Albany City Commission approves arena privatization

ALBANY — The Albany City Commission approved unanimously separate measures Tuesday that will privatize the Albany Civic Center and bring as many as 100 jobs back to the Coats and Clark operation in the city.

The commission approved a contract with Spectra by Comcast that will allow the Philadelphia-based company to manage the Civic Center, Albany Municipal Auditorium and the Veterans Park Amphitheatre for a base fee of $125,000 per year for a five-year term with two options to renew for additional five-year terms.

Albany Finance Director Derrick Brown said the contract is expected to save the city about $900,000 in the first year. The contract includes incentives that would allow Spectra to save money, a percentage of which would be returned to the city.

“We have to iron out the details, but we would definitely save money — without a doubt,” Brown said.

The contract’s approval Tuesday means Spectra will oversee the day-to-day operations of the city-owned facilities, while city officials will be able to take part in meetings ensuring they can keep a pulse on how the money is being spent. There is also a provision for city use so Spectra’s involvement will not conflict with Albany area entities wishing to conduct events there.

Brown explained that, up until now, operation costs for the venue have been primarily subsidized with hotel/motel tax funds, with about $400,000-$500,000 more from the city’s general fund needed beyond what comes as result of those taxes. The new arrangement allows funding to come strictly from the hotel/motel tax.

“It wouldn’t cost the taxpayers anything,” the Finance director said.

Peter Zingoni, vice president for business development and client relations at Spectra, said there is a $250,000 investment expected to be put into the center immediately to go toward revenue-focused functions such as concessions.

“Our intention is to spend that money sooner rather than later,” he said.

The building will still belong to the city, and the contract approved by the commission is expected to go into effect in the next few weeks.

“We feel very confident we can push the needle here,” Zingoni said. “We consider ourselves an extension of the city of Albany.”

Albany-Dougherty Economic Development Commission President Justin Strickland addressed the commission about the Coats and Clark measure, which allows 100 of the company’s employees to end their leases at its other buildings they are working out of in south Georgia and relocate to a distribution facility in Albany. Coats and Clark is investing $10 million to rebuild the facility after it was destroyed in a Jan. 22, 2017, tornado.

The commission voted to grant $400,000 from the city’s Job Investment Fund to help with the Coats and Clark facility.

“This was a competitive project, and we were able to win Coats and Clark back to Albany,” Strickland said of efforts to keep the manufacturer in the community.

Strickland said the company did not share what other locations it was considering, but he did say Coats and Clark was looking at “multiple cities and multiple states.”

Jennifer ParksJennifer Parks

Jennifer Parks