Fresno leaders tout new Convention Center contract’s preference to local vendors
The Fresno City Council approved a new contract with the managers of the Convention Center that officials say now includes a local business preference.
The five-year deal was adopted with a 6-1 vote on Thursday, about six months after an earlier proposed deal became controversial among local vendors.
The city agrees to pay a $145,000 management fee and $50,000 in promotional fees, according to the new contract. The city continues to pay down another $2.9 million in debt on the center, according to Fresno spokesperson Mark Standriff.
The caterers, equipment renters and other local vendors say the older proposed contract was set to squeeze them out of Selland Arena, Saroyan Theater and other buildings downtown run by ASM Global.
Councilmember Paul Caprioglio, who sponsored the new contract with Councilmember Mike Karbassi and the City Manager’s Office, said the management company agreed under the new contract to use vendors found within Fresno County.
“This is an integral part of this agreement,” Caprioglio said. “Local preference – absolutely.”
ASM agreed to an annual audit and the contract can be terminated earlier than five years, according to officials. The city has the power to remove a general manager.
Karbassi said the local preference clause could be a boon for vendors who are struggling. “You see in this post-COVID world how much their business has been hurt,” he said.
The management team for ASM did not immediately return a request for comment.
The only “no” vote cast Thursday came from Councilmember Garry Bredefeld, who said he’s concerned over the potential conflict of interest because ASM also manages the Save Mart Center across town.
Bredefeld noted the company initiated the policy that upset so many local vendors in December.
“We’re still left with this company that has that culture and a history of poor treatment of vendors,” he said.
This story was originally published June 11, 2020 at 12:02 PM.
