City eyes rental hikes at Modesto Centre Plaza

It soon could cost a lot more money to hold your wedding, conference or seminar at Modesto Centre Plaza, the city’s downtown convention center.

Modesto officials are recommending that the city increase the center’s rental rates. The first proposed increase would take effect Jan. 1, and the second hike would be effective July 1, 2016.

Officials also are recommending that Business Center Manager Laurie Smith be given the authority to negotiate what the city charges.

The increases are steep. For instance, the cost of renting the center’s 16,000-square-foot Harvest Hall would increase from its current rate of $1,850 per day to $2,400 on Jan. 1 and then to $3,000 on July 1, 2016. Another example: The cost of renting the 3,400-square-foot Stanislaus Room would rise from $390 per day to $600 and then to $680.

These are rates that private users pay. Officials also are recommending that the discounted rates paid by nonprofit organizations be increased.

The City Council’s finance committee will hear the proposal Monday. Staff will ask the committee to endorse the proposal and send it to the council for consideration.

The rate increases won’t take effect unless they are adopted by the council.

A city report says Modesto has not raised rental prices at Modesto Centre Plaza since July 2003. The report also says city officials compared the rates at Modesto Centre Plaza with 10 comparable venues in similar markets and determined Modesto’s rates were substantially below rates for the other facilities.

The analysis compared Modesto Centre Plaza with such venues as the Gallo Center for the Arts, the Monterey Conference Center, Ceres Community Center, Fresno Convention Center and Sacramento Convention Center.

The report does not state whether the analysis took into account the difference in quality among the facilities. For instance, Modesto Centre Plaza has not undergone a renovation or upgrade since it opened in 1989, while the Gallo Center opened in 2007.

The proposed increases could bring an additional $330,000 in revenue over three years, according to the report, and come as Modesto and the DoubleTree Hotel continue to discuss having the DoubleTree manage Centre Plaza on behalf of the city. The report states DoubleTree officials support the increases.

City officials expect their negotiations with DoubleTree will conclude in spring, and they will bring a proposal to the council during the May budget hearings for the 2015-16 fiscal year, which starts July 1.

The city is looking at having DoubleTree operate Centre Plaza in an attempt to turn around the convention center’s fortunes. City officials have said bookings and revenue are down, and the center requires a $600,000 general fund subsidy to balance its books.

The committee meets at 5 p.m. in Room 2005 on the second floor of Tenth Street Place, 1010 10th St.

This story was originally published November 22, 2014 at 5:18 PM with the headline "City eyes rental hikes at Modesto Centre Plaza."