THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Monday, February 3, 1997 TAG: 9702030032
SECTION: LOCAL PAGE: B5 EDITION: FINAL
SERIES: THE NHL IN HAMPTON ROADS
SOURCE: BY TONY WHARTON, STAFF WRITER
LENGTH: 91 lines
The Virginian-Pilot asked readers for questions about Hampton Roads' bid for a National Hockey League expansion franchise, and we posed several of them to area mayors and officials. The officials- except Norfolk Mayor Paul Fraim, who referred most questions to the regional negotiators who put together the proposed arena deal - replied as follows.
RICHARD RAEHL, Virginia Beach:
``Where does this benefit me? I don't like hockey, I can't afford the tickets. What good does this do me?''
Background: The question of whether Hampton Roads residents will buy tickets for professional hockey games is up in the air. The Rhinos' backers say the excitement of a professional sports team will generate interest. Some have pointed to the success of the minor-league hockey team, the Admirals. But readers like Raehl said spending $8 for an Admirals ticket is different than paying the average $38 ticket price of a pro hockey game.
Response:
Regional team: ``We need to remember that this is not only about hockey; this project will result in the building of a 20,000-seat, state-of-the-art multipurpose arena. While the Rhinos are an important `anchor tenant' without whom the economics of the project would prove impractical, they will use the facility less than 12 percent of the year. Of course, that means for the remaining more than 88 percent of the year the Hampton Roads Regional Sports Authority will control it. With this kind of facility, we will be able to attract many events which previously wouldn't come to our region, such as men's and women's college tournaments which require a facility with a minimum of 18,000 seats.''
SYLVIA ALEXANDER, Virginia Beach:
``If the Rhinos are such a good deal, why don't the people who think it's a good deal get together and pool their money to finance this, instead of asking the taxpayers to do it?''
Background: George Shinn, owner of the pro basketball Charlotte Hornets, came to Hampton Roads with the idea of bidding for an NHL franchise. Shinn's idea was that he would put up the money for the team if the cities would finance a new arena. That means at least some direct tax revenues, a concept that doesn't always sit well with taxpayers.
Response:
Regional team: ``In a prior response we pointed out the fact that the Rhinos will only be tenants to the region's arena. It should also be noted that the arena will, in fact, be more than 70 percent financed solely by those who would use it.''
Tom Ward, vice president of marketing for the Charlotte Hornets and working with Shinn on the Rhinos:
``A very small percentage really is being financed through the public when you look at it. Just to show you the enormity of how this kind of thing is growing, we paid $32 million for the Hornets. Now it costs $80 million just to get in. Half of this will be financed through a bank. But the bank and the owner can't finance both the arena and the team due to the escalating cost.
``When you look at the funding formulas around the country, the average is 30 to 35 percent publicly financed. And don't forget, the team is not going to own the arena; we're just a tenant there. The sports authority will own the arena.''
BILL GREGORY, Virginia Beach:
``I interpret $1.50 a year to be my tax burden if the Rhinos franchise succeeds. How much must I pay if the franchise fails?''
Background: Although Gregory is a resident of Virginia Beach, this question has its roots in Nauticus, a $52 million tourist attraction in downtown Norfolk that has recently been taken over by the city because of its disappointing performance. Residents said they fear too rosy a picture is being painted of the Rhinos' future.
Response:
Regional team: ``We need to remember, we are not buying a NHL franchise, Mr. Shinn is (at a cost of approximately $100 million). The $1.50 per capita represents the amount which all regional communities are investing in a state-of-the-art, regional, multipurpose arena facility which will be controlled by the region.''
DANIEL OLSON, Virginia Beach:
``In the wake of Nauticus and other entrepreneurial projects, why should we trust you with more of our tax dollars?''
Background: See previous question.
Regional team: ``The negotiations which have brought us to this point have been undertaken by a team of regional representatives, with the benefit of the best available expert advice. Aside from the challenge of undertaking our first major regional effort, our instructions were to make a sound business deal based on reasonable assumptions. We believe this has been accomplished.'' MEMO: TUESDAY: ``Would this rule out or hurt our chances of getting a
pro football or basketball team in the future?''