PILLAR Growing
AGENDA DATE: September 23, 2026
COUNCIL DISTRICT(S): 2
DEPARTMENT: Department of Convention and Event Services
PRIORITY: Targeted Economic Growth
______________________________________________________________________
SUBJECT
Title
Authorize the Second Amendment to the Management Agreement with Global Spectrum, LP to extend the term of the agreement for an additional five-month period beyond September 30, 2026, and to revise Section 1.02 of the Agreement to state the initial term shall expire as of 11:59 p.m., February 26, 2027, unless terminated earlier, in an amount not to exceed $2,529,646.00 for staff and operations and a management fee in an amount not to exceed $145,833.00 - Total not to exceed $2,675,479.00 - Financing: Convention and Event Services Fund
Body
BACKGROUND
In February 2019, the City of Dallas (the “City”) entered into a Management Agreement (“Agreement”) with the Global Spectrum, LP (“Manager”) relating to the operation and maintenance of the Kay Bailey Hutchison Convention Center Dallas (“KBHCCD”). The agreement approved by City Council Resolution No. 19-0281 had an initial five-year term.
Due to COVID-19, the Manager’s performance under the Agreement was interrupted and affected. Consequently, a First Amendment to the original contract was negotiated to extend the term for two years, with a termination of the original term extended to September 30, 2026.
Due to the exigent circumstances of the KBHCCD expansion project, this proposed action authorizing the Second Amendment to the Management Agreement will provide the Department of Convention and Event Services (CES) the opportunity to transition the operations of the convention center to account for a reduction in saleable space to 300,000 square feet of exhibit hall space, two dividable ballrooms, and 30 meeting rooms. This makes the convention center roughly the size of a medium sized convention center like Pittsburgh.
Although the reduction in size does not preclude the selling of event space in the existing center through 2029, the clients will have a reduced attendance size. As such the transition will include the renegotiation of contracts for food and beverage services, rigging, audiovisual, technology, parking and other services. CES is forecasting that this will take approximately five months to complete, with the potential for an additional month if the negotiations are protracted, resulting in a contract term that extends through February 26, 2027.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On February 13, 2019, the City Council authorized the Management Agreement with Spectra Venue Management by Resolution No. 19-0281.
On August 11, 2021, the City Council authorized the execution of the First Amendment to the Management Agreement with Global Spectrum, L.P. d/b/a/Spectra Venue Management, to extend the Initial Term of the Agreement for an additional twenty-four month period through September 30, 2026, due to the impact and interruption of the COVID-19 pandemic; and to revise Section 1.02 of the Agreement to state the initial term shall expire as of 11:59 p.m., September 30, 2026, unless terminated earlier or extended in accordance with the Agreement by Resolution No. 21-1208.
FISCAL INFORMATION
|
Fund |
FY 2026 |
FY 2027 |
Future Years |
|
Convention and Event Services Fund |
$0.00 |
$2,675,479.00 |
$0.00 |
The City’s future costs to be paid from the Convention and Event Services Fund is in the amount of $2,529,646.00, plus a management fee of $145,833.00.
OWNER/EXECUTIVE
Global Spectrum, LP
Brian Rothenberg, Executive Vice President and General Counsel - Legal and Business Affairs