Committee backs 10‑year extension for Moscone management contract with SMG, citing higher city revenue share

The Budget & Finance Committee voted to forward to the full Board a resolution authorizing a seventh amendment to the Moscone Convention Center management agreement with SMG that would extend the term through June 30, 2027. Ken Bukowski, deputy city administrator, said primary negotiated changes include an increased city revenue share on food and beverage and internet services—phased toward 35%—and a $15 million capital contribution to the Moscone expansion project. He said those changes could yield millions more annually to the City.

The Budget Analyst’s office reviewed historical revenues and projected the amendment would raise average annual revenues from approximately $17.9 million to about $21.6 million—an increase the analyst estimated at roughly $3.7 million per year—though the report cautioned that actual gross revenues will vary year to year and that the center has historically required general-fund transfers to cover operating shortfalls. Analysts also noted the management agreement has not been competitively bid since 1990 but found SMG to be a recognized national operator for large, top-tier convention centers.

Representatives of the convention and labor industries gave public comment in support of SMG’s extension. Business groups and unions highlighted SMG’s role in the Moscone expansion project, stated the operator’s reputation for reliability and said long-term continuity supports jobs and repeat business. The committee sent the resolution to the full Board with a positive recommendation; final approval will require Board action.