User uShare Login | Register
Login
Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.


38° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

Winter weather returns early this week.  Storm Center Update

News

[0] My Saved Articles
Back to all news

Business

Find local businesses
on the KELO Pages!

 

Most Popular Today


Events Center Contracts Approved

October 9, 2012, 9:49 PM by Kelly Bartnick

Events Center Contracts Approved
SIOUX FALLS, SD -

The Sioux Falls City Council approved the management and food and beverage contracts for the new Denny Sanford PREMIER Center. The council unanimously approved giving both SMG and Ovations management responsibility.

One will be over operations and the other food and beverage service. Both will work out of all four of the city's event and entertainment spaces.

“Were there discussions taking place about whether there will be possible operating subsidies or what profit will be made? Were those discussions taking place?” Council Member Kermit Staggers asked during the presentation.

SMG already manages the Sioux Falls Arena and Orpheum Theater.  Ovations provides food services for the city too. Both will now oversee their respective operations at the Sioux Falls Arena, Convention Center, Orpheum Theater, and Denny Sanford PREMIER Center.

“SMG manages the facilities for a fee.  As a result, it is the city which is responsible for receiving all of the income and paying all the expenses,” attorney Jim Wiederrich said.  He was hired to help the city negotiate the contracts.

SMG's fee begins with a base price of $100,000 the first year of the five-year contract. It tops out at $110,000 the final year. The company is also eligible for incentives that could nearly double the city's yearly payment to them.

“Ovations is the entity at risk and can make a profit or not make a profit,” Wiederrich said regarding the food and beverage contract.

Ovations will pay the city a cut of its sales average at about 37 percent a year over its five-year contract. Both companies also chipped in large, up-front payments to boost their agreement totaling more than $900,000 for improvements and marketing needs. Tuesday’s unanimous vote allows the mayor to ink the deal.

“Even though we're only here at the end approving it, what it's done is add transparency to the whole process,” Council Member Greg Jamison said.

The contract talks began last March. Both take effect in January. Find more information on the contracts and watch the presentation on the city's website.

Previous Story

Next Story


Comments







Sponsored
Find Local Businesses on KELO Pages!

View business

You may also like

Cliff Hangers Gallery Closes; Customers Want Items Back

12/15/2014 10:10 PM

For more than two decades, Cliff Hangers Gallery has been a fixture in Sioux Falls.  A couple of years ago, the business moved from Park Ridge Ga...

Full Story | Watch
What Will Cost More/Less In 2015

12/16/2014 1:36 PM

Industry experts say gasoline prices will continue to fall in 2015, but other prices are expected to rise.

Full Story
Denny Sanford To Donate $25 Million For Scholarship Program

12/16/2014 4:30 PM

Philanthropist T. Denny Sanford is donating $25 million to South Dakota for a scholarship program for the state's technical schools.&nbs...

Full Story
Denny Sanford's Multi-Million Solution To Worker Shortage

12/16/2014 10:04 PM

Sanford's money provides half of the funds for a $50 million scholarship program at the state's technical schools to train workers to fill job...

Full Story | Watch
New Police Officers & Firefighters Needed

12/15/2014 6:00 PM

Due to a number of retirements and an increasing number of police and fire calls, the city plans to hire 10 new police officers next year, along with ...

Full Story | Watch


Events