2014-04-15 A New Game News Release

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
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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.