Des Moines Register
07-19-07
ISU considers move to manage Hilton
TOM WITOSKY
REGISTER STAFF WRITER
Iowa State officials are evaluating whether to take back control of the Iowa State
Center from a private management firm and possibly give management of Hilton
Coliseum to the athletic department, a top school official said Wednesday.
Warren Madden, vice president of business and finance, confirmed that the
school has notified SMG, a private management firm that manages operations of
the four-building events venue, of a possible change in management control by
the end of the 2007-08 fiscal year.
“We are evaluating how best to manage the Iowa State Center,” Madden said.
“We will be discussing a variety of options to see how we can best manage the
center at a time when there has been great changes in public events venues in
Iowa as well as the plans that our athletic department has for Hilton Coliseum.”
Iowa State has had a private manager for the Iowa State Center for the past 19
years and SMG holds a management contract through 2011.
The Iowa State Center complex includes Hilton Coliseum, C.Y. Stephens
Auditorium, the Scheman Continuing Education Building and the Fisher Theater.
The complex is owned by Iowa State.
The athletic department must pay rent for the use of Hilton for all athletic events
— up to $3,000 per event — and receives only 50 percent of advertising sign
revenue related to athletic events.
Concession revenues are kept by the center.
The school notified SMG of the evaluation after American Capital, a large
national investment and holding company, purchased control of the Philadelphiabased arena and stadium management firm in June. Madden said Iowa State’s
contract with SMG permits the school to evaluate its contract if the company was
purchased.
Madden said the move could open the way for greater control of the Hilton
Coliseum by the athletic department.
Athletic director Jamie Pollard has urged school officials to consider changes
in the management of the 14,500-seat arena to provide stronger revenue
streams for the athletic department.
Pollard has proposed building new practice facilities as well as new
administrative offices connected to Hilton as part of a $135 million capital
improvement plan.
The plan also calls for major renovation and expansion of Hilton Coliseum that
would include the construction of suites and other premium seating that would
generate money to pay for the project.
Madden said there is greater competition for events in Iowa with the construction
of Wells Fargo Arena in Des Moines and other arenas and convention complexes
across the state.
“It is a much different time now, but we believe that we can and should maintain
our ability to attract large events to Ames, particularly during the summer
months,” Madden said.