RALSTON, Neb. (AP) - City officials are seeking professional help for an entertainment arena in an Omaha suburb that has been operating at a loss every year since it was built.
The Ralston City Council last week approved hiring a consulting group to study the Ralston Arena and help formulate a plan for its future, the Omaha World-Herald reported . The council’s contract with Venue Solutions Group amounts to more than $35,000.
“We’ve sort of been spinning our wheels since the arena was developed,” City Administrator Dave Forrest said. “We’ve kind of been winging it.”
Ralston Arena was expected to cost $25 million, but cost revisions brought the total up to $41 million. As of the 2016-17 fiscal year, the city’s debt connected to the arena was $39.7 million.
The arena, which now has a concrete parking lot in disrepair, has been struggling to pay the bills.
Arena officials have unsuccessfully tried to hire new directors, focus on different entertainment and tap into other funding sources, Forrest said.
Standard & Poor’s lowered the arena’s debt rating by seven notches in 2015 from A+ to BB, putting the debt into a category that investors often view as risky.
“Our goal will be to make recommendations that affect the net income of the arena, whether directly or indirectly,” said Tom Williams, a partner at Venue Solutions Group.
Forrest said the study will take 30 days to complete.
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Information from: Omaha World-Herald, http://www.omaha.com
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