DEPARTMENT: Convention & Sports Facilities
DEPARTMENT HEAD: Patricia Muzquiz Cantor
COUNCIL DISTRICTS IMPACTED: District 2
SUBJECT: Fourth Amendment of Food Service Agreement for the Alamodome with Savor Black Tie Joint Venture through its majority partner, SMG Food and Beverage, LLC.
SUMMARY:
This Ordinance authorizes a Fourth Amendment to the Food Service Agreement for the Alamodome with Savor Black Tie Joint Venture through its majority partner, SMG Food and Beverage, LLC., revising the commission structure for food and beverage services.
BACKGROUND INFORMATION:
Ordinance No. 2016-01-28-0031, dated January 28, 2016, authorized a Food Services Agreement for the Alamodome with Savor Black Tie Joint Venture (Savor) through its majority partner, SMG Food and Beverage, LLC, for a period of fifteen (15) years, beginning March 1, 2016 through February 28, 2031, to perform catering, concession services and merchandise sales for a variety of events to include sporting events, concerts, and family shows. Ordinance 2017-04-20-0259, dated April 20, 2017, authorized a Second Amendment to clarify the commission structure related to Merchandise sales and branded third party sales, meaning the third-party is clearly linked with the unique product (s) being sold. Ordinance 2017-11-09-0889 dated November 9, 2017, authorized a Third Amendment to modify the commission structure which resulted in a reduction in commission to the City of approximately $300K.
The Food Services Agreement for the Alamodome is structured with the City receiving a percentage commission on various types of food, beverage, and merchandising sales. This commission structure assumed a certain amount of event days would be held at the Alamodome each year over the life of the agreement. Since the inception of the contract, the amount and quality of events at the Alamodome have been below the forecasted amount and the corresponding gross sales have been lower than anticipated. The City p...
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