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City Council inks 2 pivotal event contracts at WestWorld of Scottsdale

National Western named sole-source vendor as Arabian Horse agrees to updated terms

Posted 3/23/20

City officials have updated two contracts pertaining to events and services at WestWorld of Scottsdale as the rentable space continues to book and attract various happenings.

In early March, …

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City Council inks 2 pivotal event contracts at WestWorld of Scottsdale

National Western named sole-source vendor as Arabian Horse agrees to updated terms

Posted

City officials have updated two contracts pertaining to events and services at WestWorld of Scottsdale as the rentable space continues to book and attract various happenings.

In early March, Scottsdale City Council approved a contract authorization and a contract amendment, both for operations at WestWorld, 16601 N. Pima Road.

The contract authorization grants National Western Capital Corp. an expansion of a Dec. 10, 2013 contract, naming NWCC a sole-source vendor.

Additionally, a January 2015 contract with the Arabian Horse Association of Arizona has been amended to update language and include fees.

The 2015 contract with the Arabian Horse Association of Arizona was approved with a retroactive clause to span Jan. 1, 2014 through Dec. 31, 2023. Now, both entities seek to update and change the original contract, a city staff report states.

Both staff and the AHAA have worked together to propose the following changes:

  • AHAA asked WestWorld to permanently move their October event to the month of September;
  • Because of upgrades to the WestWorld facilities IT network, fees for its use have been added to include a $9,000 fixed fee for its February event and support staff fees;
  • AHAA paying the published event labor costs to remove temporary stalls if the organization chooses not to use them;
  • The ability for AHAA to use the Equidome Arena if available for each of their one day shows; and
  • During the February event, the city has no obligation to provide ATM services.

Food, alcohol and marketing agreement

A new three-year contract has been reached between Scottsdale and National Western Capital Corp., which has been providing concession and marketing services to WestWorld since 2013.

In December 2013, the City Council authorized a contract between City of Scottsdale and NWCC for food and marketing services at WestWorld, and a second contract for food services at Monterra, at WestWorld.

This contract was done in conjunction with an anticipated plan for expansion at WestWorld, according to WestWorld General Manager Brian Dygert. Since the two contract authorizations, NCWW has been providing food and beverage services as well as marketing services on behalf of WestWorld, which has and continues to expand their calendar of year-round events.

“NWCC has also assisted the WestWorld management staff in ideas and efforts to expand the marketing of the facility,” Mr. Dygert stated in his report to City Council. “WestWorld has continued to grow and be a destination for both local, national and international tourism for events of all sizes, bringing visitors to Scottsdale who contributed to the local economy during these events.”

When required, NWCC provides food, beverage and alcohol services to events elsewhere at WestWorld.

The city staff has evaluated the marketing company as a sole source for WestWorld concession services, plus the addition of marketing services to include all facilities.

Staff evaluated the logistics and efficiencies of the current Monterra food and beverage service and investigated scenarios for these services within the expanded WestWorld event venues using five new kitchen shells in the Tony Nelssen Equestrian Center buildings.

“After evaluation, staff concluded that NWCC is in the best position to serve as a sole source [provider] for expanded and comprehensive event venue food, beverage and alcohol service,” Mr. Dygert stated.

The negotiated license agreement with NWCC includes about 3% increase on gross sales commission revenue from food and beverage:

  • Catering: Commission from 10% to 13% of gross sales;
  • Food sales: Commission from 20% to 23% of gross sales; and
  • Alcohol sales: Commission from 30% to 33% of gross sales.

Additionally, a fixed annual amount of $150,000 will be paid to NWCC, and a 15% commission from new event invoice revenue will be payable from an event book and produced that was not held at WestWorld within the previous 12 months.

The new agreement also includes a sponsorship component, where NWCC will be paid 15% of gross sales, net tax, paid to WestWorld resulting from the sales and advertising program’s annual performance.