Rent hikes for Modesto Centre Plaza move forward

Those looking to hold their business meetings, wedding receptions or trade shows at Modesto Centre Plaza – the city’s downtown convention center – may have to reach deeper into their wallets.

The City Council’s Finance Committee on Monday endorsed a staff proposal to increase the center’s daily rental rates, which staff members say would be the first increases since 2003. The vote was 3-0, with Mayor Garrad Marsh and council members Tony Madrigal and Jenny Kenoyer supporting the proposal.

Modesto is looking at raising rates Jan. 1 and again July 1, 2016. The increases would not take effect unless the full council approves them. The council is expected to consider the increases in December.

The proposed increases are steep. For instance, the cost of renting the 9,600-square-foot Tuolumne Room would increase from its current rate of $1,110 to $1,600 on Jan. 1 and $2,000 on July 1, 2016. Another example: The rate for the 4,000-square-foot Arbor Theatre would rise from $460 to $700 on Jan. 1 and $800 on July 1, 2016.

Officials also are recommending that the discounted rates paid by nonprofit organizations increase, as well.

A city report says the staff considered the rates at Modesto Centre Plaza and nine comparable venues in similar markets and determined Modesto’s were substantially below the others’ rates.

Staff members compared Centre Plaza with the Visalia Convention Center, Monterey Conference Center, Seasons Event Center in Modesto, Ceres Community Center, South San Francisco Conference Center, Fresno Convention Center, Sacramento Convention Center, Gallo Center for the Arts and Martin G. Petersen Event Center downtown.

Dan Brown with the Stanislaus County Coin Club questioned the analysis. He researched some of the facilities online and said they appear to be of better quality than Centre Plaza, which opened in 1989 and is in need of a renovation. He added that some of the venues are in vacation destinations and are not valid comparisons with Modesto.

Brown told Finance Committee members the most apt comparison is the Fresno Convention Center, which he said has rental rates in line with what Modesto charges. He added that his group no longer could hold its annual expo at Centre Plaza if the city raises the rent. He said this year’s expo featured 19 vendors and 700 visitors over two days.

But a Save Mart official at the meeting supported the proposed increases. Don Bean, director of community relations and special events, said the increases are needed to pay for improvements at Centre Plaza, which the grocery chain uses for its events.

Centre Plaza operates with a deficit, which is projected to be $600,000 in the city’s current budget year, ending June 30. The rent increases are expected to bring in $330,000 over three years. The center is on track to hold about 450 events this year.

The city’s staff says DoubleTree Hotel, which adjoins Centre Plaza, supports the increases. DoubleTree General Manager Kole Siefken attended the meeting. The proposed increases come as Modesto and DoubleTree continue to talk about having the DoubleTree manage Centre Plaza on behalf of the city. A proposal could come before the council during its spring budget workshops.

This story was originally published November 24, 2014 at 8:42 PM with the headline "Rent hikes for Modesto Centre Plaza move forward."