A pro hockey team has the potential to bring more than $20 million in rent and profits over the next two decades if it plays at the City of Bloomington's Grossinger Motors Arena.
That’s according to a proposal coming before the Bloomington City Council this week. The council moved its meeting to 12:30 p.m. Wednesday at City Hall due to Monday night's expected icy weather.
Last week, city officials announced a deal is in motion for the pro hockey team — pending council’s approval. The franchise would become the 30th ECHL team. The next season starts in October.
Assuming the council approves the agreement, the Bloomington team’s name and logo will be revealed at 10 a.m. Wednesday during a news conference at the city-owned arena.
The proposal follows months of negotiations between the city’s arts and entertainment department and Hallett Sports & Entertainment, which would own the team. Hallett already owns two Indianapolis-based teams: The Indy Fuel is a hockey team, and Fishers Freight is a member of the Indoor Football League [IFL].
Financial details of proposal
As outlined in Monday’s council agenda, the proposed five-year agreement with the Illinois Hockey Club includes an option to renew, at each fifth year — continuing through 2034. Annual rent the first period would be $180,000, and go up with each renewal to the following amounts: $240,000, $300,000 and $360,000.
Projected annual profits for the venture is $750,000. That figure is based on attendance, other revenue, and expense estimates. The administration notes that earnings could climb, once the team grows and builds its fan base.
Under the agreement, the city would retain:
- 70% of food and beverage sales, 80% of hockey suite revenue, and 80% of arena naming rights revenues.
- All generated parking revenue.
- Per ticket facility fee of $2.50, with $1.50 dedicated to an arena maintenance fund.
Meanwhile, the team would keep:
- Gate receipts and Ticketmaster rebates.
- Hockey sponsorship sales
The city and team would partner on selling naming rights. The agreement requires the team bring to games an average 2,000 attendance, and $20,000 in concessions sales. Failure to do so would be their responsibility to rectify.
The city-owned arena has a problematic financial history, that covered several iterations of management, including a rough transition in 2017 and a fraud case with former arena management dating back to 2007.
Also at Monday’s 6 p.m. meeting, in the downtown Government Center, the council is expected to vote on:
- Authorizing using about $420,000 of Bloomington’s state motor fuel tax fund, for its contribution to a major project on Market Street (U.S. 150/Illinois 9). If approved, the city would have an agreement with the Illinois Department of Transportation [IDOT]. This is the first project in the state-led Market Street overhaul, estimated at $6.7 million.
- Reallocating $400,000 to the city’s major project of water meter installation. It doesn’t represent added costs. Rather, the city has an opportunity to buy more equipment in this budget year.
