Kalamazoo considers arena proposal

KALAMAZOO, Mich. (NEWSCHANNEL 3) – The drawings depict a grand proposal, but is the arena a good fit for Kalamazoo?

On Wednesday night the community took a hard look at transforming a large block into an $81 million arena.

Kalamazoo leaders recently got a look at a new study outlining what it would take to build that facility and the impact it would have on the city.

The land where the arena would sit is bordered by Kalamazoo Avenue, Water Street, Westnedge and Park Street.

Newschannel 3 was at Wednesday night's meeting, where many questions were raised, including who would pay for the proposed arena.

The vetting committee charged with investigating the feasibility of the project believes the arena could be paid for with a one percent tax on food and beverages in bars and restaurants throughout Kalamazoo County. They also want to use a one percent accommodation tax on hotel stays, so in theory the project would be paid for by visitors. The rest of the project would be paid for with other resources, such as naming rights to the arena once it's complete.

The food and beverage tax is estimated to generate more than $69 million over the next 30 years, the accommodation tax could generate five million, and memorials and naming rights at the arena is estimated to generate another $6.5 million, adding up to the project's total cost of $81.2 million.

However, there are a lot of concerns about the arena, most of the business is expected to be brought in by the K-Wings and WMU sports, neither of which have signed on to the project yet. Others simply don't feel comfortable spending over $81 million in a recession while so many are suffering, but supporters say that's why it's needed.

“There's a certain amount of taxation that the population will willingly bear, and if we take a one percent sales tax it's still surplus dollars that people could be spending on other things,” said Kalamazoo County Commissioner Michael Guinn.

“This will galvanize economic development around this area,” said State Rep. Robert Jones, “there are so many opportunities for us in the future. This site is ideally located.”