This audit was not part of the 2007 Annual Audit Program. However, we allocated time in the Program for special request audits. The City Attorney’s office requested we do this audit as a special audit. The audit committee approved this request. In 1997 the City of Sioux Falls entered into an agreement with John Q. Hammons Hotels, Inc. to manage the newly constructed Sioux Falls Convention Center. John Q. Hammons Hotels owns the Sioux Falls Sheraton hotel, located next to the Convention Center. The City paid the management company a management fee based on gross revenue generated at the Convention Center. The City received 5% of the food and beverage sales at the Center and all the revenue from room rentals at the Center. The Sheraton collected a 4% marketing fee on hotel room charges for the purpose of promoting the Convention Center and the Sheraton. The agreement with John Q. Hammons Hotels ended June 30, 2007.
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