Council voted to choose a new group to help find a management team for the Jobing.com arena. Beacon Sports Capital Partners LLC was the company selected during the March 26 council meeting.
In February, after the deadline for prospective Phoenix Coyotes’ owner Greg Jamison to purchase the team came and went Jan. 31, council provided direction to solicit an outside service to assist in preparing and receiving proposals from qualified prospective venue managers for Jobing.com Arena. Upon execution, the outside service would also be responsible for reviewing offers, assisting council with the decision, and negotiating a new arena management agreement.
Interim Assistant City Manager Jamsheed Mehta presented the item to council and said under the terms of the agreement; the city would pay Beacon an amount not to exceed $100,000.
Beacon Sports provides investment banking and financial advisory services to professional sports franchises and companies in the United States.
Glendale owns Jobing.com Arena and has an existing management and lease agreement with Phoenix Coyotes Hockey Club of the National Hockey League (NHL). Glendale is seeking to develop a request for proposal (RFP) process for the future lease and management of the arena to prospective venue managers to improve the economic and business outcome of Glendale’s ownership of the arena.
Glendale wanted to retain Beacon Sports as its financial advisor and exclusive representative for the assignment, and perform such other advisory services as are mutually agreed upon between the two parties.
Duties of Beacon will include:
· Review all existing business contracts related to the operations and the management of the Jobing.com Arena including, current management agreement with the National Hockey League, and event booking.
· Assist the city in preparation of a RFP for the management of the arena to be available for review and response by qualified venue managers.
· On behalf of the city, solicit inquiries of interest and submit RFP to qualified venue managers, including assisting interested parties in their due diligence and review process
· Arrange and attend meetings with venue managers, including tours of the arena, as well as keep the city manager informed on all developments throughout the RFP process.
· Review all bids and inquiries submitted by venue managers and make recommendations to the city manager, mayor, and city council with regard to benefits of each.
· Assist city council, city manager, and mayor in the review and decision-making process, including providing a recommendation in terms of selecting a venue manager to negotiate on an exclusive basis.
· Assist in the development and negotiation of a new arena management agreement, as well as assist in the closing and execution of an arena management agreement between the city and the venue manager selected by Glendale.
The city agreed to pay Beacon Sports a rate of $400 per hour for each of the services of Richard W. Billings Jr., Gerald G. Sheehan, and Christopher C. Billings. Upon execution of the agreement, Beacon Sports will receive a retainer of $25,000 to be applied toward its services to be performed under the agreement of the hourly rate. Beacon Sports is to submit detailed invoices to the city on a bi-monthly basis.
Councilmember Gary Sherwood asked Mehta if the RFP would be done and “out on the street” by next week.
Mehta told Sherwood he would first need to receive necessary information from Beacon before he could formally write up and then present council with the proposal before it is released.
Sherwood stressed his belief that it should be expedited as the hockey season would soon be coming to a close.