially re-financing the Building given its considerable equity. The NIGA Accountant and I, with advice and review from our Auditors at WipFli (Joseph Eve), 1. Clarion loans NIGA, $1.5m per year starting from Jan 1 st 2021 at 3% interest rate and a 10 year repayment period. There is no penalty for early re-payment. 2. Profits from future events will be split evenly after the first $2 million in revenue. Thereafter, the profit sharing raises again past $3.2 million. 3. NIGA will continue to own 100% of their event for the entire period of the Agreement. Clarion will assume the financial aspects of the event such as covering all expenses with revenues received. 4. All Tradeshow planning and budgeting will need to be jointly agreed to each year. Clarion and NIGA will create a joint “Management Board” where each year’s Tradeshow budget must be agreed to by both parties. The Management Board would meet once a are negotiating a contract loan with Clarion leadership. Outlines of a Draft Loan Agreement with Clarion
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