The south end zone structure must be replaced before the current scaffolding support system reaches the end of its useful life. A new press box will be constructed to accommodate the demand for premium seating and to provide a source for new revenue streams that will be necessary to meet the debt service requirements on bonds sold to finance the project.
In addition, the overall game-day experience will be enhanced for all fans by improving access and circulation in and around the stadium, updating and increasing the number of restrooms and the number of concessions stands, improving handicap accessibility, and providing other important general aesthetic improvements.
Preliminary cost estimates for this project made earlier ranged from $75 million to $96 million. Realizing the magnitude of this project, the University approached the UI Foundation to undertake a study to estimate the amount of funds that could be raised to support the Kinnick Stadium renovation. The UI Foundation hired Martin Grenzebach from the firm of Grenzebach, Glier and Associates to evaluate the recent donations history of the UI Department of Athletics and the potential for future philanthropic support for improvements to Kinnick Stadium.
In this process, Grenzebach conducted personal interviews with several of the UI Athletic Department's top donors. Grenzebach, Glier and Associates, in conjunction with CSL, also conducted a random telephone survey to gauge the interest in premium seating at a renovated Kinnick Stadium. Grenzebach has worked on similar studies for the University and the UI Foundation over the last 25 years including the Carver-Hawkeye Arena capital campaign. The services of his firm are widely used by universities across the nation.
Given the complexity and scope of this project, the University acknowledged early in the process the need to employ a consultant who was an expert at performing market analysis of the demand for premium seating options contemplated in the design of a larger press box area. A Request for Qualifications for this work was prepared culminating in the selection of the consulting firm, Conventions, Sports and Leisure International (CSL), to perform the marketing and financial feasibility analysis for this project. Jay Lenhardt is the principal with the firm who is working directly with the University. He also was the principal on the recently-completed renovation of Ross-Ade Stadium at Purdue University, a project that was very similar in scope to the UI's vision for Kinnick Stadium.
CSL has worked with many college and universities throughout the country on stadium and arena renovation projects. CSL is currently working with the University of Wisconsin, Michigan State University, and the University of Minnesota on analyses related to renovating or building new football stadiums at these campuses. A critical part of CSL's work is to collaborate with Grenzebach, Glier and Associates in the evaluation of revenue potential from the remodeled Kinnick Stadium. Analysis by CSL will include survey work of UI football patrons and evaluation of UI premium seating potential based on experiences at other universities.
The renovation of Kinnick Stadium is proposed to be accomplished in two phases. Phase 1 will begin immediately after the fall 2004 football season with the demolition and reconstruction of the south end zone seating. This work will be completed by August 2005. Phase 2 will begin immediately after the fall 2005 season with the demolition and replacement of the press box pavilion. This work will be completed by August 2006. To meet this aggressive construction schedule the University must issue bonds to finance the project. Anticipated bond sales would extend from January 2005 until September 2006.
Bond Issue Size
The Board of Regents financial advisor, Springsted, Inc., is preparing a number of debt service schedules that will match cash flow needs for the project. It is assumed that each bond issue would have 25 principal payments.
Revenue to cover debt service will come from the following sources:
Premium Seating Opportunities Within New Press Box
I-Club Priority Seating Gift Program