Updating arena could increase revenues: report
Hockey fans and concert-goers who watch events from luxury boxes in Prospera Place party like it’s still 1999, an assessment of Kelowna’s downtown arena says.
The decor and furnishings in most of the 31 suites date back to the arena’s opening on March 28, 1999, authors of a report on the building’s condition note in a report to the city.
“Some of the private suites have been renovated and updated by the suite-holders themselves, but most of them are original condition and should be refreshed. The expected level of finish in today’s private suites is much higher than two decades ago, so stone buffet counters and drink rails should be considered,” the report states.
The outdated appearance of the 220-squarefoot luxury boxes reflects a theme that runs throughout the 115-page report, commissioned by the City of Kelowna from Stadium Consultants International.
The consultants found that the 6,500-seat building, currently owned by GSL Group but due to become city property in seven years, is in “fair to good” shape. But many aspects of it have not been modernized or significantly upgraded in the 22 years it has been open.
This reality makes for a less-than-ideal fan atmosphere, the consultants say, but it also means that GSL Group has failed to capitalize on opportunities that would have increased its revenues.
“Replacing and upgrading interior finishes can impact/validate the price fans consider paying for admission, increase community pride, and will result in an attractive and safe interior environment,” says the report, obtained by The Daily Courier through a Freedom of Information request.
The food and drinks available at Prospera Place are also from another era, the report says, and newer arenas have more washrooms.
“The food and beverage equipment throughout the facility appears to be, as a whole, all original and in need of cleaning, retrofitting, or replacing. Menus in today’s events centres are much more sophisticated and the equipment required to deliver the product has to stay in step with the level of quality and choice,” the report says.
Washroom facilities at Prospera Place comply with the B.C. Building Code but their number is below what would be found in newer arenas, the consultants say. Building more wouldn’t just make event-goers happy, they say, but it would be in the arena operator’s best financial interest.
“The objective of increasing the number of plumbing fixtures in the facility is to reduce wait times, which in turn will allow patrons more time in order to spend on food and beverage,” the report says.
Similarly, the arena’s concourse is on the low side of the industry average, making for cramped conditions, particularly when the building is hosting concerts in which spectators sit not only in the stands but also on seats on the main floor.
An idea proposed by the consultants is that existing retail spaces in the concourse be repurposed as “creative food and beverage zones, that will result in increased concourse space for patrons, as well as better food and beverage product, and an increased number of service points”.
Even the static backlit advertising signs that rim the inside of the arena caught the consultants’ eyes. Or, more precisely, failed to catch their eyes.
“New LED ribbons are much more dynamic and can create more effective revenue streams for the building, as well as get fans pumped up for games,” the report says.
About $7.7 million worth of upgrades and improvements are recommended in the study, the two most expensive of which are a $2.4 million new roof and a new lighting system worth $1.5 million.
In a statement released this week, after hockey fans were disappointed to discover Kelowna would not be hosting the 2023 Memorial Cup as expected following the pandemic-induced cancellation of the event in 2020, GSL Group said it has complied with all the obligations set out for the company in the deal it struck with the city for the arena’s construction in the late ‘90s.
City officials, however, say there are arena upgrades that should have been undertaken by GSL Group by now which haven’t been.
“They should be undertaking maintenance and investment to ensure it is a desirable facility for event hosting,” said Derek Edstrom, the city’s director of strategic investments. “Unfortunately, this has not been happening as evidenced by not meeting (the Canadian Hockey League’s) standards for major events.”
On occasion, the city and GSL Group have partnered on building upgrades. The city does so to protect the value of a significant community asset it will assume ownership of in 2029, avoiding the cost of even more expensive work at that time, said Jim Gabriel, a city director.
An example of this relationship in action is the $183,000 the city gave to GSL Group to upgrade some of the building’s lights, with the company repaying the money in annual instalments until 2029.
However, even this partnership seems to have been limited in its desired effect. “There remain issues with the over-ice lights in meeting Canadian Hockey League standards that GSL Group is responsible for,” Gabriel said.