Century II management privatized with fate of jobs, price increases uncertain
The city of Wichita on Tuesday finalized its decision to privatize the Century II Convention and Performing Arts Center and outsource operations to a private company.
The building will be handed off from city control to ASM Global control on Oct. 1. The multi-national company already runs two local entertainment venues. the Sedgwick County-owned Intrust Bank Arena and the historic Orpheum Theater, which is owned by a nonprofit organization.
As part of the deal, the city of Wichita will retain the right to host 10 events a year at the Century II building.
One major point of contention Tuesday is the future of city employees who worked at Century II. The city and ASM Global have given them the option of changing departments at the city or working for ASM.
City Manager Robert Layton said workers who stay on with the city will not take a pay cut or lose their benefits and seniority.
Tuesday’s decision was unsurprising, as the City Council had already passed a budget assuming privatization of Century II. But it was met with strong opposition from Save Century II organizers and other community members worried about the future of the building, the Wichita Wurlitzer organ and city employees.
The contract was first made publicly available on the city’s website Monday, less than 24 hours before the vote.
“How can you vote on this today?” Save Century II founder Celeste Racette said. “I’ve heard numerous questions you had about the contract. I have numerous questions myself about the contract.”
Mayor Brandon Whipple and Council member Jeff Blubaugh voted against the decision.
City Council member Jared Cerullo said outsourcing management of Century II was necessary because the city is “not doing a good job” at managing and maintaining the building.
“My thoughts are if we as the city can’t do the job, shouldn’t we want someone who is capable of doing it,” Council member Jared Cerullo said.
Council member Cindy Claycomb said the decision does not effect ongoing discussions about the future of Century II, which was set to be torn down in favor of new convention and performing arts center under an unfinished development plan for the area around Century II.
“What I’ve heard from my constituents is that we need to take care of Century II,” Claycomb said. “That’s what I’ve heard. We’ve said that we’re not selling it, we’re not getting rid of it. We’re not making any decision about the future of the building.”
City officials have acknowledged that the move will probably lead to price increases to attend shows. A city report projects private management could cut operating losses from $1.4 million to $800,000. Those costs are covered through an existing fund set aside for that purpose and do not come out of the city’s operating budget or general fund.
The difference in revenue and expenses at Century II is paid out of the city’s tourism and convention fund, an added tax on hotel stays in Wichita designated to improve and maintain Century II and the city’s other cultural facilities.
A staff report projects that paying ASM’s management fee, which starts at $120,000 and can rise as much as 3% a year plus bonuses for increasing revenues, will generate additional revenue and reduce the city’s annual subsidy.
It’s unclear how the city will divert the savings from the tourism and convention fund, but officials have planned to spend $250,000 annually over the next decade for capital improvements at the building.
This story was originally published September 21, 2021 at 2:04 PM.
