| National Sports Center continues operational evolution |
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| Wednesday, 12 November 2008 | |||
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by Tim Hennagir Life Editor What’s the most visited sports facility in the state of Minnesota? The National Sports Center (NSC) in Blaine, which welcomes 3.7 million visitors annually. Two top-level NSC administrators recently shared that operational statistic and others during a workshop appearance before the Blaine City Council.
Paul Erickson, Minnesota Amateur Sports Commission (MASC) executive director, and Barclay Kruse, NCS chief communications officer, visited with the council Nov. 6. “This is a nice opportunity to let you know what our goals and strategies are,” Erickson said prior to the start of a half-hour presentation filled with data. Erickson stated the NSC exceeds professional sports in terms of attendance impact. He used annual figures from three pro facilities to support his claim. “The Target Center and Xcel Energy Center draw 1.5 million each, the Metrodome between 2.7 million and 3 million,” Erickson said. “The NSC is No. 1 in attendance.” Budget background Erickson said the NSC’s business strategy – blending world-class facilities, quality events and finance without public subsidy – has made the facility successful. Currently, the NSC operating budget includes $11 million in revenues and $10.9 million in expenses. The facility has operated in the black for 18 years, Erickson reported. Four main sources generate operational revenues: participant fees (45 percent), rentals (36 percent), sponsorships (10 percent) and hospitality (9 percent). Administration and programming top expenses (46 percent), followed by rents and leases (33 percent), utilities (10 percent) and turf maintenance (3 percent). Complex has grown
The original NSC complex opened in 1990. The state-built facility is operated by the National Sports Center Foundation (NSCF), a non-profit corporation. When it first opened, the NSC had fewer than 40 soccer fields, the velodrome, a residence hall, stadium and a sports hall as its major facility components. By 1994, more fields were developed north of 105th Avenue. The Schwan Super Rink opened in October 1998; four rinks were added in a 2006 expansion. The National Youth Golf Center opened in phases from 2000 to 2004 . The Schwan Center opened in 2005 to cater to event and meeting clients. Today, the 600-acre NSC facility generates $37 million annually in out-of-state economic impact, Erickson said. Ninety-two percent of its users are state residents. Kruse said NSC staff carefully track attendance and economic impact numbers, and the model used by the NSC is recognized nationally for its accuracy. “It’s no secret that when we try to do something at the NSC, we do it in a big way,” Kruse said, referring to the NSC’s programming and operational model. Facilities set records The Guiness Book of Records lists the NSC as the world’s largest athletic complex. The Super Rink is the world’s largest ice arena with eight sheets of ice. The Super Rink is home to the largest adult hockey league in the U.S. (3,000 participants) and largest state figure skating program (1,250 participants). According to Erickson, the National Youth Golf Center is the nation’s largest youth golf complex and hosts the state’s largest such program (9,762 visits). Business challenges An economy in recession, facility competition and maintaining self-sufficiency are some of the future challenges the NSC faces, according to Erickson. Conversely, Anoka County population growth, youth sports stability, the positive nature of amateur sports and new media are creating opportunities, Erickson said. “The challenge for us is running a state facility like a private enterprise,” Erickson said. “Programs must pay for themselves or they are going to get cut.” For example, Erickson said three weeks ago, the NSC cut six staff members, and only plans to hire two of those positions back when the time is right. “We do cull staff who can’t adapt to our culture or if programs aren’t producing profit,” Erickson said. “Increasingly, we are operating like a private business.” SportsTown update Looking to the future, Erickson said the recently proposed SportsTown USA project near the NSC is keeping him and the MASC Board of Directors busy. Last fall, John Donnelly, CEO of Donnelly Development LCC, suggested the Blaine-based sports, health and fitness-themed development to city leaders. The $250 million-plus mega project would feature restaurants, retail shops and sports-related training facilities on land north of the NSC near 105th Avenue. “It’s one of the most challenging projects we’ve seen in recent memory,” Erickson said. “Our board recently reviewed a 3-inch stack of project documents.” Erickson was referring to a Nov. 5 MASC board meeting to review a land use resolution that was recommended by the Minnesota Attorney General’s Office. The board action authorized a public meeting for a “reciprocal easement area” associated with the overall SportsTown USA project development process. Erickson said the documents reviewed addressed legal and technical issues. He added all project terms with the MASC have been formally negotiated. “It’s a lease,” Erickson explained. “They [Donnelly] will still pay city of Blaine taxes. Our role is limited to providing property through a multi-year lease.” Blaine City Manager Clark Arneson said after the NSC presentation the Edina-based developer is expected to continue the SportsTown development process during the first three months of 2009. Donnelly still needs to provide the city with a time frame on business requirements needed to close the deal and a turnback plan for 105th, Arneson said. Tim Hennagir is at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it . |
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