McLeod Center Budget Grows Again
Posted on: Thursday, 4 May 2006, 21:03 CDT
By Emily Christensen, Waterloo-Cedar Falls Courier, Iowa
May 4--CEDAR FALLS --- It took two tries but the Board of Regents Wednesday approved a $1.75 million increase to the McLeod Center budget bringing the project total to nearly $26 million.
University of Northern Iowa administrators first brought the request for approval of a new scoreboard and video equipment to the board in March.
The Regents asked the university to review its proposal and explore other financing avenues before resubmitting the plan this month.
Though few changes were made, Board President Michael Gartner said it was obvious the university and board office had done their homework. It also helped that Tom Schellhardt, UNI's vice president for administration and finance, guaranteed that no taxpayer dollars would be used to finance the scoreboard.
The university will use a taxable loan to pay Daktronics Inc., for the new equipment, which will cost about $875,900. Loan payments will be made using revenue from advertising contracts they expect to secure for the arena. The business plan requires at least $218,000 in advertising sales each year, though Daktronic marketers believe the university can secure between $600,000 and $800,000 yearly.
"If we needed to support any shortfall, we do have the funds to do that," Schellhardt said. "But, really, we don't believe it will be necessary."
Schellhardt said this arrangement, which will cost the university about $3.8 million over the next 10 years, is a substantial savings when compared to the other option of relinquishing all advertising rights to Daktronics, which would cost the university about $6 million.
Additional funds, including $500,000 from the foundation and $375,000 from the 1991 sale of its golf course will replenish the project's contingency fund and purchase other furnishing and equipment items.
"I think it is going to be an excellent and magnificent facility," said Regent Robert Downer, who toured the arena last week.
Schellhardt also addressed the board's earlier concerns about the planned construction of a full catering kitchen and the university's plan to run its own catering and concessions. The university did decide that a fully equipped kitchen in the McLeod Center would be an unnecessary expense for now and has decided to only purchase some items needed for proper food storage.
The university will also continue providing its own concession services at the new arena. Since 2002 the university has increased its concession net income from about $200,000 to more than $400,000.
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Source: Waterloo Courier
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