Naming rights in the works for Fort Smith Convention Center

Officials with OVG^[1], the Denver-based firm managing the Fort Smith Convention Center^[2], say they are close to securing facility naming rights that could generate up to $400,000 a year in revenue.

Fort Smith Convention Center General Manager Shannon Davis first told the Fort Smith Board of Directors during a Sept. 9 study session that the convention center has been busier than initially planned. She said the estimated loss of $928,395 is now down to $759,226. Any operating loss is covered by the city.

“We have had a very successful year so far. … So, a significant savings back to the city, and this is just the beginning,” Davis said of the revised lower loss estimate.

Also, Davis said they have three pending proposals for convention center naming rights that could generate between $3 million and $4 million over 10 years. Davis said she expects a deal to be made before the end of the year, which would provide between $300,000 and $400,000 in revenue each year for the next decade.

“My hope is that in the next couple of months that we’ll be able to bring those by November I would say, to wrap up those three proposals and present those to the board for that naming right so that hopefully that can be secured in this year to even further lessen the impact on the city,” Davis told the board.

She also said the revenue could be more with if ongoing “pouring rights” negotiations are successful. Davis said they are working with Coca Cola and Pepsi on soda rights, Casamigos on tequila rights, Tito’s on vodka rights, and other companies on beer pouring rights. Davis did not provide

Davis also said the convention center has been busier than initially planned, with the estimated loss of $928,395 now estimated down to $759,226. Any operating loss is covered by the city.

“We have had a very successful year so far. … So, a significant savings back to the city, and this is just the beginning,” Davis said of the revised lower loss estimate.

The convention center hosted 108 events in 2024, up 13 from what was budgeted for the year. There were 58,200 attendees at those events, bringing attendance up 7,265 from budget, according to OVG. Gross revenue for the year was $867,767, with $1.68 million in total expenses.

CATERING REQUEST
OVG is also asking to be able to provide off-site catering using the relatively new convention center kitchen.

One of the first things OVG did when it took over management of the convention center was to make a $500,000 investment in the center. OVG agreed to invest up to $500,000 to put a full-service commercial kitchen in the convention center. OVG will recoup that expense through $50,000 annual installment payments for 10 years that would come from the facility’s operating fund.

Director Neal Martin is not sure OVG, which received city funding to build out a kitchen in the convention center capable of catering, should be competing against restaurants and caterers in the area. He said several times during the Sept 9 study session he believes OVG would have an unfair advantage.

Director Christina Catsavis said she has worked to schedule caterers and the issue is that there are “maybe” three or four other caterers in the region that can handle large events. Catsavis suggested the board “be open” to some arrangement that allows OVG to cater because it could benefit organizations and companies that have large events.

The board is expected to vote on the catering request and other OVG contract amendments at a future regular board meeting.

Related