Task force examines arena financing

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By DEENA WINTER / Lincoln Journal Star

The mayor’s arena task force met Thursday and learned flood plain issues can be overcome and financing options are available to build a new entertainment arena in Lincoln.

Assistant planning director Kent Morgan told the committee flood plain issues at all three prospective arena sites could be overcome.

The task force has been meeting since early 2005 to look at the feasibility of building an arena to replace the city’s 50-year-old Pershing Center. It has zeroed in on three possible sites for a new arena: the current site of the downtown post office near Seventh and R streets; directly west of Lincoln Station; and south of the Harris Overpass.

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Campbell

Campbell

“It is doable,” Morgan reported.

And there are ways to pay for it.

City Finance Director Don Herz presented the task force with alternatives to come up with what is now an estimated $244 million for an arena, parking garage, new roads and surface parking. The cost of the arena and parking garage alone are now estimated at $160 million, compared to previous estimates of $85 to $100 million.

The task force is banking on private investors to build a nearby hotel and convention center at an estimated cost of $95 million.

Herz identified 17 potential revenue sources totaling $23 million annually, which could be bonded: a city occupancy tax on hotels and car rentals, the county lodging tax, a general obligation bond, a local sales tax and a $5 increase in the wheel tax.

He also identified another 17 possible one-time sources of cash totaling $43 million, including donations, federal highway funds, state roads funds and city street funds.

The task force previously has recommended the State Fair Park and the Lancaster Event Center combine venues, with a new or expanded exposition for ag events, fairs, and animal and trade shows.

And Herz presented ways to pay for a campus at a total estimated cost of $60 million. But when talk turned to various scenarios to combine management and marketing of the city’s various event venues, representatives of the State Fair and Event Center spoke up.

That’s when it became clear the task force may have a bigger challenge trying to get the State Fair Board and Lancaster County Agricultural Society to consolidate, as has been suggested by the mayor to avoid duplication of Lincoln venues.

Representatives of both boards made it clear Thursday they’re not interested.

Tam Allan, representing the State Fair Board, said the board isn’t interested in getting involved in anything that seeks millions of public dollars, particularly since Nebraska voters only recently approved using lottery money to resuscitate the state fair.

“One near-death experience every 365 years is enough for us,” he said, referring to the state fair’s fight for life prior to the infusion of lottery dollars.

The mayor charged the task force with examining ways to prevent duplication, and Allan said the task force should report back with this message: “Here’s the good news: There isn’t.”

He suggested the inclusion of the state fair and event center in plans was needed to help finance the arena.

Alan Wood, representing the Ag Society, seconded that emotion, saying the elephant in the room was that neither side is interested in moving, and the task force needs to honor their wishes. The Ag Society is planning an up to $20 million expansion of the event center.

Task force member and planning commissioner Roger Larson argued that the public doesn’t approve of the two venues duplicating each other.

“I don’t think that the public is going to allow us to have two ‘boots and jeans’ venues,” he said, referring to the state fairgrounds and event center on 84th Street.

Task force member Kent Seacrest said Lincoln’s entertainment facilities need improvement in order to attract and retain young people, and there’s a limited amount of public dollars to fund them.

And with those two camps at loggerheads, the group’s chairman, Dick Campbell, suggested the group take up the issue again at its meeting next week.

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.