DEPARTMENT: Convention & Sports Facilities
DEPARTMENT HEAD: Patricia Muzquiz Cantor
COUNCIL DISTRICTS IMPACTED: Council District 1
SUBJECT:
An Extension and First Amendment to the Food Service Agreement with RK Culinary Group, LLC for the Henry B. Gonzalez Convention Center
SUMMARY:
This ordinance authorizes the exercise of a one-time extension for a 5-year renewal of the Food Service Agreement for October 1, 2025 to September 30, 2030 with RK Culinary Group, LLC (RK JV), a joint venture between The RK Group, True Flavors Catering and Black Tie Affairs; and the acceptance of $500,000 renewal fee to be deposited in the Community and Visitor Facilities Fund.
BACKGROUND INFORMATION:
This contract covers all food and beverage service on an exclusive basis for events held in the Convention Center (includes the Lila Cockrell Theatre). Included are the rights to provide event-related non-edible merchandise services (including novelties, souvenirs and programs) for a commercial event. The current Food Service Agreement at the Henry B. Gonzalez Convention Center was approved by City Council in May 2015 for a 10-year term set to expire on September 30, 2025 with one 5-year renewal option.
This ordinance authorizes the 5-year renewal of the Food and Service Agreement with RK JV for October 1, 2025 to September 30, 2030 and acceptance of $500,000 renewal fee to be deposited in the Community and Visitor Facilities Fund. Amid the COVID-19 pandemic, the Convention Center has seen drastically reduced revenues since March and is projecting low revenues into next fiscal year. Economists predict that it will take the Hotel Occupancy Tax Fund approximately four to five years to recover and get back to pre-pandemic levels. Leisure business is expected to recover first with conventions and meetings taking longer to recover. The Convention Center's adopted revenue in FY 2020 of $20.4M was reduced by $10.6M and is estimated to be $9.9M...
Click here for full text