Posted on: Friday, April 29, 2005
Warriors could use Stadium rent-free
| • | Ferd Lewis: Voice of authority helps UH |
By Ferd Lewis
Advertiser Staff Writer
By a unanimous vote, the Aloha Stadium Authority yesterday started the ball rolling on an amendment that would give it discretion to adjust or discontinue the rent it charges the University of Hawai'i to play football there.
"We should be able to work it out; I have no feelings that we won't work it out," said Kevin Chong Kee, a member of the authority.
"It was a very positive step," said Tom Sadler, UH associate athletic director.
Although the authority would also be free to raise the rent beyond the current 7.5 percent of gross ticket revenues or a minimum of $10,000 per game, Sadler said, "I think common sense will prevail in terms of what needs to happen here and, hopefully, we'll end up in a win-win situation for everyone."
Currently the stadium has no latitude under its contract with UH which resulted in a $320,065 bill for the 2004 football season.
Combined with $554,114 in operating expenses (cleanup, electricity, ushers, security, etc.), UH was billed $874,179. The stadium said it is still owed $270,000, which Sadler yesterday told members the school would pay within a week.
The subject of rent, which UH is charged but which is waived for the NFL Pro Bowl by previous amendment, has been a growing bone of contention as the school has operated its athletic department at a deficit for the past three years. High schools pay operating costs but not rent.
If the UH amendment is approved — a process that includes administrative review and a public hearing — it could take six months or more, officials said.
Chong Kee said the authority "must make sure we can get our own house in order (financially)" before helping UH.
Authority chairman Anthony "Tony" Guerrero said the stadium may "need to try and generate other areas of income" to balance out the equation.
Already there is a plan to raise admission costs to the flea market and the authority was told a recommended renewal of the signage contract with Hawaii Malls has the potential to grow.
Reach Ferd Lewis at flewis@honoluluadvertiser.com or 525-8044.
