Updated New Hockey Arena Info | The Boneyard

Updated New Hockey Arena Info

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UConn has obtained permission from Hockey East to build a smaller venue with 2,500 seats so long as the arena’s design allows for potential expansion to 3,500 seats in the future.

The new arena will host some men’s hockey games, all women’s hockey games and will also support UConn’s robust recreational ice hockey program. Additionally, the new arena could by utilized by the University or to support community needs. At a minimum, the new arena will have the following features:
  • Up to 3,500 seats, with at least 25% of the seats being seat-back chairs;
  • Arena facilities and ice that will meet all NCAA Division I Ice Hockey requirements, all Hockey East Conference standards, and all University guidelines and requirements.
  • A permanent locker room for both the UConn men’s and women’s ice hockey team, a Division 1 ice hockey team visitor’s locker room, two (2) other mid-sized locker rooms, and a small official’s locker room.
  • Five (5) offices dedicated for UConn’s use.
  • A scoreboard with video replay capability.
  • Parking for up to 700 vehicles.
To satisfy parking requirements, the existing surface lot will approximately double in size. The new capacity of Lot I, however, will not accommodate sellout events at the arena. During those events, UConn will rely on its other parking facilities and shuttle operations.

UConn is currently negotiating an agreement with a private developer who will design, construct, own and operate the new arena on UConn’s property. As currently contemplated, UConn will be in charge of maintaining the arena, while the developer would operate and manage it. The targeted opening of the new arena is during the fall semester of 2021.
 
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UCONNJACK said:
University’s contribution to the new arena from October 2018 Courant article.
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Related article and all, but nowhere does it focus on anything but the well known 2,500 seat initial arena. Hence, the question posed earlier remains. Nice to dream for @Dream Jobbed 2.0 ’s and many of our desired extra 1K (or more) seats, but with “With which dinero?”
 
"UConn is currently negotiating an agreement with a private developer who will design, construct, own and operate the new arena on UConn’s property. As currently contemplated, UConn will be in charge of maintaining the arena, while the developer would operate and manage it. "

Great. UConn's building a new arena it won't own, won't operate, and won't manage. How stupid can they be?
 
brasssbonanzaa said:
"UConn is currently negotiating an agreement with a private developer who will design, construct, own and operate the new arena on UConn’s property. As currently contemplated, UConn will be in charge of maintaining the arena, while the developer would operate and manage it. "

Great. UConn's building a new arena it won't own, won't operate, and won't manage. How stupid can they be?
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Interesting question. Obviously their must be some advantages to putting the facility in private hands. I have no idea what they are. How does the private owner monetize his investment?

Ever notice the Courant never asks or answers these questions? They just print the UConn press releases. Such a shame.
 
Palatine said:
Interesting question. Obviously their must be some advantages to putting the facility in private hands. I have no idea what they are. How does the private owner monetize his investment?

Ever notice the Courant never asks or answers these questions? They just print the UConn press releases. Such a shame.
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>>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.<<
 
Palatine said:
Interesting question. Obviously their must be some advantages to putting the facility in private hands. I have no idea what they are. How does the private owner monetize his investment?

Ever notice the Courant never asks or answers these questions? They just print the UConn press releases. Such a shame.
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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.

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's up front cost:
$12.5M
$10.0M
$22.5M

Ongoing cost = $1.6M x 30 yrs = $48M

Total cost (w/o regard to time value):
$22.5M
$48.0M
$60.5M

This doesn't seem like a particularly good deal to me. I'd rather see us borrow (bond) the second $22.5 ourselves. I we do it over 30 years that $750,000 a year in principal repayment. Obviously we'd have to add interest to that as well but we'd keep any potential profit. Anyone with development experience have a thought on the numbers?
 
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CL82 said:
This doesn't seem like a particularly good deal to me.
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No doubt the ownership structure’s interesting for the initial 2,500 seat arena, but has anyone identified a particularly good alternative? Apparently, nyet!
 
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CL82 said:
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.

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's up front cost:
$12.5M
$22.5M
$35.0M

Ongoing cost = $1.6M x 30 yrs = $48M

Total cost (w/o regard to time value):
$35.0M
$48.0M
$83.0M

This doesn't seem like a particularly good deal to me.
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I’m clearly not a building financing expert and not looking to get into a prolonged back and forth because I think there are components/details missing - but how is is the $22.5m an “UConn” upfront cost and not a “builder/landlord” cost as described.

Also there is no factoring in the reduced cost for not paying the XL Center to lease their facility for a proportionate number of games of games that will be played @ Freitas.?
 
huskymedic said:
I’m clearly not a building financing expert and not looking to get into a prolonged back and forth because I think there are components/details missing - but how is is the $22.5m an “UConn” upfront cost and not a “builder/landlord” cost as described.

Also there is no factoring in the reduced cost for not paying the XL Center to lease their facility for a proportionate number of games of games that will be played @ Freitas.?
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No magic in the phraseology. Upfront cost for this purpose = cash out of pocket at the start of the deal as opposed to the 30 year lease obligation.

I'm not sure we save all that much in XL costs since we will still be playing the bulk of our games their.
 
CL82 said:
No magic in the phraseology. Upfront cost for this purpose = cash out of pocket at the start of the deal as opposed to the 30 year lease obligation.

I'm not sure we save all that much in XL costs since we will still be playing the bulk of our games their.
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I could be obtuse but it’s says the developer/company will finance the $22.5m through tax-exempt bonds.
 
huskymedic said:
I could be obtuse but it’s says the developer/company will finance the $22.5m through tax-exempt bonds.
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That's the way I read it as well, but UConn is putting up the same amount, $12.5 million from reserves and another $10M from the sale of properties.

I just noticed I grabbed the wrong figures above it should read:

So UConn's up front cost:
$12.5M
$22.5M $10.0M
$35.0M $22.5M
 
CL82 said:
That's the way I read it as well, but UConn is putting up the same amount, $12.5 million from reserves and another $10M from the sale of properties.

I just noticed I grabbed the wrong figures above it should read:

So UConn's up front cost:
$12.5M
$22.5M $10.0M
$35.0M $22.5M
Expand ...

That was my point...

... and in theory, the $48m is worse case because it could actually be less depending on revenue (projected in article to be +/- $400k per year less [and yes, I realize this is a State entity we are talking about]).
 
huskymedic said:
That was my point...
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I still think that money is up front out or pocket for UConn. So the cost of the rink will be $45M, $22.5 from each of UConn and the developer.
 
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This is all before we get to the component that with UConn not being the owner of the arena, they do not have the sole power to decide on expanding or upgrading it. Say it's built at 2,500 and UConn wants to move up to 3,500 - the owner can basically say nah, not doing it. Of course that could be written into the contract of ownership, but would seem unlikely.

Similarly, I'd be interested to know what the contract of ownership says about who gets to determine the schedule of use of the facility. What if the owner wants to bring an event there on a Friday night and a UConn hockey home game now has to be bumped to a Thursday?
 
brasssbonanzaa said:
This is all before we get to the component that with UConn not being the owner of the arena, they do not have the sole power to decide on expanding or upgrading it. Say it's built at 2,500 and UConn wants to move up to 3,500 - the owner can basically say nah, not doing it. Of course that could be written into the contract of ownership, but would seem unlikely.

Similarly, I'd be interested to know what the contract of ownership says about who gets to determine the schedule of use of the facility. What if the owner wants to bring an event there on a Friday night and a UConn hockey home game now has to be bumped to a Thursday?
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These deals are pretty complex and not all that unusual in the development world. Unless they really screw up the lease I’m not worried in the least about UConn not having the access they need. It is essentially a financing vehicle that keeps the costs off UConns books and takes advantage of the private entity’s ability to move more quickly. Though in my experience that is usually more in theory than in practice. I would guess that at some point UConn has the right to purchase the arena too. Variations of these deals happen all over the place. I’m involved in one for a CT housing Authority where we are getting the financing and building the project but have a deal with them to house their tenants. Some states are doing highway deals even using tolls to support the financing. The UConn lease is used to support the financing in this case. I have done this type of deal from both sides. Friend of mine has done a bunch of student housing in various universities in the south and west in particular but recently did one in New York State Same model. They are almost cookie-cutter. UConn is the prime tenant. Any other user, clubs high school hockey teams etc get limited times just as they now do at Freitas.
 
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freescooter said:
These deals are pretty complex and not all that unusual in the development world. Unless they really screw up the lease I’m not worried in the least about UConn not having the access they need. It is essentially a financing vehicle that keeps the costs off UConns books and takes advantage of the private entity’s ability to move more quickly. Though in my experience that is usually more in theory than in practice. I would guess that at some point UConn has the right to purchase the arena too. Variations of these deals happen all over the place. I’m involved in one for a CT housing Authority where we are getting the financing and building the project but have a deal with them to house their tenants. Some states are doing highway deals even using tolls to support the financing. The UConn lease is used to support the financing in this case. I have done this type of deal from both sides. Friend of mine has done a bunch of student housing in various universities in the south and west in particular but recently did one in New York State Same model. They are almost cookie-cutter. UConn is the prime tenant. Any other user, clubs high school hockey teams etc get limited times just as they now do at Freitas.
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Do you feel like the numbers make sense on this one?
 
I’d need a lot more information and to see the lease and such. The owner is responsible for operation for example. So if some system blows is he on the hook to repair/replace I assume. And some of the language in the release is strange. UConn will manage it but the Owner will operate? I assume 1 means day ti day stuff like cleaning the floors and turning on the lights and the other is more the building systems and so forth. Does UConn get a payment for that? Sometimes you do? I also assume he, not UConn is building the new parking. And how does revenue work? Does the owner get all, is it split, UConn get all with owner just getting his lease payments? UConn gets revenue from its games but the owner gets any other like Tolland High hockey...

Then you need to look at how this compares to what you could do alone. If it ends up at 3500 seats that might add lots of value. It’s really to complex to evaluate based on a news release but UConn has done similar stuff at the Med School And Connecticut has done this stuff at places like Bradley so I it isn’t like they are babes in the woods.
 
CL82 said:
That's the way I read it as well, but UConn is putting up the same amount, $12.5 million from reserves and another $10M from the sale of properties.

I just noticed I grabbed the wrong figures above it should read:

So UConn's up front cost:
$12.5M
$22.5M $10.0M
$35.0M $22.5M
Expand ...
CL82 said:
I still think that money is up front out or pocket for UConn. So the cost of the rink will be $45M, $22.5 from each of UConn and the developer.
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https://boardoftrustees.uconn.edu/w...Budget-for-UConn-Storrs-Regional-Campuses.pdf

BOT 2020 Capital Budget which was approved last month allocated $23.5 million for construction of new hockey arena.
 
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Same same 2,500 spectator arena; still no one’s Dream Jobbed a big pot of gold for another 1K spots for potential spectators to stand or sit yet
 
whaler11 said:
It makes so little sense I don’t really have any comment.
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huskymedic said:
You don’t... you have to spend $45m in total to get that;)

You are only looking @ the UConn piece of the estimated expense.
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Generally speaking, I’m not some kind of spending hawk and I usually support the school spending on projects like this (like the baseball field! It looks it’ll be beautiful).

However, I just can’t rap my head around spending this amount of money on something so small that’ll only play host to, what, half of the men’s hockey schedule in yet another ill fated attempt for UConn to “save” Hartford?

So frustrating. If they were dropping this dough to build a beautiful on campus hockey arena I’d be fine with it.
 
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