ANAHEIM, Calif. (Nov. 20, 2018) — As Honda Center and the Anaheim Ducks celebrate their 25 anniversary this year, Anaheim has approved new agreements for the next generation of great hockey and entertainment at the city-owned arena.
On Tuesday, Anaheim’s City Council approved an extended management agreement for Honda Center that seals the Anaheim Ducks here through at least 2048.
Anaheim Arena Management LLC, operator of Honda Center and owner of the Anaheim Ducks, will continue investing in the arena, while an affiliated company also will take over running the neighboring Anaheim Regional Transportation Intermodal Center transit station also known as ARTIC.
The expanded partnership also includes the sale of city-owned land around the arena.
“This expanded partnership is great for Honda Center and all of Anaheim,” Mayor Tom Tait said. “Our city will continue to be home to great hockey and the best entertainment in Orange County. At the same time, our residents will benefit from additional revenue these agreements will bring for the benefit of our community.”
“We are certainly thrilled that our Ducks have a strong and secure future here in Anaheim and are excited to further enhance our partnership with the city and its residents,” team owners Henry and Susan Samueli said. “We believe that Anaheim is a truly special place and appreciate the city’s clear commitment to remain a leading sports and entertainment destination.”
Here’s a summary of the expanded partnership:
Anaheim Arena’s management of Honda Center now extends through 2048, with the option of five five-year extensions. The original agreement was set to end in 2023.
Under the extended agreement, Anaheim Arena will continue investing in Honda Center with more great hockey, visiting basketball, concerts and family entertainment.
The city continues to own Honda Center as it has since the arena opened in 1993.
The agreement increases the city’s ability to share in revenue from arena operations.
Under the original agreement, the city shares in any revenue beyond $12 million. That threshold goes down to $6 million with a roughly 50-50 split, down from the city’s 20 percent under the original agreement.
Currently marking their 25th season in Anaheim, the Stanley Cup champion Anaheim Ducks hockey team is committed to an additional 25-plus years here and continue to proudly feature “Anaheim” in the team’s name.
The agreement secures the team through 2048 with the option for five five-year extensions.
The city is selling about 16 acres of land in Honda Center parking lots 1, 3, 4 and 5 to Anaheim Arena for an appraised market value price of $10.1 million.
The land carries a requirement to provide a minimum of 3,900 parking spaces for games and events.
It could see development down the road as part of our vision for the Platinum Triangle — which is for a downtown for all of Orange County built around sports, entertainment, urban-style homes and jobs.
For the land to be developed, Anaheim Arena still has to provide a minimum of 3,900 parking spaces for arena visitors, potentially through easy-to-use parking structures. The cost to build a parking structure is estimated at about $18 million.
The $10.1 million in proceeds from the land sale will available to Anaheim for community priorities including parks, community services, addressing homelessness and public safety.
Starting in February, Anaheim Arena takes over running the ARTIC transit hub through 2048 with the option for five five-year extensions.
The city retains ownership of the transit hub, with Anaheim Arena taking over the cost of running ARTIC.
Anaheim Arena’s operation of ARTIC frees the city of Anaheim of about $2.5 million annually we contribute to offset a current shortfall in revenue at the station. That frees up money up money we can use for public safety, parks and community services.
Anaheim Arena will look to bolster ARTIC’s finances through operational efficiencies with Honda Center and expanded sources of revenue including from a digital display alongside the Orange (57) Freeway.
Honda Center, which seats 17,000 to 19,000 visitors, opened in 1993 as the first and only major arena in Orange County.
Anaheim Arena has managed Honda Center since 2003, under the ownership of Henry and Susan Samueli, who also own the Anaheim Ducks.
The Samuelis and the Ducks have been big Anaheim community supporters in the past 15 years.
They have built hockey rinks at Anaheim’s Mattie Lou Maxwell and other schools, while other programs serve tens of thousands of students each year with academic and sports programs.
You can find out more at Anaheim.net/HCNext25.