Lawmakers Eye SMG Contract

A small group of Louisiana lawmakers is pushing to open up a longstanding contract between the state and SMG to competitive bidding, despite news that the company has received praise from officials for a job well done.

SMG has held a contract to manage the Superdome and the New Orleans Arena for more than 30 years and Sens. Karen Carter Peterson and Mert Smiley are now leading a charge to force a review of that contract.

While the senators don’t seem to have any specific beef with SMG, they apparently think it’s just good policy to review such deals from time to time, as a lack of competition could lead to complacency.

However, for Louisiana Stadium and Exposition District chair Ron Forman, the SMG deal has faced review time and time again during regular evaluations by the board.

“[SMG] performs at a high level of expertise,” he told the Times-Picayune. “Based on what they did after the devastation immediately following the hurricane [Katrina in 2005] and the continuing improvements that are taking place, the feeling of the LSED is that SMG is doing an outstanding job. We have met with the governor’s officials, and we highly recommend that we continue working with them.”

Under the terms of the deal, the state’s payments to SMG, including base fees to manage the facilities plus incentives, are reportedly capped at $1.4 million annually.

SMG senior VP Doug Thornton could not be reached at press time. He told the paper maintaining continuity in facility management is important at this time, as mixed-use construction near the Superdome continues and a lease contract with the NBA’s Hornets is currently in discussions.

Forman agreed.

“Right now is not the time to seek new proposals, particularly with us in major renovation right now,” he said. “The continuity is important and we support what they are doing.”

Louisiana’s senate finance committee was expected to consider a bill that would require a review of the SMG contract by Gov. Bobby Jindal’s administration at press time.