City of San Jose Unanimously Endorses Team San Jose and Innovative Convention Operations

City Halts RFP Process and Lauds Team San Jose with Strong Performance Results, Renewed Focus Gets City Backing for Future

SAN JOSE, CA (December 13, 2011) –Following a year of strong organizational changes with the City’s Convention operator and tourism organization, San Jose Mayor Chuck Reed and the City Council unanimously approved the City Manager’s recommendation to discontinue work on a Request for Proposal for management of the Convention Center and Cultural facilities.

The vote was a resounding endorsement of the positive changes made by Team San Jose, which manages the Convention Center, various theaters and the Convention and Visitors Bureau services.

“This is a great signal to our customers and the community that Team San Jose is here to serve their needs. Today’s vote of confidence is a positive move forward,” said Bill Sherry, CEO of Team San Jose. “With a new state-of-the-art Convention facility coming online in 2013 that proudly reflects our position as the Capital of Silicon Valley, San Jose has a lot to offer convention planners.''  

In voting to halt the RFP process, City leaders cited Team San Jose’s strong performance results and structural changes to the organization that have increased focus and accountability.

“I support the vision and goals of Team San Jose’s new leadership,” said Chuck Reed, Mayor of San Jose. “This extension will allow Team San Jose to build on its recent progress in bringing business to our Convention Center that will generate new revenues, hotel room nights and jobs in our community.”

In August 2011, Team San Jose announced its performance results for FY 2010-2011, surpassing 7 of 9 performance measures established by the City of San Jose. Key positive performance indicators include:

• Despite a challenging economic environment, Team San Jose grew revenue to $18.7 million, $4.8 million over the adopted budget;
• Customer service continued to be strong, with an end of the year result of 98 percent overall customer service rating;
• Transient Occupancy Tax (TOT) revenue, which supports Convention Center and theater operations, exceeded the budgeted goal by 8.7 percent;
• Fund 536, the reserve fund for TSJ, finished at significantly higher levels than assumed in the adopted budget because of added TOT growth and improved TSJ operations. The Fund ended the fiscal year $3.3 million higher than anticipated.

In early 2011, the City and Team San Jose announced the appointment of a new CEO, Bill Sherry, a highly regarded administrator with more than $4 billion in construction project management experience and a strong background in public accounting and public administration.

Team San Jose also announced a new Chief Operating Officer, Dave Costain, who has more than thirty-five years of hospitality operations experience, working with well known hotel brands like Hilton and Wyndham. A new Chief Financial Officer, Janette Sutton, has improved financial reporting and increased partnership with various city departments. In addition, the Board of Directors restructured internal oversight, increasing transparency and board engagement.

“We are extremely gratified that the Mayor and City Council have endorsed the changes we’ve made in the past year,’’ said Chuck Toeniskoetter, Chairman of the Board of Directors at Team San Jose. “The City is a key partner in this community-oriented organization, and with the expanded and renovated Convention Center we will continue to further improve on our recent successes.”

In addition to the overall organizational changes, the City also hired CSL (Convention Sports and Leisure) as the City’s hospitality industry advisor to help evaluate San Jose’s service model against other destinations. CSL’s best practices report served as a catalyst in the City’s decision to remove the RFP and continue working with Team San Jose. The additional reporting, enhanced transparency and renewed focus of Team San Jose prompted City Manager Debra Figone to recommend discontinuing the development of the RFP.

“The City has seen positive results working with Team San Jose,” said Debra Figone, City Manager of City of San Jose. “With the Convention Center expansion and renovation underway, we have an opportunity to capture more convention business and help grow our local economy.”

In April 2011, the City of San Jose and Team San Jose officially announced plans to move forward with a $120 million expansion and renovation project for the San Jose Convention Center with Sherry at the projects’ helm. The Convention Center will remain open throughout the project, with the newly remodeled and expanded Center to debut in Fall 2013. Sherry recently oversaw the $1.4 billion Mineta San Jose International Airport’s terminal modernization program, which finished ahead of schedule and under budget.

Expansion and Renovation at a Glance:

125,000 total sq. ft. of new, flexible space, which includes:

25,000 sq. ft. of flexible meeting space

35,000 sq. ft. flexible ballroom space

Renovation and integration with the existing structure

The new construction is a new footprint that expands the square footage with minimal impact to the current Convention Center.

Team San Jose, created in 2004, has a unique service model that stands apart from other destinations. Team San Jose is a one-stop shop solution, able to handle all meeting needs, from booking the Convention Center and Cultural Facilities, hotel rooms, food and beverage services and concessions and destination marketing.

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Team San Jose (TSJ)

Team San Jose’s innovative partnership unifies the San Jose Convention and Visitors Bureau, hotels, arts, labor and venues to deliver an exceptional visitor experience and serve as the gateway to San Jose as a destination. Team San Jose manages the San Jose Convention Center and Arts and Entertainment venues including the California Theatre, the Center for the Performing Arts, Montgomery Theater, Parkside Hall, San Jose Civic and South Hall and provides convention and visitors bureau services on behalf of the City of San Jose. For more information about San Jose and Team San Jose, please visit www.sanjose.org.

Team San Jose (TSJ)

Team San Jose, Inc. is an innovative partnership unifying the San Jose Convention and Visitors Bureau, hotels, arts, labor and venues to deliver an exceptional visitor experience and serve as the gateway to San Jose as a destination. Our company manages the San Jose Convention Center and Arts and Entertainment venues including the California Theatre, the Center for the Performing Arts, Montgomery Theater, Parkside Hall, San Jose Civic and South Hall. For more information about San Jose and Team San Jose, please visit the new www.sanjose.org.