Steve_424
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For years, the main questions about a potential Akron arena were: Should it go on the University of Akron campus or downtown, and how would it be funded?
Those questions were answered Tuesday, with the announcement of a tightly guarded plan for a $76 million project in downtown Akron to be paid for by a county sales tax hike.
The announcement, though greeted with excitement by the parties involved, raised more questions — chief among them whether voters will support a 0.25 percent sales tax increase to fund the arena and other county expenses that will be put on the Nov. 4 ballot.
Summit County Executive Russ Pry, who points out that the bulk of the tax money would go to county safety expenses, said an aggressive campaign will be launched to explain the need.
“Hopefully, the people in this community will see the benefit,” he said.
The arena would be home to UA’s men’s and women’s basketball teams and would host other events. UA would continue using the aging, 5,300-seat James A. Rhodes Arena on campus, where the basketball team currently plays, with plans down the road for updates.
“We’ll take another big jump because of a better facility,” said UA basketball Coach Keith Dambrot, who thinks newer facilities help in recruitment. “This is a huge deal for us.”
The arena, which would have 8,500 seats, would be a joint venture of the city, Summit County, the University of Akron and the Development Finance Authority of Summit County (DFA).
UA and the city would supply the land, the county would provide the funding and own the arena, and DFA would operate the arena and issue the bonds. DFA was formerly known as the Summit County Port Authority.
UA took the first step in the process Tuesday when its Board of Trustees approved an initial agreement for the project. The university and the other parties still need to reach a more detailed agreement.
“It is a win-win for all of the parties,” said Trustee Roland Bauer, who was in the group that put together the arena plan.
Bauer said construction of the arena would likely take three years.
The arena would be built in the spot the city has long hoped for — across from the Canal Park baseball stadium downtown, bordered by Main, High and Spring streets. The land in the two-block area is owned by the city, UA, and several private entities. The initial agreement says the city will “use its full legal authority to commence and pursue any appropriations proceedings necessary to acquire the necessary parcels for the site” and will pay for this at “its sole cost and expense.”
UA would be financially responsible if the arena lost money “up to a maximum annual amount” that still needs to be set. The university also would receive the profit if the arena made money.
Other details in the initial plan approved by UA include:
• The arena would have 8,500 seats and the capacity for 500 more portable seats. It would not contain or provide the infrastructure for a permanent ice rink.
• The county would lease the completed arena to the DFA for 20 years.
• The DFA could hire a third party to operate the arena, subject to the approval of UA and the county. The DFA would develop an annual operating budget that UA and the county would need to approve.
• The county, UA and the DFA would agree on charges for tickets, admissions, parking and leasing of suites.
• The DFA would coordinate the use of the arena, with UA being the primary user and having “the right to approve the scheduling of other users.” DFA and UA would market and sell naming rights to the arena.
• Through the sales tax increase, the county would provide $7 million a year for 23 years for the construction of the arena, the debt service, a reserve for capital improvements, and an operating reserve.
Akron Mayor Don Plusquellic praised the arena plans in a written statement Tuesday and said a downtown arena would provide jobs through its construction and operation and would further the revitalization of downtown and UA.
Chris Burnham, DFA’s president, said plans for the arena gained momentum after he made a trip to Omaha, Neb., along with other Akron leaders. The trip included a tour of the city’s combined arena/convention center, which provides the venue for Creighton University’s basketball team, and is downtown rather than on campus.
“It was a nice model,” Burnham said. “I and others thought, ‘Maybe we could replicate this.’ ”
A group of city, county, UA and DFA officials began meeting in December to talk in earnest about moving forward with an arena. FirstEnergy Corp. paid Gateway Group in Cleveland in March to update an arena study the group did in 2008-2009 that was put on hold because of the economic downturn.
The updated Gateway study concluded that an arena could be built in downtown Akron for $76.8 million. With about 67 events a year, the study found the arena could make a profit, ranging from about $31,000 in the first year to nearly $300,000 in the fifth year. The study said the arena could host 17 men’s basketball games, five women’s basketball games and 45 other events a year, possibly including large and small concerts, rodeos, monster trucks, professional wrestling, the Harlem Globetrotters, high school sports, banquets and meetings.
The plan came as welcome news for UA basketball coaches and players, who have been clamoring for improvements to Rhodes Arena or a new arena.
“Students will want to come and see a new arena,” predicted Jake Kretzer, a wing on UA’s basketball team.
Garrett Dowd, a UA student trustee, agreed that students, who sit in the upper rafters at Rhodes Arena, will be pleased.
“Students will be excited about a new facility that has more energy,” he said.
For years, the main questions about a potential Akron arena were: Should it go on the University of Akron campus or downtown, and how would it be funded?
Those questions were answered Tuesday, with the announcement of a tightly guarded plan for a $76 million project in downtown Akron to be paid for by a county sales tax hike.
The announcement, though greeted with excitement by the parties involved, raised more questions — chief among them whether voters will support a 0.25 percent sales tax increase to fund the arena and other county expenses that will be put on the Nov. 4 ballot.
Summit County Executive Russ Pry, who points out that the bulk of the tax money would go to county safety expenses, said an aggressive campaign will be launched to explain the need.
“Hopefully, the people in this community will see the benefit,” he said.
The arena would be home to UA’s men’s and women’s basketball teams and would host other events. UA would continue using the aging, 5,300-seat James A. Rhodes Arena on campus, where the basketball team currently plays, with plans down the road for updates.
“We’ll take another big jump because of a better facility,” said UA basketball Coach Keith Dambrot, who thinks newer facilities help in recruitment. “This is a huge deal for us.”
The arena, which would have 8,500 seats, would be a joint venture of the city, Summit County, the University of Akron and the Development Finance Authority of Summit County (DFA).
UA and the city would supply the land, the county would provide the funding and own the arena, and DFA would operate the arena and issue the bonds. DFA was formerly known as the Summit County Port Authority.
UA took the first step in the process Tuesday when its Board of Trustees approved an initial agreement for the project. The university and the other parties still need to reach a more detailed agreement.
“It is a win-win for all of the parties,” said Trustee Roland Bauer, who was in the group that put together the arena plan.
Bauer said construction of the arena would likely take three years.
The arena would be built in the spot the city has long hoped for — across from the Canal Park baseball stadium downtown, bordered by Main, High and Spring streets. The land in the two-block area is owned by the city, UA, and several private entities. The initial agreement says the city will “use its full legal authority to commence and pursue any appropriations proceedings necessary to acquire the necessary parcels for the site” and will pay for this at “its sole cost and expense.”
UA would be financially responsible if the arena lost money “up to a maximum annual amount” that still needs to be set. The university also would receive the profit if the arena made money.
Other details in the initial plan approved by UA include:
• The arena would have 8,500 seats and the capacity for 500 more portable seats. It would not contain or provide the infrastructure for a permanent ice rink.
• The county would lease the completed arena to the DFA for 20 years.
• The DFA could hire a third party to operate the arena, subject to the approval of UA and the county. The DFA would develop an annual operating budget that UA and the county would need to approve.
• The county, UA and the DFA would agree on charges for tickets, admissions, parking and leasing of suites.
• The DFA would coordinate the use of the arena, with UA being the primary user and having “the right to approve the scheduling of other users.” DFA and UA would market and sell naming rights to the arena.
• Through the sales tax increase, the county would provide $7 million a year for 23 years for the construction of the arena, the debt service, a reserve for capital improvements, and an operating reserve.
Akron Mayor Don Plusquellic praised the arena plans in a written statement Tuesday and said a downtown arena would provide jobs through its construction and operation and would further the revitalization of downtown and UA.
Chris Burnham, DFA’s president, said plans for the arena gained momentum after he made a trip to Omaha, Neb., along with other Akron leaders. The trip included a tour of the city’s combined arena/convention center, which provides the venue for Creighton University’s basketball team, and is downtown rather than on campus.
“It was a nice model,” Burnham said. “I and others thought, ‘Maybe we could replicate this.’ ”
A group of city, county, UA and DFA officials began meeting in December to talk in earnest about moving forward with an arena. FirstEnergy Corp. paid Gateway Group in Cleveland in March to update an arena study the group did in 2008-2009 that was put on hold because of the economic downturn.
The updated Gateway study concluded that an arena could be built in downtown Akron for $76.8 million. With about 67 events a year, the study found the arena could make a profit, ranging from about $31,000 in the first year to nearly $300,000 in the fifth year. The study said the arena could host 17 men’s basketball games, five women’s basketball games and 45 other events a year, possibly including large and small concerts, rodeos, monster trucks, professional wrestling, the Harlem Globetrotters, high school sports, banquets and meetings.
The plan came as welcome news for UA basketball coaches and players, who have been clamoring for improvements to Rhodes Arena or a new arena.
“Students will want to come and see a new arena,” predicted Jake Kretzer, a wing on UA’s basketball team.
Garrett Dowd, a UA student trustee, agreed that students, who sit in the upper rafters at Rhodes Arena, will be pleased.
“Students will be excited about a new facility that has more energy,” he said.