Mayo Civic Center Contract Cancellation Unrelated to Indictment
Rochester, MN (KROC-AM News) - The organization that oversees the Mayo Civic Center in Rochester issued a statement today indicating that the cancellation of the Oak View Group's food and beverage services contract at the facility is unrelated to the legal troubles faced by the company's CEO.
The U.S. Department of Justice announced this week that a federal grand jury has returned an indictment against Timothy Leiweke, the cofounder and CEO of Oak View Group. The charges allege his participation in a conspiracy to rig the bidding process for an arena at a public university in Austin, Texas.
“As outlined in the indictment, the defendant rigged a bidding process to benefit his own company and deprived a public university and taxpayers of the benefits of competitive bidding,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division. “The Antitrust Division and its law enforcement partners will continue to hold executives who cheat to avoid competition accountable.”
A news release from the Justice Department indicates Oak View Group has agreed to pay $15 million in penalties in connection with the allegations included in the indictment against Leiweke.
When asked about the criminal charges against the Oak View Group CEO, Experience Rochester Rochester today issued a statement indicating that the firm's food and beverage services contract at the Mayo Civic Center will end on August 14 because the two parties were unable to reach an agreement on contract terms for "continued food and beverage services and venue operations."
Experience Rochester has directed staff to begin negotiations with ASM Global to assume the responsibilities currently covered by the expiring contract with Oak View Group. ASM is the Mayo Civic Center's current operations contractor.
The statement goes on to say, "Experience Rochester is now working closely with ASM Global to ensure a smooth transition, with a strong commitment to retaining existing staff and maintaining continuity of service. We are aware of recent news reports involving Oak View Group and allegations connected to the University of Texas arena project. These reports are unrelated to the Mayo Civic Center."
The contract for food and beverage services and venue operations at the Mayo Civic Center was awarded to Oak View Group last year and took effect in January.
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