An aerial view of Ford Idaho Center complex in Nampa.
Tim Savona took over as general manager at Ford Idaho Center and Ford Idaho Horse Park, Nampa, for Spectra Venue Management Oct. 1. The management company, a division of Comcast Spectacor, signed a new five-year management agreement, with a five-year option, with the city of Nampa to manage the complex, which includes an 11,000-seat amphitheater, a 12,000-seat arena, and a 2,000-seat multipurpose horse park.
Owned by the city of Nampa, the combined venues welcome more than 300,000 visitors each year and generate more than $20 million in economic impact for the Treasure Valley region.
“The City of Nampa reduced its subsidy for Ford Idaho Center by $500,000 in the past year and we have high expectations for Spectra,” Nampa Mayor Bob Henry said in an email. “The new contract adds more layers of accountability, along with incentives for Spectra to improve the profits. Additionally, there’s a penalty clause if the net operating loss reaches a certain point.”
Savona noted the venue is quite busy, with the Horse park occupied every weekend from April to October with horse meets, then taking on the Boise State Track & Field season. The amphitheater season is over, running May to September with 10-12 concerts. The arena traditionally hosts 4-10 concerts, he said. Savona is dedicated to trying new events to build upon what’s there now.
The entire complex is dedicated to the Snake River Stampede for two weeks in July and August. The event, which draws 50,000 attendance, just celebrated its 100th anniversary.
The city’s 2016 operating budget for Ford Idaho Center projects $5,071,390 in revenue.
The new agreement is a management fee deal. The city will pay a fixed fee of $11,250 per month, to be increased annually in accordance with the percentage increase in the CPI over the previous 12 months. In addition, the city will pay Spectra an incentive fee for each full or partial operating year of the term in which the operating profit/loss is greater than the net operating loss benchmark.
Vickie Holbrook, communications director for the City of Nampa, provided the contract and budget details to Venues Today.
In fiscal 2016, the incentive will be 20 percent of the first $100,000 of improvement; 25 percent of $100,000 to $300,000; and 30 percent in excess of $300,000 improvement. Those percentages decrease to 15, 25 and 30 percent in 2017 and 10, 25 and 30 percent in 2018-2020.
The agreement also stipulates a fixed management fee rebate of up to 50 percent of the fixed management fee for any operating year other than the first in which the net operating loss is greater than the benchmark. For example (not real numbers), if the rebate benchmark is $1.5 million and the actual net operating loss is $2 million, for a shortfall of $500,000, Spectra would rebate to the city $75,000 of the fixed management fee.
The city assumed transition costs and Spectra has the right to assess interest on any payment of fees not made when due.
Spectra pledged $250,000 as a financial contribution, which the city can use at its discretion but pledged to use for revenue-generating capital improvements to be determined. That financial contribution is to be amortized over a 10-year period.
Savona, interviewed in mid-October, said he is excited about the opportunity to make a difference in Nampa. He transferred to Ford Idaho Center from Budweiser Events Center, Loveland, Colo., where he spent the last two years as AGM. He is an 11-year veteran in the industry.
Steve St. John, who was the last manager in Nampa for former management company, SMG, has moved on. Andrew Luther is Spectra’s new director of events. Bryan Beban, sales and marketing manager, made the transition from SMG to Spectra. Savona is looking for a new marketing director.
Sodexo is the concessionaire for the complex and Tickets.com handles ticketing. Spectra will administer those contracts.
Interviewed for this story: Tim Savona, (208) 442-3360; Vickie Holbrook, (208) 468-5411