Kent extends SMG contract to operate ShoWare Center through 2014

Philadelphia-based SMG received a new three-year contract extension to operate Kent's ShoWare Center.

SMG will continue to operate Kent's ShoWare Center through 2014.

SMG will continue to operate Kent's ShoWare Center through 2014.

Philadelphia-based SMG received a new three-year contract extension to operate Kent's ShoWare Center.

The Kent City Council approved the contract extension at its Dec. 13 meeting. The current three-year contract expires at the end of 2011. The new contract expires Dec. 31, 2014.

SMG manages the day-to-day operations of the arena, including event booking, the budget, vendor selection, public relations and marketing, and event staffing. The company also has the food and beverage contract for the city-owned arena. That separate contract will now be combined into the three-year operating contract.

The initial city contract with SMG included a two-year extension. But city staff recommended that the council give SMG a three-year extension.

Kent will pay SMG a fee of $130,000 per year for its services, according to city contracts.

The city also continues to repay a $700,000 loan from SMG as part of the initial food and beverage contract that allowed the city to purchase food and beverage equipment for the arena. The city has paid $300,000 of that loan and will pay $100,000 in 2012 and 2013 with a final payment of $200,000 scheduled in 2014.

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