HomeMy WebLinkAbout2020-06-08 20-191 Order
06/08/2020
20-191
06/08/2020
20-191
Legal
Order
026-001
Title, Order
Authorizing the City Manager to Execute an Amendment to the Management Agreement with Spectra Venue
Management for the Cross Insurance Center
This Order would authorize an amendment to the management agreement between the City and Global
Spectrum, L.P., also known as Spectra Venue Management or Spectra, for the Cross Insurance Center. It
would extend the agreement for two years, and waive certain fees the City pays to Spectra.
Since 2013, the City has contracted management of the Cross Center to Spectra Corp. In general,
operational successes for the Center have met and/or exceeded early financial and event projections. The
venue has played host to an extensive variety of entertainment events appealing to a broad range of
interests.
At present, the agreement between the City and Spectra expires on June 30, 2021, with a City option to
extend the term for five years. This amendment would extend the current term until June 30, 2023, and
provide a City option to extend the term for three years after that. In addition, Spectra agrees to waive the
incentive fees and the management fees for the period of July 1, 2020 to December 31, 2020. As a result,
the initial term would be two years longer, but the entire length, with the City option, would be the same.
The amendment would also waive the fixed management fee the City pays to Spectra for the period of July
1, 2020 to December 31, 2020. In addition, the amendment would waive any incentive fee earned by
Spectra under the contract for the operating year ending June 30, 2021.
This Order addresses the City goal of improving the economic vitality of the City and promoting cultural
opportunities.
New Business
CITY OF BANGOR ORDER 06/08/2020
20-191
06/08/2020
20-191
Fournier
Authorizing the City Manager to Execute an Amendment to the Management Agreement with Spectra Venue
Management for the Cross Insurance Center
WHEREAS, at present, the agreement between the City and Spectra for management of the Cross Insurance
Center expires on June 30, 2021, with a City option to extend the term for five years;
WHEREAS, under Spectra's management, the Cross Center has hosted a variety of high-quality shows,
conventions, and events;
WHEREAS, Spectra has offered to extend the current term until June 30, 2023, and provide a City option to
extend the term for three years;
WHEREAS, as part of this amendment, Spectra has offered to waive the fixed management fee the City pays
to Spectra for the period of July 1, 2020 to December 31, 2020; and
WHEREAS, the amendment would also waive any incentive fee earned by Spectra under the contract for the
operating year ending June 30, 2021;
Be it Ordered by the City Council of the City of Bangor that,
The City Manager is hereby authorized to execute an amendment to its agreement with Global Spectrum, L.P.,
also known as Spectra Venue Management or Spectra, for the management of the Cross Insurance Center.
Said amendment shall include an extension of the current term until June 30, 2023; a City option to extend
the term for three years, through June 30, 2026; waiver of the fixed management fee from July 1, 2020
through December 31, 2020; and waiver of any incentive fee for the operating year ending June 30, 2021.
Said amendment shall be in final form as agreed to by the City Solicitor or Assistant City Solicitor.
IN CITY COUNCIL
JUNE 8,2020
CO 20-191
Motion made and seconded for Passage
Vote: 9 -0
Councilors Voting Yes: Fournier,Hawes,Nichols, Okafor, Schaefer, Sprague, Supica, Tremble, Davitt
Councilors Voting No: None
Passed
CITY CL RK