Fort Smith board extends convention-center contract term, rejects off-site catering amendment after public objections

The Fort Smith Board of Directors on Sept. 16 approved a second amendment to the city's management agreement with OVG Facilities LLC that lengthens the agreement's initial term and adds a parking advisory study, then declined to act on a separate amendment to permit OVG to provide off-site catering.

The vote to adopt the amendment on the convention-center contract passed 5-2. The separate resolution to permit off-site catering failed for lack of a motion after public commenters urged the board not to let a city-contracted manager compete with local restaurants and caterers.

Acting City Administrator Jeff Dingman told the board the item had been discussed at a Sept. 9 study session and that the amendment before the board would change the management agreement's initial term to eight years with a later two-year option at the city's discretion. He said the amendment also authorizes OVG to provide parking advisory services and to study parking-management options around the Fort Smith Convention Center.

"The more revenue that the facility generates, then yes, the less subsidy it will require from the general fund," Dingman said when answering a question about whether new revenue would reduce the convention center's subsidy. He added that the parking advisory role is advisory to the city about how to manage city parking assets and is not strictly limited to charging for parking.

Director Neil Martin and other board members pressed staff for transparency about how revenue-generating changes would be tracked. "I'd prefer to see that the amendments that led to actionable changes in generating revenue are actually accounted, and this is what that change brought," Martin said, asking that the city receive itemized accounting showing how specific amendments affect the subsidy.

Board members also asked whether termination terms in the contract would change; Dingman said the termination clause was not being altered in the amendment.

Public comments were strongly opposed to allowing the contractor to offer off-site catering. "I am against OVG being able to do off-site catering. I do not believe that the city should be competing with local businesses and business owners who are the backbone of this community," said Kim Fodge, who signed up to speak during the off-site catering item.

"It's a bad precedent to have public city businesses competing with our private businesses," said Joy McCutcheon, who also urged a "no" vote on permitting off-site catering and criticized what she called the subsidy differential faced by local businesses.

After public comment, no board member moved to adopt the off-site catering amendment; the mayor's clerk announced that, lacking a motion and second, the item "dies for lack of movement on the floor." The board did separately adopt the amendment altering the management agreement term and adding parking advisory services by roll call vote.

Votes at a glance: Item 1A (second amendment: term and parking advisory) '025-09-16 ' Action: Approve and authorize mayor to execute second amendment to the management agreement with OVG Facilities LLC regarding term and parking advisory services. Outcome: Approved. Vote tally reported on the record: Rigo: Yes; Goode: Yes; Kemp: Yes; George Katsavas: Yes; Christina Katsavas: No; Kevin Settle: Yes; Martin: No (motion passes 5-2).

Item 1B (third amendment: off-site catering) '025-09-16 ' Action: Approve and authorize mayor to execute third amendment to the management agreement with OVG Facilities LLC regarding off-site catering. Outcome: No action (died for lack of motion after public comment opposing the change).

Why it matters: The management agreement governs how the Fort Smith Convention Center is operated and how its revenue and expenses affect the city's general fund. Extending the contract term and engaging planning for parking could change the center's long-term financial profile; allowing the contracted manager to provide off-site catering would have opened a new revenue stream for the manager but, opponents said, would put local caterers at a disadvantage.

What's next: Staff and the contracted manager may return with proposals informed by the parking advisory study. Board members asked staff to provide clearer, itemized accounting of new revenues tied to specific amendments so the board and public can see how changes affect the subsidy the city provides the convention center.

The board discussed the pair of amendments as agenda items that had been reviewed at a Sept. 9 study session and took votes during the Sept. 16 regular meeting at the Blue Lion.