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Independence approves agreements for center
It's official.
The ink is
dry on the contract between the city of Independence and
Global Properties, its subsidiaries and companies involved
in the design and construction of the new Independence
Events Center as the Independence City Council unanimously
approved Monday night the agreements for the nearly $60
million facility.
In a series
of 7-0 votes, the council approved agreements with
International Coliseums Co., The Benham Companies, Sink
Combs Dethlefs, P.C., J.E. Dunn, the Western Professional
Hockey League and Global Entertainment.
ICC, a
division of Global Entertainment, will provide project
consultant services for the 5,800-seat multi-purpose
facility for $1.97 million. Benham is on board for
construction management services at a cost of $575,000. Sink
Combs Dethlefs signed on for architect services at $2.2
million, while J.E. Dunn will provide site development work
for nearly $3.9 million.
The city
also signed an agreement with the Western Professional
Hockey League to provide an anchor tenant for the Events
Center, namely a minor league hockey team playing in the
Central Hockey League. Overall, Global Entertainment signed
to open, manage, promote, market, ticket and operate the
Events Center.
"All of
those companies have great reputations," Independence City
Manager Robert Heacock said.
Independence
Director of Finance Jim Harlow said the city has taken due
diligence with each of the agreements to protect the city's
coffers. Language in the contracts and an escalator clause
in the community improvement district tax will ensure the
city will not end up on the wrong side of the deal if the
project sours.
"We have
several reserve accounts and the ability to terminate the
contract with Global (Entertainment)," Harlow said, adding
the CID tax levied for the area will be a half-cent for 20
years, 5/8 cents for 10 years after that and could possibly
escalate to one cent if applicable. "That is in case we have
a downturn in the economy that is worse than what we are
seeing now."
Global
Properties President Steve Bielewicz was in town from
Phoenix to attend the council meeting and said Independence
is the ideal location for one of the company's latest
developments. Global Properties is the development arm of
Global Entertainment.
"We want to
be on the fringes of a big city," Bielewicz said. "We like
cities that are growing and affluent and that's Independence
and Jackson County."
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