Council locks in developer's commitment

Independence cleared one of many hurdles to building an arena in the eastern portion of the city Monday night when the City Council approved a memorandum of understanding with Global Entertainment, which would manage the $50 million facility.

Steve Bielewicz, president of Global Properties, a subsidy of Global Entertainment, said the facility is more than just a hockey or concert arena.

"It is a multi-purpose event center," he said.

The agreement gives developer Jim Harpool 75 days to establish a Community Improvement District in the area around Missouri 291 and Interstate 70 that would fund the construction of the facility at the northeast corner of the Little Blue Parkway and I-70. Businesses in the district would levy a half-cent sales tax to fund the construction of the arena.

Bielewicz presented his company's part in the agreement Monday night before the council decided on the ordinance approving the agreement.

The facility is like the Sprint Center in Kansas City without the upper portion, he said.

"The floor is the same size as the floor in the Sprint Center," he said. "We just stop at 12 to 14 rows, add suites and put a roof over it."

Bielewicz said his company feels so strongly about the market in Kansas City, his company is willing to pay any cost overruns once a price is agreed upon. The 5,800 square-foot facility is estimated to cost $50 million, excluding land acquisition costs.

Global will reimburse any losses in revenue the facility may encounter.

If money is left over from the construction it will be used for operating expenses, Bielewicz said.

After the facility is built, no money from the city's general fund will be used to operate the facility.

"The revenue it generates will be used to operate the facility," Bielewicz said.

A second sheet of ice is planned as part of the facility and would also benefit the community, he said.

His company will work with the city's Parks and Recreation Department to run public skating.

Heacock said it will be important to foster interest in hockey with the CHL team as a tenant.

"I really see the CHL as the 'Community Hockey League,'" Heacock said, adding players could perform clinics and participate in community hockey events.

The facilities could also attract other professional sports teams. Bielewicz said other facilities his companies operate also have Arena2 football, a minor league indoor football league and a National Basketball Association Developmental League teams.

Independence's chances of having two anchor tenants is better than "50/50," he said.

Bielewicz added Global would step in and run the CHL team if the franchisee's owner is having difficulty, and hockey will be guaranteed as an anchor tenant as long as Global manages the property.

"If a team doesn't make it, we will step in and take control of the team," he said.

Council member Renee Paluka-White said she has heard much enthusiasm about the proposed arena.

"I have heard a lot of enthusiasm from a lot of the youth in our community," Paluka-White said. "They are interested in who is going to play there and what it will look like. It is not often we get the opportunity to do something that interests the youth in the community."

Tom Lesnak, president of the Independence Council for Economic Development, said the facility will help attract other development in the area.

"It really solidifies this area as a regional destination," Lesnak said.

The arena will also help in attracting other business that may look at relocating to the city.

"It will greatly improve the quality of life," he said. "It has been a real factor."

One resident did speak against the location of the facility, but not of the project itself. Alex Hernandez was worried about a loss of tax revenue from the Independence School District, since the project is located in the Blue Springs School District.

However, the arena will not generate any property taxes, as it will be owned by the city. Sales taxes of any other privately owned development in the area will go to the Blue Springs School District, but many Independence students attend schools in that district, City Manager Robert Heacock said.

When the council voted on the ordinance after discussing the issue, the vote was unanimous.

"Welcome to Independence," Council Member Lucy Young said.