UPDATE
The City of Waco provided an update Friday on the economic impact of the Waco Convention Center.
The statement reads in full:
It plays a large role, we’re expanding it to include economic development and a full suite economic & tourism department. The City collected $7,145,345 in hotel occupancy tax during FY24. The Convention Center plays a part in many of those dollars but not all. The Convention Center itself brought in roughly $1.67 million last FY (not final numbers, years has not closed).
We do calculate economic impact of individual events that request incentives that come to Waco, but that is case by case so not a total number.
ORIGINAL STORY
Through a unanimous vote Tuesday night, City of Waco council members approved ASM Global to be the new operations management for the Waco Convention Center.
ASM Global Convention Center Management LLC spans across five continents with hundreds of venues and more than 50B in assets along with connections to the New York Yankees and Dallas Cowboys.
It’s a journey the City of Waco is finally seeing to the end as they look to be more competitive and maximize revenue — getting the Waco Convention Center closer to a standard 70% occupancy instead of the less than 40% reported year over year.
The change up is exciting for a business just next door.
Justin Kuzski is the General Manager of Courtyard Waco.
"Our location being so close, it’s probably a good, I’d say, 30% of our business for the year," he said.
“I think it’s gonna be a good thing. The city operating it has set a great foundation for the convention center. It’s done a great job. This is just an opportunity for a new company to come in and grow on what the city has already — has coming in year after year after year after year.”
But these changes do come at a cost.
Here is a break down of the fiscal incentives as it reads on council's agenda:
Annual Base Management Fee- $120,000
Food and Beverage Fee - 4% of Gross Food and Beverages Sales less any applicable taxes.
Quantitative Incentive Fee - Twenty percent (20%) of the improvement in actual gross revenue versus budgeted gross revenue, not to exceed one-half of the Fixed Management Fee for such Fiscal Year.
Qualitative Incentive Fee. Manager shall also be entitled to an annual incentive fee with respect to each Fiscal Year, not to exceed one-half of the Fixed Management Fee for such Fiscal Year, based upon the City’s assessment of Manager’s performance with respect to mutually agreed upon KPIs. Such KPIs may include measures of economic impact, client/customer satisfaction metrics, community involvement or engagement and indicators of facility maintenance and operational success.
Also, eleven of the twelve employees impacted by this change have decided to transfer into other departments within the city.
This first contract is for ten years with two five year renewal options.
ASM Global’s operations fully go into effect December 1st.
More information on the City's goals for the convention center, click here.
