Rental income up for convention center, auditorium|[8/3/06]
Published 12:00 am Thursday, August 3, 2006
Rental income continues to rise for the Vicksburg Convention Center and Vicksburg Auditorium, contract managers told the advisory board Wednesday.
“We realized higher space rent this year than last year due to aggressive sales efforts that resulted in added event load,” Norman Ford, director of business and operations, said in his report.
The VCC and auditorium had a total of 80 events in this year’s third quarter, April through June. The events, up 20 from last year’s third-quarter numbers, consisted of 20 banquets and receptions, a consumer show, six conferences and conventions, 20 meetings and 33 spectator shows, said events coordinator Erin Powell.
That pushed rental income to $33,138, up from last year’s $23,700. The Vicksburg Auditorium on Monroe Street also had a rise in space rental, from $7,300 in 2005 to $8,350 this quarter. Food and beverage receipts saw higher numbers due to the added events, which caused an increase of $11,901 from 2005.
The convention center, built for $12 million in 1997, was paid off in March with a final installment of $1,274,500 to retire bonds issued for the Mulberry Street project.
Initially, city employees ran it but in 2000, Compass Facility Management was hired under a five-year, $124,000 per year deal. The firm has since formed Compass of Vicksburg and added Vicksburg Auditorium and the Vicksburg Convention and Visitors Bureau to its responsibilities.
For 2005, the firm won $26,000 of a potential $30,000 in performance bonuses in its contract and also in March, city officials renewed the deal at a rate of $131,000 per year.
In addition to rentals, expenses are paid from a 2 percent bed tax imposed on nightly room rentals in Vicksburg and a general fund supplement.
Ford added that the staff will continue to watch expenses, which have also risen with the higher space rental. The areas that have risen in the past quarter have been occupancy, personal services, service and operations and travel and vehicles.
Also at the meeting, Larry Gawronski, executive director, reported that Palmertree Catering will have primary food-service business at the convention center. On July 1, the company, run by Betty Palmertree, replaced Riverside Food Service, which has been catering VCC events since 2001. Riverside owners did not wish to renew due to other commitments.
The advisory is made up of 11 members appointed by the city and meets quarterly. Before Wednesday’s meeting, the Mayor and Board of Alderman reappointed four board members and filled another position. Those reappointed were Ann Jones, Gwen Edris, Skipper Guizerix and Tom Pharr, whose new terms expire July 24, 2009. Lamar Horton, head of the city’s personnel department, was selected to take the post of former city special projects manager Christi Kilroy, who was elected executive director of the Vicksburg-Warren County Chamber of Commerce in June.