06-18-1996 CC RPT 29 - Laserfiche WebLink

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After two years of such operation, it w decided that the tw5k of mark-cling Riverside sho d again 1 vested with the Riverside Visitors . Convention Bureau. Since Jule 1994 that has been the case, but the results have been less than impressive. The Bureau has been unable to produce the bookings hoped for and in the went past, it has been learned that the financial aspects of the Bureau's operation have been handled, in a less than satisfactory. manner. Presently. it appears the Bureau may have overspent its budget by approximately $22,00,0. The existing Board of Directors is attempting to deal with this situation, and hopefully, will be able to meet all of the Bureau's financial commitments. Continuing can with the Bureau does not appear to be a viable option. As a result, it is now being proposed tliat the °iry contract with EHC to perform the task of convention marketing, Placing the marketing vvitJh a party who 1 a vested interest In seeing the convention business do well have both its pluses and minuses. It is obvious that Mr. Roberts wants the City's convention business to flourish, but there is always the issue of conflict when you put the responsibility in the hands of what could be viewed as a ".`competitor." The contract, as s uctured. offers 'the City the ability to end the ;marketing relationship in July 1999 which will offer ample time to analyze. hHC"s first two years of operation. Also, given our most recent experiences, it does not appear there aTe a great many options available. Although there are mart} businesses who are interested in the convention trade in Riverside, there are two rn;aJor planers, the Holiday Inn and the Mission Inn, largely due to their proximity to the Convention Center. Although ether hotels motels participate in convention business trade in a much smaller degree. the Holiday Inn and the Mission Inn enjoy the bulk of the convention overnight business, They are the hotels w=ith the most to gain an&or lease. The status of the Holiday Inn is clouded by bankruptcy and foreclosure proceedings which place its future ownership and direction in doubt, Therefore, they cannot be seriously considered at this time. They may request further consideration, but it i not advisable to wait the 90-120 days it may possibly take to resolve the issues surrounding the Holiday Inn. Timing is critical. In s-Hitching from I I P to the Visitors Convention Bureau in 1994, the marketing function for Ri erside was placed n "can-hold" status for almost one year. Riverside can ill afford to do that again. aA strong marketing effort must be launched in the =dear future due to the competitive factors taking glace in the Inland .Ar>ea. The only timely way to handle the marketing; is to contract with a new entity since for all practical purposes, the current V&C Bureau is shut do,wxm due to their financial woes. Entrepreneurial Hospitality C=orporation under the leadership of Duane Roberts appears to be the only alternGative available to us to fill this void in a prompt manner. The Mission Inn's success has been dramatic and demonstrates the k d of know how and spirit that EHC embodies and is =deeded if Riverside is to have a thriving convention business. The following are the major points contained in the contra=ct: TERM. Ten years, duly 1996 - June 2W6 29 - Z