These 3 companies say they have what it takes to turn HAPO Center into regional driver
A year after the sudden departure of the HAPO Center’s senior staff, management groups are making their cases for why they should be named the center’s long-term steward.
For the past year Simmons Venue Management, the owners of CG Public House and Catering, have been running the 84,000-square-foot facility, after stepping up to keep the venue running.
Their interim contract ended at the end of June, but they’ve agreed to extend it during the search process. The county did not send out a Request for Proposals last year because it is not legally required with this type of contract.
Commissioners Clint Didier and Rocky Mullen expressed wariness about not seeking bids at the time, and earlier this year outvoted commissioner Brad Peck to seek them this time around. All of the commissioners have praised the work SVM has done to keep the center afloat.
The Simmons said they were initially caught off guard by the move, but are ready to make their case.
The county is aiming for one to three years for the new contract, with a similar payment structure. Currently it’s set at $12,500 a month, with bonus opportunities based on sales and bookings.
That structure allows a management group to earn a percentage of the money for bringing in big acts and events.
The Simmons will be presenting their proposal this week along with two contenders: International Promotions, which is also local to Tri-Cities, and Harris/White-Leasure Team, a multi-state property and event management group.
About the companies
In making their case, the Simmons provided a pay schedule that would run far beyond the 1 to 3 years the county is currently eyeing.
SVM is offering to continue running the venue at $12,500 per month, plus bonuses based on sales, for the first two years with 3% increases in years 3, 4 and 6. That would put them at $14,195 per month in years six and seven.
CG Public House has managed the center’s catering for years and would continue to do so. SVM is run by Steve and Shirley Simmons, with their son Kyle. They also have a local team of employees who have worked for the Simmons for years.
Since taking over last year, they’ve managed to maintain current event contracts and begin to grow them. They also saw the center move into profitability.
The other local contender is International Promotions by David Cortinas. The Pasco-based promotion and productions company has a long history of running events in the Tri-Cities.
Their events include the Tamale Festival, Cinco de Mayo events and other music festivals that have brought in internationally renowned Hispanic and Latino musicians.
The packet submitted to the county by International Promotions did not include a price estimate.
Idaho based Harris/White-Leasure Team and their TAG Presents brand manages the Idaho Central Arena, the Grove Hotel and several other properties in Boise.
In addition to running venues they’ve also hosted large events such as the Formula 1 Grand Prix US, Austin Fan Fest, the ESPN X Games Austin and more. They’ve run several restaurants in Arizona and Idaho, as well as contracts for commissary kitchen at military bases and Department of Defense facilities.
TAG is betting on their industry experience to put them ahead.
While the TAG group boasts a much larger portfolio of properties and venues managed, their costs are also significantly higher. Their proposed cost per month starts at $20,000, plus bonuses based on sales. They would also be hiring an entirely new crew, including a kitchen staff.
What does the county want?
The county has two main goals with the request for proposals: transparency in their selection and growing the HAPO Center into a regional economic driver.
County Administrator Mike Gonzalez previously told the Herald that the decision to seek new proposals came after a recommendation from the county’s new Strategic Growth Committee and the public’s desire for transparency in the contract process.
He said the committee includes both elected officials and county department directors, who will lead strategic planning and future growth initiatives. The group will help make a recommendation on who the commissioners award the contract to.
The county is now looking to lock into a longer-term contract after issuing SVM an interim contract and extensions.
The commissioners are hosting in-person interviews with the companies this week, and are expected to vote on offering the new contract at their Aug. 15 regular meeting.
