Palm Springs City Council approves new Convention Center food service contract

PALM SPRINGS, Calif (KESQ) - The Palm Springs City Council has unanimously approved a new contract putting OVG Hospitality in charge of food and beverage service at the Palm Springs Convention Center for the next five years.

Council members approved the agreement during a special meeting Tuesday. OVG Hospitality, a division of Oak View Group, already manages the convention center under a separate agreement approved last year, along with the Palm Springs Plaza Theatre and Acrisure Arena.

The vote came one week after council members postponed a decision, directing city staff to continue negotiations with OVG Hospitality and the current food service provider, Savoury's.

City officials say the final agreement includes several changes made during those negotiations. The contract requires more opportunities for Coachella Valley restaurants and vendors to participate in convention center events and creates a separate process for local nonprofit groups to provide food at certain events. Staff will return to the council within 30 days with additional details on how those programs will work.

The agreement also changes how the city will receive revenue. Instead of collecting a percentage of food and beverage sales, the city will now collect the revenue directly while paying OVG Hospitality a management fee.

According to city staff, the agreement guarantees Palm Springs at least $750,000 annually and is expected to generate more than $17 million over the next five years—about $3.4 million more than the previous payment structure.

The proposal drew concerns from some local business owners, who raised concerns that a single operator could limit opportunities for independent vendors. City leaders say the revised agreement addresses those concerns by expanding opportunities for local businesses to participate in convention center operations.

OVG Hospitality is expected to take over food and beverage operations at the Palm Springs Convention Center beginning July 1.

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