What can we learn from Lincoln's Arena Deal?

Interesting article on the Pinnacle Bank Arena which hosts U. of Nebraska Basketball team. What can we learn from it?

Project Overview:

The $190 million arena is part of a $344 million total redevelopment project, which includes purchasing existing railyard and lumber yard.

Public Financing

(1)  Voters approved $25 million general obligation bond

(2)  New Occupational taxes implemented to pay off the debt for the project

a.     4% tax on hotels and rental cars

b.     2% tax on restaurants and bars

There are 3 partners:

(1) Joint public agency (JPA) oversees the arena and the West Haymarket district

      -    Revenue from advertising, pouring rights, suite and premium seat sales, naming rights

-       Naming rights: $450,000 a year for 25 years ($11.25 million total) but discounted to $6,731,958 for accelerated payment.

(2) Arena – separate operator – covers operating expenses

      -     Revenues from festival parking lot, and share of revenues from basketball games

(3) University of Nebraska-Lincoln (Audit document)

Rental agreement:  $750,000 /year initial rent adjusted for inflation

Credits for share of ticket sales, $300,000 lost concessions adjusted for inflated

Net Rent was $312,000 in 2017

Revenues: Received $315,000 for share of premium seat sales in 2017

Sources:

Lincoln documents - https://lincoln.ne.gov/city/finance/account/jpa.htm

Audit - https://lincoln.ne.gov/city/finance/account/pdf/2017-08-31-JPA-Audit.pdf

Naming rights: http://journalstar.com/news/local/consultant-sues-over-commission-paid-for-arena-naming-rights/article_7f3a349c-7f36-527c-a3e9-09b05b395868.html

Watchdog article: https://www.watchdog.org/nebraska/beutler-acknowledges-arena-is

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