If all goes to plan, a company already familiar with Lubbock and Texas Tech will operate the proposed Expo Center at North Loop 289 and North University Avenue.
Lubbock County’s oversight committee – the Local Government Corporation (LGC) – approved three big items for the Expo Center on Wednesday including a recommended operator – Oak View Group (OVG).
OVG operates the Texas Tech Club at Galaxy Stadium (formerly Jones Stadium).
Quick reminder
The total Expo Center cost is roughly $67 million, with $10 million of that coming from money the county already collected in hotel and rental-car taxes.
Lubbock County will need approval from the Texas Attorney General to issue roughly $32 million in 30-year bonds (paid back with the hotel and rental taxes that local voters approved in 2018).
The balance will be paid from private fundraising by LCEC.
The LGC also unanimously approved:
- The latest development design from Parkhill (an architectural and engineering firm).
- Assignment of the expo center’s lease for a bank loan.
The county is not seeking a bank note but its private partner, the Lubbock County Expo Center, Inc. (LCEC), hopes to close a loan soon with PlainsCapital Bank. The loan covers LCEC’s financial responsibility until fundraising is completed.
More about OVG
Steven Petrovek, OVG director of business development, said, “We are very comfortable with all things Texas. We have various accounts across the state – and then in particular, right in Lubbock. We do all the food and beverage at Texas Tech, at their athletic facilities. So, if you’ve had a hot dog or a beer, hopefully it’s been a good one.”
Petrovek attended the meeting by video conference.
“OVG is a company that was founded in 2015 – quickly being one of the largest sports entertainment venue operators. … I think what differentiates us is that we are owners of venues. We own our own buildings, so we’ve sat in the seats that you sit in right now. We understand,” Petrovek said.
LCEC examined three companies as the potential operator in a competitive bid process. Each offered a 5-year term with a 5-year renewal and a “key money investment.”
The “key money investment” is paid up front by the operator as part of the contract.
LCEC chairman Randy Jordan explained, “They come in, and they say, ‘Look, we’re going to invest in you. We’re going to not only be an operator, but we’re going to put some capital in this thing as well.’ So, all three of them were a little over half a million dollars.”
Jordan also told LubbockLights.com the operator gets a monthly fee and a percentage – if certain performance measures are met.
“The better we do, the better they do,” Jordan said.
Greg Garfield with Garfield Public Private (LCEC’s consultant) said, “We asked each operator to produce their own estimated operating program – so, attendance, estimated events, revenue, expenses, and net operating income.”
“Oak View Group really dove in immediately and has had multiple meetings with our design team, with Parkhill, with our food service consultant, with our AV consultant. And so they’ve already dedicated staff to providing the support we need to keep the design on track as well,” Garfield said.
Garfield also said the OVG contract had to meet higher standards because, when Lubbock goes out for bonds, it will be scrutinized by the Texas Attorney General.
“When you want to finance a project with tax-exempt bonds, the management agreement with a private operator has to be structured in compliance with IRS revenue rules and procedures,” Garfield said.
The Commissioners Court gets the final say on the operator, and LGC’s recommendation is likely to go before commissioners this month or next.
Not always that way
“I think this is a very good day for Lubbock County and for the expo,” said Ashley Cox, an attorney with the county’s civil division.
“We’ve been thrilled with the progress and the work that LCEC has done since our last commissioners court meeting [in June],” Cox said during the meeting.
It wasn’t always progress and a “very good day.”
Before Cox got involved, the LGC was deeply divided. The project largely stalled for seven years after local voters approved a venue tax – a timeframe that included COVID. There were questions of financial accountability.
LGC board member Dwight McDonald was critical of LCEC in November.
McDonald later came to support moving forward.
But at the time he said, “I’m at a point now where I’m not willing to ‘Just take my word for this’ anymore. Because back in March of 2024, we took their word for it. … And then it turns out that we weren’t anywhere close.”
He wasn’t the only one. Fellow board members Gary Boren and Carl Isett were equally frustrated.
But when Cox got involved in December, she provided a roadmap in the form of a checklist of things that needed to happen. The LGC actions in Wednesday’s meeting completed the items on her list.
