PRESCOTT VALLEY - Global Entertainment Corp., the Tempe-based company that brought Tim's Toyota Center to Prescott Valley, has not had the best track record with events centers elsewhere in the country.
In fact, Global has parted company in at least two communities where it has operated events centers: in the Albuquerque, N.M., suburb of Rio Rancho and Wenatchee, Wash.
City officials in both cities confirmed via e-mail press accounts about Global's perceived shortcomings in arena management.
The Greater Wenatchee Regional Events Center Public Facilities District terminated its contract in June with Global effective Sept. 3, Allison Williams, the city's executive services director, stated.
The city invested in the Town Toyota Center, but the community facilities district issued the bonds.
The center cost $52.4 million, but the bond issue amounted to $41 million because the city contributed equity, Williams wrote.
District officials fired Global, the management company for the arena, after arena revenues for 2008 fell far short of the approximately $800,000 Global had predicted, the Wenatchee World reported. The center opened in October 2008.
"The building could not meet the budget expectations from the city," said Rick Kozuback, president and chief executive officer for Global. "They felt they could do a better job on their own."
Kozuback continued, "It was about break-even for the first year."
He blamed Global's departure from the Santa Ana Star Center in Rio Rancho on its remote location.
The center, which opened in 2006, was built "quite a ways out of town in a retail district," Kozuback said. "The building up until recently was sitting out in the desert."
City officials blame debt for relieving the company of its management and operations duties effective Jan. 31. As of that date, they calculated Global left $367,608 in debt and amounts owed, according to Peter Wells, chief communications officer and assistant to the city manager.
"This subject is now part of a lawsuit between Global Entertainment and the City of Rio Rancho and is in its early stages," Wells wrote.
Wells wrote the city issued nearly $35.8 million in taxable revenue bonds June 29, 2005, to finance construction of the center. That is similar to the $35 million in bond financing for Tim's Toyota Center in Prescott Valley.
Despite Global's setbacks, the company continues to bring events centers to other communities throughout the United States.
A press release that Business Wire transmitted announced the grand opening ceremonies in November of events centers in Allen, Texas, and Independence, Mo.
"We expect to earn advertising sales commissions and facility management fees through our multi-year contracts with Independence, Missouri, and Allen, Texas, throughout the fiscal year," Kozuback stated in a separate press release dated Oct. 15. "We are making every effort to meet the challenges faced in these difficult economic times as we focus on effective operation of our core businesses and on controlling expenses."
Posted: Monday, December 21, 2009
Article comment by:
No name provided
Kozuback's explanation for Global's failure in Rio Rancho is a joke. The arena is remote but the real reason the arena failed is Global's total failure to manage it. Kozuback was more concerned with building new arenas than keeping his existing ones running and as a result, the arena didn't book decent shows and had no money for marketing. The City of Rio Rancho had a report completed by an outside firm that showed the arena was not run appropriately and that Global could not even account for how the money going into and out of the arena had been spent. Rest assured, Prescott Valley's arena will never meet financial projections under Global's management - none of these arenas do. Yuma did the smart thing and rejected Global before they could build the arena there. Now that Prescott Valley has the arena, the community will have to figure out how to deal with the wreckage Global leaves behind in every city it colonizes.
Posted: Sunday, December 20, 2009
Article comment by:
Its a 4 letter word ...
Look the towns folks took a beating on that white elephant arena. Why not chain the doors closed cut off its power abandon it, retreat and lick our wounds over having gotten taken to the cleaners by the town government so seems to want to dance with.
Posted: Saturday, December 19, 2009
Article comment by:
No name provided
Is a large prison how we want to use our precious water resources?
Posted: Saturday, December 19, 2009
Article comment by:
No name provided
The possible prison will be another Prescott Valley fiasco, similar to the Toyota Center, but supported by Mayor Skoog.
Posted: Saturday, December 19, 2009
Article comment by:
Tom Steele
Yet another example of private-public partnerships only benefiting a few private businesses and the taxpayer getting the losses to cover.
