USA Niagara Development Corp. this afternoon awarded a management contract for the Niagara Falls Conference & Event Center and Old Falls Street to Global Spectrum, which has had the work since 2009.
The agreement, approved by a 4-0 vote, sets an initial term of five years, with USA Niagara, the state's economic development agency in the Falls, having two one-year options.
Under the deal, Global Spectrum will be paid up to $973,353 in the first year - $313,691 for management of the conference center and $659,662 for the management of Old Falls Street.
Fees for the conference center consist of a fixed fee of $154,500 plus incentives. The first incentive is equal to 25 percent of food and beverage revenues in excess of $1.7 million. The second would come if there are any improvements to the $300,000 baseline operating loss of the facility. Global Spectrum would get 35 percent of any improvements in the first $300,000 and 50 percent of any improvements after operations break even.
Fees for the management of Old Falls Street consist of a fixed fee of $41,725 plus incentives for food and beverage sales: 7.5 percent up to $175,000 and 12.5 percent over $175,000.
The fixed fees may be adjusted annually based on changes in the consumer price index or a pre-negotiated annual percentage increase.
Global Spectrum was the only firm out of five who expressed interest to submit a response to the request for proposals issued in March, USA Niagara officials said.
Global Spectrum, based in Philadelphia, operates more than 100 facilities globally. Its parent company is Comcast-Spectacor, which owns the Philadelphia Flyers, the Philadelphia 76ers and Comcast SportsNet Philadelphia.
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