Palm Springs City Council holds special meeting to decide Convention Center food service contract
Luis Avila
PALM SPRINGS, Calif (KESQ) – The Palm Springs City Council could vote tonight on a revised contract that would put OVG Hospitality in charge of food and beverage service at the Palm Springs Convention Center.
Council members will consider a five-year agreement with OVG Hospitality, a division of Oak View Group. Oak View Group already manages the convention center under a separate agreement approved last year, along with the Palm Springs Plaza Theatre and Acrisure Arena.
The contract is back before council after leaders delayed the vote last week, asking city staff to continue negotiations with both OVG Hospitality and the current food service provider, Savoury’s Good Earth Cuisine.
City officials say the updated agreement includes several changes. If approved, it would require more opportunities for Coachella Valley restaurants and vendors to work inside the convention center. It would also create a separate process allowing local nonprofit groups to provide food at certain events. Staff would return to council within 30 days with more details.
The proposal would also change how the city is paid. Instead of receiving a share of food and beverage sales, the city would collect the revenue directly while paying OVG Hospitality a management fee.
City staff says the agreement guarantees Palm Springs at least $750,000 each year and could generate more than $17 million over the next five years—about $3.4 million more than the current payment structure.
The proposal has sparked debate among local business owners, with some worried a single operator could limit opportunities for independent vendors. City leaders say the revised contract includes new provisions designed to increase local participation.
The special meeting begins at 5 p.m. tonight at Palm Springs City Hall.
Stay with News Channel 3 for more.