GRAND ISLAND – After considerable discussion, the Grand Island City Council voted 9-1 to hire VenuWorks of Ames, Iowa, to manage the Heartland Events Center.
City Council member Chuck Haase voted against the motion.
According to a memo from City Administrator Laura McAloon to the City Council, in December 2024 the city will make its final bond payment on the Heartland Events Center, and the city would take over management of the center.
The city issued a request for proposals concerning management of Heartland Events Center, and two proposals were submitted. The proposal by VenuWorks was ranked the highest by the review committee.
VenuWorks would have a three-month management agreement to transition management of the Heartland Events Center before taking over daily operations of the center on Jan. 1, 2025.
“The city will pay VenuWorks a monthly management fee of $6,000 plus earned commissions based on food and beverage sales and their performance in meeting or exceeding contract metrics,” McAloon wrote. “60 percent of the revenue derived from ticket sale fees will be deposited to an operating account for the Heartland Events Center, and the city anticipates funding expenses and commissions with venue revenue.’
“In addition, the city has historically budgeted approximately $500,000 of hotel/motel lodging tax revenues to the operations of Heartland Events Center, and those funds will continue to be available if needed to supplement venue revenues,” McAloon wrote.
McAloon said Wednesday morning that it is a commission-based contract. VenuWorks has estimated a $275,000 base management fee plus commission estimated for the first year of operation, McAloon said. VenuWorks will get 6 percent of gross food and beverage sales, and 10 percent of sponsorships they secure for the facility.
During the City Council meeting, it was stated that the names Eihusen Arena and Bosselman Conference Center would remain.
Two executives from VenuWorks attended the City Council meeting. They were Steven Peters, founder and CEO of VenuWorks, and Tom Richter, regional vice president of VenuWorks.
According to VenuWorks website, the employee-owned company has 3,500 employees and manages more than 40 venues in 20 communities. These include arenas, theaters, and conference centers. Peters said that VenuWorks would have 13 employees working at Heartland Events Center.
Peters said that the company would invest $300,000 in concessions area at Heartland Events Center.
“We expect to do catering for 500 to 1,000 people,” Peters said.
Former Mayor Jay Vavricek addressed the City Council and raised a number of points regarding management of the Heartland Events Center. He said that people need to know what the terms of the contract are with VenuWorks.
Vavricek asked whether the City Council had considered managing the Heartland Events Center. It was noted during the meeting that Fonner Park did not submit a bid in the request for proposals that was issued.
Vavricek asked whether every alternative had been considered. He suggested that a community discussion needed to occur concerning management and suggested that the City Council postpone making a decision.
Council member Chuck Haase said he had concerns about hiring VenuWorks and said he would not be voting to accept VenuWorks’ management proposal.
Haase said he shared some of the concerns that Vavricek had mentioned.
Haase asked how many unique customers go the the Events Center. He was concerned that no City Council members were on the review committee for the request for proposals. It was mentioned that former longtime Chamber of Commerce President Cindy Johnson, who now works for the Nebraska State Fair, and Brad Mellema, executive director of the city/county Convention and Visitors Bureau, served on the RFP selection committee.
“I don’t think this is the right thing to do,” Haase said.
City Council Member Mitch Nickerson said “the city probably doesn’t want the hassle” of managing the Heartland Events Center. Nickerson said he believed that VenuWorks would take the Heartland Events Center “to the next level. He noted that VenueWorks brings expertise to management of the Heartland Events Center.
Peters said that VenuWorks would submit monthly reports.
Council member Jack Sheard said that he appreciated what Haase said.
“I feel his frustration,” Sheard said. He felt there should have been more communication prior to the decision, but said he would support hiring VenuWorks.
Council President Mark Stelk said he felt that VenuWorks was very professional.
Council member Doug Lanfear said he did not feel comfortable with making a decision.
“I would like to have input from the public,” Lanfear said.
