Developers to present Jordan Valley proposals

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Three developers will formally present to a selection committee their proposals for a multipurpose arena in Jordan Valley Park at a June 27 meeting in the Busch Building. |ret||ret||tab|

Phoenix, Ariz.-based Nustadia Developments USA Inc., St. Louis-based Group Seven Investments LLC and Chicago-based developer Horn Chen, majority owner of the Ozark Mountain Ducks, submitted their proposals for the project June 16 to the Springfield Planning and Development Department. Ultimately, the arena will be used for minor league hockey and other events in Jordan Valley Park.|ret||ret||tab|

Nustadia's arena proposal has a construction cost of approximately $24 million, Group Seven's is approximately $23.8 million and Chen's is approximately $17 million. |ret||ret||tab|

The 10-member ad hoc selection committee, which is comprised of representatives from the Center City Development Corporation, City Council, city staff and a private engineer, will make its recommendation for a developer to the CCDC June 30. The CCDC will act on that recommendation July 10 and forward it to City Council, which will vote on a resolution to designate the developer in its July 24 meeting. The CCDC, which was created by the city, will own the arena, issue bonds to finance the development and construction of it and lease it to the city. |ret||ret||tab|

The city's requirements for the arena, which will be designed, built and operated by the developer, are that it must provide:|ret||ret||tab|

6,500 to 10,000 fixed seats;|ret||ret||tab|

Movable seats to increase the capacity for events other than minor league hockey;|ret||ret||tab|

Luxury suites;|ret||ret||tab|

Regulation ice for minor league hockey;|ret||ret||tab|

Requisite improvements such as locker rooms, storage space and offices to accommodate minor league hockey, other minor league sports and concerts;|ret||ret||tab|

Requisite amenities such as a restaurant and concession stands;|ret||ret||tab|

An exterior design consistent with the Jordan Valley Park design concept.|ret||ret||tab|

Sansone's and Chen's proposals both involve finishing construction on the arena in time to open the facility in the fall of 2002, which means the property for the arena and its financing must be in place by March 31, 2001, according to their proposals. Both Chen's and Sansone's proposals also involve a maximum $600,000 contribution to the arena by the city, and includes the land it will sit on. |ret||ret||tab|

Nustadia Developments' proposal did not mention an amount for city contribution, nor did it mention an estimated completion date for the arena, although it mentioned a joint-use agreement for the arena.|ret||ret||tab|

The arena's working location is a tract of land between St. Louis and Trafficway, west of Hampton Avenue, between the U.S. Courthouse and Hampton, according to Mary Lilly Smith, the economic development coordinator for the city.|ret||ret||tab|

Tony Sansone Jr., who owns Group Seven Investments, announced his plans for a Springfield civic arena in late 1999. Group Seven's proposal includes seating for approximately 8,500 for minor league hockey and 10,000 for other events. The facility would be home to one or more minor league sports franchises, according to Group Seven's proposal. |ret||ret||tab|

Unlike Nustadia Developments and Chen, Group Seven has no affiliation with any minor league sports team, but has spoken with the United Hockey League on the topic. |bold_on||bold_on||ret||ret||tab|

Nustadia Developments, which is owned by the Canada-based Cochrane Group and has more than 30 years of experience in developing stadiums, proposed a 5,000-seat arena for hockey with up to 6,800 seats for other events, such as concerts, ice shows, figure skating championships, circuses, vehicle races and competitions. Nustadia proposed the city re-think its seating requirement, citing markets similar to Springfield in which facilities the size of the city's seating requirement have historically failed to generate sufficient revenue to cover operating costs and service debt and usually require public subsidy. The company concluded its proposal by stating the project must be re-worked to reflect the true market conditions of Springfield. The new plan would allow for a businesslike approach to the development and operation of the facility, minimizing or even eliminating the need for continued annual operating subsidies by the taxpayer and reducing the city's risk.|ret||ret||tab|

A feasibility study to determine if Springfield could support a multipurpose arena was completed in May, and will be the only study of its kind performed with regard to the Jordan Valley Park arena, according to Smith.|ret||ret||tab|

Nustadia has an affiliation with the Western Professional Hockey League, which would seek to form a team in Springfield. |ret||ret||tab|

Horn Chen's $17 million project calls for an 8,500 to 9,000-seat arena for minor league hockey and arena football and be home to one or more minor league sports franchises, including arena football. Chen owns one arena football franchise in Tulsa, Okla., and another to begin play in Memphis, Tenn., next year, and the same franchise could be used for a Springfield team. Chen is also the majority owner of the Central Hockey League, which would form a team in Springfield. Chen proposed the facility could be used for other ice and non-ice events such as Ice Capades, NBA exhibition basketball, WNBA exhibition basketball, concerts and other events and conventions. |ret||ret||tab|

Attorney Chip Sheppard represents Chen and said in a previous issue of the Business Journal that Chen has a definite interest in bringing the Central Hockey League to the Springfield area. He added that if Chen's proposal is not chosen for the downtown arena, he may look elsewhere, including Ozark, to build a different ice facility. |ret||ret||tab|

Smith said the committee's selection of a developer for the arena will hinge on several details, including if the developers have included a process for competitive bidding and a process for sharing savings if the project comes in at a lower cost than the guaranteed maximum price. |ret||ret||tab|

Presentations by the developers will begin at 8:30 a.m. June 27 in the fourth-floor conference room of the Busch Building and are open to the public. |ret||ret||tab|

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