Arena contract change aims to limit taxpayer losses

Posted on April 19, 2019
arena
An amended city contract would have management firm VenuWorks assume some of the financial risk if the arena continues to lose money. (Grossinger Motors Arena photo)

 

By Howard Packowitz

BLOOMINGTON – Bloomington’s city government is looking to limit the amount of money it’s losing from owning Grossinger Motors Arena.

Arena management firm VenuWorks would compensate the government if annual losses are more than $350,000, according to a contract amendment to be considered by the Bloomington City Council Monday night.

A staff report to the council said VenuWorks agreed to the contract change even though the arena’s executive director, Lynn Cannon, told aldermen last September the best the city could hope for is an annual deficit of $500,000. The arena lost almost $665,000 the last fiscal year and $673,000 the previous year.

The city pays VenuWorks $114,000 a year to manage the arena.

VenuWorks would also begin charging a “market rate” for parking at events expected to attract more than 500 people. The city would receive $1.50, instead of 50 cents for each parked car.

For the fiscal year starting May 1, the downtown venue will have 30 more open dates because the Central Illinois Flying Aces hockey team won’t play next season. Cannon said the team’s departure gives her flexibility to book more popular events on Fridays, Saturdays, and Sundays when the team usually had home games.

Howard Packowitz can be reached at [email protected]

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