As part of an agreement between the City of Anaheim and the arena management company, the Anaheim Ducks will remain at the Honda Center through at least 2048.
Honda Center is owned by the City of Anaheim, with the venue’s management run by Anaheim Arena Management, LLC–an entity owned by Ducks owner Henry Samueli. The city and Anaheim Arena Management had been discussing a 25-year extension of their arena management agreement, and the Anaheim City Council voted last Tuesday to approve that extension.
The extension effectively allows the Ducks to remain at the Honda Center through at least 2048, with a series of options potentially lengthening the deal for another 25 years. In addition, Anaheim Arena Management will take over operations of the ARTIC transit station and purchase and redevelop parking lots surrounding the Honda Center. More from OC Register:
The agreement gives the city more favorable terms, such as lowering the point at which arena management must share annual profits with the city from $12 million to $6 million, and increases the city’s cut from 20 percent to 50 percent when arena net revenues hit that mark. The $12 million threshold had never been reached. The management company has used some of its profits on improvements to the arena.
The contract also hands over management, but not ownership, of the ARTIC transit station, which sits across East Katella Avenue from the Honda Center, to Samueli’s company. That will help erase a $2.5 million annual deficit – the amount the station runs in the red – from the city budget.
Anaheim Arena Management also will buy city-owned parking lots around the arena for $10.1 million and will be allowed to develop them with homes, offices and retail. But the management company would also have to provide at least 3,900 parking spots, likely by building a parking garage.
With the $10.1 million from the land sales and about $2.5 million a year that will no longer be needed to run ARTIC, the deal will pump some cash into the city coffers. [City spokesman Mike] Lyster said the City Council will decide later how to spend the money on needs such as public safety, parks and other services.
Honda Center originally opened as Arrowhead Pond in 1993.