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January 30th, 2009 at 11:56 am
I, for one, am getting tired of the games. Figure out what the best position for the city is and lets get that started. Marty’s waffling should be taken at face value… an indication that you may not want to continue negotiating with the guy. If hockey is a yoke around the arena’s financial potential (UML or otherwise) then we need to figure out how to get a hockey divorce and start that process. I wonder just how bad the CC is undercutting the city’s negotiating position in redirecting the CM to talk to UML in what could be a fruitless exercise. I hope they are not looking for brownie points from Marty (or Campy) because it really looks like Marty is just looking out for Marty and the city’s interests probably diverge from that.
January 30th, 2009 at 1:13 pm
The arena is a good asset for the City, but it still have value to the community if it were owned by the University, so that in itself is not a major issue.
The City owns the debt, approximately $2M as Mimi indicates, and that is costing the City about $350K per year until it is retired. The UML “offer” does not eliminate that.
But the City is incurring about $1M in annual losses beyond that debt payment. The Arena commission is taking some action to reduce that, but it will still be a substatntial loss that the taxpayers are covering.
The Devils lease is part of the problem, and one that may not be easily severed. However, rather than the City incurring penalties by breaking that lease, it should be transferred with the ownership change.
The adjacent land has been valued at about $800K (net of clean-up costs) by the City, and apparently UML. However, the ultimate use of the land could be beneficial to the City’s tax base, and therefore there is some risk in selling it to UML, although UML has apparently would give the City some say in its use, and ensure it was taxable property.
The land near the river is of questionable value to the City. Although UML values the land at $480K, it could be more of a liability to the City, as it would likely expand the maintenance tasks of the Parks Department. On balance, it does not seem to be a major player in the deal.
The City really shouldn’t be in the business of arenas and ballparks, except to ensure a quality attraction is available to its citizens and area residents. That can still be obtained with UML ownership, and UML has a partial need for the facilities and has a more extensive financial backing to support them. If a good deal can be worked out it should be in the best interests of both the City and the University.
January 30th, 2009 at 1:39 pm
“…apparently would give the City some say in its use…”
’some say’ should be ‘binding in the transfer, complete with penalties’. If the sale of the land is made attractive by some speculated future behavior of UML, we’d better get it in writing and cover ourselves if they don’t follow through.
“…and UML has a partial need…”
I’m not convinced this would be a good deal for UML either. The pressure to keep it as a hockey venue would be great, and I think it’s likely to be a money sink if they do so. Also, any ‘benefit’ to the community would also be mitigated by it’s use by UML hockey. Add to this the problem of holding any of the current debt, and I think this is a loser for UML as well. I guess I could be reassured if UML proposed a business plan for the property complete with numbers that could be examined in detail (is there such a document that the trustees are reviewing?). I’m just having a hard time picturing how they are going to operate the arena in enough of a ‘different way’ to turn $1M in operating loss into some kind of profit.
January 30th, 2009 at 2:07 pm
Looking down the road, the UMass board of trustees tried to boot UMass Lowell’s hockey team out of Hockey East already. Meehan had to come in and make promises in order to keep the team in the league.
What is to prevent the trustees from eliminating UMass Lowell hockey altogether making the UMass Amherst team the primary team in the system with the best quality players? (Umass Lowell lost it’s football team and its basketball squad is certainly not to be mentioned in the same breath as UMass Amherst)
If that were to happen then what happens to the arena? Does UMass Lowell sell it to a private entity to do with what they will with no imput from the city beyond the planning and zoning boards?
January 30th, 2009 at 7:24 pm
OFF TOPIC!
Sorry, but I checked the LTC site and this wasn’t an option. I read that the Flood subcommittee was meeting this afternoon at 2 (good time for the public…NOT!) to deal with Bud Caulfield’s experience of being cursed at on the O’Donnell bridge while crews were clearing debris from in front of the gate house.
Anyone go to it or know what was said/happened? As I said the meeting was not one that appeared on the LTC website.
January 31st, 2009 at 7:45 am
River Rat:
LTC is currently upgrading its equipment and they are a bit late in updating its streaming video. I do not know if that particular sub-committee meeting was filmed. Unless the LTC staff is informed of a particular meeting, they will not know to come and film.
February 1st, 2009 at 9:20 am
Yes it was filmed and I did attened. Tony Volpe of Enel was to attend but backed out at the last min. They do not like public forum’s. The Sun and the Eagle Tribune did a good job covering the meeting.
February 2nd, 2009 at 10:32 am
Does anyone know the status of that unsolicited bid for the parcel of land right next to the arena? It is interesting that there seems not to be a follow-up on that news. Does anyone “in the know” know if that bid was substantial both in seriousness and cash?
February 2nd, 2009 at 11:54 am
Daniel, I think the City Council put the kabosh on seeing how serious the bid was since Marty wants that land thrown into the Arena deal. Makes me wonder who the Council is working for.
February 2nd, 2009 at 1:59 pm
Middle roader: doesn’t seem like they are working for the taxpayers…does it?