Forget an upgrade ? a new arena in Baltimore could generate nearly $16.1 million more in annual economic impact.
1st Mariner Arena, located at the corner of Lombard and Howard streets in downtown Baltimore, generates about $47.2 million in economic impact each year for the community. A new facility, conversely, could create about $63.3 million annually, the Baltimore Arena Feasibility study indicated.
Released Monday through a cooperative effort with local groups like the Baltimore Development Corporation, the Maryland Stadium Authority and the Downtown Partnership, the Feasibility Study is Baltimore?s first step toward creating a new entertainment venue.
“What you are facing is that if you don?t take steps [to change the arena], there will be a decline of the events and the economic impact,” said Donald Fry, president of the Greater Baltimore Committee.
While some believe an upgrade will suffice, the numbers indicate that building a new arena may be just as cost-efficient. The estimated cost of expansion or renovation for the facility is in the range of $120 million to $135 million.
The total cost of constructing a new arena from scratch would be between $128 million and $160 million, the study indicated.
Opened in 1962, the 11,000-seat 1st Mariner Arena draws about 600,000 in total attendance each year, generating about $3.7 million in annual tax revenues. The new proposed facility would seat between 15,000 and 16,000 spectators, while creating nearly $5 million in tax revenue.
Other estimations of the study include hosting between 160 and 170 events a year, which could attract around 1 million attendees annually.
The 1st Mariner Arena is currently owned by the city, but naming and advertising rights belong to 1st Mariner Bank. Hope for the new arena is that it will be a joint effort between private investors and the local government.
“It?s not going to be wholly public-funded,” said Jay Brodie, president of the Baltimore Development Corporation. “That?s just not the reality of the world we live in. It?s time to test the market and see how the private sector will step up.”
A location, whether new or old, was not recommended in the report. Any estimated timeline of a new facility would be at least two to three years in the future.
