HomeMy WebLinkAbout(0003) IR 10325 - Cultural & Tourism Governance ReviewINFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 10325
To the Mayor and Members of the City Council September 24, 2019
Page 1 of 2
6A��
SUBJECT: CULTURAL &TOURISM GOVERNANCE REVIEW
re�a
The purpose of this Informal Report is to provide an update on the review of the governance structure
alternatives for the City of Fort Worth cultural and tourism program.
Background
In 2014 the City of Fort Worth and the Fort Worth Convention & Visitors Bureau (now Visit Fort Worth)
engaged Hunden Strategic Partners to conduct a market study and financial analysis related to the potential
expansion and renovation of the Fort Worth Convention Center (FWCC), including the potential for
development of a new arena and repurposing of the existing arena at the FWCC. The scope of work also
included analyses of marketing resources and programs as well as governance profiles of other similar
facilities.
Consultant Services and Anal
The City's FY2019 Work Plan included the Cultural & Tourism Governance Review and on June 21, 2019
a professional services agreement (CSC No. 52462) was administratively entered into with Hunden
Strategic Partners (HSP).
The primary scope of service includes conducting an analysis of the existing funding, governance,
management, marketing and operations of Visit Fort Worth (VFW) and the City of Fort Worth - including
the Fort Worth Convention Center (FWCC) and Will Rogers Memorial Center (WRMC). The ultimate goal
is to determine the best structure for the City to utilize in the operations of its two major convention and
tourism venues in conjunction with it's relationship with VFW. Methodology includes profiling the current
situation, research o£ industry trends related to governance of major event facilities, comparable market
destination management organizations, event facilities, city governments and quasigovemmental
authorities. Ultimately HSP will present governance and funding structures for consideration by the City.
Preliminary Findings, Observations and Recommendations
On August 21, 2019 HSP presented the following findings, observations and preliminary recommendations
to representatives of the City Manager's Office and the President/General Manager of VFW.
1. Positive Program Attributes
A. The City of Fort Worth and especially the FWCC and VFW have a strong relationship
B. WRMC operates primarily on its own, including sales' aspects, and benefits from strong repeat
business. There is no crossover or competition of/for events.
C. Positive attributes that currently exist are the result of:
o A tourism friendly environment/city
o Improvements to the governance structure in the past
o Staffing
- Strong, committed and long-term leadership at all organizations
- Minimal turnover
• Key vacancies exist related to retirements that must be addressed.
- Strong relationships with customers
- Desire to see Fort Worth succeed
- Pride in the facilities and the City
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 10325
To the Mayor and Members of the City Council September 24, 2019
Page 2 of 2
6A��
SUBJECT: CULTURAL &TOURISM GOVERNANCE REVIEW
re�a
2. Key Areas for Improvement
A. Efficiency in the sales process due to multiple perspectives amongst sales people at the FWCC,
VFW and major downtown hotels. A more streamlined lead and sales structure should address
this function.
B. Overhead cost incurred by the Public Events Department as a Special Revenue Fund within the
City budget.
C. Lack of flexibility under the City's management and operational structure for both the FWCC
and WRMC is regulated by city policies and state laws restricting the ability to respond to the
marketplace.
D. Staffing under the City structure limits flexibility as opposed to an autonomous non -government
setting (private or non-profit).
E. The "Buy -down" rent process and other cost saving options at the facilities is more cumbersome
due to the multi -layered sales model.
F. The process for procuring capital improvements is cumbersome and time-consuming due to
public bid requirements.
3. Consultant's Initial Recommendations
A. Establishment of a quasigovernmental authority to manage and operate the City's Public Events
program to include the cultural and tourism program managed by VFW
B. VFW's group sales force merging with the FWCC's sales force
C. Day-to-day management of the FWCC be contracted to a private entity
Recommendations/Next Steps
Move forward with recruitment of Public Events Department Director to manage and lead a three to
five-year plan that includes:
1. Developing plan with the assistance of the Convention Center Design Committee for the ultimate
expansion of the convention center to include recommendations associated with financing and
project phasing
2. Phased in process to assess and implement recommendations associated with the HSP governance
recommendations.
a. Initiate recommendations that can be undertaken without impacting convention center
expansion planning
b. Outline process to gain broad input and develop plan for creation of independent authority
Should you have any questions regarding this report please contact Jay Chapa, Assistant City Manager at
(817) 392-5804.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS