The city of Huber Heights is considering two entities that are interested in the music center’s naming rights, and city officials said they would like to get an agreement wrapped up soon.
A $2 million lifetime deal — $200,000 a year for 10 years — with a foundation has been “floated,” according to Mayor Tom McMasters, who cautioned that those details are not firm. An undisclosed corporate sponsor also is interested in the music center’s naming rights, but the terms have not been revealed.
Huber Heights City Council unanimously agreed last week to move forward in the process and allow staff to enter into a letter of intent for the purpose of negotiating a naming rights agreement.
“This will allow us to find out what is the best negotiated deal and bring those terms back to council for approval,” City Manager Rob Schommer said at last week’s meeting. “We’ll definitely compare them and bring those comparisons back.”
Schommer said he expects more discussion to take place at the Jan. 6 Administration Committee meeting.
“We want to get this done as soon as possible,” he said.
McMasters said a $2 million deal, spread out over 10 years, “seems low.” He believes a naming rights deal is worth between $250,000 and $300,000 a year because of the music center’s proximity to Interstate 70 and the ability to advertise on the on-site digital billboard.
Councilman Mark Campbell, chair of the Administration Committee, said the model that has been built is the sponsorship revenue would help offset management costs. Because management costs are ongoing, he’s in favor of a continuous revenue stream from the naming rights.
“I would like to see a revenue stream ongoing if we don’t have to sacrifice (taking less money) in doing that,” Campbell said. “If we can help offset substantially the cost to manage it, we’ve eliminated risk.”
According to the city’s management agreement with Music and Event Management, Inc., the entire revenue generated by the music center’s naming rights directly goes to Huber Heights.
Earlier this year, Huber Heights announced the music center’s VIP area will be named the “Circuits & Cables VIP Area.” The agreement will pay the city $40,000 annually for the first five years of the deal.
The $19.3 million music center is expected to be completed by the end of the year, and will open in the spring. The 4,500-seat covered seasonal venue is located at 6800 Executive Boulevard.