TO: Urban Renewal Agency Board
THROUGH: Krishna Namburi, Executive Director
FROM: Kristin Retherford, Director, Community Planning and Development
SUBJECT:
title
Salem Convention Center Marketing Addendum for Fiscal Year 2027
Ward(s): Ward 2
Councilor(s): Nishioka
Neighborhood(s): CANDO
Result Area(s): Strong and Diverse Economy; Welcoming and Livable Community.
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SUMMARY:
summary
The proposed Fiscal Year (FY) 27 budget allocation of Transit Occupancy Tax (TOT) for Convention Center marketing purposes is $520,000. The Convention Center also has available $132,265 from unused funds through FY 25.
The convention center received $531,252 for FY 26, with final payment to be reconciled by September 30, 2026 once final TOT revenue is known.
The Management Agreement for the Convention Center specifies an annual agreement and addendum for marketing (Attachment 1). Under this agreement, the Convention Center Manager is required to submit a marketing plan (Attachment 2) and a marketing budget (Attachment 3) for Agency Board approval annually.
Approval of this item authorizes execution of the FY 2027 Addendum and confirms continued implementation of the Convention Center marketing program consistent with the terms of the Management Agreement and intergovernmental agreement governing TOT revenue use.
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ISSUE:
Shall the Urban Renewal Agency authorize the Executive Director to execute the attached Management Agreement Addendum for marketing the Salem Convention Center that provides Transient Occupancy Tax revenues of $520,000 for the Salem Convention Center Marketing Plan in FY 27?
RECOMMENDATION:
recommendation
Authorize the Executive Director to execute the attached Marketing Agreement Addendum for marketing the Salem Convention Center, providing Transient Occupancy Tax revenues of $520,000 for Salem Convention Center marketing in FY 27.
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FACTS AND FINDINGS:
In July 2003, the Agency Board adopted Resolution No. 03-9 URA, exempting the Salem Convention Center management and marketing functions from competitive bidding requirements. The current management agreement with the Salem Group, LLC (Manager), whose principal is Steven V. Johnson, was renewed in November 2020, for a fifteen-year term.
The Management Agreement for the Convention Center requires an annual agreement and addendum for marketing, along with submission of a marketing plan and marketing budget for Agency Board review and approval.
BACKGROUND:
An intergovernmental agreement between the City and the Urban Renewal Agency allocates TOT revenue to support Convention Center marketing activities. The overall Management Agreement requires the Agency to provide funding equal to 10% of TOT revenue annually, with a minimum of $300,000 to the Manager for marketing purposes.
Each fiscal year, the Urban Renewal Agency and the Manager execute a Marketing Agreement Addendum to the Management Agreement, outlining budget line items for marketing and the Agency’s expected payment.
William O’Donnell
Financial Services Manager
Attachments:
1. FY 2027 Marketing Agreement and Addendum
2. FY 2027 Marketing Plan
3. FY 2027 Marketing Budget