Photo Credit: Palm Springs Convention Center
Oak View Group lands a $3.6 million deal to manage Palm Springs’ Convention Center and tourism amid a grand jury indictment and DOJ investigation.
It’s business as usual for Oak View Group. The Palm Springs City Council has approved a five-year management deal with Oak View Group to manage operations at the Palm Springs Convention Center and Bureau of Tourism, starting on September 28. The move comes as part of a larger $125 million revitalization effort in downtown Palm Springs aimed at drawing tourism.
“With this partnership and our proposed $125 million renovation, we’re modernizing our Convention Center, boosting tourism, and bringing millions in new spending to our hotels, restaurants, and businesses,” said Mayor Ron deHarte. “This is a game changer not just for Palm Springs, but for the entire Coachella Valley.”
Oak View Group was selected “following a competitive and transparent bidding process,” over the current operator after offering lower costs, increased capital investment, and a plan to eliminate the center’s annual deficit of $750,000. And it’s important that the Palm Springs City Council pointed out the transparency of the bidding process: Oak View Group is currently under investigation by the Department of Justice over ex-CEO Tim Leiweke’s alleged rigging of bids for the construction of Austin’s Moody Center.
“This is a world-class destination with a proud legacy of welcoming visitors from around the globe,” said Greg O’Dell, President of Venue Management, Oak View Group. “Our team is committed to building on that tradition by enhancing the guest experience, driving economic impact, and ensuring that the Palm Springs Convention Center is a premier venue for meetings, conventions, and community events.”
According to Palm Springs city officials, they anticipate a smooth transition with Oak View’s taking the reins, noting the company’s typical retention of around 90% of existing staff during handovers. That point is key, as city officials view the change as a necessary upgrade. But some commentators and residents have expressed concerns, given that Oak View’s founder recently stepped down as CEO in light of the investigation and indictment against him.
Palm Springs’ growing profile may indeed require the large-scale management a company like Oak View can offer, and Oak View could, in turn, use the positive publicity such a significant deal will bring. In the midst of the federal investigation related to the company’s former chief executive’s alleged dealings, public scrutiny will be at its peak on whether Oak View can deliver on its promises.
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