Event center’s new operator signs up for multiyear deal

BROOMFIELD – Peak Entertainment LLC became the new operator of the Broomfield Event Center earlier this month after previous operator, Broomfield Sports and Entertainment, asked out of its contract because of slow ticket sales.

The Broomfield Urban Renewal Authority, which is comprised of Broomfield City Council members, voted Aug. 25 to allow Peak, effective Sept. 1, to operate the city-owned event center that opened in 2006.

“It’s a good choice,´ said Bill Tuthill, Broomfield’s city and county attorney.

The 30-year contract can be renewed or dropped every three years, but in order for Peak to sever the deal after 12 years, Peak and the urban renewal authority must agree to do so.

Rosann Doran, Broomfield’s public information director, said Broomfield and Peak expect to lose about $121,000 the first year, but make Broomfield $382,000 the second year and $640,000 the third.

For the first three years of the contract, the urban renewal authority and Peak will split net revenue 25 percent and 75 percent respectively unless Peak decides to repay the authority for paid operating and capital expenses. If that’s the case, the net revenue sharing will switch to 10 percent and 90 percent respectively.

If Peak doesn’t repay the authority in the first three years, the shared revenue will automatically switch to 10 percent going to the authority and 90 percent to Peak.

Peak, a new venture formed between Denver-based Kroenke Sports Enterprises and Los Angeles-based Anschutz Entertainment Group, plans to make up to $1 million worth of renovations, up to $500,000 of which Broomfield would provide, Doran said.

One project in the works is creating additional parking that will likely come in the form of a surface lot and should be completed by the end of the year, Tuthill said.

As part of the contract, the new operator can sell the naming rights to the event center, and the profit will be added to the revenue and then shared according to the contractual terms.

Broomfield will receive 10 rent-free days per year for community-related events, and Tuthill said the high school state hockey tournament is already earmarked for some of those dates in both 2010 and 2011.

In addition to the rent-free days, Peak will donate up to 5,000 tickets per year to the Broomfield Urban Renewal Authority, which will then give them to schools and community organizations. The authority and Peak will determine which events.

Hockey and basketball games, which were common mainstays at the center in the past, likely won’t be seen again. The Colorado 14ers of the National Basketball Development League moved to Texas, and the Rocky Mountain Rage of the Central Hockey League are on a hiatus for the 2009-10 season. The event center’s previous operator owns both teams.

However, Tuthill isn’t sure the Rage will have a rink if or when the team reassembles. He said it sounded as if Peak, which didn’t return repeated phone calls, wants to stick to iceless entertainment.

“It’s an expensive proposition, as I understand it, to make ice and put it away,” he said. Although he added, “I can’t speak for what Peak Entertainment wants to do in the future for sure.”

If that’s the case, it could put a stop to events like curling, which has taken place at the event center in the past. And while it had more to do with a newly signed operator than ice, the Colorado Tier Hockey Association must find a new home as well.

The tier I hockey association had an agreement with the previous operator to play at the event center. That agreement was cancelled when Peak took over, so the urban renewal authority gave the association $1,000 to help pay for expenses and find a new rink, Doran said.

Though the types of events are unknown, Peak plans on scheduling at least 55 events per year, but is hoping for closer to 80, Tuthill said.

Kroenke owns and operates the Pepsi Center, Denver Nuggets, Colorado Avalanche and Dick’s Sporting Goods Park. Anschutz owns the Staples Center in Los Angeles and manages the Bluebird and Ogden theaters in Denver.

“Between the two of them … they have quite a lot of experience,” Tuthill said.

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