Thursday, July 8, 2010
The Intrust Bank Arena has earned more than $1.6 million since it opened in January. A viewer wants to know, since the new arena is mortgage free and a fund was set up for maintenance, where does the profit it generates go? Good question.
So far, Intrust Bank Arena is making a lot of money. The total net income since it opened in January is more than $1.6 million. The arena made $397,000 in the month of May alone. Where does all of that "profit" go?
I called County Commissioner Tim Norton for answers regarding the arena's money trail. Norton says that based on the current contract with SMG, the company that manages the arena, the first $450,000 dollars of profit goes direct to SMG.
The second $450,000 goes to the county. Every dollar made after $900,000 is split 60/40. Sixty percent goes to the county and 40% goes to SMG. This method of dividing the "profits" starts over every year.
By these numbers, if the arena has made $1.6 million so far this year, the county has already pocketed $870,000. Our viewer wanted to know where the profit goes? Commissioner Norton says it goes right back into the arena's operating and maintenance fund. Norton says it was set up this way to ensure taxpayers would never again have to foot the bill for future upgrades.
If you have a good question, send it to Jeff Herndon at KAKE.com. He'll do his best to answer your good question every Thursday on KAKE News at 6.