AEG Replaces SMG In Bakersfield

Several facilities in Bakersfield, Calif., will now be managed by AEG Facilities  thanks to a 10-year, multimillion-dollar contract approved March 20.

AEG replaces SMG as facilities manager for Rabobank Arena, Theatre and Convention Center campus, Bright House Networks Amphitheatre and San Joaquin Community Hospital Ice Center.

Photo: Nick Chapman

Bakersfield’s city council chose AEG over longtime facility manager SMG, which has operated facilities in the town since 2000. SMG’s current contract expires June 30. City Manager Alan Tandy told the Bakersfield Californian that AEG offered the better deal, in which AEG proposed to cover losses on the venues if they exceed $415,718.

“So they are offering us a level of financial security we’ve never had,” Tandy told the paper. “In preparing (the city’s) budget, having figures vary by up to $500,000 a year is disruptive. … And having financial certainty that our losses will never exceed the $415,000 is a significant gain to us.”

The 10-year contract comes with an option for a five-year extension. AEG gets a management fee of $400,000 plus incentive payments, while SMG proposed an annual $210,000 fee plus incentives, the newspaper reported.