[Vision2020] BSU Luxury Box Proposal

Tue Jan 2 15:42:58 PST 2007

Donovan writes: "BSU is a National Championship College Football Team".  
Actually, they're not.  They won a BCS Bowl game.  The national chamionship 
will be decided when Ohio State plays Florida.  I will say that BSU's win in 
the Fiesta Bowl argues for a division 1 playoff system, though.  Carl 
Westberg Jr.

>From: Donovan Arnold <donovanjarnold2005 at yahoo.com>
>To: Tim Lohrmann <timlohr at yahoo.com>, vision2020 at moscow.com
>Subject: Re: [Vision2020] BSU Luxury Box Proposal
>Date: Tue, 2 Jan 2007 15:36:51 -0800 (PST)
>
>They are actually going to need it. 2.5 million every year is little to pay 
>if you get 6.5 million back every year in just one game, and a good 
>investment. If I asked you to invest $2.5 dollars and I would give you $6.5 
>back, would you accept or decline the deal?
>
>   28 million in Boise is not much money considering the population is over 
>500,000 and will continue to grow at an incredible rate for at least the 
>next 10 years. I would gladly pay $2.80 a year for the level of 
>entertainment provided and the millions of dollars Broncos bring to Idaho 
>every year, including UI and our educational program.
>
>   BSU is a National Championship College Football Team. $28 million is a 
>drop in the bucket. The stadium they played in last night cost 1/2 billion 
>to build, compare that to just a $30 million improvement to the blue turfed 
>stadium the Broncos have to play in.
>
>   Happy New Year,
>
>   Donovan J Arnold
>
>Tim Lohrmann <timlohr at yahoo.com> wrote:
>     I hope the State Board of Education goes over this little scheme with 
>a fine-toothed comb.
>   A little priority check would be a good idea here, don'tcha think?
>       TL
>
>
>
>http://www.idahostatesman.com/124/story/65888.html
>   January 02, 2007  Broncos will ask State Board for approval Monday    
>GLENDALE, Ariz. — Boise State will ask the State Board of Education on 
>Monday for approval to build a luxury suites/club seats/press box addition 
>to Bronco Stadium.
>
>   The project will cost $35.9 million, with $28 million financed through a 
>bond sale. The athletic department will pay for the rest in cash.       If 
>the board approves, the university plans to break ground by March 1. The 
>final step would be to seek approval for the bond sale at the Feb. 22-23 
>board meeting.   The addition would add 38 luxury suites, 43 loge boxes and 
>787 club seats to Bronco Stadium in time for the 2008 season.       "It has 
>been an unbelievable experience," said Curt Apsey, the senior associate 
>athletic director for advancement who has spearheaded the premium seating 
>sales. "I've learned a heck of a lot. It's exciting. I think it's going to 
>be a facility like no other, and we're going to do it right. And when 
>you're spending that kind of money, that's what you've got to do."       
>Monday's meeting, which likely will be held by teleconference, is critical 
>to BSU's timeline. Construction is expected to take 15 to 18 months. That 
>means a March 1
>  groundbreaking is necessary to ensure a Sept. 1 opening.       "If it 
>starts to get past (March 1), I would be concerned about the plan … to go 
>in '08," Apsey said.       The structure, which will be built behind the 
>west grandstands, will include:       • Thirty-eight luxury suites (16 
>seats each) — 33 for sale and five for university use. BSU has sold 29 of 
>them and expects to sell the rest within a few weeks. Leases cost $42,000 
>or $48,000 per year, including game tickets, depending on location.       • 
>Forty-three loge boxes (four seats each) that have sold out. The open-air 
>boxes are below the club seats. They cost $12,000 per year.       • A total 
>of 787 club seats, which are sold individually for $2,200 per year. BSU has 
>commitments for 410.       • Club rooms that serve as gathering and eating 
>places for premium seat holders.       • A faculty club room on weekdays 
>that will double as the loge club room on game days.       BSU is wrapping 
>up the design process with
>  FFKR Architects and Layton Construction, the same companies that built a 
>similar facility at the University of Utah.       "We've corrected for some 
>of the things they might not have done perfectly," BSU president Bob Kustra 
>said. "I think people will be taken aback by this."       BSU will pay $7.9 
>million of the cost with cash. The school has raised about $3.85 million 
>through donations and naming opportunities and already had $1.9 million 
>slated for the project.       That leaves a $2.15 million gap that BSU 
>still needs to fill.   The $28 million will be financed over 30 years with 
>a debt payment of about $2.5 million per year, including a 20 percent 
>reserve held by the university in case of a revenue shortfall.       The 
>school recently was informed that it would keep its "A-1" bond rating with 
>the Moody's, the top rating possible. Moody's is a bond-rating service. 
>School officials thought they might lose their rating because of BSU's 
>growing construction debt.   The
>  rating will allow BSU to get a better interest rate for the bond sale, 
>officials said.       BSU will pay back the debt with revenue from the 
>premium seating. The school estimates it can make the annual payment by 
>generating 83 percent of the possible revenue.       The athletic 
>department also will contribute $600,000 per year to the academic capital 
>projects fund to compensate for using some of the university's debt 
>capacity. That amount increases by $100,000 every five years for the life 
>of the loan — a total of $25.5 million in 30 years.       Any additional 
>revenue will go to athletics, which can use the cash for other projects.   
>The premium seating comes with 3-, 5-, 7- and 10-year leases, so BSU should 
>have close to full occupancy for at least the first three years.       "The 
>athletic department has done an outstanding job of selling the suites, the 
>club seats, the loges," Kustra said. "Our boosters have stepped up to the 
>plate. It's really reassuring going into
>  this board meeting knowing we have people obligated to pay off these 
>suites."       Contact reporter Chadd Cripe at ccripe at idahostatesman.com.
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