TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary for a Sixth Amendment to Management Agreement No. 21667 with SMG, formerly known as Spectacor Management Group, for management of the Long Beach Convention and Entertainment Center, located at 300 East Ocean Boulevard; to authorize SMG to enter into contracts beyond the term of the Agreement with the prior approval of the City Manager; and
Authorize City Manager, or designee, to execute any and all documents necessary to assume or assign the obligations of SMG under certain contracts executed by SMG in connection with its management of the Long Beach Convention and Entertainment Center. (District 2)
DISCUSSION
On February 12, 1991, the City entered into Management Agreement No. 21667 (Agreement) with SMG, formerly known as Spectacor Management Group, for the management of the Long Beach Convention and Entertainment Center (Convention Center). SMG has successfully managed the Convention Center since that date, overseeing day-to-day operations of the facility as well as the implementation of capital improvements and ongoing maintenance. The current Agreement, which is set to expire on June 30, 2022, allows SMG to enter into contractual agreements for the purpose of maintenance, capital improvements, and booking client use of the facility.
At present, SMG can only enter into contracts that do not extend beyond the term of the Agreement. This becomes problematic with respect to SMG’s ability to enter into long-term commitments for repeat events, larger conferences and major conventions with prospective Convention Center clients who often book venues several years in advance. Providing SMG with the ability to enter into contractual agreements that exceed the term of the current Management Agreement allows SMG to accommodate these continuing events without the need to extend the Agreement beyond its current expiration date.
Of particular importance is the on...
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