Featured image credit: City of Mobile
Oak View Group (OVG) has added another arena project to its portfolio, with the City of Mobile approving a 22-year contract for the company to operate and manage its new venue.
As the demolition of the outdated Mobile Civic Center enters its final phases, the Alabama city is teaming up with OVG to build and operate a replacement on the same property. The award of the contract comes with the City having previously engaged OVG to manage two other downtown venues: the Arthur Outlaw Convention Center and the historic Saenger Theater.
Expected to accommodate up to 10,000 spectators, based on current designs the demolition of the current Civic Center site and construction of a new arena is projected to cost around $300m (£240m/€287.4m).
It will be financed through cash contributions from the City, project partners, sponsorship opportunities, strategic borrowing through the bond market and other funding sources. As part of the agreement, OVG will contribute $15m to the construction of the new arena and establish a dedicated capital improvement fund for ongoing maintenance at the facility.
“It’s not unusual for us to invest into projects we are excited about,” Tom Paquette, senior vice-president of OVG, told Al.com. “This falls into that category. It’s a significant amount for us and a little bit more than most projects we look at in similar size markets.”
In addition to concerts and live performances, the new civic arena will be built to host professional ice hockey, with a minor league team being targeted, along with ice skating performances and youth, collegiate and professional sporting events. It will also be uniquely designed to accommodate Mardi Gras balls and other longstanding local events.
“This arena will be a generational investment in our city that will enhance the quality of life for Mobilians and attract visitors from across the region,” Mobile Mayor Sandy Stimpson said in a statement.
“Oak View Group is an industry leader with the experience and partnerships to turn this new venue into a hub for entertainment, culture, and community on the Gulf Coast. Together, we’re building something that will serve Mobile for decades to come, and we couldn’t be more excited for what’s ahead.”
Peter Luukko, co-chairman of OVG360, added: “Together, we’re setting the stage for unforgettable live experiences including music, sports and family shows. The possibilities are endless for this deserving community.”
With demolition of the current Mobile Civic Center well underway, construction of the new arena is planned to begin in March. The project is scheduled to be completed in early 2027.
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