HomeMy WebLinkAbout06-14-12 PARC CommitteePARC COMMITTEE
5:00 P.M.
Committee Members Present:
Gavin Ferlic, Valerie Schey, Tim Scott
Citizen Members:
Beth Ferlic, John Mazurkiewicz
Other Council Members Present:
Henry Davis
JUNE 14, 2012
Others Present:
Ann -Carol Nash, Kathryn Roos, Mark Neal, Scott Ford, Andrew Nemeth, Aaron Perri,
Dennis Andres, Lyn Mayer
Agenda: Discussion of Extension of Global Spectrum's Contract to Manage Century
Center
Committee Chair Gavin Ferlic opened with a brief summary of the purpose of the
meeting namely to discuss the Global Spectrum management contract with Century
Center. More specifically, he noted that the Century Center Board of Managers were
scheduled to vote on 6/20/12 on whether to extend Global Spectrum's management
contract for six (6) months due to expire 12- 31 -12. This meeting was to get reports from
and possibly offer direction to the Council's appointees to the Board of Managers prior to
their vote whether to extend for six (6) months or not.
Gavin called upon City Controller Mark Neal to present the city administration's point of
view.
Mark suggested a six (6) month extension through June 2013. He said the extension of
GS's contract due to expire at the end of 2012 and a 3 month extension of Centerplate's
food service contract due to expire 3 -13 -13 would allow the City to develop a strategic
plan that would maximize the potential of all City -owned assets, in particular, those
downtown.
Valerie Schey said according to recent financial reports, Century Center operated at a loss
of $1,145,857 in 2011. These losses as well as the burden of the Hall of Fame were
unacceptable. As a taypayer it would be hard to vote renewal or extension as losses
mount.
Mark Neal countered with a caution to reserve judgment without looking at what other
convention centers were doing in this economic climate. He said the administration
needed time to develop their vision and translate it into a strategic plan.
Valerie suggested the possibility of closing Century Center for 6 months to "stop the
bleeding."
Council appointee to the Board of Managers Dennis Andres Jr. said the Council was
certainly right to be concerned; but urged keeping everything in perspective. He
reminded everyone that the Center's budget was drafted to operate at a loss. The
supplement comes from Hotel -Motel Taxes. Dennis did caution that the subsidy was
40% of the budget in 2006 and was now 50 %. In addition the economic impact of
Century Center estimated to be $36.9 million in 2006 had fallen to $15 million in 2011.
He agreed a strategic plan was needed; but should only be extended 90 days to 3 -31 -12 to
coincide with the end of Centerplate's contract.
Kathryn Roos echoed Neal's call for a six month extension.
Henry Davis wondered about the validity of the statistics and questioned the time
requested to develop a strategic plan suggesting that 18 months from the beginning of this
administration was too long.
Aaron Perri, Director of DTSB, said the contract with Global Spectrum and Centerplate
needed to be thoroughly reviewed with enough time taken to do so.
Henry said he'd been urging a review of Century Center operations for some time. He
said we are responsible to the tax payers to safeguard their assets and maximize their
(ROI) return on investment.
John Mazurkiewicz wondered what options the City had with the extension issue.
Finding out a 90 day notice was required if changes were made, he said the effective date
of the current contract was October 1. Therefore, a 90 day extension would be long
enough.
Tim Scott, Dennis Andres Jr., and Henry Davis, Jr., all agreed, a 90 day extension was
more than adequate to formulate a plan.
Mark Neal and Kathryn Roos reiterated the importance of a comprehensive strategic plan
of which Century Center is but one facet. The upcoming Economic Summit was another.
Henry Davis asked what he could report to his constituents. Where was Council
involvement and where do we go from here?
Valerie Schey asked if a report detailing the sources of all revenue supporting the
Century Center, the Hall of Fame, DTSB, Coveleski, the Morris and the Palais could be
provided. In response, Mark Neal agreed to consolidate that data.
Dennis Andres, Jr., asked for specific direction from the Council on the scheduled vote
for next week. Valerie, Henry, and Tim all expressed opposition; but no formal vote was
taken.
There being no further business to come before the committee at this time, Chairperson,
Gavin Ferlic adjourned the meeting at 5:59 p.m.
Respectfully Submitted,
Gavin Ferlic, Chairperson
PARC Committee