TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary to enter into an agreement with ASM Global, of Conshohocken, PA, for management of the Long Beach Convention and Entertainment Center, located at 300 East Ocean Boulevard.
(District 1)
DISCUSSION
On February 12, 1991, the City of Long Beach (City) entered into Management Agreement No. 21667 (Agreement) with ASM Global, formerly known as Spectacor Management Group and then SMG, for the management of the Long Beach Convention and Entertainment Center (Convention Center). ASM Global 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 is set to expire on September 30, 2023. In June 2021, ASM Global submitted a proposal to, among other things, extend the term of the Agreement.
In anticipation of the expiration of the existing agreement, City staff had previously begun an evaluation of industry standards for Convention Center management agreements. Upon receipt of ASM Global’s unsolicited proposal, City staff engaged with a specialized consultant team of convention center experts. This team conveyed that the current agreement and its fee structure are outdated, do not provide the incentive structure to encourage the promotion of City-directed priorities, and lack performance measures which are more normative in modern convention center facility management agreements.
Fortunately, many of the deficiencies in the existing agreement were addressed, at least in part, by ASM Global’s proposal. ASM Global is a cooperative partner in the negotiation effort, and is willing to incorporate the City priorities it was presented with and accommodate fee structure changes to facilitate the new agreement. The City and ASM Global are currently negotiating a new agreement which will address the fee structure, d...
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