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Cross Insurance Center remains enterprise fund; council briefed on debt service, capital plan and downtown TIF support
Summary
City staff presented the Cross Insurance Center’s finances and capital needs, noting the facility’s operation is supported by downtown TIF funds and an arena fund (gaming revenues). The center’s operating costs are personnel‑heavy and debt service for the arena accounts for a significant share of expenses.
City staff told the council Wednesday that the Cross Insurance Center (arena/convention facility) operates as an enterprise fund and continues to require outside support for debt service and capital needs.
Staff said the arena’s operating budget is personnel‑intensive and that debt service comprises a large share of the facility’s overall cost. The city uses two mechanisms to support the debt: transfers from the downtown tax‑increment financing (TIF) district and distributions from an arena fund that collects gambling‑related host city revenues. Staff said those arrangements were put in place when the arena was built to avoid placing the full debt burden on property taxes.
Capital funding and operations: staff outlined a capital plan that includes relatively modest upgrades — carpet, security and IT improvements, lighting upgrades and parking lot work — and said downtown TIF reserves are being used to fund many of those items. The operating partner, Oakley Group, agreed to contribute $25,000 per year toward a proposed marketing/convention position to increase convention bookings, staff said.
Event mix and revenue: officials said the center benefits from a growing mix of events, though national touring acts and waterfront events can create scheduling pressures and overlap with other major community events (for example, the state fair). Staff noted the center projects small operating deficits in some years because debt service is not fully recoverable through facility revenues alone.
Gaming revenue: at the workshop councilors asked about gaming revenues that flow into the arena fund; staff cited an approximate annual gaming distribution of roughly $2.1 million that the city uses to support the center.
No final action was taken; staff will return with detailed capital schedules and potential marketing/programming proposals for council review.
