NEWS RELEASE CITY MAPS OUT “A NEW GAME” IN THE DEVELOPMENT OF ABBOTSFORD ENTERTAINMENT & SPORTS CENTRE …new strategic direction anchored on finding revenue-positive tenants, improved operating agreements and increased community access TUESDAY, APRIL 15, 2014 (ABBOTSFORD, B.C.) – The City of Abbotsford is pro-actively addressing the future of the Abbotsford Entertainment & Sports Centre with a new strategic direction entitled “A New Game”, an integrated approach to the development of the facility that is founded on securing revenue-positive anchor tenants, establishing improved operating agreements and increased community access. Setting out a series of key strategies for the future of the facility as an important regional hub in the Fraser Valley, Mayor Bruce Banman today announced that the initial precursor of “A New Game” is the departure of the Abbotsford Heat of the American Hockey League effective after the completion of the 2013/14 regular season and playoffs. The strategic direction’s major components – most notably the provisions for expanded community access and the revised terms of engagement with Global Spectrum, the operators of the Abbotsford Entertainment & Sports Centre – will be phased in immediately after the conclusion of the existing contract between the City of Abbotsford and the Calgary Flames (Abbotsford Heat of the AHL) as of June 30th, 2014. A payment of $5.5 million – which is being allocated from the City’s 2014 operating savings and unappropriated reserves, meaning there will be no property tax impacts – will allow for the termination of the existing 10-year supply agreement which was struck in 2010 as part of the launch and establishment of the Abbotsford Heat Hockey Club. “We have negotiated a termination that will cost the City less than half of what our losses would be on the basis of projections related to five more years of the AHL team playing here on the existing 10-year contract,” said Banman, speaking on behalf of Abbotsford City Council. “There is absolutely no question in our minds that taking this step with the Abbotsford Heat is the best scenario financially for the City and our ratepayers.” Banman thanked Calgary Flames President and Chief Executive Officer, Ken King for the approach the NHL club has taken in working with the City on the relocation of the Abbotsford Heat, accepting approximately 50 cents on the dollar when there was no legal obligation for them to do so. It is estimated the terminated agreement will save the City at least $5 million over the next 5 years. “Equally as important as finding new revenue-positive anchor tenants for the facility is our renegotiation of the building management and operations agreement with Global Spectrum to further lower costs,” said Banman. “We acknowledge and appreciate the willingness of Global Spectrum to work with us as true community partners in the development of our ‘A New Game’ direction.” A New Game also addresses the future of the building as it relates to expanded community access, the terms of reference for new tenants and new revenue streams such as naming rights. In the interim, the facility will be renamed the Abbotsford Centre. The City is already actively pursuing new tenants for the facility as well as naming partners. “Abbotsford City Council has given some very clear parameters under which the City Manager is pursuing new anchor tenants for the Abbotsford Centre,” said Banman. “In a nutshell, any new tenancy agreement for the Abbotsford Centre will be a public document that will have the best interests of the community and the ratepayers at its heart. We will not contemplate subsidizing private businesses and we will ensure that ongoing community use of the facility is a major emphasis.” --- 30 --Contact: Katherine Jeffcoatt, Director of Communications, Marketing & Strategic Planning City of Abbotsford Email: [email protected] Tel: 604.557.4421 Backgrounders: Fact Sheet and Timelines A b b o ts f o rd C e n tre - T ime lin e November 2006: Referendum approved borrowing of $66 million to build 7,000-seat capacity spectator arena. April 2007: Construction contract for proposed new facility awarded to PCL Contractors Westcoast Inc. February 2008: Official ground breaking – construction begins. February 2009: Building operations agreement signed with Global Spectrum. March 2009: Construction substantially complet.e April 2009: The Abbotsford Heat of the American Hockey League, affiliates of the Calgary Flames of the NHL, is announced as first anchor tenant. May 2009: Grand opening of Abbotsford Entertainment & Sport Centre. May 2009: First concert to plays - Christian rock band Third Day. September 2009: Abbotsford Heat play first game. March 2010: City signs 10-year supply agreement with the Abbotsford Heat and Calgary Flames. March 2010: First sold out show - Reba McEntire. February 2011: City Recreation Centres open Box Office locations - tickets for AESC events. November 2011: Mayor-elect Bruce Banman and Abbotsford City Council adopt strategic goal of finding solutions to Abbotsford Heat lease and streamlining operations of AESC. October 2012: City wins UBCM award for Rainwater Harvesting project at the AESC. February 2013: City of Abbotsford appoints George Murray as new City Manager (taking on improvement of terms of operation at AESC as part of his portfolio). May 2013: One millionth customer at AESC. December 2013: Fastest sold out show – Florida Georgia Line. January 2014: Ticketmaster becomes official ticketing agent for AESC. April 15, 2014: City of Abbotsford introduces A New Game strategic direction for AESC contingent on revenue-positive anchor tenants, improved operating agreements with Global Spectrum and expanded provisions for community ice time. April 15, 2014: City of Abbotsford announces conclusion of tenancy agreement with Calgary Flames and Abbotsford Heat local owners group. April 15, 2014: City of Abbotsford announces streamlined name of Abbotsford Centre and plan to pursue naming rights and other ancillary revenue streams for the facility. The American Hockey League in Abbotsford 2009-2014 Previous season records for the Abbotsford Heat (Calgary Flames AHL affiliate) 2009-2013 Regular season Season Games Won Lost OTL SOL Points PCT 2009–10 2010–11 2011–12 2012–13 Totals 80 80 76 76 312 39 29 5 38 32 4 42 26 3 34 32 4 153 119 16 7 6 5 6 24 90 86 92 78 346 .563 .538 .605 .513 .554 Goals Goals for against 217 231 186 212 200 201 171 198 774 842 Standing Year 3rd, North 4th, North 2nd, West 4th, North 2010 2011 2012 2013 Playoffs 1st 2nd 3rd Finals round round round W, 4–3, RCH L, 2–4, HAM — — Out of playoffs W, 3–0, MIL L, 1–4, TOR — — Out of playoffs 2 playoff appearances Current season record for the Abbotsford Heat (as at Tuesday, April 15th, 2014*) 2013-2014 2013–14* Totals 73 73 40 40 25 5 3 88 25 5 3 88 .602 .602 227 1001 211 1053 2nd, West 2014 Clinched playoff berth 1 playoff appearance Overall season records for the Abbotsford Heat (as at Tuesday, April 15th, 2014*) 2009-2014 2009-14* Totals 385 193 144 21 27 434 .563 774 842 3 Calder Cup playoff appearances in 5 years NOTE: Abbotsford Heat conclude the 2013-’14 AHL regular season this weekend with three games (two against the San Antonio Rampage on Thursday, April 17th, and Friday, April 18th, and one against the Texas Stars on Saturday, April 19th.
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