THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Saturday, January 11, 1997 TAG: 9701110035
SECTION: FRONT PAGE: A10 EDITION: FINAL
TYPE: Editorial
LENGTH: 95 lines
The effort to bring the NHL Rhinos to Hampton Roads has passed another milestone. On Tuesday, prospective owner George Shinn will be able to make a $143 million arena deal a part of his formal presentation to the National Hockey League.
The Hampton Roads Partnership negotiated the arrangement with Shinn in an example of the kind of cooperation that hasn't always characterized the region. Under the terms of the deal, if Hampton Roads manages to win the Rhinos franchise, a Hampton Roads Sports Facility Authority will issue bonds to pay for an arena. Debt service of $8.8 million a year will be required.
Shinn will sign a 30-year lease for 43 annual hockey dates and pay $1 million a year. Tax revenues generated by the facility itself will provide another $4.8 million. The region's cities will find themselves on the hook for $2.3 million a year. As a percentage of their combined budgets, that's not a huge outlay. If the franchise is won, Norfolk - as the site of the arena - will also bear millions in infrastructure expenses.
The formula whereby the cities would share in the debt service costs was evolved in another heartening instance of regional give and take. Virginia Beach officials proposed to Norfolk Mayor Paul Fraim that each city would pay $1.50 per resident per year. Understandably, in some quarters the willingness to help fund a regional team was contingent on a regional name, which Shinn wisely adopted.
Of course, there will be no ribbon cutting anytime soon. First, Shinn has to win a stiff competition for the franchise. And Hampton Roads is considered a long shot by some knowledgable observers.
Then, if the NHL grants the Rhinos franchise to Shinn, the state of Virginia and area city councils will have to endorse the deal. But the journey to win a franchise (or to create regional cooperation) is taken one step at a time. Every milestone that's passed is worth noting with satisfaction.
The effort to bring the NHL Rhinos to Hampton Roads has passed another milestone. On Tuesday, prospective owner George Shinn will be able to make a $143 million arena deal a part of his formal presentation to the National Hockey League.
The Hampton Roads Partnership negotiated the arrangement with Shinn in an example of the kind of cooperation that hasn't always characterized the region. Under the terms of the deal, if Hampton Roads manages to win the Rhinos franchise, a Hampton Roads Sports Facility Authority will issue bonds to pay for an arena. Debt service of $8.8 million a year will be required.
Shinn will sign a 30-year lease for 43 annual hockey dates and pay $1 million a year. Tax revenues generated by the facility itself will provide another $4.8 million. The region's cities will find themselves on the hook for $2.3 million a year. As a percentage of their combined budgets, that's not a huge outlay. If the franchise is won, Norfolk - as the site of the arena - will also bear millions in infrastructure expenses.
The formula whereby the cities would share in the debt-service costs was evolved in another heartening instance of regional give and take. Virginia Beach officials proposed to Norfolk Mayor Paul Fraim that each city would pay $1.50 per resident per year. Understandably, in some quarters the willingness to help fund a regional team was contingent on a regional name, which Shinn wisely adopted.
Of course, there will be no ribbon cutting anytime soon. First, Shinn has to win a stiff competition for the franchise. And Hampton Roads is considered a long shot by some knowledgable observers.
Then, if the NHL grants the Rhinos franchise to Shinn, the state of Virginia and area city councils will have to endorse the deal. But the journey to win a franchise (or to create regional cooperation) is taken one step at a time. Every milestone that's passed is worth noting with satisfaction.
The effort to bring the NHL Rhinos to Hampton Roads has passed another milestone. On Tuesday, prospective owner George Shinn will be able to make a $143 million arena deal a part of his formal presentation to the National Hockey League.
The Hampton Roads Partnership negotiated the arrangement with Shinn in an example of the kind of cooperation that hasn't always characterized the region. Under the terms of the deal, if Hampton Roads manages to win the Rhinos franchise, a Hampton Roads Sports Facility Authority will issue bonds to pay for an arena. Debt service of $8.8 million a year will be required.
Shinn will sign a 30-year lease for 43 annual hockey dates and pay $1 million a year. Tax revenues generated by the facility itself will provide another $4.8 million. The region's cities will agree to provide $2.3 million a year. As a percentage of their combined budgets, that's not a huge outlay. If the franchise is won, Norfolk - as the site of the arena - will also bear millions in infrastructure expenses.
The formula whereby the cities would share in the debt-service costs was evolved in another heartening instance of regional give and take. Virginia Beach officials proposed to Norfolk Mayor Paul Fraim that each city would pay $1.50 per resident per year. Understandably, in some quarters the willingness to help fund a regional team was contingent on a regional name, which Shinn wisely adopted.
Of course, there will be no ribbon cutting anytime soon. First, Shinn has to win a stiff competition for the franchise. And Hampton Roads is considered a long shot by some knowledgable observers.
Then, if the NHL grants the Rhinos franchise to Shinn, the state of Virginia and area city councils will have to endorse the deal. But the journey to win a franchise (or to create regional cooperation) is taken one step at a time. Every milestone that's passed is worth noting with satisfaction.