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February 5, 2010

Signed, sealed and delivered | Ensure next Point promoter is legally bound

Anonymous The Tribune-Democrat Fri Feb 05, 2010, 08:59 AM EST

We hope Johnstown city leaders learned a valuable lesson through the recent Point Stadium promoter fiasco.

If you write up a contract with an outside organization, make sure you get it signed.

An unsigned contract is at the heart of a debate over who’s responsible for a lack of activity at city-owned Point Stadium.

At a mid-January meeting, city council members chided promotion company Spin Wilde for failing to meet contractual obligations. Spin Wilde, officials said then, had agreed to bring at least four events to the Point in a 12-month period.

Well, perhaps that was one of the terms the city and Spin Wilde negotiated when a contract was drawn up last spring. But the contract apparently was never signed.

Spin Wilde’s Ronald Grigg told The Tribune-Democrat that the city failed to deliver on getting the promoter a majority of the concessions proceeds for its Point events – which also would have voided a contract, had there been a signed contract.

The War Memorial Arena Authority controls concessions at Point Stadium, but former City Manager Curt Davis said Spin Wilde, during negotiations, was adamant that “no promoter would come in without a majority of the concessions.”

In some cases, handshake or spoken agreements can be legally binding. But why take the risk?

Clearly, Spin Wilde agreed to bring Donnie Iris to the Point during Thunder in the Valley, with or without a signed deal with the city for that show.

Interim City Manager Bruce Haselrig said Spin Wilde representatives worked hard to prepare the stadium for the show.

Unfortunately, only Iris and his band left town having made money.

We learned a lesson in this: If a government entity says it has a contract with an outside agency, don’t take someone’s word for it.

Ask to see a copy of the signed document.

As Grigg said: “We did not have a written agreement, although the press was incorrectly advised of that.”

Here’s what parties directly involved should have learned:

* City officials should get all necessary signatures on any document. A signed contract is binding, and should detail the risks and responsibilities of all involved. And council, even after empowering hired officials to execute a contract, should demand to see a signed copy before declaring the contract finalized and active.

* An agency working with a government group should maintain communications with the government group and respect the fact that public money is on the line in any such deal. And an agency should be equally intent on having a signed contract in place before any event is staged.

If there had been – God forbid – a mishap involving injuries during the Iris show, who would have been responsible? The unsigned contract details the responsibilities of the promoter and the municipality for the safety of attendees. But without signatures, that paper was worthless.

Likely, Spin Wilde and the city have burned the bridge behind them and repairing their relationship seems virtually impossible.

We wish the promoter well in its future endeavors.

The city, meanwhile, is at a crossroad – with a new manager set to start her tenure – and facing an opportunity to do things right going forward.

Johnstown must find an arrangement that brings more events to Point Stadium.

That arrangement must be formal and official – with reasonable expectations for all involved.

And with a signed contract in place.

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