09-13-94 Committee recommends separate arenas for OSU, city

                                                       9-13-94

COMMITTEE RECOMMENDS TWO SEPARATE ARENAS FOR CITY AND UNIVERSITY

     COLUMBUS -- After more than two months of discussions,
negotiators for the City of Columbus and The Ohio State
University announced Tuesday morning (9/13) that "no single arena
can serve the needs of OSU and the community."

     As a result, the committee recommended the city and the
university have a need for two separate arena facilities.

     The university will proceed with plans to build a 20,000- to
21,000-seat athletic facility on the northwest corner of Lane
Avenue and Olentangy River Road.  The city will move ahead with
discussions to develop an arena downtown.

     Columbus Mayor Greg Lashutka noted that a letter with
recommendations from the committee "highlight some of the
fundamental differences" between Ohio State's needs and the
city's needs for an arena.

     He expressed his appreciation for the work of the committee
in studying the arena alternatives.  Representing the university
was George Skestos, founder of the Homewood Corporation and a
member of the university's Board of Trustees, and representing
Columbus was Ron Pizzuti, chairman and CEO of Pizzuti Inc.

     "The town and gown relationship in this city is better than
any other in the Big 10," Lashutka said.

     Referring to the work of Skestos and Pizzuti, Gee said, "One
of the smartest things we (Gee and Lashutka) did was get out of
the middle of this thing."

     "The mayor and I are delighted with the results," Gee said.
He emphasized that Lashutka was supportive of a university arena
and Ohio State would support the city's efforts to build an arena
downtown.

     Skestos noted that going into the discussions they thought
they would be discussing joint use of one arena.  "We came to the
conclusion that one arena definitely could not fulfill the needs
of the city and the university," he said.

     In a letter to the mayor and university president, Skestos
and Pizzuti outlined the reasons for reaching that conclusion:

     -- "OSU's scheduling needs for an arena are too great to
allow for ongoing events by the community, such as professional
sports."

     -- "Federal tax laws limit the amount of usage of an OSU
facility by private, profit-making entities, which would be the
primary users of a civic arena.  The university plans to use bond
money to partially finance the arena.  Federal law on tax free
bonds will limit the university to a maximum 10 percent use by
profit making organizations."

     -- "Big Ten Conference rules permit only intercollegiate
team usage of university-owned arenas, thereby prohibiting
professional sports."

     -- "A civic arena should complement the Greater Columbus
Convention Center and its programming activities, provide for
professional sports and concerts, and serve as an economic
development tool not only for downtown Columbus but also for the
entire region."

     The letter also affirmed that "the use of the OSU arena will
complement, not compete with, a civic arena."

     "It will schedule non-athletic events that are university-
related and would not otherwise be held in a civic arena....  Sky
boxes, club seating, or other amenities affiliated with
professional sports arenas will not be part of the OSU arena,"
the letter said.

     In discussing the financing of the university arena, Skestos
told reporters that "we plan on raising $25 million from alumni
and supporters, and $25 to $30 million from a bond issue."  The
bond issue would be repaid from athletic revenues.  The
Legislature earlier this year appropriated $15 million for a
university arena.

     Skestos said he hopes the university arena can be completed
by 1998.

     Gee said that Ohio State would approach the state
Controlling Board in the next few days to seek release of a
portion of the state funds to employ an architect for the arena.

                                #

For more information, contact:
City of Columbus -- Terri Farell, communications director to
  Mayor Greg Lashutka, 645-6593.
Ohio State -- Herb Asher, special assistant to the president for
  state relations, 292-0803, or Malcolm Baroway, executive
  director of University Communications, 292-6895.


[Submitted by: STERRETT  (sterrett@ccgate.ucomm.ohio-state.edu)
               
Tue, 13 Sep 1994 11:53:02 -0500 (EST)]
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