Recommendation Concerning Payment of the SMG Incentive Fees for the Pensacola Bay Center - Amy Lovoy, Assistant County Administrator
That the Board approve and authorize the issuance of a Purchase Order to pay incentive fees to SMG Management Services for Fiscal Year 2015, for performance incentives, in the amount of $57,344, and for concessions, in the amount of $92,729.43, for a collective total of $150,073.43, as part of the SMG Management Services Agreement, approved by the Board on February 16, 2012.
[Funding: Fund 409, Bay Center Management Fee, Cost Center 360401, Account 53401]
BACKGROUND:
On February 16, 2012, the Board approved to extend the Pensacola Civic Center Management Services Agreement with SMG, a three-year Agreement for management services at the Pensacola Bay Center, commencing October 1, 2012. The extension allowed for 5% commission on all food and beverage revenues and an incentive fee of 35% of any reduction in the net loss up to $250,000 over a pre-established benchmark or 40% of any reduction over $250,000. The Agreement also required that SMG pass an annual facilities inspection to qualify for any incentive.
BUDGETARY IMPACT:
Funding: Fund 409, Cost Center 360401, Account 53401.