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Global Spectrum will continue to manage Niagara Falls' conference center, Old Falls Street

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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business | downtown | tourism
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Tales of a world-famous natural wonder and the city that surrounds it. The Brink is home for all you need to know about Niagara Falls, N.Y.

Aaron Besecker

Aaron Besecker

Aaron Besecker joined The Buffalo News in 2007, where he has covered communities in Western New York as a beat reporter, multimedia journalist and assistant online editor. A Buffalo native, he began his career in journalism at the Niagara Gazette.

@The_Brink_Blog | abesecker@buffnews.com

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