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Committee advances five-year extension with Oak View Group for Cross Insurance Center after contract clarifications
Summary
The Bangor Government Operations Committee approved a five-year extension with Oak View Group to operate the Cross Insurance Center, asking staff to clarify a 4% cap on CPI increases, convert a 2% gross food-and-beverage fee to a net basis, clarify the 30,000-attendance threshold as cumulative, and seek protective language around a $500,000 incentive.
The Bangor Government Operations Committee on Monday authorized the city manager to negotiate a five-year extension with Oak View Group (OVG) to operate the Cross Insurance Center, with several contract clarifications to be completed before full council review.
City Manager Carolyn Lear provided background on the facility, saying the city chose to build the Cross Insurance Center in part for its community and economic-development value despite a 2010 study that projected annual revenue losses of "$250,000 to $300,000" for a new civic center. Lear told the committee OVG has managed the arena since 2013 and that the existing staff and institutional knowledge weigh in favor of an extension rather than a disruptive transition to a new vendor. "You currently have a staff and an organization that has nearly, I guess, well over, I guess, 2 a decade of managing the Cross Insurance Center," Lear said.
Doug Higgins, an Oak View Group executive, described a long personal and professional connection to Bangor. "It is more than just a contract to me personally. It is a facility I'm proud of and proud of the team we have here," Higgins said.
Committee members raised contract details they wanted refined before full-council consideration. Chair Michael Beck asked whether annual CPI increases to the base fee could be capped; council members sought a 4% cap. On the $500,000 incentive, Beck asked whether the city could avoid liability for remaining payments if OVG materially breached the contract; Higgins said breach definitions require legal review but indicated OVG would accept some responsibility for clear negligence and asked the city’s lawyers to define breach language.
Councilors also questioned a $1-per-attendee fee tied in the contract to a "30,000" threshold. OVG clarified the figure is cumulative across a year of arena patronage rather than a single-event threshold. The company said the incentive is intended to encourage bringing more ticketed events to the arena rather than charging per single event.
The committee addressed the contract’s 2% food-and-beverage compensation, which currently applies to gross receipts and increases with CPI. OVG said it would be "comfortable exchanging the gross to net on a comparable basis," and the committee asked staff to ensure the change yields comparable compensation.
Councilor Fish moved to accept the extension with the pending changes (CPI cap to 4%; convert the 2% gross food-and-beverage fee to a net calculation while keeping compensation comparable; clarify the 30,000 attendance metric as cumulative; and seek adjustments to the $500,000 clause). The motion was seconded and, with no objections from committee members present, Chair Beck declared the motion passed by unanimous consent. The item will return to the full council with the requested language clarifications.
The committee did not take a roll-call vote; Beck said all members were present and no one objected. Next steps include finalizing contract language with the city attorney and presenting the item on the full council agenda.
