TO: Urban Renewal Agency Board
THROUGH: Krishna Namburi, Interim Executive Director
FROM: Kristin Retherford, Director, Community Planning and Development
SUBJECT:.title Salem Convention Center Marketing Addendum for Fiscal Year 2026 (FY2026).
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:
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The proposed FY2026 budget allocation of Transit Occupancy Tax (TOT) for Convention Center marketing purposes is $531,260. The Convention Center also has available $83,731 from unused funds from previous years. It received $524,590 for FY2025, with final payment to be reconciled by September 30 once final TOT revenue is known. The Convention Center Manager is required to submit a marketing plan (Attachment 1) for Agency Board approval annually.
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ISSUE:
Shall the Urban Renewal Agency authorize the Executive Director to execute the attached Amendment and Addendum for marketing the Salem Convention Center that provides Transient Occupancy Tax revenues of $531,260 for Salem Convention Center Marketing in FY2026 (Attachment 2)?
RECOMMENDATION:
recommendation
Authorize the Executive Director to execute the attached Amendment and Addendum for Marketing the Salem Convention Center that provides Transient Occupancy Tax revenues of $531,260 for Salem Convention Center marketing in FY2026.
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BACKGROUND:
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 management agreement with The Salem Group, LLC (Manager), whose principal is Steven V. Johnson, was renewed in November 2020, for fifteen years. An intergovernmental agreement between the City and the Agency provides TOT revenue to pay for Convention Center marketing tasks. The overall Management Agreement requires the Agency to pay 10% of TOT revenue annually (minimum of $300,000) to the Manager for this purpose. Each fiscal year, the Urban Renewal Agency and Manager execute a Marketing 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 2026 Marketing Plan
2. FY 2026 Marketing Budget
3. FY 2026 Marketing Addendum