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UMass Lowell is on track to own the 6,500-seat Tsongas Arena and surrounding grounds in a deal that is heralded by officials as good for the City of Lowell, the University and the entire region.
“For us, this is about making UMass Lowell a place where students want to be. We have increased enrollment substantially and now have nearly 3,000 students living in University housing,” said Chancellor Marty Meehan, to a crowd of about 150 at a pre-game announcement at the arena, prior to the River Hawks vs. BU Terriers game Oct. 30. “The arena will help us provide the array of activities and events necessary to keep them engaged and happy – important ingredients for ensuring that students succeed academically.” He pointed out that universities with Division I sports programs, as UMass Lowell has for hockey, own campus arenas.
City Manager Bernie Lynch later signed a purchase-and-sale agreement with UMass President Jack Wilson and Meehan, at an on-ice ceremony between the first and second periods of the game. David MacKenzie, executive director of the UMass Building Authority, has previously signed the agreement.
“Almost 12 years ago, the city forged a unique partnership with the University and the Commonwealth to bring a mid-sized concert and performance venue to Lowell. The Tsongas Arena is on the map regionally and nationally because of our stewardship of it. Now, we look forward to the arena’s next phase,” Lynch said.
“This agreement is good for Lowell and good for UMass Lowell,” said State Sen. Steven Panagiotakos of Lowell, who brokered the agreement between the city and the university. “This will be a major asset and resource for the university and a major savings for Lowell taxpayers.”
The University’s benefits from the agreement include:
• The $24 million 6,500-seat arena, debt-free;
• The three-acre parcel adjacent to the arena, to be developed as a commercial property in a way that complements the arena;
• The surrounding park and grounds, which will now be available for a broad range of campus activities;
• Year-round use of an arena for university events;
• Increased opportunities to generate new revenues;
• Easier and more cost-effective use of the facility.
Meehan said that Lynch had been an “aggressive advocate for the city’s interests” in negotiations. He said that among the benefits the city gained was an agreement that the parcel next to the arena would be developed in a way that could generate revenue for the city, most likely as a hotel. The University will pay the city $800,000 because it will own that land as part of the agreement.
City officials hailed additional benefits to transferring the arena to UMass Lowell, including: no further responsibility for running the arena and covering its costs, which in some years have exceeded its revenues; the opportunity to conduct five annual events; ice time for public use at cost; and a University-owned parcel of land on Pawtucket Boulevard.
The university, through the UMass Building Authority, is committed to $5 million in capital improvements to create a more vibrant event experience and enhance revenues.
Before the University would own the facility and grounds outright, the Lowell City Council must pass a home-rule petition. The state Legislature would need to pass the petition, which would then be sent to Gov. Deval Patrick for his signature. Both the University and city expect that the transfer will be completed in January.
In investigating the feasibility of ownership, UMass Lowell had identified examples of similarly sized university-owned arenas that operate at no net cost to the institution. UMass Lowell is the only team in the Division I Hockey East conference that does not own its ice arena.
Under University management, the arena would continue to offer the same quality events as in past years, including UMass Lowell and AHL-affiliated Lowell Devils hockey, other sporting events, and family shows and concerts, with plans to deliver more events and a wider range of performances.
At the same time, the arena would be more readily available for campus events and activities, solidifying UMass Lowell’s East Campus as a nexus for student activities. In addition to River Hawk hockey games, student-based events that have been held at the arena for a fee – such as the annual Open House and Commencement – would now be seamless campus undertakings. New UMass Lowell uses could include campus-wide convocations, alumni and fundraising events, orientation activities, offices for some campus functions, and as a hub for the weekend-long fall homecoming series of activities and performances.
Together with the UMass Lowell Inn & Conference Center at the Lower Locks complex downtown, the arena also will help integrate UMass Lowell students into the heart of the city, benefitting both students and downtown business and cultural establishments.