Evansville should build a 10,000-seat arena Downtown to replace Roberts Stadium, a move that would increase profits, attendance and possibly attract a minor-league hockey franchise to the city, a consultant studying the stadium has concluded.
The advice came Thursday in the form of a 150-page report from Tom Chema of Gateway Consultants. It's only one step in the process of deciding whether to replace the stadium, Mayor Jonathan Weinzapfel said. Weinzapfel did not endorse the recommendation Thursday, saying he first wanted to hear from the Roberts Stadium Advisory Board before making a decision.
The report does not identify a specific site. Both Chema and Weinzapfel said doing so could allow the property owner to increase the purchase price.
To those close to the stadium debate, the recommendation to move Downtown came with little surprise. Catching the eye of many, though, was the report's suggestion that Roberts Stadium could be developed into a water park. The report advised the city to perform a feasibility analysis on the concept.
Other uses for current property
Chema has identified other uses for the stadium, including an outlet mall, a mixed housing/retail development and swimming center.
The next step in the debate is expected to take place Wednesday, when the advisory board will make its own recommendation to the city. Board President Wayne Henning said he didn't want to speculate whether the board would back the recommendation. Several members have said they support a Downtown arena.
"In general, I agree with a lot" of the report, Henning said. "There're a lot of things that are unanswered."
Most importantly, the funding sources for a new arena must be discussed in more detail, Henning said.
"We have to be able to prove that throughout the years, it would be a good investment for the city to make."
After the board makes a recommendation, it will be up to Weinzapfel and the City Council to make the final decision.
"Regardless of what recommendation the advisory board makes," Weinzapfel said, "ultimately this is going to be a decision that the city government has to make working in concept with the county government and the private sector about what makes sense for this community."
Chema has for months provided reasons why a Downtown arena is favorable, and many of those reasons appeared in the report. Renovating Roberts Stadium was ruled out because of the costs, estimated between $38.2 million to $89.9 million.
"The low end of the range addresses mostly cosmetics and (Americans With Disability Act) issues and does not provide for the structural changes that drive the economics of the building," the report said. "Assuming it can be done, the cost of enlarging the event floor, dealing with the roof trusses and rigging issues, together with adding and improving suites and/or club seats ... would be nearly $90 million ... We do not believe that the community could count on more than $35 million (to) $36 million in revenues from normal sources to support a renovation concept. Therefore, it would certainly be necessary to heavily subsidize the renovation out of existing tax revenues of the city."
A multipurpose, 10,000-seat arena built Downtown would cost around $92 million. Chema has identified $111.25 million in possible funding sources.
"Like the estimate of cost, the sources of funds ... is subject to many caveats," the report said. "Most importantly, this is not a specific funding plan but rather a template showing potential sources of funds for this project. We are confident that the community can generate sufficient funds to accomplish the arena development without adversely impacting other governmental programs or needs."
None of the options include a countywide property tax increase, something Weinzapfel has said he wants to avoid if the city built an arena.
One of the funding sources, revenue bonds, assumes the new arena will earn $400,000 in net revenue for 25 years. That would generate $10 million - enough to cover the principal and interest for $6 million in revenue bonds for the project.
But the report estimated an arena may earn as much as $699,000 annually in net profit. That estimate was based on industry trends, knowledge of the marketplace and financial results from comparable arenas, according to the report.
Gateway studied nine arenas that have been built since 2000 in cities of comparable size. Chema has said there has been a trend of cities building arenas in Downtown areas and away from suburban locations.
But of the nine arenas studied in the report, only three - the American Bank Center in Corpus Christi, Texas; the Verizon Wireless Arena in Manchester, N.H.; and the Sovereign Center in Reading, Penn. - were built in Downtown locations, according to Wes Johnson of Convention Sports & Leisure, a sports consulting company.
The new arena's financial projections were made with the assumption that its biggest user would be an International Hockey League team.
"Based on interviews with league representatives, the (IHL) may represent an additional source of tenant sports utilization," the report said. "It is estimated that a new IHL franchise in Evansville could attract average attendance of approximately 3,500 per game, or 133,000 over the course of 38 home games."
Stadium sizeputs limits on usage
The floor at Roberts Stadium is too small for professional hockey.
Weinzapfel said several minor-league hockey teams and team owners have contacted the city, expressing interest in Evansville if a new arena was built. But he said he didn't know whether there was enough community interest to support a team.
Some advisory board members declined to comment on the report, saying they needed more time to study it. Board member Joe Kiefer, a former city councilman, said Downtown is probably the right choice because it would be a good economic development opportunity.
Kiefer said there is a sense of urgency with the project because the costs of construction and energy are going to only increase with time.
"Now, when the economy is down a little bit ... that is the time that you want to do something like this," he said. "Because then, you've got new construction jobs and a lot of activity going on, and it helps stimulate the economy."
Board member Joe Vezzoso Jr. said he supports a Downtown arena because a modern facility would increase tourism revenue.
"The current facility is aged and dated. ...," said Vezzoso, who is the president of the Convention & Visitors Bureau's advisory board. "The sooner (a new arena) can move forward would be better for everyone."
That same sense of urgency hasn't been reflected by city leaders, who repeatedly have emphasized the importance of moving methodically through the stadium debate, analyzing all alternatives and engaging the public.
City Council President Keith Jarboe, D-at large, said he, like the mayor, will wait until the advisory board makes a recommendation before making a decision. As the financial arm of city government, the City Council would play a large part in the funding of a new arena.
"We're in the early steps here," Jarboe said. "This is just one more piece to the puzzle. We don't have the whole puzzle put together yet."