The Hot Springs Advertising and Promotion Commission on Monday will consider repealing an amendment to Turf Catering's contract that subsidized any losses in 2021 in response to the COVID-19 pandemic given a "much brighter" outlook.
"I am happy to report that our convention and catering business is back and it is no longer necessary for us to assist Turf Catering in dealing with the effects of the pandemic," Steve Arrison, CEO of Visit Hot Springs, said in a memo to the commission that was included in the agenda packet for Monday's meeting.
The commission will meet at 3 p.m. Monday in the Arlington Room of the Hot Springs Convention Center.
The agenda includes an item for the commission's approval to return to the original agreement with Turf Catering to provide food services at the convention center as of July 1.
"Our assistance did not require us to put any money into Turf Catering. We will have essentially broken even for the first six months of the year under the amendment to their contract," Arrison told the commission.
If the ad commission approves the item, it will return to the old agreement with commissions paid to it monthly per the terms of the original agreement, beginning with July.
The agenda packet also includes a copy of a letter to Arrison from Brad Wolken, president and CEO of Turf Catering Co. Inc.
The letter notes that, last fall, "deep into the pandemic and the Convention Center shutdown," the advertising and promotion commission agreed to a one-year amendment to its contract, for the purpose of allowing the food service to "keep a skeleton crew on board without suffering severe financial losses."
The ad commission agreed to subsidize 90% of any losses in 2021.
"As we approach the end of June 2021, the outlook looks much brighter for the rest of the year. Turf Catering will be able to add staff and gear up for the upcoming business without any subsidy from the Convention Center funds," Wolken said in his letter to Arrison.
Wolken said "this is an ideal time" to cancel the remaining six months of the amendment, so that the original contract will again be in place.
"With the back and forth of profit and losses from January to June, and the help of the PPP program, which Turf passes the credits along in full each month; the net effect of the Amendment will not have cost the Convention Center any money. We should all breathe a sigh of relief that it worked out so well," Wolken said.
"Therefore, we ask you to cancel the Amendment as of July 1 ... and return to the way we have done business with you for so many successful years."