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Administration details Sullivan Arena operating agreement, notes municipality pays utilities through July 31, 2025
Summary
City staff reviewed financial and operational terms of the operating agreement with O'Malley Ice and Sports LLC, including utility payment responsibilities through July 31, 2025, a capital reserve payment schedule and questions about operator financial reporting.
Venue operations and administration briefed the Assembly committee on Jan. 22 about the operating agreement for Sullivan Arena between the Municipality and O'Malley Ice and Sports LLC, saying the municipality pays utilities for the arena through July 31, 2025, after which the operator assumes responsibility.
The administration summarized contract terms saying O'Malley Ice and Sports LLC is to pay 5% of gross revenues into an arena capital reserve for years two through five of the agreement and—per the contract language summarized for the committee—retain 50% of net profits while the municipality does not reimburse net operating losses. The contract also imposes a per‑ticket surcharge that the administration described as 50¢ per ticket for tickets below $10 and $1 for tickets above $10.
Why it matters: Committee members asked how the municipality’s utility and maintenance outlays compare with revenues and asked about oversight and financial reporting requirements. Staff said O'Malley occupied the Sullivan in November 2023 but that municipal staff have not yet received the operator’s financials required under the contract; staff said they expect to receive them soon and that quarterly reporting provisions exist for similar venue agreements.
Administration staff read a list of operator responsibilities that include day‑to‑day operations, marketing, scheduling, janitorial services, security and equipment such as ice‑making and the scoreboard. The municipality retains responsibility for major structural items and exterior systems—parking lot and exterior lighting, roofing, plumbing and HVAC, fire sprinklers and alarms, elevators, and major ice system repairs—plus utilities until the July 2025 date.
Committee members said they plan to survey user groups to collect feedback about operations, accounting transparency and scheduling. Staff said they have opened fresh lines of communication with O'Malley representatives and will report back when financial statements and additional contract details are available.
No formal action was taken at the Jan. 22 meeting.
