by April Scheinoha
Reporter
The relationship between Thief River Falls City Council member Jason Aarestad and VenuWorks continues to be testy. At the Administrative Services Committee meeting Tuesday, Jan. 9, Aarestad accused VenuWorks representatives of lying and threatened litigation.
On Dec. 19, the Thief River Falls City Council signified its desire to terminate its agreement with VenuWorks. The firm currently manages Ralph Engelstad Arena, the Huck Olson Memorial Civic Center, the Multi-Events Center and Thief River Falls Tourist Park. The city holds a five-year agreement with VenuWorks that stipulates the city may exercise an option to terminate the agreement at any time during the fourth year as long as it provides at least a 180-day written notice. The firm has managed the four facilities since September 2019 when an interim agreement was signed. The five-year management agreement began Jan. 1, 2020.
For 2023, three of the four properties were operating at a total deficit of $515,854. In a December interview with The Times, City Administrator Angie Philipp said the deficit includes VenuWorks’ contract of $106,877 as well as a $94,702.21 deficit to operate the MEC. The Tourist Park operated at a profit due to the number of Express Employment Professionals employees working at DigiKey and stayed at the city-owned campground.
The termination was listed on the agenda of the Dec. 19 council meeting. According to Administrative Services Committee minutes from a week earlier, Mayor Brian Holmer had expressed concerns about VenuWorks’ management of the facilities. The committee then recommended bringing the termination to the full council.
At the Dec. 19 council meeting, Holmer said the letter was a way to renegotiate the city’s contract with VenuWorks. However, Aarestad was set on terminating the contract, indicating that VenuWorks was operating with a deficit in Thief River Falls and was violating its own contract in terms of providing security at events. He also said VenuWorks had threatened him with litigation if he voted on the management contract since he had been working with the firm on a promoter contract. He voted anyway.
Like he did at the Dec. 19 council meeting, Aarestad disagreed with VenuWorks at Tuesday’s Administrative Services Committee meeting regarding who had obtained security for a concert promoted by Aarestad. Prior to speaking about those matters, Aarestad said he wasn’t speaking as a committee member. Aarestad said he had secured security since he knew David Lovly, law enforcement coordinator at Northland Community and Technical College.
Travis Collins, executive director of VenuWorks in Thief River Falls, disagreed with Aarestad regarding who had secured security.
Destination Pro wrestling is scheduled May 11 at Ralph Engelstad Arena. Aarestad said Collins told Destination Pro organizers to call Aarestad about security and barricades.
Aarestad further noted that Collins had asked for his help in soliciting sponsors.
Collins replied that he never sought Aarestad’s help.
Aarestad also said he had obtained the services of a lawyer. He told Collins that VenuWorks would receive a letter from his lawyer threatening a lawsuit for libel unless he received an apology from VenuWorks and VenuWorks obtained a formal retraction from The Times regarding the contents of a letter written by VenuWorks Chief Executive Officer Steve Peters. [The letter was addressed to Holmer, Philipp and the council.] He said the letter was filled with lies. Showing Collins an email, he asked if Collins had provided that email to Times/Northern Watch reporter April Scheinoha. Collins said he didn’t believe he had.
According to Aarestad, Peters apparently apologized for the letter in an email sometime later. [It is unclear to whom the email was sent, but it seemed like the email involved a proposal sent to City Attorney Delray Sparby.]
Aarestad refuted Peters’ claims that he had spoken to more than one VenuWorks employee, threatening retribution if VenuWorks didn’t agree to his demands as a promoter.
“Have you spoken to any employees?” Collins asked.
Aarestad responded, “I’ve talked to one person, but there was never a threat.”
Aarestad added that everything he did as a promoter was to help VenuWorks. Saying he wanted VenuWorks to work, Aarestad said a normal promoter would have taken 50% of concessions and beer sales.
This wasn’t the first time that the matter has been a topic at a city meeting. Collins and Tom Richter, regional vice president with VenuWorks, appeared before the council at its Dec. 19 meeting after learning the council was considering terminating the contract.
Immediately after appearing before the council, Collins handed Scheinoha a letter written by Peters. Scheinoha was unaware the letter existed until Collins provided her with it.
However, watching council video from that meeting, Collins could be seen handing papers to council member Mike Lorenson to be passed to all of the council members. It was unclear whether the papers were, in fact, the letter. The council members and Richter then discussed the contract termination.
Dated the day of the council meeting, the letter said the firm has received no complaints from the city and the city had no issues with VenuWorks listed on its agenda. Peters indicated that he believed Aarestad was retaliating since VenuWorks wasn’t giving him exclusive rights to present events at the arenas. VenuWorks doesn’t allow any promoters exclusive rights at any of the other venues it manages.
Peters wrote, “We held fast to this position because it is the right thing to do even though the councilman made it clear to more than one of our staff that our contract would be in jeopardy if we didn’t comply with his demands. We did offer to co-promote future events with him to help mitigate his risk, putting all revenues against the potential promoter loss without exposing the city to a potential loss.”
In October, Aarestad helped bring country artists Priscilla Block and Jake McVey to REA. At a Committee of the Whole meeting two weeks before the Dec. 19 council meeting, Aarestad presented the proposed promotion contract to council members. He said the proposed contract wouldn’t stop other promoters from hosting events there. Aarestad indicated he wanted to protect the reputation of the arenas.
Shortly after an article appeared in the Dec. 27 edition of The Times citing the letter, Aarestad called Scheinoha. He asked where she had obtained the letter. She informed him that she had received it from Collins with whom she had never had any contact prior to that particular moment. Aarestad then said the letter was filled with lies.
Prior to Aarestad’s comments, the committee moved forward with providing a $192,568 subsidy to VenuWorks for the first quarter. Philipp told committee members the subsidy was budgeted.
Collins also provided an update on a compressor issue. VenuWorks found that the compressor needed a new contactor and some screws to be tightened. The repair was estimated to cost $200. Initially, the firm was told the compressor needed to be replaced at a cost of $15,000.
VenuWorks is also planning to apply for grants to install a new ice plant to serve both arenas. Already approved by the council, the project is expected to cost about $3.3 million. City leaders may seek a grant writer to assist with the grants.
Dana Wojciechowski, representing Wojo’s Rodeo, also appeared before the committee. She wanted to see where things stood with plans for Wojo’s Rodeo Finals in October. Given the termination notice for VenuWorks, Wojciechowski wanted to make sure the rodeo finals would still be held at the Huck Olson Memorial Civic Center. Aarestad assured her that the event would move forward as scheduled.