THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Tuesday, November 1, 1994 TAG: 9411010409
SECTION: SPORTS PAGE: C1 EDITION: FINAL
SOURCE: BY HARRY MINIUM, STAFF WRITER
LENGTH: Long : 101 lines
The city of Norfolk wants to build a world-class, 20,000-seat arena downtown, one that would be a worthy home for a National Hockey League team, national conventions, major concerts and the NCAA Final Four.
Problem is, the price tag of $80 million or more is too steep for Norfolk to go it alone, and neighboring cities aren't likely to help. That's why Norfolk is exploring the possibility of joining with Old Dominion University to build a coliseum on the school's campus.
But there is another option, one that could lead to a big-time building that wouldn't bust the budget.
The city should look toward Greenville, S.C., which plans to construct a $53 million, 17,000-seat arena in its reviving downtown.
Greenville won't have to spend a dime in maintenance or operating expenditures for the first 40 years of the building's existence. Best of all, because private investors are taking part in the venture, the city is paying just $20 million for the $53 million arena.
Sounds almost too good to be true, but according to the guy who's spearheading this project, this type of financing is the wave of the future in sports arenas.
Carl Scheer, former general manager of the Charlotte Hornets, former commissioner of the CBA and president of the Charlotte Checkers hockey club, is the man who proposed building the Greenville arena.
His plan is simple. Greenville is donating the land for the arena and for parking, and is kicking in the $20 million. Scheer and a group of investors are putting up the remaining $33 million.
The private group will run the building for 40 years. They say they will recoup their investment and make a tidy profit before turning the coliseum over to the city.
The building will house arena football, an East Coast Hockey League franchise, Furman basketball, conventions, concerts and circuses. South Carolina and Clemson will play their annual basketball game there. Scheer also hopes to attract NCAA tournament games.
Because of Greenville's proximity to Charlotte (97 miles), and relatively small size (about 750,000 people in the metro area), Scheer says the coliseum's pro sports bookings will be limited to hockey and arena football. But having a large arena will bring dozens of other events that have been bypassing the city, including some of the same acts that skip Scope, William and Mary Hall and the Hampton Coliseum, this area's trio of 10,000-seat arenas.
Scheer acknowledges most city-owned arenas are losing money, even large arenas booked almost every night.
``But if you look at most of the privately owned arenas, such as USAir Arena (in Landover, Md.), they're doing quite well,'' he said. ``Most are making money.''
Private investors, with their own money on the line, tend to run large buildings more efficiently and market themselves more aggressively than a government agency.
Scheer will control parking, concessions and 30 luxury boxes. (At $40,000 apiece, they'll yield $1.2 million per year.) Scheer will also own the hockey and arena football teams, which means he'll control the sale of team novelties in the arena.
Blake Cullen, who brought the Hampton Roads Admirals to Norfolk, says Scheer will succeed.
``He's a very good businessman,'' Cullen said. ``I'm sure he's got the numbers worked out. He's a very sharp, perceptive guy with a lot of insight.''
If so, Hampton Roads could be on the edge of something great. Scheer said the attendance boom for the Admirals and the Norfolk Tides in recent years has erased the area's reputation as a sports wasteland.
``I think the Norfolk area would be viewed very positively by the National Hockey League,'' he said. ``People in hockey know about the enthusiasm there for the Admirals. And there isn't a major competitor in the market.
``We'd like to bring an NHL team to Charlotte. The question we have to answer is, will the market support another team? We've got the Hornets; the NFL is coming to town. Will the market support a $35 ticket for hockey as well? I don't know.''
That's a good question for Hampton Roads, too, as this is primarily a blue-collar town with limited dollars. However, unlike Charlotte, this is virgin territory. We have the nation's largest metropolitan area without a major sports franchise.
An NHL franchise would be the only game in town.
Does Scheer think a private/public arena will work in Hampton Roads, an area about twice the size of Greenville?
``It's hard to say,'' he said. ``You have to find your niche. In Greenville there's a lot of pent-up demand. You have to have the right set of circumstances.''
Before the city dares to explore that option, it must digest the results of a $100,000 study being funded by ODU and the Future of Hampton Roads to decide whether Norfolk should help the university build an arena.
However, Columbus, Ohio, commissioned a similar study with Ohio State and both decided recently to build their own arenas. It's doubtful that the ODU study will come to a different conclusion. The needs of a professional team and a local college often conflict.
Once the ODU study is concluded, and the area is ready to look at more rational options, Scheer says he'd be willing to share his ideas.
In case anyone's interested, I've got his phone number. by CNB