Flaggs wants AG opinion on legality of VCVB deal|[12/17/05]

Published 12:00 am Monday, December 19, 2005

Rep. George Flaggs said Friday he will ask the state Attorney General’s Office for an opinion on whether the hiring of a management company to run the Vicksburg Convention and Visitors Bureau is legal.

&#8220Does executive director mean a person, more than one person or a company?” Flaggs asked Friday, a day after the VCVB advisory board voted 6-4 to hire Compass Facility Management as executive director of the office whose charge is to market the city.

&#8220I think the law is clear,” Flaggs said. &#8220The VCVB is authorized to employ an executive director. To me that’s a person, not a company.”

Email newsletter signup

Sign up for The Vicksburg Post's free newsletters

Check which newsletters you would like to receive
  • Vicksburg News: Sent daily at 5 am
  • Vicksburg Sports: Sent daily at 10 am
  • Vicksburg Living: Sent on 15th of each month

Flaggs said he believes the board’s action is in conflict with state legislation allowing the creation of and taxing for the VCVB.

&#8220There’s a legal question surrounding what they’ve done and it’s in the best interest of Vicksburg and Warren County to make sure it’s clear before they enter into any agreement,” Flaggs said.

An attorney with the state Attorney General’s Office said Flaggs would have to contact the office before an opinion would be issued.

Flaggs also questioned whether Compass would provide services to the VCVB for no extra charge to the city. The city has a contract with Compass to pay $124,000 annually for the management of Vicksburg Convention Center and Vicksburg Auditorium.

Larry Gawronski, Compass employee and executive director of the convention center and the auditorium, said Friday that the deal would not cost the city any extra money.

Patty Cappaert, interim chairman of the VCVB board, said the VCVB would save money on the deal. She said the VCVB would not have to pay any money to Compass, since the city already has a deal with the company, and would save the $60,000 it used to pay the executive director.

Flaggs said there may be additional costs, however, because in the current contract between Compass and the city there are incentives.

&#8220It’s an incentive contract based on performance,” Flaggs said.

The contract states that achieving annual goals in five categories associated with operating the convention center and the auditorium will result in a variable fee payable to Compass of $20,000 to $30,000.

Flaggs said if Compass runs the VCVB, it will have the opportunity to reach more people and may reach its goals in attendance, operating losses, number of usages, city satisfaction and room nights. This would require the city to pay the incentive fee, he said.

Walterine Langford, associate city attorney, confirmed the city has an incentive deal with Compass. However, she said it has not been determined whether that deal will change after Compass assumes its new post.