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Resident questions arena contract fee increase; staff says added work justifies procurement scope
Summary
A resident told council the arena management contractor CAA ICON — now owned by private equity — is seeking a $3.875 million extension tied to FF&E procurement; city program staff said using CAA for furniture, fixtures and equipment procurement reduces costs compared with contractor-led procurement and the PPA docket passed unanimously.
A public commenter on June 2 urged the council to pause approval of a roughly $3.875 million extension to the arena project consultant CAA ICON, saying the fee tracks a 2% management rate and raises concerns because the firm is owned by the private equity firm Artemis.
"CAA ICON is a subsidiary...and the council's being asked to approve a $3,875,000 contract extension for them," resident Steve Hunt said, warning of ongoing fee escalation under private equity ownership and urging a tabling of the item.
City staff told the council the additional payment is tied to procurement of furniture, fixtures and equipment (FF&E) and the logistics of ensuring items arrive on time. "We decided that it was better to have CAA do this because their fee was considerably less than having the contractor do it," Program Manager Todd Maps said, arguing CAA will package and bid FF&E to minimize added contractor fees and storage/timing costs.
Staff described the work as comprehensive procurement services — preparing packages, putting items out to bid, managing deliveries and storage — not simple off-the-shelf purchasing. The council approved the Public Property Authority (PPA) docket that included the contract addition unanimously.
Public record: The resident's remarks cited original arena floor estimates and contractor fees; staff confirmed the extension covers FF&E procurement and logistics but did not provide a line‑by‑line comparison of vendor fees in the hearing. Council did not table the matter and the PPA items advanced with unanimous votes.
What’s next: The contract amendment approved by the PPA will move into implementation; council or staff may provide additional procurement details in follow-up materials or at future meetings.
