Global Spectrum remains the preferred candidate to run the City’s sports and entertainment venues following a decision by a committee to uphold an original ranking of the company and its main competitor SMG.
The Professional Services Evaluation Committee unanimously denied an SMG protest attempt Wednesday and forwarded its preferred rankings of the companies to Mayor Alvin Brown for final selection, which will be followed by fee and contract negotiations.
The two companies responded to the request for proposal from the City for a contract to manage EverBank Field, Jacksonville Veterans Memorial Arena, the Baseball Grounds of Jacksonville, the Times-Union Center for the Performing Arts, the Equestrian Center, the Ritz Theatre and the Osborn Center.
A two-person subcommittee consisting of City Chief Financial Officer Ronnie Belton and City Chief Administrative Officer Karen Bowling ranked Global ahead of SMG for the contract in early July.
SMG filed a protest the same day, claiming that Global’s proposal should be disqualified because it did not meet material requirements set forth in the request in three areas.
T.R. Hainline, SMG legal representation, expanded on those areas Wednesday to the committee, alleging that Global did not comply with Internal Revenue Service procedure for a 10-year agreement, which would be a potential liability to the City’s bondholders; included language that operates as a penalty for terminating the contract; and did not supply proper required financial information.
The burden of proof to uphold a protest was on SMG. Global representative Neil Henrichsen and City attorney Jason Teal responded to SMG’s claims that it was merited.
Henrichsen said the SMG protest request amounted to “sour grapes” from a company that has held the contract without competition for 20 years. He defended Global’s proposal and said it was appropriate under the City’s request.
“We can have legal arguments all day, but they are just wrong,” Henrichsen said during his response.
The committee voted unanimously to strike down the protest and in a subsequent vote approved forwarding the subcommittee’s decision of Global to Brown.
“We are really excited and we felt like our case was really strong,” Global Vice President Todd Glickman said after the vote. “We are going to take the City’s direction in terms of what’s next.”
On the other end, SMG Senior Vice President Doug Thornton said he was disappointed by the committee’s failure to recognize its case. He said there is still one step in the process, though.
“We hope that the mayor and City leaders see the business case and make the right decision,” Thornton said.
Thornton said SMG’s proposal makes business sense in that it will save the City $3.1 million over the next 5 years, guarantees a $5 million cumulative subsidy reduction and offers a $500,000 event marketing fund.
As to if he thought the decision to deny the protest was fair, Thornton said it was a matter of judgment and that the committee is entitled to its opinion.
The decision sets up a potential conflict with the main tenants of EverBank Field, the Jacksonville Jaguars. The team has previously stated their support for SMG to continue as facility manager.
Glickman said he and others within Global looked forward to talking with team officials and will rely on the City for assistance.
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