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Council weighs event center options
Photo courtesy of Sink Combs Dethlefs - Responsibilty for the Allen Event Center's management could lie with either the city or an outside company depending on the course of action chosen by the council.
By Conner Hammett, chammett@acnpapers.com
The city council had a lot to consider Friday as they looked to the future of the Allen Event Center at their annual budget workshop.
Their two current options, as presented by Parks and Recreation Director Tim Dentler, would see the city either manage the center beyond its current 90-day interim period or seek an outside company to take the place of Global Entertainment Corporation, who pulled out of event center operations June 25.
Parks and recreation staff members recommended the city continue managing the center, saying city-level management would give the city ultimate control over event center operations, rather than relying on the work of an outside company.
While the council was largely receptive to the recommendation, questions remained about the details of the plan.
“Whether we let someone else run part of it, all of it, or if the city takes it over, I still think we need to get a cost effectiveness,” said Mayor Steve Terrell. “What is it going to pull out of our accounting department? What percentage we’re going to pay over to the city general budget?”
Gary Caplinger, council member Place 5, said the center would have to operate with a profit in mind in order to be self-sustaining.
“We cannot enter anything that we would have to subsidize,” he said. “We are second to none at service, but we need to make sure that we have the mentality that we have to turn a profit.”
The council also considered what identity the event center would assume if the city took over its management full-time.
While the center has traditionally operated as a concert and sports facility, other examples of city-managed event centers have primarily focused on sports events.
“The goal is to maximize the use of the facility,” said Peter Vargas, city manager. “The formula that seems to work is, if you have a sports center facility with concerts as an added attraction, you’re not banking on two or three events to make your operational costs. You’ve got long-term leases.”
Council member Robin Sedlacek was hesitant to endorse sports leases as the primary means of income.
“I like the idea of sports teams, especially to cover operational costs, but I don’t want to lose the opportunity we have to provide other forms of entertainment to Allen,” she said.
Mayor Stephen Terrell was supportive of the idea, citing a lack of profits in past concert events.
“I think that’s the greatest choice we’ve got,” he said. “Will it be a challenge? Yes. It’s not going to be simple... We’re going to have to have someone who beats the bushes out there all the time.”
The city first took over management of the event center after Global Entertainment Corporation, the company hired to manage the facility, asked to be relieved of their services June 25.
Concerns over the event center’s management go back as far as January. On April 12, the city staff met with Global to discuss the center’s lack of performance, reiterating concerns over the center’s lack of events and service level.
The city’s involvement with the center’s operations also pre-dates the transition date. In April, Global of Allen requested assistance from the city in the daily operations of the community rink. An employee from the Joe Farmer Recreation Center was transferred to the rink to assist with operations for 60 days, a period which was extended following the city’s takeover of event center operations. The department also provided additional staff support to evaluate processes and procedures for the rink at that time.
The city is currently operating the event center through $1.6 million from the Parks and Recreation Special Revenue fund. An additional $8.5 million has been budgeted for 2011 in case the council decides to go ahead with future management of event center operations.
“Since we took over the management of the event center, we had to have authorization for expenditures not knowing what direction we were going to go in,” Vargas told the council. “It still gives us the opportunity to do whatever you direct us to do, but we had to account for it some way.”
The city has taken on a total of 49 on-site full-time equivalency positions since taking over the center’s management. Event and rental revenues have been budgeted to match salary and operation expenses, keeping costs associated with the city’s new management duties at zero dollars if the current projections prevail.
In addition to the on-site positions, staff members from the city’s Parks and Recreation Department have stepped in to assist with the center’s operations.
Caplinger said he would like to see estimates of how much of the city staff would be required to help manage the event center in the future if the council adopts the recommendations.
“Every department that is helping right now is taking away from what their other job is,” he said. “We have a great history of our employees stepping up to the challenge, but I don’t want to overwork them.”
Dentler said staff is currently working hard to improve the public perception of the event center by examining customer feedback and addressing their concerns.
Research has indicated most concerns were over the maintenance and condition of the building, food pricing, public communication, and the number and quality of shows held at the center.
“We’re committed to making sure we make improvements in those areas,” Dentler said.
Dentler said the staff is also working to develop a new website for the center and is ramping up booking efforts to fill out the center’s performance schedule.
“Over the last six weeks, we’ve been very aggressive with adding [events],” he said.
City finance staff members are now working with the event center to determine the center’s financials as of June 25, as well as find out how much Global would owe the city following the transition.
The details of Global’s departure are expected to be finalized at the Aug. 24 council meeting.
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