The Whig-Standard
Local News - Saturday, May 20, 2006 @ 07:00
The future of major junior hockey in Kingston will rest on “very shaky ground”
if the proposed downtown arena is rejected by city council at the end of the
month, says the owner of the Kingston Frontenacs.
“It’s not something I want to think about,” Doug Springer said this week.
“We’re hopeful that everything works out and that by July, construction starts
on a new building. But if not, to be honest with you it would be very difficult
to operate this franchise out of the Memorial Centre.”
May 30 is when council is to review the financing model and decide whether to
proceed with the $37-million large venue entertainment centre (LVEC).
Springer said potential buyers would come sniffing in the wake of a no vote.
“If the city votes against it, the hounds will be out the next day to find out
where we stand,” he said, referring to what he expects would be a flash flood of
inquiries from potential buyers. “Having a major junior hockey franchise is a
sought-after thing right now, across this country and the United States.
“If the new arena is defeated, I’d have to say this franchise is on very, very
shaky ground.”
As long as the team plays out of its antiquated York Street digs, Springer said
it plays on borrowed time and the hourglass is running out.
“We’re not in the same league as other OHL centres, places that have, or are in
the process of getting, new buildings,” he said, citing construction starts in
Sault St. Marie and Oshawa, and a proposed $55-million four-pad complex in
Windsor.
“Where does that leave us when all the other teams have brand new,
state-of-the-art facilities?
“Where does it leave us when other centres have fan bases of between 5,000 and
6,000?” (The average league attendance in the OHL last year was slightly more
than 4,000, roughly 1,700 more than Kingston’s).
“How do we sell the players on coming here?”
Renovating the Memorial Centre or building anew on that property doesn’t excite
the Frontenacs owner.
“The Memorial Centre isn’t even on our mind ... our focus is downtown,” he said.
“If that situation changes and the Memorial Centre or any other site is
proposed, we’d have to re-evaluate our position,” Springer said.
Arguably the biggest threat to the project is the $8 million in government
funding that has not materialized. Several city councillors have indicated they
would pull their support, no matter the destiny of the Frontenacs, without
assistance from senior governments.
“That financing must be in place or I can’t support the LVEC,” councillor George
Beavis said, reiterating a stand he has taken in the past.
“We’re over budget on the Grand Theatre, we have the multiplex rink proposal and
the fundraising for the market square work is not coming in as fast as expected
all projects for which we have no idea of the final costs.”
Councillors Beth Pater and Floyd Patterson said ideally the $8-million
government funding will be secured. However, both hinted they could still
support the new rink as long as the burden does not fall to the taxpayer.
As for Springer’s hint that the Frontenacs might pull up stakes, neither
believes that will happen.
“It’s rhetoric in a way,” said Patterson. “There’s no concrete evidence that
that will happen.
“That said, an owner has to be on the lookout and do what’s best from a business
standpoint and not let the franchise slide through sheer neglect. Doug Springer
is not the kind of investor to let something go down the drain through neglect.”
Added Pater: “I’m not sure the team would leave in either case. It has a long
history here, and although it’s an important aspect it’s just one of many we
must consider in making a decision.
“Regardless, we need to finance the LVEC without adding to the tax base.”
Councillor Kevin George wasn’t swayed by the possibility of the team leaving.
“The owners are business people. It’s their call whether to sell.
“What concerns me and many of my constituents and many other people I’ve talked
to is the downtown location. They don’t want it there.”
Cynthia Beach, the city commissioner overseeing the arena project, said the city
is still searching for ways to make up the $8-million shortfall without a bump
in taxes.
She said retaining the OHL franchise is “important for tourism and other
aspects” but added the arena will be more than a hockey facility.
Asked if his well-heeled family might invest in the project as a last-ditch
effort to save it, Springer said, “That’s never been part of our position. We’re
coming to bat with the franchise, which in itself is a pretty significant part
of the overall plan.”
The team’s five-year lease with the Memorial Centre expires after the 2006-07
Ontario Hockey League season. In the past, Springer has indicated that that
lease will mark the end of the Frontenacs’ association with the aging
55-year-old building the only home the team has known in its 33-year history.
Shortly after signing the current lease in 2002, he told The Whig-Standard that
any future agreement with the City of Kingston vis-a-vis the Memorial Centre
“makes no sense whatsoever.”
That viewpoint remains unchanged today, save for this caveat: If the new rink is
approved but isn’t ready for the 2007-08 season, “then of course we would have
no problem using the Memorial Centre for the short term.”
Springer said that even though the arena has yet to gain final political
approval, he expected a long-term lease to be signed “by the end of the week.”
He declined to reveal details of that new deal, stating only that the length was
in excess of 20 years.
“We’ve agreed on practically all the points, all that’s left is to cross the t’s
and dot the i’s,” he said. “But I’m not comfortable discussing details until
it’s officially completed. That will be the appropriate time.”
Details of the Frontenacs current rental contract with the city have never been
fully disclosed. Last June, in a response to a request by The Whig-Standard for
a full copy of the agreement, the city provided the contract with pertinent
financial elements blacked out.
Ontario Hockey League commissioner Dave Branch said a new facility, with
respective amenities for players and team owner(s) alike, is a requisite for any
feasible business plan.
“One thing we’ve seen as a league, and the same is true right across the
country, is the huge role a modern facility plays in terms of allowing a
franchise to operate successfully,” said Branch. “It ensures not only the
necessary attendance levels and revenue needed but also the recruiting of
players; they have options now.”
Branch said that while the economic impact an OHL team has on its city depends
on location and population, “clearly the floor figure is between $6 million and
$7 million annually.”
The commissioner also weighed in on the pending vote in council chambers.
“All of us recognize and my wife constantly reminds me of this that not everyone
is a hockey fan,” he said. “But a new arena also provides entertainment
opportunities to bring in shows and other events that might otherwise be hard to
attract.
“We understand that every community has needs, whether that be a hospital or
whatever. We just hope that at the end of the day, the people see a new arena as
a win-win situation.”
Before boarding a Toronto-Moncton flight for the coming Memorial Cup, Branch
confirmed two points: that the OHL is not planning to expand any time soon; and
that should an existing franchise be put up for sale, “we could safely say the
price would be in the $6-million range.”
The Springer family, which numbers the Ramada and Days Inn among its extensive
real-estate holdings, bought the Kingston Frontenac Hockey Club Inc. in 1998.
Though no purchase price was disclosed, the team at the time was valued
similarly to the Ottawa 67s, which sold around that period for $2.5 million.