Sodexho closure would impact local businesses, groups

Local leaders explore solutions to potential Sodexho shut-down Local officials are responding to the possible closure of Sodexho Conference Center in Newton. The conference center was heavily subsidized by the Maytag Company and continues to run at a loss without the help from Maytag. According to a news story from KCOB Radio, Maytag had covered up to $75,000 in losses per year because of the heavy use of the facility by the company. The possible loss of Sodexho, which will not be before the end of 2008, could affect hundreds of people, from bridal parties who use the facilities for wedding receptions to area organizations such as Women’s Connection, Rotary and Kiwanis, who all use the facility for monthly meetings. Also conventions, such as the annual bridal fair in January and the yearly Red Hat Nationals, could be affected by the possible closure of the Newton conference center. “If Sodexho were to close, it would leave a large gap in the potential conference clients the Convention & Visitors Bureau will have the ability to target for marketing purposes, as well as the loss of space we reserve for our own events throughout the year,” said Linda Bacon, executive director of the Newton Convention and Visitors Bureau. Bacon said the seventh annual Newton Bridal Fair, which was scheduled for Jan. 25, is up in the air at the moment until the issue with Sodexho is resolved. To try and resolve the issue, DMACC and Sodexho officials met with local businesses and city leaders to discuss the impact and try to come up with a solution to the possible closure. DMACC has offered to contribute $25,000 to keep the facility running and Sodexho has reportedly agreed to waive its 4 percent management fee. Even with that assistance, a large amount of loss still needs to be covered. Newton Mayor Chaz Allen said DMACC is planning on approaching the city to ask for a tax rebate for all or part of the $33,000 in annual taxes that the college pays for the conference center. “They would like to have their property taxes abated and I don’t know that there will be support to do that,” Allen said during an interview Friday. Allen said he promised DMACC officials the item would appear on the Oct. 21 council agenda as a discussion item. “This is new ground for a business that already exists to ask for their tax abatement,” Allen said. The mayor said Sodexho has been an important part of the community and he’s open to discussing ideas on how to keep the facility open. “Sodexho has obviously been an important part of Newton for the last several years and how or if we can help will be determined,” he said.

Jessica Lowe can be contacted at 792-3121 ext. 426 or via e-mail at jlowe@newtondailynews.com.