Franklin commission picks Idaho firm over locals to manage Pasco’s biggest event center

Franklin County’s HAPO Center will soon have a new steward that is making some big promises, but they have a track record that could make it happen.

Those big promises also come with some hefty expectations, as well as a bigger price tag, which will cost the county 60% more a month than they had asked the companies to aim for in their proposals.

“You’re not going to get Garth Brooks, you’d love to have him, but that’s not gonna happen ... but there are opportunities,” Larry Leasure told commissioners this week. “There definitely are opportunities in bringing in some entertainment and making that happen.”

Leasure, of the White/Leasure-Harris Team, said that while the center is not going to be a national draw, they believe they can turn it into an anchor for statewide or regional business.

Despite strong community support for Simmons Venue Management, which included dozens of phone calls from community leaders and supporters showing up to recent county meetings, the county commissioners voted 2-1 to go with a new management group for the 84,000-square-foot venue.

SVM, which is run by the Simmons family of CG Public House and Catering, has been running the center since last year’s exodus of the facility’s management team.

While they were able to keep the center up and running, and expand its revenue, that wasn’t enough to satisfy the majority of the board, which wants to turn the center into a money maker after years of pouring money into the facility and its operations.

International Promotions, led by David Cortinas, also pitched a vision for the center. Cortinas wanted to capitalize on the demand for Latin music in the area, while expanding Clubhouse Sports’ presence during the week.

The county has indicated they don’t plan to renew the partnership with Clubhouse Sports, which currently occupies about half of the main hall.

An apparent dissatisfaction with the group was alluded to during the meeting with commissioners asking questions about how the groups plan to use that space once Clubhouse is out.

New event center management

The decision to go with Idaho-based Harris/White-Leasure Team and its TAG Presents brand ultimately came down to who commissioners Clint Didier and Rocky Mullen thought had the best shot of taking the HAPO Center from a cash sinkhole for the county to a legitimate revenue source.

Harris/White-Leasure manages the Idaho Central Arena, the Grove Hotel and several other properties in Boise. They told commissioners at the meeting that while they’re Boise-based, they aren’t without significant Tri-Cities ties. White-Leasure oversaw major developments of large Tri-Cities shopping centers in the 1990s.

Among their Tri-Cities projects was the Colonnade Shopping Center on Canal Drive in Kennewick and the failed bid to expand the Toyota Center complex into a convention center in the late 1990s, according to previous Herald reporting.

They also run the Blue Zoo aquarium in Spokane, and several others.

Harris/White-Leasure told commissioners they can elevate the HAPO Center to fill a niche not currently served by the Toyota Center.

While SVM agreed to the county’s proposed $12,500 per month, plus incentives with increases over the course of seven years to about $14,000, Harris/White-Leasure’s proposal started at $20,000.

The current month-to-month contract with the Simmons family is $12,500.

Harris/White-Leasure and TAG Presents are three interconnected companies that manage a variety of hospitality services included hotels, large-scale events and commissaries at military bases. W. Harris handles building maintenance and contract management, while White-Leasure focuses on master planning, development and property management and TAG Presents works to host large-scale events across the country.

They would be bringing on a completely new team, eventually replacing CG Public House’s long-running catering contract with the venue. They plan to have a local team supported by their larger company infrastructure.

One of the biggest obstacles the company faces is getting the facility up to snuff to host larger events.

SVM told commissioners that now that the center was turning a profit, they could take that money and reinvest it in necessary repairs and upgrades. The most immediate concern is getting the entire facility air conditioned and then repaving the main parking lot.

Harris/White-Leasure shared those concerns.

Wesley Harris told commissioners that his team can bring more frequent and effective events, and drive excitement to the center. He also promised to create nonprofit events to involve the community, with a focus on disabled veterans.

“People are always talking about ‘Should the center make money? Should it be profitable?’” Harris said. “The answer is yes, because the more money we can drive out of the center, the more money you can put back into your community and events.”

They want the HAPO center to become the “premier community center for local cultural and social events” in the Tri-Cities. They also plan to bring in more out-of-town events, culminating in multiple events each week.

The group plans to bring in their ice-rink expert, who manages their other arenas including the 5,000-seat Idaho Central Arena, to evaluate the current facility and see how it can best be used, possibly even expanding it.

Leasure told commissioners that they need to look beyond just the HAPO Center to the adjacent property the county owns, and see how they can best leverage it to boost the HAPO Center’s economic impact.

He also suggested they could host limited concerts, events for smaller groups, and expand marketing for not just the HAPO Center but for events across the region. They want to create collaboration with the Toyota Center in Kennewick and other event promoters rather than compete with them.

“It’s definitely not just an entertainment venue, there are a number of community events that can happen there,” Leasure said. “There’s an opportunity for sports just because of what’s there, but your purpose is to bring economic development, in my view, and that is what’s needed.”

Beyond regional leaders for aspects like marketing or the ice rink, they would hire local staff for the various projects.

Commissioners Didier and Mullen told the group they hope to see the team working with the Simmons and local sports groups as they shape their vision for the new HAPO Center.

Split vote

Commissioner Brad Peck voted against awarding the contract to Harris/White-Leasure.

Peck said that when reviewing the proposals he was looking for demonstrated capability and local connection. While Harris/White-Leasure’s proposal was impressive, he said he believed that the scope of services they proposed were within SVM’s ability to make happen.

“I think that the work that SVM has done to get us to where we’re in the black, combined with the fact we don’t have a huge amount of capital to pour into this facility and create the kind of building and grounds and facilities that would be necessary to execute the vision that I heard from these gentleman, that’s where I see a disconnect,” Peck said.

Peck said that historically the commission has not had a clear vision for the center and that has hurt management. He pointed to past discussions of possibly selling it, and then saddling the facility with bond debt, leading to a tough sale for any group to bring it to profitability.

“If you end up being the contractors you’ll have 110% of my support, whomever does, but I think the right answer for Franklin County, the facility we have, the capital we have and the future we’re looking for is properly and right-sized for SVM, and that’s the way I think we should go,” he said.

Mullen and Didier disagreed, but hoped to see Harris/White-Leasure work to incorporate SVM and other local vendors into the work they plan on doing.

“It’s a tough decision, we took a lot of calls on it,” Mullen said. “You know Franklin County is one of the fastest growing counties in the state. I just feel that Harris/White-Leasure Team is the total package and I think the success of the HAPO Center is going to be with everyone working together.”

Didier agreed that cooperation was going to be key to reimagining what the HAPO Center can be. He stressed that the facility needs to make money, because among other upkeep and maintenance they had already poured $6 million of American Rescue Plan funds into upgrading the HVAC for the half of the facility that is currently air-conditioned.

“I’m looking forward to working with you and hopefully you’ll be working with the Simmons and with the sports groups because I think we can all work together here and make this thing happen,” Didier said. “You’ve had big success all over the country and I’m looking forward to that in the Tri-Cities.”

Now the county will work with Harris/White-Leasure to iron out a contract. In the meantime, SVM is on a month-to-month contract to continue running the facility.

County Administrator Mike Gonzalez said in a news release he hopes to see Harris/White-Leasure in place by December.