SMG Lands Stockton Venues

Stockton, Calif., city officials have worked out a deal to end a 6-year-old venue management contract with International Facilities Group and forge a new agreement with SMG.

Negotiations with IFG reportedly took a while to complete because of a labor dispute involving an IFG employee, according to the Stockton Record, but both parties have reached an agreement.

Details of the IFG buyout were not disclosed.

In a statement Mayor Ann Johnston praised the company’s accomplishments.

“Thanks to IFG’s efforts, we’ve recently seen fabulous bookings with big draws, such as Snoop Dogg and Carrie Underwood,” Johnson said. “IFG is working with us on a smooth transition to SMG, so we’ll see more shows of this caliber coming to Stockton.”

Critics accused IFG of not doing enough to bring top-name acts to the arena, which opened in 2006 and reportedly lost more than $2 million in 2009 and $9 million in its five years of operation.

“I’m happy that we got to a conclusion, and both sides had to give in a little bit. … I think this is great news for the city,” said IFG Owner Michael Reinsdorf. “Hopefully, [SMG will] bring the city of Stockton what it wants and what it’s looking for.”

Pending the City Council’s approval of the plan Jan. 25, SMG will begin a 30-day transition to take over operations at the 10,000-capacity Stockton Arena, Stockton Ballpark, 2,042-capacity Bob Hope Theatre and Oak Park Ice Arena.

Deputy City Manager Laurie Montes told the Record the city will pay SMG a $270,000 annual base fee with incentives for improved financial performance.