LOWELL - An agreement has been reached under which UMass Lowell will take over ownership of 6,500-seat Tsongas Arena from the city of Lowell.
The purchase and sale agreement was announced prior to last night's Hockey East matchup between the UMass Lowell River Hawks and the Boston University Terriers.
"The university, through the UMass Building Authority, is committed to $5 million in capital improvements to create a more vibrant event experience and enhance revenues," a statement said.
Chancellor Marty Mehan said the arena will "help us provide the array of activities and events necessary to keep" students "engaged and happy."
"This will be a major asset and resource for the university and a major savings for Lowell taxpayers, "said Sen. Steven C. Panagiotakos.
The university, through the UMass Building Authority, is committed to $5 million in capital improvements.
Before the university would own the facility and grounds outright, the Lowell City Council must pass a home-rule petition. The state Legislature would need to pass the petition, which would then be sent to Gov. Deval Patrick for his signature. Both the university and city expect that the transfer will be completed in January.
According to a statement the benefits to the city of Lowell include an $800,000 payment and "no further responsibility for running the arena and covering its costs, which have been up to $1.3 million a year." "Together with the UMass Lowell Inn & Conference Center at the Lower Locks complex downtown, the arena also will help integrate UMass Lowell students into the heart of the city, benefitting both students and downtown business establishments," the statement said.
The Tsongas Arena opened in January 1998. Its construction was funded with $20 million from the state, $4 million from UMass Lowell and $4 million from the city of Lowell. The arena was recently assessed at $24 million.
