Glens Falls (N.Y.) is moving ahead with a public auction of Glens Falls Civic Center, home of the AHL’s Adirondack Flames, with a minimum bid price of $1.5 million.
The winning bidder must also honor the management/concessions contract with Global Spectrum.
The arena has been running at a deficit — some $920,543 in 2014, according to an estimate from Global Spectrum — and the city wants to see those subsidies end. It was appraised at $1.895 million, but that evaluation was done after the end of the Adirondack Phantoms lease and the beginning of the Adirondack Flames lease. Still, with the three-year lease, property taxes (the city pays none; the new owner will likely pay some) and the management deal in place, there may not be a ton of upside for a buyer. From the Post-Star:
Diamond said he reached the decision to offer the city-owned arena for sale after three separate regional arena subsidy proposals over the past 18 months, including a proposal the Warren County Board of Supervisors discussed on Friday, failed to gain widespread support.
“It doesn’t appear the county is willing to support the Glens Falls Civic Center as a public arena on an ongoing basis,” Diamond said.
The sports and concert arena opened in 1979. Its value has long been debated because of its financial losses, which the city must cover from its general fund.
The arena is also due for some state money for improvements; it’s not clear whether this money will be available after a sale.
