HomeMy WebLinkAbout15. 18-258 MAY 8, 2018 18-258 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE AMENDMENT TO CONVENTION CENTER
MANAGEMENT AGREEMENT
INITIATED BY: PURCHASING DIVISION
WHEREAS, the City of Oshkosh and Oshkosh Investors, LLC entered into a
management agreement for the Oshkosh Convention Center; and
WHEREAS, the agreement grants Oshkosh Investors, LLC the right to manage,
market, promote and operate the Convention Center; and
WHEREAS, with this amendment Oshkosh Investors, LLC is exercising its five
year renewal option and in return for renewal of the agreement through December 31,
2030, Oshkosh Investors, LLC is willing to pay an additional one percent (1%) of the
portion of the gross revenue under the terms of the agreement to OACF loan repayment.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the proper City officials are hereby authorized to enter into and take those
steps necessary to implement the renewal and amendment to the Management
Agreement with Oshkosh Investors, LLC in substantially the same form as attached
hereto, any changes in the execution copy being deemed approved by their signatures
thereto.
TO: Honorable Mayor and Members of the Common Council
FROM: Jon Urben, General Services Manager
DATE: April 27, 2018
RE: Approve Amendment to Convention Center Management Agreement
BACKGROUND
In 2012 the City of Oshkosh and Oshkosh Investors, LLC entered into a management agreement for the
Oshkosh Convention Center. The agreement grants Oshkosh Investors, LLC the right to manage, market,
promote and operate the Convention Center. In return, Oshkosh Investors, LLC pays the city four percent
(4%) of the annual gross revenue from the operation of the Convention Center to the City as rent. In addition,
Oshkosh Investors, LLC also pays one percent (1%) of the gross revenue of the Convention Center to repay
the Oshkosh Area Community Foundation (OACF) loan for the 2009 Convention Center improvements. The
original agreement was for the period from May 14, 2012 through December 31, 2020 and provided for one
five (5) year renewal period.
ANALYSIS
The city is very pleased with the positive relationship we have developed with Oshkosh Investors, LLC in the
operation of the Convention Center. Their leadership team was extremely helpful in working with city staff
during the 2017 Convention Center improvements that have now successfully repositioned the Center as one
of the area's premier conference, wedding and convention center facilities.
FISCAL IMPACT
With this amendment Oshkosh Investors, LLC is exercising its five year renewal option. However, in return
for renewal of the agreement through December 31, 2030, Oshkosh Investors, LLC is willing to pay an
additional one percent (1%) of the portion of the gross revenue under the terms of the agreement to the OACF
loan repayment. With this amendment Oshkosh Investors, LLC will pay a total of four percent (4%) of the
gross revenue to the city and two percent (2%) of the gross revenue to repay the OACF loan.
RECOMMENDATION
Staff recommend the Council approve this amendment with Oshkosh Investors, LLC for the Convention
Center Management Agreement.
Respectfully Submitted, Approved:
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Jon G. Urben, General Services Manager Mark Rohloff, City Manager
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us
AMENDMENT TO MANAGEMENT AGREEMENT
This Amendment to Management Agreement is made and entered into as of the
day of , 2018, by and between the City of Oshkosh, a Wisconsin
municipal corporation with its principal offices at 215 Church Avenue, Oshkosh,
Wisconsin 54903-1130 (hereinafter "City"), and the Oshkosh Investors, LLC, a Wisconsin
limited liability company formed pursuant to the laws of Wisconsin with its principal office
at 1 North Main Street, Oshkosh, Wisconsin 54901 (hereinafter "Operator").
RECITALS
WHEREAS, the City is the owner of certain property within its municipal
boundaries identified as the Oshkosh Convention Center ("Convention Center") located
at 2 North Main Street; and
WHEREAS, the City and the Operator have previously entered into a Management
Agreement dated May 16, 2012 for the operation of the Convention Center, Amended on
June 10, 2013; and
WHEREAS, the original term for the Agreement was for the period from May 14,
2012 through December 31, 2020 and provided for one five (5) year renewal period upon
the same terms and conditions; and
WHEREAS, the Agreement further provided for additional five (5) year renewal
periods; and
WHEREAS, the Operator has requested renewal of the agreement through
December 31, 2030; and
WHEREAS, the parties also wish to increase the portion of gross revenue to be
paid under the terms of the Agreement to the Oshkosh Area Community Foundation
(OACF) in repayment of a loan for improvements to the Center; and
WHEREAS, the parties agree that they each receive a business benefit through
this amendment.
THEREFORE, in consideration of the mutual promises and covenants contained
herein and other good and valuable consideration, the receipt and sufficiency whereof is
acknowledged, the parties agree to amend the Management Agreement as follows:
1. The term of the Agreement as provided in Paragraph 3.b. of the original Agreement
shall be modified to terminate on December 31, 2030.
2. Paragraph 5.a. of the original Agreement shall be modified to read as follows:
5. Payments to Oshkosh Area Community Foundation.
a. The Operator shall pay two percent (2%) of the gross revenue from the
Convention Center to the Oshkosh Area Community Foundation ("OACF") to
repay OACF's loan for the Convention Center improvements which shall
include all food and beverages sold and served by the Operator at the
Convention Center, whether prepared at the Convention Center or elsewhere.
All rights and responsibilities under the original Management Agreement as previously
amended between these parties not specifically amended by this amendment shall
remain in effect.
IN WITNESS WHEREOF, the City and Operator have executed this Agreement as
of the date set forth above.
Date: By:
Date: By:
CITY OF OSHKOSH, WISCONSIN
Mark A. Rohloff, City Manager
Pamela R. Ubrig, City Clerk
Approved as to form:
Date:
Lynn A. Lorenson, City Attorney
Date:
Date: TJ
OSHKOSH INVESTORS, LLC
By UW -OSHKOSH FOUNDATION
HOTEL PROJECT, LLC, Manager
OSHKOSH HOTEL VENTURE, LLC,
Mana
By;
John Pfefferle