The city of Huber Heights is closing in on a $4 million lifetime naming rights deal for the new music center — a proposal that doubles the amount initially on the table.
The proposed deal with an undisclosed foundation would be over 20 years, with a minimum of $200,000 a year, and it is expected to be finalized and announced no later than the Jan. 26 City Council meeting, according to City Manager Rob Schommer.
A $2 million lifetime deal — $200,000 a year for 10 years — with the same foundation had been originally discussed. Schommer said the city had naming rights conversations with about 10 interested parties over the last year and a half.
“Previously, council wasn’t comfortable with giving up an opportunity to generate additional revenue 10 years down the road,” Schommer said. “We came up with a value worthy of surrendering any potential future revenue and allowing the perpetual naming rights.”
The proposal was revealed Tuesday night at the Administration Committee meeting.
Councilman Mark Campbell, chair of the committee, previously said he’d be in favor of a continuous revenue stream from the naming rights because management costs are ongoing.
But “20 years will allow us to pay down the debt of the facility, so we’ll have less overhead at the time the 20 years expires, which will bridge us to success,” Campbell said.
Mayor Tom McMasters said last month 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.
“Obviously, I think everyone wants more, but I think if it turns out that it’s $200,000 for 20 years, we’ve got a pretty good set-up,” McMasters said. “Rob’s done a good job, but I say it with caution until we actually get the deal signed.”
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. The city will pay MEMI $225,000 annually to manage the music center.
The music center’s VIP area will be named the “Circuits & Cables VIP Area” — an agreement that will pay the city $40,000 annually for the first five years of the deal.
The $19.3 million music center is completed and will open in the spring. The 4,500-seat covered seasonal venue is located at 6800 Executive Boulevard.