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1 RiversideCA.gov
1 RiversideCA.gov
FIRST AMENDMENT TO AGREEMENT
WITH RAINCROSS HOSPITALITY CORPORATION FOR
MANAGEMENT OF THE RIVERSIDE CONVENTION
AND VISITORS BUREAU AND RIVERSIDE SPORTS
COMMISSION
Financial Performance and Budget Committee
May 10, 2023
General Services Department
RiversideCA.gov
2 There are two (2) operating agreements with Raincross Hospitality Corporation:
1. The main operating agreement for management of
the Convention Center, which expires on June 30,
2028; and
2. A separate agreement for management of the
Riverside Convention and Visitors Bureau (Visitors
Bureau)and Riverside Sports Commission (Sports
Commission), which expires on June 30, 2023.
BACKGROUND
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3 The Visitors Bureau markets and promotes Riverside as a premier destination for conventions and meetings.
The Sports Commission markets and promotes Riverside as a destination for athletic events.
1. Visitors Bureau base annu al compensation of $1,100,000, subject to annual CPI increases.
2. Sports Commission base a nnual compensation of $150,000, subject to annual CPI increases.
VISITORS BUREAU AND SPORTS COMMISSION
RiversideCA.gov
4 • Number of Solicitation Calls and Emails
• Room Nights Booked:
– FY 23/24 Goal: 28,350
• Convention Center Revenue Contribution:
– Goal generate 50% of total revenue
• Conversions/Lead-to-Contact: % of leads that convert to a signed contract
• Site Inspections
• Average Daily Rate Increase (Hotels)
VISITORS BUREAU KEY PERFORMANCE INDICATORS
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5 • Number of Solicitation Calls and Emails
• Room Nights Booked:
– FY 23/24 Goal: 7,700
• Conversions/Lead-to-Contact: % of leads that
convert to a signed contract
• Site Inspections
• Average Daily Rate Increase (Hotels)
SPORTS COMMISSION KEY PERFORMANCE INDICATORS
RiversideCA.gov
6 “Explore Riverside” website launching mid-2023:
– Tourism information for meeting planners and visitors. – Convention Center
– Downtown Hotels
– Restaurants
– Nightlife
– Arts and Culture Scene
ENHANCED MARKETING LAUNCH
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7 The proposed First Amendment to this Agreement includes the following key provisions:
1. Five Year Extension. The management term is being
extended to June 30, 2028, to synch with the expiration date of the Convention Center Agreement, as noted in
Section II, TERM of the amendment.
2. Consumer Price Index. Updates the Consumer Price Index to include Riverside-San Bernardino-Ontario, CA as its own Core Based Statistical Area, as noted in Section III,
COMPENSATION.
FIRST AMENDMENT TO AGREEMENT
RiversideCA.gov
8 Key provisions (continued):
3. Quarterly Hotel Partner Meetings. Updates Scope of
Services to require Raincross to hold quarterly hotel partner meetings, as noted in Section IV, SCOPE OF SERVICES.
4. City Two-Year Budget. Updates the budget procedure by requiring the City to provide a projected two-year budget preparation schedule to Raincross on or before December of alternate years and requiring Raincross to comply with the timelines set forth in the schedule, as noted in Section V, PAYMENT OF EXPENSES, DAY-TO-DAY OPERATIONS.
FIRST AMENDMENT TO AGREEMENT
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9 Visitors Center: $9,144,850 based on hotel room nights, Convention Center revenue and estimated $64 per day
spend by visitors (22,088) for meals, transportation/gas, retail/shopping, bars/nightclubs, and other entertainment.
Sports Commission: $3,290,880 based on hotel room nights, Convention Center revenue, and estimated $64 per day
spend by visitors (14,176) for meals, transportation/gas, retail/shopping, bars/nightclubs, and other entertainment.
FY 2022-23 Q1 – Q3 ESTIMATED ECONOMIC IMPACT
RiversideCA.gov
10 FY 22-23 Management Fees for the Visitors Bureau
and Sports Commission (including annual CPI
increase):
– Visitors Bureau = $1,775,668
– Sports Commission = $206,397
FY 22/23 MANAGEMENT FEES FOR VISITORS BUREAU
AND SPORTS COMMISSION AGREEMENT
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11 Fiscal Year Convention Center
Agreement*
Visitors Bureau and
Sports Commission
Agreement**
Total
21‐22 $5,176,105.22 $1,801,173.00 $6,977,278.22
20‐21 $5,384,164.84 $1,739,255.52 $7,123,420.36
19‐20 $4,501,414.34 $1,698,276.00 $6,199,690.34
18‐19 $3,420,342.40 $1,651,184.28 $5,071,526.68
17‐18 $3,289,504,64 $1,591,840.44 $4,881,345.08
Totals: $21,771,531.44 $8,481,729.24 $30,253,260.68
COMBINED FISCAL IMPACT FOR BOTH AGREEMENTS
**For the Visitors Bureau and Sports Commission, the management fee is the only general fund impact.
*Convention Center totals include debt service est. at $3 mil annually, plus management fee, incentive bonus, and agency account replenishment.
RiversideCA.gov
12 Strategic Priority 5: High Performing Government
Goal 5.4: Achieve and maintain financial health by addressing gaps between revenues and expenditures and aligning
resources with strategic priorities to yield the greatest impact.
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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13 That the Financial Performance and Budget Committee:
1. Review and provide direction on the First Amendment to the Management and Operations Agreement with
Raincross Hospitality Corporation for the Riverside
Convention & Visitors Bureau and Riverside Sports
Commission to extend for one additional 5-year term to
2028, update the CPI and other clarifying issues for a
base contract amount of $1,100,000 plus an annual CPI
increase for the Visitors Bureau, and $150,000 base
contract amount plus an annual CPI increase for the
Sports Commission; and
RECOMMENDATIONS
RiversideCA.gov
14 Continued:
2. Forward the First Amendment to the Management and
Operations Agreement with Raincross Hospitality
Corporation for the Riverside Convention & Visitors
Bureau and Riverside Sports Commission to the City
Council for consideration.
RECOMMENDATIONS
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