Arena exceeds targets

 


At 10 years of age, London’s downtown entertainment facility continues to outperform city hall expectations, a city council committee will learn Tuesday.


Budweiser Gardens continues to exceed attendance and revenue projections made when it opened in October 2002 as the John Labatt Centre.


Built for about $40 million, the public-private operation also has attracted acclaim among those who rank such facilities in North America.


When it opened, it was projected it would generate annual net proceeds to the city averaging $169,563, deputy city treasurer Mike Turner says in a report to the investment and economic prosperity committee. But the average net income has been $274,015 annually.


“The Budweiser Gardens continues to outperform pre-build expectations,” Turner said.


Last year, he said, more than 650,000 people attended events at the Gardens, more than 50% higher than had been projected.


The peak for annual attendance was 772,294 in 2005 when it played host to the Memorial Cup.


Turner said as of the end of 2012, city hall still owes $19.7 million for the facility and that will be retired in 2023.


 


http://www.lfpress.com/2013/02/15/arena-exceeds-targets

Message 1 of 17
latest reply
16 REPLIES 16

Arena exceeds targets

And, there are idiots on the council that want to sell it.


How many other profitble investments do we have in London.


Usually, city buildings become white elephants and money pits.


Here we have a rare success and we would sell it for a small portion of it's cost.

Message 2 of 17
latest reply

Arena exceeds targets

the public-private operation also has attracted acclaim among those who rank such facilities in North America.


 


Who would that be?


 


But the average net income has been $274,015 annually.


 


Peanuts


 


It's nothing but a glorified hockey rink with halls that have the personality of a hospital ward.


 


And it should have stayed the John Labatts Centre. Budweiser is typical, with it's lack of respect for the people.





Photobucket
Message 3 of 17
latest reply

Arena exceeds targets

valve37
Community Member

Unfortunately the 274k falls far short of servicing it's debt. By the time it is paid for it will be ready to be torn down. Except for the lower cost events like junior hockey a large proportion of London tax payers cannot aford events like Neil Diamond recently. However they still have to pay for servicing the debt. When cities like London sell places like this to the taxpayers it's always tooted as the impending spinoff. None of that spinoff has ever reached my doorstep, however the spinout has.


The next spinoff establishment we will be sold on is a performing arts centre for the London elite.


 Worthy to note that Springbank Park and Pioneer Village have always required city subsidies to stay afloat. However one can look at it as subsidising the wages of those that work there.  

"It came to me that every time I lose a dog they take a piece of my heart with them. And every new dog who comes into my life gifts me with a piece of their heart. If I live long enough, all the components of my heart will be dog, and I will become as generous and loving as they are."--Unknown
Message 4 of 17
latest reply

Arena exceeds targets

Unfortunately the 274k falls far short of servicing it's debt.


 


It is not all about debt.


How much does it contribute to the overall revenue for the city?


I know two restaurant owners within two blocks of the arena (I still call it the JLC).


Both of these individuals say that the facility has meant the difference between barely staying in business to profitability.  How many other downtown restaurants and bars are in the same position.  Try to get a table on a Friday night when the Knights are in town, or there is a big concert.


How many people are employed in these businesses?  How many parking lots are full rather than empty?


How many cabs take fares to and from the arena?


How much tax revenue is generated?


The $274,000 is a drop in the bucket.  The financial contribution of this facility, on an annual basis, is much higher

Message 5 of 17
latest reply

Arena exceeds targets

I have a tendency to agree with most of what valve said.


 


I know two restaurant owners within two blocks of the arena (I still call it the JLC).


Both of these individuals say that the facility has meant the difference between barely staying in business to profitability. How many other downtown restaurants and bars are in the same position.


 


So that whole complex and costs help two, maybe three, ok lets say 5 restaurants. I’m not impressed. London has no real plan and the Labatt Centre was no different. It’s helped two blocks on King St and maybe a half a block on Dundas and maybe one restaurant on Carling but that’s it. Downtown is a disaster with most of it’s family retail gone. Closed stores and abandoned buildings and now a new murder at Richmond and Dundas.


Valve mentioned the elite. The Labatts Centre has become the elite. Tickets for events are atrocious. The Centre itself is not conducive to entertainment. It works best for hockey and monster trucks…..so obviously those interested in sports such as hockey think it’s the best thing since sliced bread.


 


As for all the other questions you asked when it comes to income for different types of people, maybe you should find out those stats before asking about them as if it has created any major difference for the few.


 


For the average person London….the Labatts Centre is a failure…..just another give away to a developer. Also as London grows and lets say more people do go to the Centre…..where will all the parking be? There was no thought for the future in many aspects. The Centre was from the start……in the wrong location.   





Photobucket
Message 6 of 17
latest reply

Arena exceeds targets

Tickets for events are atrocious.


 


Wouldn't disagree.


Why are they so high?


Because people line up to buy them.


My sons friend got four tickets to the Pearl Jam concert.


He was offered six times what he paid for them.


As long as concerts continue to sell out, the prices will remain high.


 


help two, maybe three, ok lets say 5 restaurants.


 


Walk around the area.  Lots more restaurants than that.


 


Closed stores and abandoned buildings.


 


How many more would be closed if the arena shut down tomorrow?


 

Message 7 of 17
latest reply

Arena exceeds targets

As for all the other questions you asked when it comes to income for different types of people, maybe you should find out those stats before asking about them as if it has created any major difference for the few.


 


Rhetorical questions. 


If you go down to the arena when an event is running, you will see all the business being done.  Cabs everywhere.  Limos.  Buses.  Looking at London today, every job it supprots directly or indirectly is a good thing.  You should try looking at the positives.  All this negativity is not good for you.

Message 8 of 17
latest reply

Arena exceeds targets

Walk around the area. Lots more restaurants than that.


 


Been there, seen them. One place I eat often is the Marienbad. So the arena was built to support restaurants and maybe 200 to 300 staff?


 


Seriously though…..ask people other than hockey fanatics….has the arena had a plus effect on their lives. You have about 350,000 people to ask. My guess it on the top end probably 5% will say it has. Has the arena done any good for anyone east of Richmond? No. Building it, they put the cart before the horse.


 


My negativity? LOL What my negativity would have done is spend the money intended for this edifice in a way that it benefited most of the population in some way, rather than just a few.


I’ve been to the arena for a concert. The acoustics are horrible. It’s a hockey garage trying to be Albert Hall. 





Photobucket
Message 9 of 17
latest reply

Arena exceeds targets

prior come on man glass half empty  LOL ..helping all with 1 arena would never happen and 5% is alot more then 0% ..

Message 10 of 17
latest reply

Arena exceeds targets

My only real complaint is that it hard for Londoners who paid to build it to get tickets for popular events.


 

Message 11 of 17
latest reply

Arena exceeds targets

If you are seeking tickets for a popular event, such as a concert, hang out at the venue the day of.


 


Once the stage configuration is in place extra tickets are usually released a few hours before show time. They are usually great seats.

Message 12 of 17
latest reply

Arena exceeds targets

Actually.....glass 95% empty


 


Maybe lurk can answer the question, with him being an area resident so to speak. Has the arena done any good for him, especially being as people bring their kids downtown for the hockey games and other events geared towards many younger viewers. Also, does he know of any stores or even restaurants from lets say east of Richmond who have truly gained from the arena?


From my perspective one of the problems is the arena events for the most part are held in the evenings and by that time the retail stores in the area are for the most part closed. Of course they could stay open with the 'hopes' it would bring more customers, but then they would have to hire more staff for an evening shift and at that point.......there goes any additional profits.


 


The only people that the arena may have benefited are the nine restaurants on the one side of the street on King from Ridout to Richmond (two blocks)....if people can afford eating at most of them.....or the three restaurants on Dundas between Talbot and Richmond. Also possibly some of the retailers in the sterilized, over priced, once great Market building may benifit to some degree.


When visitors to the 'Labatts Centre' come downtown for an event (if they can afford the tickets) they get there and park (add that price to the night of entertainment) and then after the event they leave.....especially at 'night'. There is virtually nothing else in downtown to spark any interest to keep visitors downtown before or after an event and that specifically applies to families.....and neither is there much to bring them back to downtown to see or experience anything twice.


At one time London had between Richmond to Wellington, 3 movie theatres and two on Clarence. These brought people and families downtown. They are all gone now. At one time there was Eatons and Simpsons with everything from clothing to luggage to appliances to childrens toys.....all gone now. There were also smaller clothing and shoe stores, some with very good merchandise.....all gone now.


 


London is owned by developers and the city council and the planning department are also owned by them. Yes cities grow (although I personally do not think that's the best idea), but during growth they forgot to think about the areas they were killing....and what they will do with them when the day comes something has to be done. It's only the 'heart' of the city.





Photobucket
Message 13 of 17
latest reply

Arena exceeds targets

You don't need direct sales to benefit from the spinoff effect of the JLC.


The people who work at jobs that get sales from the spinoff effects have a tendency to work, live and shop downtown.


We are staying open from 8am to 8pm during the week of the big figure skating competition at the JLC starting March 11th along with several other businesses in our block.


Maybe there isn't much open after the evening events, but they have to walk by the stores to get to their cars to get home. While they walk to their cars a lot of people window shop.


There are very few chain stores in the core with the exception of several restaurants. Almost all of the stores downtown are unique and independently owned and you don't see our stores in the malls.


Getting people used to coming downtown to events is a good way to show people that the downtown is a good place to shop.


There is no doubt that the downtown has changed and there is no going back.


While I miss the vendors of the old market I like the look of the new market.


 


There are more condos being built and it won't be too long before someone opens a grocery store down here. Maybe Value Mart or Sunshine Grocery will open up down here.


 


 

Message 14 of 17
latest reply

Arena exceeds targets

You don't need direct sales to benefit from the spinoff effect of the JLC. The people who work at jobs that get sales from the spinoff effects have a tendency to work, live and shop downtown.


 


I realize the spin-off from those that work at different locations, but I am wondering if those different locations are truly getting the sales….or are some of them staying open because they have to in order to compete with the neighbour restaurants?


 


As for those who ‘live’ downtown, I do wonder who they are? There are some apartment buildings and the newest being at King and Ridout, and those people obviously eat downtown but that has nothing to do with the arena’s existence, or how much business it brings in.


 


We are staying open from 8am to 8pm during the week of the big figure skating competition at the JLC starting March 11th along with several other businesses in our block.


 


It would be interesting to know if there are any real ‘notable’ increases in sales for you……..just from a business/downtown/large event perspective.


As for the other businesses on the block ………..there is a camera store (they might see sales), a book store, an old high end fur store, an organic food store, a hair salon, a small gallery, a bridal store, a couple of small restaurants, a coffee shop, two bars, a photo/art framing store, the Canadian Medical Hall of Fame and the library which takes up a large percentage of the block. Oh….and there is also the strip joint and the ‘boudoir’ clothing store (including other items!). It might be just me, but I don’t see much that people visiting for a skating event will find interesting enough to shop for…other than maybe 3 or 4 stores. Food!….London is awash with places to eat it seems.


 


Personally, I can see people asking at hotels and motels where there might be to go in London and they will be directed to Masonville and White Oaks….or historically they could visit Eldon House or Pioneer Village (for the kids), or the art Gallery at the Thames (if they have time during all the events).


Food and bars will make more money and so will all the sellers are the arena selling the clothing and stickers with London’s truly pathetic new event logo that was a real waste of, I think it was a 160 Grand to design.


 


Then when it’s all over…..everything goes back to what it was.


 


but they have to walk by the stores to get to their cars to get home. While they walk to their cars a lot of people window shop.


 


But not down Dundas and especially not at night. The main parking lots used are on King between Ridout and Richmond ….all a short distance to the arena. Few people walk or window shop on Dundas. JMPO


 


Almost all of the stores downtown are unique and independently owned and you don't see our stores in the malls.


 


There are very few interesting stores on Dundas and certainly nothing that really attracts people. 'Interesting' stores for downtown are on Richmond row. If one looks at what is individual stores on Dundas and asks themselves where are other similar stores ….they are in every climate controlled, free parking malls in London and often with better choices of stock. Downtown London reminds me of Yonge St in Toronto circa mid-70's. London’s two main stores on Dundas are Nash’s and Kingsmills who have an old reliable clientele.


 


is a good way to show people that the downtown is a good place to shop.


 


But it isn’t....JMPO. Not if one really stands back and looks at it. Add in the deaths downtown and the unfortunate people who gather there and the open drug deals at Dundas and Richmond and it’s just ….not good.


 


There is no doubt that the downtown has changed and there is no going back.


 


No going ….back….but there is going forward. Of course this takes a necessity of real interest from City Hall as well as working with the landlords of the buildings. Downtown needs …..free parking….events that are constantly going on not in one area but in all of downtown and it needs a ‘vision’ ….which London does not have…..except for London’s growing perimeters. London’s leaders are demented. You have a city with a downtown that still has a lot of vintage buildings that they keep allowing to be destroyed or altered…and you have a river and parks and a historical courthouse and an art gallery and they use none of those to their full potential, or with any continual and interesting concepts. Go to places in Europe…..if they had all that they would be playing it up for all it’s worth! London money is too spread out and London is too ‘conservative’. You want people to come to London....new money..... and not just for special events…..you want them to come there because of what London has to offer….. everyday.





Photobucket
Message 15 of 17
latest reply

Arena exceeds targets

Unfortunately the 274k falls far short of servicing it's debt.


 


Turner says in a report to the investment and economic prosperity committee. But the average net income has been $274,015 annually.


 


your  "net income "  is only arrived at AFTER all expenses are taken into consideration. The servicing of the debt would (or should) be taken into considration before the NET income is considered.

Message 16 of 17
latest reply

Arena exceeds targets

For arenas they talk about net income from operations, without financing or capital cost.  But london has an unusual arrangement with the management company, where there is an ownership partnership and differing % goes to the city over time so it isn't directly comparable to others.


 


KMPG restated results from london and others 2011 results to be on a comparable basis on page 6 here


http://www.cityofkingston.ca/pdf/council/agenda/2012/COU_A1215-12175.pdf


 


No comparable small market arena anywhere coves its financing cost.  A lot turn operating losses


 


Kingston preforms well compared to others, but because they over hyped it before it was built


that it would cover its $24m financing its largely considered a disappointment even though it does better then other cities who consider theirs successful


 

Message 17 of 17
latest reply