Commission delays action on plan to create Intrust Bank Arena promotion fund

Sedgwick County leaders will get more time to consider a proposal aimed at attracting a wider variety of acts to Intrust Bank Arena in downtown Wichita.

County commissioners voted 3-2 Wednesday to table the proposal, citing a desire to better understand the proposed contract extension and changes. They later decided to hold a special session in coming weeks to discuss the issue.

County staff has proposed amending the agreement with SMG, the company that manages the arena, to establish a $200,000 annual promotion fund to attract events “that might not otherwise appear (at Intrust) without additional financial inducement.”

The proposal would extend SMG’s contract for another six years, through Dec. 31, 2020. It also would increase SMG’s potential earnings, though the company would still absorb any losses.

Assistant county manager Ron Holt urged commissioners to approve the proposal. The county’s current contract with SMG doesn’t expire until Dec. 31, 2015, he said, but arena officials already are negotiating with promoters for shows through 2015 and beyond and could dip into the promotion fund to entice those acts.

Commissioner Richard Ranzau expressed frustration with what he said was a rushed vote.

“I’m sorry there’s a sense of urgency now, but the first I heard about this was last week,” Ranzau said.

“I have a responsibility to read this contract and analyze it. … This happens on all too frequent occasions, where things are brought to the county commission, and it’s already been negotiated and you just assume we’re going to approve it.”

Commissioners Ranzau, Karl Peterjohn and Jim Skelton voted to table the discussion. Later in the meeting, commission chairman Dave Unruh suggested a special session prior to the group’s next regular meeting on Nov. 12.

“I am concerned about the delay,” Unruh said. “I think we want to handle this expeditiously just to be a good partner in a very important item in county government.”

The group then voted 3-2 – Unruh, Skelton and Tim Norton in favor – to hold a special meeting at Unruh’s discretion.

“I see no reason to defer,” Norton said. “We’ve had a great relationship with SMG. They delivered everything, as far as I’m concerned, that we’ve asked them to do.

“I know we have had a little bit of criticism from the community about the diversity of acts, but I think we’ve tried to address that in this agreement.”

If the change is approved, arena officials – after consulting with county leaders – could draw from the event promotion fund to pay the difference between what a performer might demand and what his or her promoter is willing to pay the entertainer to bring the act to Wichita. The fund would begin in January.

According to the proposed agreement, SMG would provide the first $200,000 a year for the fund. The county would replenish as necessary from the arena’s $13 million maintenance reserve fund.

Since it opened in January 2010 with a sold-out concert by country star Brad Paisley, the arena has been criticized for not offering a more diverse musical schedule. Officials also are concerned about a slowdown of bookings in summer months.

This story was originally published October 22, 2014 at 1:10 PM with the headline "Commission delays action on plan to create Intrust Bank Arena promotion fund."