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City Officials in Mobile, Ala., to Demolish Civic Center, Build New, $300M Arena

Tue March 19, 2024 - Southeast Edition #7
Alabama Public Radio & City of Mobile


The new facility will be uniquely designed to support Mobile’s Mardi Gras traditions while providing a modern venue capable of bringing in major acts that previously drove through the Port City en route to other destinations.
Photo courtesy of the City of Mobile
The new facility will be uniquely designed to support Mobile’s Mardi Gras traditions while providing a modern venue capable of bringing in major acts that previously drove through the Port City en route to other destinations.

The city of Mobile, Ala., plans to raze its 60-year-old civic center, Mayor Sandy Stimpson announced recently, and replace it with a new, world-class entertainment arena suited for concerts, family shows and sporting events, including professional hockey.

Alabama Public Radio (APR) reported March 18 that the new $300 million facility will be uniquely designed to support Mobile's Mardi Gras traditions while providing a modern venue capable of bringing in major acts that previously passed by the Port City enroute to other destinations.

To ensure the highest level of programming and customer experience, Mobile officials intend to partner with Colorado-based Oak View Group (OVG) as part of a multi-year operational agreement that includes the new civic arena, the Mobile Convention Center and the Saenger Theatre.

"Mobilians have been talking about how to address our aging Civic Center for nearly two decades, and we are beyond excited to put this feasible and affordable plan into action," Stimpson said in a press release. "We have partnered with the best in the entertainment industry to help design and operate the most technologically advanced arena in the region. It will have the versatility to host all kinds of events and attractions and meet the unique needs of our community. This is a game changer for Mobile."

The new arena will be designed to provide exceptional experiences, including retail spaces, luxury suites, VIP clubs, premium seating, great sightlines and dynamic acoustics, according to the release.

In addition, flexible seating and layout options will allow the new facility to easily accommodate a range of activities, including smaller shows and larger events with more than 10,000 spectators and fans.

Plans call for multiple ballrooms capable of hosting events of all sizes — offering greater flexibility for Mardi Gras balls and local events and creating additional spaces for conventions. Besides concerts and live performances, the new civic arena will be built to host professional hockey, ice skating performances and many other youth, collegiate, and professional sporting events.

Stimpson and other municipal officials are relying on being able to attract top-tier programming to the new arena, which, in turn, will hopefully bring 400,000-plus new visitors to downtown Mobile each year.

Existing Civic Center Operating at a Loss

Because the Mobile Civic Center is functionally obsolete and unable to host many modern attractions, finding a way to replace or upgrade the facility has been a goal of city leaders for decades, according to APR.

High maintenance costs and limited capabilities have led to an operating loss of approximately $18 million over the last decade. However, due to the fiscal stewardship of the Stimpson administration and its aggressive efforts to pay down existing debt, the city of Mobile is now in a position to turn one of its greatest financial liabilities into a huge asset for both the community and its visitors.

Over the last two years, Stimpson and his team evaluated multiple proposals to renovate the existing Civic Center. Following an extensive assessment with leading industry architects, though, it became clear that building a new facility from the ground up was the most fiscally responsible decision, his administration said in the latest news release.

APR noted that a new civic arena will create a better, more sustainable, and longer-lasting facility that will give Mobile residents the most return on their investment. A remodel could not guarantee the same results and would still cost taxpayers hundreds of millions of dollars.

As part of the proposed management agreement with the city, OVG also will improve the food and beverage experiences at the Mobile Convention Center and Saenger Theatre. The city also will invest in additional improvements at the theater.

Based on current designs, the construction's cost will be financed through cash contributions from the city of Mobile and project partners as well as sponsorship opportunities, strategic borrowing through the bond market, and other funding sources.

Because of its strong financial position, Stimpson said Mobile can take on a project of this scale without impacting any public services or losing out on other important capital needs across the city. A strategic financing plan will allow all debt associated with the new civic arena's construction to be paid down in less than 20 years.

In the coming days, the Mobile City Council will consider several items related to the demolition of its existing civic center, theater, and Expo Hall as well as study the operating partnership with OVG.

Contingent upon the timely approval of necessary contracts, demolition should begin in August, and construction of the new facility would start in February 2025. With a two-year construction timeline, the new arena is estimated to be open in time for the 2027 Mardi Gras celebration.




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