How will U.S. Bank Arena get $200M for renovation?

U.S. Bank Arena's owners unveiled a plan Tuesday morning that showed how long-anticipated and extensive renovations could support the Downtown venue's future.

Yet the plan from Nederlander Entertainment and AEG Facilities gave no details about when such a revamp could occur, how much it would cost or how it would be financed. That's because none of those things have been settled, said Ray Harris, CEO of Nederlander. "We're working on all of that," he told The Enquirer in an interview.

One thing that is clear: There's consensus among the Downtown venue's owners and officials from the city of Cincinnati, Hamilton County, and regional tourism leaders that U.S. Bank Arena needs substantial improvements. In addition, taxpayers will be asked to pay at least part of the bill for any improvements.

Renovating the arena is high on the region's "needs list," said Hamilton County Commissioner Greg Hartmann, who he called an upgraded venue one of the missing pieces from the revitalization of Downtown Cincinnati. But Hartmann added a full scale renovation could cost between $200 million and $250 million. In order for public money to be put into the project, there would have to be some form of public ownership of the venue.

Among the proposed changes: Adding at least 40 luxury suites, modernizing the facility's interior and exterior, expanding venue seating and redeveloping the concourse outside the venue. The 40-year-old arena has not undergone a major renovation since 1997.

“Cincinnati has proven that it can successfully host major events, including the MLB All-Star Game and the 2012 World Choir Games, but we know we need to improve our major indoor sports and entertainment venue to continue to be competitive for major events and national acts,”  Harris said in a news release.

Harris said owners have been excited to share their facility vision with community leaders. He said leaders from the Port of Greater Cincinnati Development Authority, city and county "thought it was a very beautiful structure" design and want to learn project details. The next step is organizing conversations among the parties to figure out how some sort of public-private partnership to finance the project could move forward, Hartmann said.

Columbus, Cleveland and Louisville each have newer, larger arenas than U.S. Bank Arena. All three of those arenas had significant infusions of public money to complete expansions or construction.

Figuring out the funding split on U.S. Bank Arena may be one of the toughest aspects of the negotiations. Cincinnati City Manager Harry Black said those talks are at a preliminary stage, but he added "any such project would have to make economic sense."

The county owns Great American Ball Park and Paul Brown Stadium. The Paul Brown deal often draws the ire of taxpayers.

The changes would be a "radical improvement" to the existing arena, said Michael Schuster, principal at Downtown Cincinnati-based MSA Architects, the company retained by the arena owners to complete project design and architectural work. The project team is still determining what combination of new construction and demolition would be in store for U.S. Bank Arena, he said.

Calls for renovations have grown louder after Cincinnati missed the opportunity to host the 2016 Republican National Convention. The convention's organizers raised major concerns about the venue's shabby condition and local tourism officials dropped a bid to host the convention, which now will be in Cleveland. Losing the convention cost the region 50,000 visitors and an estimated $200 million in economic activity. Hartmann said Cincinnati would be hosting the convention if the arena had updated amenities.

“U.S. Bank Arena is a vital asset to selling our region to national event planners,” said Dan Lincoln, president and CEO of the Cincinnati USA Convention & Visitors Bureau. “Our community leaders have known for some time that the renovation of the arena is necessary for us to remain competitive with other cities, and we’re confident that improving the arena product will be a key part of continuing our positive growth.”

Another big challenge for the venue is attracting another major tenant. The arena's lone major tenant is the Cincinnati Cyclones minor league hockey team, which is also owned by Nederlander.

The University of Cincinnati men's basketball team, once thought to be a potential arena tenant, may soon finalize plans to renovate Fifth Third Arena on campus. If Fifth Third Arena renovations were to begin in spring 2016 once the upcoming season ends, then U.S. Bank Arena could be among the choices for the team's 2016-2017 season home games. UC picking U.S. Bank Arena for a temporary home could also delay the facility's potential renovation timeline.

U.S. Bank Arena ranked No. 104 in 2014 ticket sales for the world's top arenas, according to concert industry trade publication Pollstar. The ranking was down eight spots from 2013.

“The greater Cincinnati region has always had the reputation as one of the nation’s most passionate sports and entertainment markets,” said Bob Newman, president of AEG Facilities, said in the release. “The timing is right for this comprehensive renovation plan that will position U.S. Bank Arena as a ‘must play’ venue while attracting an even greater diversity of high profile events to one of the world’s most amazing waterfront destinations.”

Under the proposed design, an updated U.S. Bank Arena could include a transparent glass structure over Pete Rose Way to the north and Mehring Way to the south, allowing expansive views of downtown, the Ohio River and the Kentucky landscape. The existing roof will be removed and raised to allow for more seating and better sight lines

In addition, the new design:

• Allows multiple points of entry, making the arena more accessible from all directions.
• Adds a completely new façade incorporating highly sustainable contemporary materials
• Envisions a continuous walkable concourse around the arena’s base, which will connect the plaza level to the riverfront and The Banks.
• Boosts the total number of seats to about 18,500, including as many as 1,750 club seats.
• Adding a new suite level, closer to the stage, which will allow for 40 to 60 suites, depending on the final configuration, with the opportunity for additional suites to be added on other levels. 
• Expands and modernizes locker room facilities to attract a variety of collegiate sports programming, which including NCAA Championship events such as regional men’s basketball tournaments.
• Widens concourses, to enhance access and improve safety while providing the ability to introduce new and state of the art improved customer amenities and other services.
• Uses added escalators and elevators to boost vertical circulations and provide convenient access to all levels.
• Adds new exterior video boards and freestanding video signage elements, which enhance the opportunities for branding and promotion.

Nederlander describes itself as a leading owner and operator of entertainment and sports facilities in the country with facilities in Europe and Asia as well. From Broadway theaters to concert halls to outdoor amphitheaters, It has more than a century of experience in concert, entertainment and sports promotions. Active in Cincinnati for 30 years, Nederlander bought U.S. Bank Arena in 2001 and has operated it since. AEG Facilities joined as a partner five years ago.

AEG Facilities owns, operates, and consults with more than 100 entertainment and sport facilities industry’s venues on five continents and throughout the United States.

Clarification: This story has been updated to reflect the amount of money the renovation might cost. The original story said $70 million.