Administration recommends All In 49 to run Sullivan Arena under capped $613,500 annual subsidy

The Anchorage administration recommended on Thursday that the Assembly award the Sullivan Arena management contract to All In 49 LLC, a newly formed entity tied to the Anchorage Wolverines, and include a capped municipal subsidy to keep the building operating.

Chief Administrative Officer Bill Falsy told the work session the city concluded a competitive request-for-proposals process after an internal audit and an uncured default by the incumbent operator. "We would pay a capped net operating deficit of $613,500," Falsy said, adding the amount would increase 2 percent annually and the contract term would be five years with additional renewal options.

The administration said the structure mirrors the convention-center model: if the facility operates profitably, the operator keeps those profits; if it runs at a net operating deficit the municipality would cover that deficit up to the cap. Falsy also said the contract formalizes an annual preventive-maintenance plan that contractors must submit and follow.

Isaiah Freeman, speaking for All In 49 and the Wolverines, described plans to expand bookings beyond hockey to trade shows and conventions and to draw more events into Anchorage. "We're excited about this opportunity as the anchor tenant for the Sullivan, the Wolverines," Freeman said, adding that his team has fielded multiple booking inquiries since the intent-to-award posted.

Assembly members pressed administration officials on deferred maintenance and whether the proposed capital-reserve contributions would sufficiently address backlog repairs. Falsy said some repair costs had been advanced by the incumbent operator and that major capital repairs remain the municipality's responsibility; he declined to provide line-by-line figures in the work session, noting a principal administrative officer in the finance staff would have the detailed numbers.

The administration said the incumbent operator has been in an "uncured default since March," which has limited event bookings and prompted the administration to pursue a timely handoff so facilities can be readied for the fall season. Falsy said a July 1 potential start date is being discussed to allow ice installation and municipal scheduling that typically happens in July; the recommendation will be on the Assembly agenda for consideration at the meeting next Tuesday.

The Assembly did not take a vote in the work session. Members may request the full contract language before the Tuesday meeting by emailing the administration; Falsy said the municipality will provide full public documents on request under procurement rules.