The Adelanto City Council on Jan. 13 directed the city attorney to prepare an agreement with Stadium Management Group (SMG) to operate the city's stadium, after a lengthy discussion about deferred maintenance, revenue-sharing and oversight language.
City Manager Jesse Flores presented the staff recommendation and introduced Daryl Courtney of SMG, who said SMG would assume operations under terms that would not immediately draw on the general fund. Courtney told the council the stadium has substantial deferred maintenance, which he estimated at about $500,000, and immediate repair needs of about $200,000 before the venue could reliably host events again. "There is a lot that needs to be done to that stadium prior to us being what we would say successfully generating revenue," Courtney said.
Council members pressed for clarity on how revenues and sponsorships would be divided, whether the agreement was put out to bid and how performance benchmarks would be enforced. Councilwoman Evans said the percentage-of-rental-fee approach (SMG keeping 30% and city 70% for rentals, as presented) makes more sense than prior flat-rate arrangements but asked for a percentage of sponsorship revenue to flow back to the city. Council members also requested that the city attorney include progress reporting and benchmarks in the agreement.
City Manager Flores said the SMG opportunity went to bid previously and that SMG was the only responsive bidder; SMG representatives said they envisioned a five-year contract term. Public comments included both support and criticism: a resident said SMG's approach could be a "win-win" that relieves the city of operating costs, while another resident urged more oversight and suggested parks and rec should manage public facilities instead.
After the discussion the council moved, seconded, and approved the recommendation to proceed with an agreement and asked the city attorney to draft contract language including the council-requested benchmarks. The council's motion passed by roll-call vote of the members present (Mayor Reyes and four councilmembers; Mayor Pro Tem Hernandez absent).
Next steps: the city attorney will draft the agreement, incorporating benchmarks and reporting language for the council to review before executing any contract.