City plans for company that manages Plaza Theatre, Acrisure Arena, to take over Convention Center operations

The Palm Springs City Council voted last week to begin contract negotiations with Oak View Group for management of the city’s convention center, visitor center and tourism bureau.

The decision came after a competitive bidding process that attracted two nationally renowned firms. Oak View Group, which already operates the Acrisure Arena in Palm Desert and The Historic Plaza Theatre in Downtown Palm Springs, beat out current operator AEG Management for the contract.

“The Oak View Group offered a lower cost proposal. They offered a higher capital contribution,” said Wayne Olson, the city’s chief economic development officer. “They had a well articulated and envisioned plan to increase occupancy.”

The existing agreement with AEG Management expires at the end of September. Staff expects to bring a fully negotiated contract back to the council in July, allowing for a 60 to 90 day transition period.

During Wednesday’s Council meeting Oak View Group representatives promised to reduce the convention center’s operating deficit and potentially make it profitable. Greg O’Dell, president of the company’s venue management division, cited buildings in their portfolio that generate double the revenue and operate with a surplus rather than the current $750,000 annual deficit.

“We believe we can significantly reduce that deficit and we may be able to get to a break even or surplus,” O’Dell said.

The company plans to target new market segments including tech companies, wellness events and sports competitions. They also intend to pursue national association business and leverage their local presence through the Acrisure Arena.

An evaluation committee consisting of city staff, a PS Resorts representative and a member of the Agua Caliente Band of Cahuilla Indians reviewed and scored the proposals. The selection followed a request for proposals process that began in March.

Council members expressed concerns about employee retention during the transition. Oak View Group executives said they typically retain about 90% of existing staff and will meet with every employee individually.

“We want to make sure they blossom and we give them other opportunities,” O’Dell said.

The contract will include management of the Palm Springs Convention Center, Bureau of Tourism, visitor center and Welwood Murray Memorial Library. Financial terms and performance metrics will be negotiated before the final agreement returns to Council.

The convention center was opened in 1974 at 277 North Avenida Caballeros. It underwent a significant expansion and remodel in 2005, bringing its total usable space to 261,000 square feet.

The city is planning a roughly $100-$125 million modernization and expansion of the facility to enhance its amenities, connect it more fully to downtown, and hopefully boost its economic impact.

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