APPROVAL OF THE FISCAL YEAR 2016-2017 (FY16-17) GILA RIVER ARENA CAPITAL REPAIRS/REPLACEMENT PROGRAM AND AUTHORIZATION FOR THE CITY MANAGER TO RELEASE FUNDS TO AEG MANAGEMENT GLENDALE LLC
Staff Contact: Vicki Rios, Director, Budget and Finance
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Purpose and Recommended Action
This is a request for City Council to approve the Fiscal Year 2016-2017 (FY16-17) Gila River Arena Capital Repairs/ Replacement (CRR) Program and to authorize the City Manager to release funds, under the terms of the Gila River Arena Management Agreement with AEG Management Glendale, LLC (AEG), in an amount not to exceed $1,904,910 as projects are completed throughout FY16-17. The attached Exhibit A describes the capital program and represents the best efforts of the City of Glendale and AEG to predict the highest priority items and estimate the cost of the items to be addressed in order to maintain the facility. It is important to note that the dollar amounts for each project are estimated and that there may be unscheduled repairs that arise during the year which could take priority over the projects on the attached list.
Background
The City of Glendale is the owner of the Gila River Arena (Arena) located at 9400 West Maryland Avenue in the heart of the Sports and Entertainment District. The Arena was built as a state-of-the-art, multi-purpose facility and was opened for business on December 26, 2003. Gila River Arena is home to the National Hockey League's Arizona Coyotes and, in addition, hosts concerts with some of the biggest names in the music industry.
Under the terms of the agreement with AEG Management Glendale, LLC, the city is required to fund $500,000 in capital cost per year for the term of the agreement; however, in the FY16-17 budget, Council approved $1,500,000 as part of the city's capital improvement program for capital repair and replacement at the arena. In addition, $404,910 in funding is available from carryover of prior years on projects that were not comp...
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