The University and the Athletic Department took a step closer toward moving into a new basketball arena last Friday, as the State Board of Higher Education approved spending $570,000 on two pieces of property adjacent to the proposed arena site.
As part of the board’s scheduled meeting Friday, the board approved purchase of the two pieces of land – currently occupied by a 7-Eleven convenience store and a shuttered gas station located at the corner of Franklin Boulevard and Villard Street – from the current owner. The approval of the measure was confirmed with Athletic Director Pat Kilkenny that afternoon.
The two parcels of land, currently owned by Peter Kryl, will be purchased for $570,000. The properties sit adjacent to the former Williams’ Bakery site, which has been nominated as the proposed site for a basketball arena to replace McArthur Court.
“(The purchase) allows us to continue to move forward,” Athletic Department Media Services Director Dave Williford said Tuesday. “It’s a step in the right direction.”
There are still hurdles before the University can move in on the property, though. Negotiations with the third-party group that holds the lease and operates the 7-Eleven store must take place, and the University must also remove gasoline storage tanks and eliminate any other contamination on the site before preparations for the arena project can begin.
“Costs to accomplish (the removal of the tanks and contamination) do not appear to be significant,” according to documents filed with the State Board.
Funds for the land purchase come from the $27.5 million the State Board approved for the University to use to purchase lands for a new basketball arena in January 2005. The Williams’ Bakery site required approximately $22.2 million of the funds to purchase.
The other big hurdle remaining for the Athletic Department is the fundraising for the arena’s construction, which will be separate from the funds approved for the University to purchase the land.
Estimated costs for the arena have soared, starting at $90 to $130 million when University President Dave Frohnmayer first announced the project in August 2003, to an estimated $170 million in May 2006, with the possibility of the bill rising even higher as construction costs rise.
That may partially explain why acquiring further property parcels sooner rather than later is important for the project.
Not only does the University get the parcels of land before a new tenant moves into the former gasoline station location, but it keeps progress moving in donors’ eyes.
“It could spur some additional donors to see progress is being made,” Williford said.
The arena project has become the Athletic Department’s main concern, with momentum regained after the hiring of Kilkenny as athletic director in February. Williford said, “If you ask Pat (Kilkenny), he’d say it was his primary directive.” The new arena will replace the aging McArthur Court, which is the second oldest on-campus basketball arena. The arena, known as “The Pit” hosted its first basketball game in 1927.
The new arena project is also the reason Jim Bartko returned to the Casanova Center after a stint at University of California, Berkeley that lasted less than a year.
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New Arena Timeline
August 2003: New arena plan to replace McArthur Court announced by University President Dave Frohnmayer; expected arena cost: $90-130 million.
January 2005: Approval from State Board to provide the University with $27.5 million (through bond sales) to purchase lands for the arena project; former WIlliams’ Bakery site eventually takes approximately $22.2 million of those funds to purchase as primary location of new arena.
July 2007: Facing a rising cost if a new tenant takes over at the former gasoline station location, $570,000 purchase of two pieces of property adjacent to Williams’ Bakery site are approved by State Board of Higher Education. Construction cost estimates now reach $170 million or more.