This is an artists’ rendering of the proposed Marion Sports and Entertainment Center. The main entrance will face Interstate 69, with Ind. 18 to the left (south). Illustration courtesy of JLG Architects
The Marion City Council voted unanimously Tuesday to make a $30 million bond issue that will allow for the creation of a sports and entertainment arena and also serve as home to a developmental hockey team.
The complex, which could be finished by July 2012 if all runs smoothly, will seat about 4,100 people for ice-based events and up to 5,200 people for other events.
The Marion Sports and Entertainment Center, as it is now named on architect’s drawings, would employ 200 to 250 full- and part-time workers, from the executives and sports trainers to parking lot attendants and ushers.
Council members had questions for developers, Game 7 Seven LLC, now based in Chicago. The questions ran across many issues, from clarifying details about the financing mechanism for the project to background about how the United States Hockey League runs its teams.
The group will run the USHL team, for which no name has been announced, as well as operate the new venue, expected to host a variety of entertainment events, including concerts, other sporting events and community events.
“It’s a project that I never thought would land on our doorstep in a million years,” Mayor Wayne Seybold said. “I’ve had some sleepless nights over this because I want to see this happen.”
Marion Sports Authority Vice President Craig Persinger said he was brought aboard specifically because he’s a difficult person to convince. Yet he said Game 7 Seven’s plan has stood up to the rigors of his questioning.
“This is an ambitious project,” Persinger admitted to the council. “With ambition comes risk, but the risk is insulated from the taxpayers of Marion.”
The members of Game 7 Seven all have long associations with hockey at the professional, Olympic, collegiate and amateur levels. Principal partner Val Belmonte said he will relocate to Marion to operate the new facility.
Belmonte said their investment of capital is “significant enough to buy a hockey team.”
Game 7 already has spent about $500,000 in cash on developing the project, he said.
The private Marion Sports Authority was formed as a nonprofit and provided an avenue through which Game 7 Seven could access tax-exempt economic development bonds to reduce the project’s financing costs.
The sports authority will sell $30 million in tax-exempt Midwestern Disaster Relief bonds. The bonds will require a payback of up to 25 years.
The arena will need to generate gross revenue of $6.5 million annually to cover its costs and repay the bonds, said Kevin Dulin, Game 7 Seven’s senior executive vice president.
The Marion Sports Authority will own the building and collect lease payments from Game 7 Seven, which will be solely responsible to bond holders, according to city officials.
Construction is expected to be finished by July 2012, with the first puck being dropped in September 2012.
Game 7 said it has planned a versatile complex capable of hosting many different types of sporting events, consumer expositions and concerts. Hockey is only expected to bring in about one-fourth of the center’s operating revenue, Dulin said.
Think of Chicago’s United Center, “only squished down,” he said. That facility is home to the Chicago Blackhawks and the Chicago Bulls, but can be configured several different ways for other events.
Marion resident and independent 3rd District city council candidate Aaron Pratt contended the league Marion would join has a high failure rate among teams.
Dulin said any failed partnerships were likely because of circumstances where the team didn’t have control over its venue.
Belmonte said what’s key to the potential success of the project is being located next to Interstate 69, a “road to somewhere.”
Game 7 estimates about 700,000 people from the region could be drawn to events at the center.
Councilwoman Madonna French wanted to know who will manage and operate such a complicated facility.
“One person — me,” Belmonte answered.
He said bookings for events other than hockey would have to start immediately so the facility can begin to generate revenue when it opens.
Belmonte said the focus will be on “affordable, wholesome family entertainment.”
There will be two areas containing ice at the arena. They can be converted to dry floors for non-ice events within three hours. Dulin said the sports complex can host a dry event during the day and hockey at night.
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