The City of Belleville has released some details on the agreement with Ottawa Senators Owner Eugene Melnyk, regarding the movement of their AHL team from Binghamton, New York to Belleville, Ontario.
Included in Wednesday’s announcement was the Lease, License & Loan Agreement, between Melnyk and the City.
THE LOAN: The amount of the loan has not been disclosed at this time. The city has provided a loan to the Belleville Senators for what they call enterprise capital costs, which includes purchasing the team and start up dollars.
The loan will be advanced with payment terms, and a portion of the loan is guaranteed. The City of Belleville has the right to have an observer at the Board of Director meetings, restrictions on the team incurring third party debt, undertaking other borrowing, receiving a copy of the teams audited financial statements, restrictions of the team allowing a change of control and restrictions on making a return of capital to the owners.
The loan becomes due if the team relocates to another city, the team is sold, or there is a change of control (outside of the Ottawa Senators)
THE LEASE: The deal is eight years, with an option for the team for another five. The city will receive $150,ooo + HST + utilities in years 4-8 of the deal, plus up to $50,000 per season. The first three years of the deal are rent free. If the team options the next five years, up to $1 million will also come to the city. The team will use the facility about 15 percent of the time.
The Yardmen Arena will be available to the Belleville Senators for games, practices, training camps and special events. 38 regular season games, 80 practices and preseason games. Any additional hours will be charged by the city.
START OF SEASON: The Belleville Senators will arrange to start as many games as possible on the road for the 2017-18 season, while construction crews complete upgrades to the arena. Training camp ice time will be covered by the city, in other ice pads at the QSWC.
COST OF ARENA UPGRADES: The construction hard costs are projected at $16 million, with an overall project budget of $18.5 million. You can look at the arena upgrades by CLICKING HERE
ADVERTISING: The Belleville Senators will get advertising revenues in the Yardmen Arena, including walls, boards and the naming rights of the Yardmen Arena. The revenues do not go past the lease term and the team is responsible for costs of installation. The team will also receive all digital marketing and sponsorship rights for the Yardmen and the Quinte Sports and Wellness Centre. The city will pay $50,000 towards the outside digital television.
PARKING: There will be no charge to customers for parking (small VIP areas may be the exception to this).
CONCESSIONS: The Belleville Senators have the exclusive right to the concession areas within the Yardmen, the costs of operating them and the revenues generated.
GAME DAY ASSISTANCE: The city will pay for pre and post-game cleanup, ice preparation, cleaning washrooms and public areas, along with garbage and recycling pickup.
The hockey team will pay for security, policing (up to four officers), EMS Services, ticket sales, concession staff, lounge and kitchen staff, sound and video production, ushers, game entertainment and shovel crews.
ECONOMIC IMPACT: The City of Belleville and the Belleville Senators project an economic impact in the city of $15 million a year.
OTHER DETAILS: The team will be given early access to the QSWC box office and all upgrades to the office is on the team.
The Belleville Senators have agreed to invest in local minor hockey and charities, including player interaction and local fundraisers and events.