PENSACOLA, FLA – Tim Kerr’s desire to bring an SPHL team to the Pensacola Civic Center ran into its first stumbling block on Tuesday. According to the Pensacola News Journal, in a unanimous vote, the Escambia County Tourist Development Council decided to send the Escambia County Commissioners a letter opposing the deal between the county and Kerr. They made their decision after a quick glance at projected revenues and past attendance records. TDC Chairman Denis McKinnon Jr. said that the main concerns were with the $250,000 required to update all the necessary equipment for ice hockey. It was suggested by the county commissioners that bed tax revenues be used to pay for the capital projects. “Not only is there a $250,000 startup to retrofit the Civic Center that we have to pay for out of bed taxes but more than likely there also will be some significant dollars that we will have to make up in operating costs,” McKinnon said. He also pointed out that the Civic Center recently received a $340,000 supplemental subsidy. If the County Commissioners approve the ice hockey deal, the facility’s total operating subsidy would rise to at least $1.85 million, nearly double what it was two years ago. The increased subsidy was of concern to Escambia County Commissioner Grover Robinson IV, who had voted with his fellow commissioners to begin lease negotiations last week. “My real objective is to shrink the subsidy (to the Civic Center) from $1.6 million. If we bring in a hockey team, the subsidy will be back (to) where it was before, maybe even more,” Robinson said. “I know people here would love to have hockey but can we afford it? Given the current environment it may not be the right time for it.” Amy Lavoy, the county’s budget director, stated that bed tax revenues are about 15% below fiscal 2008-09 budget projections. TDC member Shirley Cronley asked Lavoy if the projections factored in any potential loss in revenue due to other events and concerts being displaced by the hockey schedule, to which Lavoy answered no. The TDC also questioned the predicted attendance numbers of 3,000 to 3,500 fans per game, suggesting they were “unrealistic given current economic conditions.” Additionally, concerns were raised about the new lease agreement that Kerr has proposed, asking to pay only $2,000 rent per game while receiving 15 percent of food and beverage sales, 1/3 of parking revenues and adding $1 to the cost of each ticket for use of the facility for the season. John Panyco from the Pensacola Area Chamber of Commerce, also opposed the subsidy because in his opinion, it would hurt the current ongoing efforts of tourism development to entice more visitors and businesses to the city. “It’s a pretty straight forward issue and hopefully the Board of Commissioners will take the council’s opposition into account,” he said. Panyco presented a letter to the TDC outlining the Chamber of Commerce’s stance which questions the plan to bring hockey back. Some of the data used in the letter was taken from the cost analysis done by SMG, the Civic Center’s management company, for the county commissioners. “The average tourist development tax subsidy per person attending any event at the Civic Center was $2.81 during the 2006-2007 fiscal year. In February 2009, the same subsidy per person exploded to $5.83 per person,” the letter states. “SMG, the manager of the Civic Center, has told you of the financial disaster which will occur if hockey returns to the Civic Center. Your staff has confirmed and informed you of the pending financial disaster.” Reached via phone, SPHL Commissioner Jim Combs respectfully declined to comment on the TDC’s decision. SPHL Editor Don Money contributed to this report. Contact the author at cindy.williamson@prohockeynews.com
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