New Arena To Cost $45 Million

[UCONNJACK]

New arena plan goes for approval at today’s BOT meeting. Cost to be shared by University and a private developer. Facility is expected to open in the fall of 2021.

By the numbers: UConn's new hockey arena is expected to cost $45 million and other new details about the facility

 

[Kemba429]

Hold on, let me get this straight. $45 mil to go to a new hockey rink, while still playing games at the XL center? Boy, gonna take a longgg time to pay off that investment.

 

[auggie22]

Only 500 chair backs, expandable to 3500.

 

[dbmill]

Story doesn't say where the new arena would be, although previous speculation was that it would be next to the old ice rink on campus.

There is also a donor fundraising aspect to this project:

>The university will pull $12.5 million from its reserves. Those funds will be repaid through philanthropy and fundraising, with the difference if necessary made up through funding from the athletics department.<

 

[huskymedic]

Just get it done...

 

[zls44]

This is terrible. Not surprising, but still terrible. Only UConn could make the announcement of an arena depressing and disappointing.

 

[ThabeetDown]

Can someone please explain to me how this is a good thing? The low capacity is extremely concerning. How do you not build it to 4,000 seats at the start with room for expansion from that? Even expandable to 3500, which we may see in what, 5-10 years is a joke...

 

[Wordbomar]

Only 500 chair backs is ridiculous. If you're gunna make it small, at least make it a good facility to watch a game. This is amazing. Brand new arena with bench seating. Unbelievable.

 

[CL82]

The university will pull $12.5 million from its reserves. Those funds will be repaid through philanthropy and fundraising, with the difference if necessary made up through funding from the athletics department.

Another $10 million will be used from the profits from recent property sales — the former UConn West Hartford campus, which was sold to Seven Stars Cloud Group Inc., and the sale of the Nathan Hale Inn to a developer. Seven Starts has since renamed itself to Ideanomics.

The remainder — $22.5 million — is where it gets a little more complicated. UConn plans to hire a developer for the project. The developer will create a special purpose entity, essentially a subsidiary, that will design, construct, own and operate the new arena. That company will finance the rest of the project through tax-exempt bonds.

In return, UConn and the entity will enter into a 30-year lease and the university will pay an annual fee to pay down the overall project cost. The annual cost over the lease is expected to be about $1.6 million, but operating revenues could drive that down to about $1.2 million.

So UConn pays $22.5M down. Tax-exempt (state issued?) bonds pay the remainder but the co-venturer is responsible for them? UConn leases for 30 years for an unknown amount plus pays down the project costs (the bonds?) at a rate of between $1.2M to $1.6M?

I assume that the building reverts to us at the end of 30 years.

 

[Jimmy Serrano]

The university will pull $12.5 million from its reserves. Those funds will be repaid through philanthropy and fundraising, with the difference if necessary made up through funding from the athletics department.

Another $10 million will be used from the profits from recent property sales — the former UConn West Hartford campus, which was sold to Seven Stars Cloud Group Inc., and the sale of the Nathan Hale Inn to a developer. Seven Starts has since renamed itself to Ideanomics.

The remainder — $22.5 million — is where it gets a little more complicated. UConn plans to hire a developer for the project. The developer will create a special purpose entity, essentially a subsidiary, that will design, construct, own and operate the new arena. That company will finance the rest of the project through tax-exempt bonds.

In return, UConn and the entity will enter into a 30-year lease and the university will pay an annual fee to pay down the overall project cost. The annual cost over the lease is expected to be about $1.6 million, but operating revenues could drive that down to about $1.2 million.

So UConn pays $22.5M down. Tax-exempt (state issued?) bonds pay the remainder but the co-venturer is responsible for them? UConn leases for 30 years for an unknown amount plus pays down the project costs (the bonds?) at a rate of between $1.2M to $1.6M?

I assume that the building reverts to us at the end of 30 years.

You cannot possibly put into words how criminally negligent this is financially. That’s saying nothing about the idiocy of 2500 seats.

 

[huskymedic]

New arena plan goes for approval at today’s BOT meeting. Cost to be shared by University and a private developer. Facility is expected to open in the fall of 2021.

By the numbers: UConn's new hockey arena is expected to cost $45 million and other new details about the facility

UConn's New Hockey Arena Has People Asking Questions, Here Are Some Answers

 

[huskymedic]

Hartford Business Journal: UConn trustees to vote on financing $45M hockey arena

Picture doesn’t show the new field alignment for baseball/soccer/softball as shown in the posted planning doc by @UCONNJACK) in another forum (pg 33 here: https://updc.uconn.edu/wp-content/uploads/sites/1525/2018/08/2018.06.13_Project-Updates.pdf) so not sure how official the HBJ pic. is)

 

[Fantana]

Spend 45 million. It’s hardly larger capacity wise than what they have now. Few chair back seats and they are only playing a fraction of the games there and the ones they are are less desirable non hockey east contests.

What a complete embarrassment

 

[Jimmy Serrano]

Spend 45 million. It’s hardly larger capacity wise than what they have now. Few chair back seats and they are only playing a fraction of the games there and the ones they are are less desirable non hockey east contests.

What a complete embarrassment

It’s an embarrassment but Warde deserves a lot of the blame here. This opinion won’t play well on this forum but this HE upgrade is one of the worst decisions we could’ve made at the time.

 

[brasssbonanzaa]

It’s an embarrassment but Warde deserves a lot of the blame here. This opinion won’t play well on this forum but this HE upgrade is one of the worst decisions we could’ve made at the time.

because..... ??

 

[brasssbonanzaa]

This line from the Courant article is comical:

"The new arena and renovated facilities on campus will allow for more flexibility for the team, especially when scheduling conflicts arise with the XL Center. That flexibility could also prove prosperous when recruiting, allowing UConn to show new facilities, an on-campus arena and an arena for big games."

Yes, prized new recruit, don't go to the other HE school which plays all of its games in one sold-out arena on campus! Come here and play 40% of your games in a 2,500-bleacher rink and 60% of your games in a half-full 45-year-old dinosaur arena that's a half hour from campus!

The same writer then misstates the capacity of BU and BC's rink, and fails to mention that at 2,500 UConn's rink would immediately be the smallest in the conference. So "on the small side" is a gross understatement.

 

[Jimmy Serrano]

because..... ??

Our athletic department is literally on the brink of bankruptcy. We spent millions of dollars on a niche sport that doesn’t move the needle in any way other than putting us in a much worse financial position. I understand that you guys enjoy it but from a CR, financial, or university ranking standpoint it makes zero sense.

A better question would be what are the benefits?

 

[CL82]

Hartford Business Journal: UConn trustees to vote on financing $45M hockey arena

View attachment 35776

Picture doesn’t show the new field alignment for baseball/soccer/softball as shown in the posted planning doc by @UCONNJACK) in another forum (pg 33 here: https://updc.uconn.edu/wp-content/uploads/sites/1525/2018/08/2018.06.13_Project-Updates.pdf) so not sure how official the HBJ pic. is)

I don't think this was the last iteration. I feel like there is one where left field is butting against the performance center. No clue what they are going to do with this section of Calhoun Way.

 

[huskymedic]

 

[huskymedic]

View attachment 35781

I don't think this was the last iteration. I feel like there is one where left field is butting against the performance center. No clue what they are going to do with this section of Calhoun Way.

That's not the slide I was referencing - go to #33

 

[CL82]

That's not the slide I was referencing - go to #33

View attachment 35783

Pretty sure this is even earlier. Note that Morrone Stadium is moved across the street; the throwing areas are next to Freitas and it has an expanding rink not a new one. It would nice to see a set of plans that actually reflect the current mind set. They must exist somewhere, right?

EDIT: I'd love to see the cost comparisons of expanding Frietas and of going 4,000 with chair backs next to this. Maybe then this compromise solution would make sense. For $45M, I feel like we can do better, though I'd like to hear from the BY guys with more expertise in construction.

 

[uconnphil2016]

Our athletic department is literally on the brink of bankruptcy. We spent millions of dollars on a niche sport that doesn’t move the needle in any way other than putting us in a much worse financial position. I understand that you guys enjoy it but from a CR, financial, or university ranking standpoint it makes zero sense.

A better question would be what are the benefits?

It's hilarious the amount of money we're pouring into hockey in men's soccer right now while our revenue generating sports are crumbling before our eyes. And the $40+ million for the hockey arena won't even give us a functional arena...great!

 

[dvegas]

There is such a thing as bad publicity

U-Con

 

[Pudge]

Absolutely and totally disagree with the notion that the Hockey East upgrade was poor. Cavanagh start-up is a successful venture.

I am very curious about the $22.5m Developer deal. YES, I can name 50 State University projects done this way ... and there is plenty of capacity in Municipal Finance for these deals today.

The Brand - we need to do these things very well. Yes I still believe Hockey and another ancillary sport are our POSSIBLE keys to upgrade in Conference.

 

[Towney007]

I literally can't believe i'm seeing it, but it's astonishing watching an Athletic Department and School risk the health of their two actual revenue-generating, nationally-renowned and universally respected men's and women's basketball teams all for a chance at salvaging whatever's left of the football program and spending $45 million it doesn't have on a glorified high school hockey rink.

What the heck is going on. Honestly.

 

[SinBin]

There is such a thing as bad publicity

U-Con

Wow, what a zinger... Maybe UConn should have never left Atlantic Hockey...

 

[Towney007]

UConn is a school that somehow found its way forward in hoops on both fronts past their wildest imaginations and then found success in a few olympic sports... then a generation or so removed from that got this idea that those kinds of program break throughs are the norm and easy and that everyone can do it if you flick some money at it.

It wasn't 'luck' that those sports took off, but the University was extremely lucky they did and that as many did in as short a period of time as they did. That's not normal.

Now they're finding that out, but seems like a pretty expensive lesson.

 

[SinBin]

Just out of curiosity, how much was the original Freitas?

 

[Husk1881]

has anyone reached out the the AD about this mess? I know people tweet at him all the time but he seems to never use his account. I was wondering if they are just so insulated that the generally believe this is a good idea. Cause i cant seem to figure out any other explanation.

 

[brasssbonanzaa]

has anyone reached out the the AD about this mess? I know people tweet at him all the time but he seems to never use his account. I was wondering if they are just so insulated that the generally believe this is a good idea. Cause i cant seem to figure out any other explanation.

The problem here may be that the conference is pushing them to build a facility since it was a requirement of joining. My understanding was that the conference had recently accepted the idea of just playing at XL long-term, don't know if that's still true.