Sherrouse announced that the city will be taking a new direction in how it operates the municipal-owned RP Funding Center.
Earlier this year, commissioners asked city staff to consider ways to reduce the annual subsidy required to operate the RP Funding Center. In the fiscal year 2021, the subsidy was $4.8 million. The last projection placed it at about $3 million this year.
The city issued a Request for Proposal in June to see if a management company would be interested in running the venue. Sherrouse said it was sent out to more than 372 companies. He said one response was received from a company that was considered “unresponsive” as it did not submit the required information.
Lakeland will keep control of the venue for now but plans to shift its approach. It has contracts it must honor for the next six months before it begins the transition.
“We will become more of a rental facility,” Sherrouse said. “We will look for other promoters who rent the facility who take on risk on return and profits they generate.”
This may change the mix of what’s offered. Tony Camarillo, director of the RP Funding Center, said comedian Jerry Seinfeld is one example of an act that rented the venue for the show, taking monetary risks and rewards.
Camarillo said the commission’s request of a $1 million to $1.5 million subsidy won’t be possible in the fiscal year 2023, but possibly the following year. The city is still in active negotiations with the Orlando Magic and Florida Tropics, as both teams have contracts to utilize the facility.
“These things are financially important in our next steps,” Camarillo said.
Commissioners Sara Roberts McCarley and Stephanie Madden asked Sherrouse to lead city staff in putting together a business plan that provides a more specific outline for the RP Funding Center and its costs that offer accountability and provide future benchmarking.