What’s in a name?
For the Hunt Armory developer, it’s a lot of cash to finance its planned ice rink
Coca Cola Ice House at Hunt Armory might have a nice ring to it. Or what about the Fed Ex Rink at Hunt Armory? Or the Verizon Skating Dome at Hunt Armory?
While those are mere examples, the Mosites Co. is hoping to sell naming rights in a bid to help finance the ice skating complex it is proposing at the historic Alfred E. Hunt Armory in Shadyside.
‘We’re hoping to land a title sponsor that would spring the project forward,” said Steve Mosites, president of the Mosites Co. “We have a number of candidates out there that we think are viable. But until we land one, it’s a work in progress.”
Securing a title sponsor represents a “key piece” of the financing needed to make the project, estimated at more than $32 million, a reality, Mr. Mosites said. It could account for as much as 15 percent of the budget.
“It’s a big chunk of money. We’re looking for an annual contribution for 10 years. It’s just a matter of finding the right group. We’re getting there. We just have to keep knocking on doors,” he said.
As Mosites and partner B. Lafe Metz search for a naming rights deal, the state has granted the Pittsburgh Urban Redevelopment Authority a three-month extension to the end of March to close on the sale of the property or make progress toward that end.
Although the URA owns the building, any sale would require the approval of the state, the previous owner. It would get 80 percent of the sale proceeds after the URA receives reimbursement for certain marketing and acquisition costs. The minimum price for the facility has been set at $1.8 million.
“We continue to work tirelessly on a plan that meets the community’s vision and is financially feasible,” said Dan Gilman, Mayor Bill Peduto’s chief of staff who, as a councilman, spearheaded efforts to redevelop the armory.
Mosites plans to put $2 million of its own money into the project and to pursue historic
tax credits. It is counting on help from the city, although Mr. Mosites declined to discuss an amount.
That contribution apparently would be related to plans to have the city’s Parking Authority own and operate the 100 to 115 parking spaces that would be developed as part of the project.
Mosites also has secured a $2 million state redevelopment capital assistance grant for the project.
“It’s like a Dagwood sandwich,” Mr. Mosites joked about the various financing mechanisms. “By the time we’re done with this we won’t be able to get our mouth on it.”
The proposed redevelopment would include a fullsize hockey rink and a smaller “studio” rink. Other aspects involve 24,000 square feet of office space, the parking spaces, and retail and classrooms.
Mosites and Mr. Metz have been talking to the Pittsburgh Penguins about operating and managing the rinks. They have also been in discussions with Chatham University and Central Catholic High School about using the armory for their hockey teams.
In a statement Monday, David Morehouse, Penguins president and CEO, said the team also is considering a charitable contribution to the project.
“We’ve been in continuous discussions with the city about the Hunt Armory project because we think Pittsburgh should have a rink for youth hockey and public skating within the city limits. They’ve asked the Penguins to assist with ice maintenance and rink management and we’ve agreed to do that,” Mr. Morehouse said.
“Beyond that, although we will not be owners or equity partners, we’re talking with the city about making a charitable contribution because Hunt Armory can bring greater options for hockey and skating to children in city neighborhoods.”
The developers hope to secure a naming rights deal before moving the project to the schematic design stage. That would help to firm up the redevelopment costs. Mr. Mosites declined to reveal potential naming rights candidates.
Mosites has been facing a possible $5 million increase in the $32 million construction budget after inspections by structural and geo-technical engineers and specialty ice consultants raised some engineering concerns.
Mr. Mosites said another extension from the state may be necessary before his company and Mr. Metz are in the position to move forward with the project.
They would like to complete the complex in 2021.
While the bid to redevelop the armory has gone into overtime, Mr. Mosites said he and Mr. Metz are still very much interested in getting it done.
“We’re still in the game. No one has given up yet. It takes time. It’s not easy. If it was, everyone would be doing it. It takes patience,” he said.