![]() ![]() In turn, any taxes generated for the city above $1.75 million would go back to the arena as the “support contribution.” The tax threshold before the city surrenders the support contribution would increase each year by the lesser of a 2% escalation rate or the consumer price index.Baltimore Sun eNewspaper Home Page Close Menu Once the project meets an internal rate of return - or a profit - of 15% of the original investment, the city would receive a “landlord upside” of 25% of the cash that would otherwise be distributed to the equity owners. After the first 10 years, the partnership would be obligated to fund at least $1.5 million a year for such upgrades, the agenda states. would aim to raise $500,000 each year in charitable contributions through fundraisers and fund at least $750,000 annually in the first 10 years for ongoing capital improvements and replacements. The city also may rent the space for four events each year on a “direct cost reimbursement basis.”īased on the agreement, Baltimore Arena Co. The agreement would require Oak View Group to host a minimum of 84 annual events at the arena, including “concerts, sporting events, civic events, family shows, trade shows, and other events,” according to the agenda. “It will be a venue of choice for touring acts.” “There will be a significant amount of exterior upgrades, but the vast majority is really renovation or gut rehab of the interior to make it modern for today’s events,” he said. Tarbert said coming to an agreement less than six months later and almost a year exactly to when the request for proposals went out demonstrates the private sector’s willingness to invest in Baltimore. Oak View Group is an experienced operator involved with arenas in Seattle Elmont, New York Palm Desert, California Manchester, United Kingdom and at the University of Texas at Austin. “A new state-of-the-art entertainment facility in Baltimore will improve our ability to attract top-tier events and boost downtown development,” he said. But Mayor Baltimore Brandon Scott, who sits on the five-member board, indicated his support Tuesday afternoon, citing the quick turnaround time for construction and commitment to minority- and women-owned business participation. Tarbert said he couldn’t predict how the spending panel would vote. ![]() Oak View Group’s “aggressive” construction timeline and ability to shoulder all of the risk in the investment also piqued BDC’s interest, according to Wednesday’s agenda. ![]() The BDC’s board chose Oak View Group in June, largely due to its commitment to solicit 45% minority and women-owned business participation and reserve at least 25% of the equity investment for minority investors, including Durant’s company. The BDC released a request for proposals last November and received three bids from what Tarbert described as the three top stadium management and development groups in the country: Oak View Group, Spectra, and Metropolitan Development and ASM, the present operator. Inside, the arena will be renovated with modern seating, new food and drink vendors, and amenities for patrons. The partnership of Oak View Group and Durant’s Thirty Five Ventures will expand the arena’s capacity by about 10% to 15% and add significant exterior upgrades to the facility including balconies, an outdoor plaza, lighting and sidewalk improvements, Tarbert said. “Coming out of COVID, but still in COVID, there’s a level of excitement to get the renovation done during this period, with the assumption that concerts and events will be back in full swing.”Ĭity officials and business leaders have been discussing how to replace the cramped arena, which dates to 1962, for at least 20 years with little progress. “The arena will be a game-changer for lifting up that side of town,” Tarbert said. Baltimore Sun eNewspaper Home Page Close Menu
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