New Amsoil Arena In Duluth Impressive: “If You Build It They Will Come”
by Scott A.. Sumner
www.thunderbaybusiness.ca
When you glance towards Canal Park in Duluth while driving from their expressway downtown you can’t help but see the spanking brand new $80 million Amsoil Arena.
The Amsoil Arena opened December 30th 2010 and is a 6764-seat arena, which can hold over 8000 people for concerts.“ We transitioned from the old DECC arena which was 5200 seats, so gained about 1500 seats. Also we now have 15 luxury suites along one side of the building. Each one of those suites holds 12 people as well as they have 4 drinking rail seats,” said Jeff Stark, Technology and Hockey Operations Director of DECC.
“ We also upgraded our press facilities and television studios. We went from having 8 people jammed in the press box to space for 24 people as well as private boxes for home radio, home TV and away radio. The visiting and home teams also have boxes for their use there as
well. We have come a long way in technology. The home coaches have the ability to tape the game, feed it down to the locker room and tape shows in real time to break down in the intermissions. They have 4 different camera looks they can use. It is quite a nice tool for the
UMD kids playing here.”
The construction cost of the Amsoil Arena was about $ 80 million or $78 and change with some interest charges according to Stark. “It is a unique facility that was financed 50% with state funds, 1/4 from a special city sales tax on food and beverage, the DECC did a 1/8th of
the bond costs and the University of Minnesota Duluth instead of paying rent to the facility pay some debt service on the bonds which will last for 20 to 22 years depending on the market in the future. It was partnership of a bunch of levels of governments,” said Stark. “ We had
such a good track record with the DECC since 1966 with the arena and auditorium at the start. Now we have 2 convention centers, a 10 plex movie theatre, Omni max theatre, a 700 foot ore boat and this is the crown jewel, the Amsoil Arena.”
“ We did a deal with Amsoil for arena naming rights. Al Amtousio, President of Amsoil was a fighter pilot and became the first in synthetic oils. He moved his company to Superior, Wisconsin and is a good corporate citizen. They sponsor local snocross and other local
races as well as National events. It was a $ 6 million sponsorship with $2 million up front and $4 million payable over 20 years. This was a great thing for us as we wanted a local company and their name ( Amsoil ) is in front of 40,000 cars that drive by each day. It is name recognition but also to promote the city.” said Stark.
As soon as the DECC got their state bonding money they went fast and furious with it, starting construction April 2009 and worked through December of 2010, about 20 months in total. The existing parking ramp had 400 spaces in 2001 with Harbour Centre. The DECC added a 550 space parking ramp at a cost of $13 to $14 million. The Amsoil Arena cost as a stand-alone is a shade over $56 million and there was some dirt work and piling.
“ We needed to replace the parking places when used them for the arena space. In October 2008 we started the parking structure and worked over the winter with piles and then precast. There was a local referendum in the City of Duluth for the project. Minnesota Governor
Tim Pawlenti would only support the project if the Duluth citizens voted to increase the sales tax signaling they were serious. In 2007 it passed with 63% of Duluth people who voted for a 1% tax which will sunset in 20 years,” said Stark. “ Then the project was put on his (Governor Pawlenti) bonding bill. We were shut out for two years in a row but in the third year ( 2008) we got it and started construction in 2009.”
The Amsoil Arena has a similar feel to the Excel Centre in Minneapolis and was designed by the same team. During my tour of Amsoil Arena the set up was in progress for a sold out Elton John concert that night.
“ For Elton John we are putting 1854 seats on the ice floor of our standard NHL rink size, so that’s all we can hem in here. We are also filing in the players and penalty boxes as well, looking at over 8000 people in total for the concert,” said Stark. “ We sold out Elton John in 42 minutes, a record, mostly due to internet sales. The tickets with taxes were $70 to $135 with some with obstructed views at $27 so everyone could see Sir Elton.”
The goal of the DECC was to build a multi purpose facility. “ We have the student section for hockey games which holds about 1000 students and folds back for concerts. We put our opponents in the 1st and 3rd period in this part of the ice, which is unfriendly to the opposing teams. The top area here is overbuilt because they can need 65 hang points for a concert. It is a friendly building for a multi-purpose centre. We had the circus here for 6 nights. The UMD
students will graduate here and we have Michael Buble next month,” said Stark. “ Typically we do 50 days of activities here in a year. The MND National Men’s US hockey champions play 20 home games, as do the women’s team and there are about 12 concerts and other events such as Gramma’s Marathon which will start up here with packet pick up. We expect 15,000 for that event alone,” said Jeff Stark. “ The hockey draws well for us as well. We were at 3500 season tickets in the old building and are 5000 for this building that leaves us 1500 tickets available that can go very quickly. We have good talent here for our hockey teams and hope for 500 more season tickets this year. Some is the excitement for the building and some for the teams.”
The corporate sponsors at the new Amsoil Arena are also through the roof according to Stark. They rent the suites for 3 1/2 years at $25,000 per year and were sold out in 2 months with no word out there. “ It brings in some different revenue streams for us. Our food and concessions has grown double digit as well. The people like to eat and drink when they come here. With practice five days and games two day we turned away concerts tickets in the past for the hockey but now don’t have to do that,” said Stark. “ It is kind of like if you drop a pebble in water it has a ripple effect. We can get convention, concert and hockey people now so they stay here, eat and drink. We want the tourism and hospitality industry to boom in Duluth. The DECC has been in the business since 1966 and we are closing in on a million square of available space. It was difficult to have national acts in the past so we can now do a concert and the hockey game here at the same time. The old DECC can hold 8000 for a concert. At one event we had over 10,000
people on site in total. Our mission here is to bring people into the area.” said Stark.
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