By Jennifer Myers, jmyers@lowellsun.com
LOWELL -- The City Council last night unanimously approved the term sheet and purchase-and-sales agreement, and passed a home-rule petition to be approved by the state Legislature, to transfer the Tsongas Arena to the UMass Building Authority.
The terms of the deal hammered out by UMass Lowell Chancellor Marty Meehan and City Manager Bernie Lynch, in conjunction with state Sen. Steve Panagiotakos, include:
* UML paying the city $1 for the arena, with the city retaining responsibility for the remaining $2.5 million in debt service.
* The UMass Building Authority has authorized the university to borrow $5 million for improvements to the facility.
* The city receiving a vacant, four-acre parcel of university-owned land north of the UMass Bellegarde Boathouse on Pawtucket Boulevard for $1.
* UML paying the city $800,000 for the adjacent three-acre River Place parcel, to be transferred "as is." The former industrial site, valued at $2.9 million, carries an estimated $2.1 million in associated costs to clean up the land. The funds will be used by the city to begin paying down the $2.4 million in debt remaining for the construction of the arena.
The university will also establish an Arena Riverfront Development Committee, made up of three members appointed by Meehan, two by Lynch and one by the state's Division of Capital Asset Management, to oversee development of the property in a manner that will generate commercial real-estate taxes to the city, which will likely include a hotel with conference space.
Lynch added that there is a possibility that the university may engage a private developer to build a practice rink on the site, in addition to development of a hotel. However, there is an engineering challenge in that there is a sewer easement that runs along the side of the arena, making connecting to the arena for the use of the same ice-making equipment difficult.
It is an issue the redevelopment committee will address, Lynch added.
Before the university takes outright ownership of the arena, approval is required from the Arena Commission and the UMass board of trustees.
City Solicitor Christine O'Connor said the legislation is still being finalized. Under the terms of the draft, presented to the council last night, the Arena Commission will be renamed the Lowell Civic Stadium Commission and will be stripped of any jurisdiction over the arena. It will, however, remain involved in the oversight of city-owned LeLacheur Park.
The legislation also officially transfers ownership of the property to the UMass Building Authority and ensures that all contracts and licenses currently in place are transferred to the university.
Lynch said he expects the final closing to take place in January 2010.
The city will then have 120 days to move the police-vehicle maintenance facility, used both to repair vehicles and store those being held as evidence, from the three-acre parcel adjacent to the arena to a new location. He said the city is currently scouting new locations, including both city and privately owned properties.
City Councilor Rita Mercier suggested a garage that is for sale at 77 Arch Street, just off of the Lord Overpass, as well as the former 1400 Motors site on Gorham Street.
Lynch said both locations are on his radar.
This story appeared in the Lowell Sun on Wednesday, November 11, 2009