Nationwide Arena moves forward with $400 million rebuild, but lacks funding

The independent government entity that owns Nationwide Arena now has a timeline to rebuild the home of the NHL's Columbus Blue Jackets even as it lacks much of the estimated $400 million needed to complete

the work.

The project cost is more than twice the $175 million it took to build the arena complex 25 years ago this month. And even without secure financing commitments, the head of the Franklin County Convention Facilities Authority (FCCFA) says rising costs are forcing them to move forward with the project, including a 2031 date for its completion.

The authority, which owns the Greater Columbus Convention Center, Downtown Hilton hotel and several parking garages (in addition to Nationwide Arena) is seeking up to $100 million from the state of Ohio, more than $100 million in authority-issued bonds, $25 million each from both the city of Columbus and Franklin County and the remainder from private stakeholders, including Blue Jackets ownership.

While both Columbus and Franklin County have committed to their share of funding, the state of Ohio is still in a legal battle over releasing almost $5 billion in Ohio unclaimed funds, to be used by Ohio's Cultural and Sports Facility Performance Grant Fund, money sought by several Ohio communities including the facilities authority that applied on behalf of the Nationwide Arena project in January.

This rendering shows a potential new east entry plaza into Nationwide Arena. The Franklin County Convention Facility Authority is advancing a plan for a $400 million renovation and modernization of the arena.

"We're doing this because we can't lose any more time," said Ken Paul, the authority's executive director. "We had expected an award this spring. And every day that passes, construction costs increase and the ultimate vision to complete this for the community is getting stretched."

The authority has already negotiated with Columbus an increase in the arena event admissions tax from 5% to 7%. The arena began to collect the 2% hike for its use in July.

But it's the state money that can define the arena's future as a competitive showpiece for major concerts and sporting events, Paul said.

"Frankly, it would be disappointing we were not able to advance the full $400 million renovation. If that full vision doesn't come to fruition we will still have to make upgrades," he said, maintaining that infrastructure upgrades like heating and cooling and electrical systems are continuing costs that need addressed.

Other upgrades like new seating, scoreboard, concessions, luxury suites and a rebuilt parking garage will be deferred, until the funding is available.

Absent the $100 million in state money, the authority could cover the first phase of schematic design, allowing more time to better focus on the remainder of the planning. Paul estimates that might cost $5-10 million.

The facilities authority on Sept. 9 issued a request for qualifications for a project design contractor, one of the conditions being that the firm, or partner firm, have local ties.

Lawsuit fights constitutionality of taking 'peoples' property'

In March, a Franklin County judge temporarily blocked the state from spending unclaimed funds while a lawsuit plays out. A similar lawsuit is pending in federal court. The funds are being sought from everything for Nationwide Arena's renovations to a new Cleveland Browns stadium.

"I have no indication of when, or if, it will be resolved it will be resolved," said the authority's Ken Paul.

Neither do the lawyers who sued the state on constitutional grounds.

"I envision this being litigated for quite some time," said Jeff Crossman, an attorney associated (of counsel) with Cleveland-based DannLaw. "The legal question is whether the state can take property that is not theirs. In any other case we would call that eminent domain or theft."

"We're actively litigating the case, until the state decides they want to resolve it."

"This is bigger than just unclaimed funds.... we're preserving and protecting people's property rights. Nobody has been given individual notice that they have funds to be taken away," said Crossman.

Timeline will proceed with hope of legal resolution.

Locally, Paul said his plan is to begin schematic design immediately after a design team is selected. Subsequent phases would be contingent on financing and issuance of a separate notice to proceed from the facilities authority.

The timeline includes: