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CITY COUNCIL AGENDA COMMUNICATION |
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| | | | | | | | AGENDA DATE: | July 11, 2017 |
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| | | | | | | | SUBJECT: | Authorize the City Manager to Execute an Arena License Agreement with Allen Hockey Team LLC, dba Allen Americans, to Base a Professional ECHL Hockey Team at the Allen Event Center. |
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| | | | | | | | STAFF RESOURCE: | David Angeles, Allen Event Center General Manager |
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| | | | | | | | ACTION PROPOSED: | Authorize the City Manager to Execute an Arena License Agreement with Allen Hockey Team LLC, dba Allen Americans, to Base a Professional ECHL Hockey Team at the Allen Event Center. |
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| | | | | | | | BACKGROUND
The Allen Americans are currently in their eighth (8th) season of hockey play at the Allen Event Center having won four consecutive league championships. In February 2017, a press conference was held to announce that the Steven Brothers Sports Management, LLC (SBSM) had sold the Allen Americans Hockey Club to Allen Hockey Team, LLC (AHT) effective immediately. In March 2017, the City of Allen, Steven Brothers Sports Management, LLC and Allen Hockey Team, LLC mutually agreed to assign the existing Arena License Agreement to Allen Hockey Team, LLC.
A new Arena License Agreement is desired by the new ownership based on two main elements. (1) In the current Arena License Agreement, it is agreeable between City of Allen and Allen Hockey Team, LLC that the new ownership's model would benefit from a restructured agreement that better fits the plans and investments the team intends to put in place. (i.e. increased sales staff, increased marketing, desire to review Facility Fee Structure, etc.). (2) The current Arena License Agreement consists of original agreement executed on May 14, 2014 with an addendum executed on October 6, 2015. An additional addendum addressing ownership change and various "Base Level of Service" elements would make the License Agreement packet difficult to follow. A clean version is preferred by both parties.
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| | | | | | | | BUDGETARY IMPACT
The Allen Event
Center has already budgeted for fiscal year 2017 and fiscal year 2018
accounting for the Allen Americans to play pre-season, regular season and
playoff games at the Allen Event Center. The execution of this Agreement provides
a long term commitment by both City and Team to the continued success of
professional hockey at the Allen Event Center, which provides a 36 home game
season, strong attendance and lease revenue to the facility.
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| | | | | | | | STAFF RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to execute an Arena License Agreement with Allen Hockey Team LLC, dba Allen Americans, to base a professional ECHL Hockey Team at the Allen Event Center.
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| | | | | | | | MOTION
I make a motion to authorize the City Manager to execute an Arena License Agreement with Allen Hockey Team LLC, dba Allen Americans, to base a professional ECHL Hockey Team at the Allen Event Center.
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