The University Board of Trustees will receive an update on the feasibility of an on-campus arena, next Saturday at their quarterly meeting. A final recommendation from the feasibility study is not expected until February, which is the earliest time the board could approve or reject the proposal.
“We’re making great progress,” said Bob Woodruff, associate vice president of University Marketing and Communications.
This week, representatives of the firm, Superlative, are conducting a phone survey with season ticket holders about their interest in premium seating for an arena.
Next week, Superlative will host focus groups with current and prospective supporters of Billiken basketball, regarding premium seating and other contractually obligated revenue, such as naming rights, advertising opportunities, concessions and event scheduling.
Superlative President, Myles Gallagher, will present the findings of the phone survey and focus groups to the Board of Trustees next Saturday.
Superlative continues the preliminary work of Convention Sports & Leisure, which conducted an earlier study looking at potential revenue flows, based on similar projects at other universities.
Woodruff explained that the goal is to make an arena “budget neutral.” He said, “The intention is to not let this project have a negative impact on the general operating budget.”
The feasibility of an arena, estimated at $60-70 million, depends upon the combination of debt service and donations.
Woodruff said that the debt service for the project would be covered by the annual revenue from the arena rather than the University general operating budget. Therefore the amount necessary to raise in donations must be the remaining cost of the project. For example, if the arena could support $25 million in debt service, which would be recuperated in annual revenue, donations of $35-45 million would be necessary to begin the project.
“We need people to step forward and support the project,” Woodruff said. “If we need to raise $40 million, we’ve got a long way to go.”
Current plans for an on-campus arena include 10,000 to 13,000 seats, with the ability to host athletic games, as well as concerts, commencement ceremonies and other large events.
An on-campus arena has been included in the list of projects for the Grand Center tax-incremental financing proposal, which is currently being considered by the St. Louis Board of Aldermen. The TIF plan would use tax revenue generated from new development in the Grand Center area to be allocated back to much of that development. The plan calls for $15 million in tax revenue to go to a Saint Louis University arena. A vote on the TIF plan is expected by February.
