Arena luxury boxes ready to lease
| Author(s): | Derek Baldwin |
Document types: | Business; Sports |
| Section: | Community |
| Publication title: | Kingston Whig - Standard. Kingston, Ont.: Jul 6, 2005. pg. 1.Front |
| Source type: | Newspaper |
| ISSN/ISBN: | 11974397 |
| ProQuest document ID: | 864337681 |
| Text Word Count | 604 |
| Document URL: | http://proquest.umi.com/pqdweb?did=864337681&sid=1&Fmt=3&clientId=61614&RQT=309&VName=PQD |
| Abstract (Document Summary) |
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Don Gedge said the remaining 26 suites would be leased at an average cost of $16,000 a year each, depending on their location within the building, raising more than $400,000 annually. Gedge said he'll prepare information packages for prospective tenants. With packages in hand, Gedge said, "we will begin networking to show them what's available." To handle the expected deluge of firms wanting to rent a suite, Gedge said Kingston may have to resort to a "lottery system" to ensure fairness in the application process. |
| Full Text (604 words) |
| (Copyright The Kingston Whig-Standard 2005) Entertainment centre not yet approved, but $16,000 will buy a great view It's not built or even under construction, but they're already selling it. The city is moving to lease private box suites inside a proposed $37.3-million large venue entertainment centre that doesn't yet have final political approval. Kingston politicians have given the tentative nod to construction of an arena on the Inner Harbour, pending the findings of a market study due in September. In an early-morning meeting yesterday of a steering committee guiding the plan, project manager Don Gedge acknowledged that canvassing potential tenants before building is underway is unusual. "Normally [you] go out and sell suites and naming rights when the building is going in the ground, when it is no longer a speculative issue," Gedge told the committee. But he said he wants to "take advantage of the generally slower summer season to get some of this initial work done." He called the effort "pre-sales work." Ultimately, the aim is to offer 28 private box suites in the new 5,000 seat facility when it opens in late 2007. The boxes would contain about 10 seats each and would offer box holders an exclusive view of hockey games and concerts. One of the suites would be held by the city and another by the company that purchases the naming rights for the facility. Gedge said the remaining 26 suites would be leased at an average cost of $16,000 a year each, depending on their location within the building, raising more than $400,000 annually. Boxes at centre ice would likely fetch a higher price than those at the ends of the building, he said. Gedge told members of the steering committee that he'll begin the work to lease the suites as soon as possible. An informal blitz of groups and individuals in the city will be underway in coming weeks, Gedge said, to heighten awareness of the availability of the boxes. Agreements would be signed likely in early 2006, he said. Gedge said he'll prepare information packages for prospective tenants. With packages in hand, Gedge said, "we will begin networking to show them what's available." He predicts strong interest. At London's John Labatt Centre, for example, all of the box suites have been leased and there's a waiting list for the next vacant suite. At the Air Canada Centre in Toronto, Gedge said corporations and groups pay up to $300,000 a year for a suite. To handle the expected deluge of firms wanting to rent a suite, Gedge said Kingston may have to resort to a "lottery system" to ensure fairness in the application process. The terms for successful applicants, Gedge said, would demand that box holders purchase tickets for all of the Kingston Frontenacs games every year. Gedge said leases for the suites would be staggered on three-, five- and seven-year terms. Other perks for box owners would include first right of refusal on tickets for all other events, assigned free parking and food and beverage services. In other developments yesterday on the rink plan, acting city chief administrative officer Denis Leger said that four consultants are being considered to draft a market study. Councillors will receive the staff's recommendation for a preferred consultant in a report during regular council session on July 19, Leger said. The market study will examine revenue and attendance projections for the proposed facility to see if they stand up to local statistics. Councillors asked for the market study after complaining that the business plan by Gedge didn't include substantive local statistics to support a new multi-million dollar sport and entertainment complex
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