Palm Springs City Council Set To Approve New Convention Center Management Contract

The keys to the Palm Springs Convention Center are set to change hands to Oak View Group soon. The Palm Springs City Council is set to approve a new five-year management contract for the Palm Springs Convention Center, awarding the deal to Global Spectrum LLC, doing business as OVG360 (Oakview), in a contract worth up to $3.6 million over five years.

The agreement, scheduled for Council approval at Monday's meeting, will see Oakview take over operations from current manager AEG Management Palm Springs, LLC when their contract expires September 27, 2025.

Financial Structure and Performance Incentives

The contract features a performance-based compensation structure. Oakview will receive a base fee of $250,000 annually, increasing by $19,250 each year. However, the company can earn up to 150% of their base fee through performance incentives.

"Therefore, it is possible that in addition to the base fee of $250,000, Oakview could earn up to an additional $375,000 in incentives for a total all-in fee of $625,000 annually," according to the staff report.

The incentive structure breaks down as follows:

• 60% Quantitative measures (up to $225,000): Based on gross revenue performance and event bookings

• 40% Qualitative measures (up to $150,000): Including client surveys, asset inspections, and business plan reviews

Major Capital Investment Commitment

Oakview has committed to contributing $1.8 million toward capital improvements at the Convention Center over the five-year term, with "$1,200,000 within 15 days of the Effective Date" and "$300,000 on or before the first anniversary," according to the staff report.

This investment comes as the city plans a major renovation project with "an order of magnitude estimate of $125M, which includes the Convention Center facility along with the development and construction of connectors."

Economic Impact Projections

Regarding the Convention Center’s economic impact, according to a 2024 study by Convention Sports and Leisure cited in the staff report, "the current annual direct spend of attendees of the PSCC is $44M annually," projected to increase to $66.6 million with full master plan implementation.

The facility currently supports 892 jobs with $31.1 million in annual wages, numbers expected to grow to 1,302 jobs and $46.5 million in wages post-renovation. Tax revenues would increase from $5.1 million to $7.6 million annually.

Transition and Workforce

The transition from AEG to Oakview will involve reassigning existing vendor contracts and hiring key positions. "During the transition, Oakview will interview and hire two positions, the General Manager and the Director of Finance, both of which have City review and veto provisions," the staff report states.

Current vendor contracts include catering services, audio-visual equipment, security, and parking management, most expiring around the transition date.

City Subsidization Continues

The city will continue subsidizing Convention Center operations. The FY26 budget shows total operational expenses of $7.68 million with a city subsidy of $3.42 million, as the facilities "do not generate enough revenues to pay for all expenses."

The contract includes provisions for the city to use facilities rent-free for events, including the Palm Springs International Film Festival, city shredding events, and governmental purposes.

The new agreement represents a significant shift in convention center management as Palm Springs prepares for major facility renovations while maintaining operations in a competitive tourism market.

The Palm Springs City Council is expected to approve this agreement at Monday night’s City Council Meeting at 5:30 p.m. at Palm Springs City Hall located at 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262