STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: August 11, 2021
COUNCIL DISTRICT(S): 2
DEPARTMENT: Department of Convention and Event Services
EXECUTIVE: Joey Zapata
______________________________________________________________________
SUBJECT
title
Authorize 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, 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 due to the impact and interruption from the COVID-19 pandemic - Financing: This item has no cost consideration to the City (see Fiscal Information for potential future costs)
body
BACKGROUND
In February 2019, the City of Dallas (the “City”) entered into a Management Agreement (“Agreement”) with the 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 has an initial five-year term.
Due to COVID-19, the Manager’s performance under the Agreement has been interrupted and affected. The unforeseen impacts of the pandemic have been worldwide and industry data anticipates the consequences will persist throughout the end of Fiscal Year 2020-21.
This proposed action authorizes an extension of the Initial Term of the Agreement giving the Manager and the KBHCCD operation greater time to recover from the impact of the pandemic. The Agreement will be revised to state that the initial term shall expire as of 11:59 p.m., September 30, 2026.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On February 13, 2019, City Council authorized the Management Agreement with Spectra Venue Management by Resolution No. 19-0281.
FISCAL INFORMATION
This item has no cost consideration to the City. The City’s future costs to be paid from the Convention and Event Services Fund is in the amount of $92,559,000.00.