UMass Lowell, city closing arena deal on Friday
BOSTON -- The final piece of the deal needed to transfer ownership of the Tsongas Arena to UMass Lowell is in place, clearing the way for a grand reopening later this week.
Gov. Deval Patrick yesterday signed legislation that allows the Civic Arena and Stadium Commission to transfer ownership of the financially strapped arena to UMass in a deal that includes several land swaps and will take the arena off the city's books.
UMass Lowell officials plan to close on the financing Friday, in time for a ceremony that night to unveil the new Tsongas Center at UMass Lowell before the River hawks take on the Boston University Terriers.
The arena, also home to the AHL's Lowell Devils, posted a deficit off $1.2 million for fiscal 2009, despite staff and expense cuts. The arena carried an additional $360,000 in debt service in fiscal 2009.
UMass officials believe they can put the arena on solid financial footing by using it to attract a variety of events, while serving as a recruiting tool for prospective students.
The bill allows for a new authority called the Lowell Civic Stadium Commission to transfer ownership of the Tsongas Arena to the UMass Building Authority, while remaining involved in the oversight of the city-owned LeLacheur Park. The new commission is given the power to transfer all liquor licenses to the university.
UMass Lowell has agreed to buy the arena for $1, while the city has agreed to pay the remaining debt from construction. The university will also take ownership of land adjacent to the arena.
In return, UMass has agreed to finance $5 million in improvements to the arena , and will turn over a vacant, four-acre parcel on Pawtucket Boulevard to the city.