REA Ownership Transferred

[star2city]

This story, Engelstad Arena in North Dakota has new owner, was in today's Las Vegas Sun.

The new arrangement transfers ownership of the arena from Arena Construction Inc., which Engelstad set up in 1999 before construction, to a new limited liability corporation called Arena Holdings Charitable.

Earl Strinden, executive vice president emeritus of the UND Alumni Association and Foundation, said few changes would be made to arena management personnel but the deal allows more local control and gives UND new authority on ownership matters. It also provides a safety net by maintaining ties to the Engelstad Family Trust.

[jimdahl]

When I first saw this story break a couple days ago, the big thought that came to my mind was:

"I thought it was supposed to be transferred to UND at some point".

The Herald article, REA has new owner, provides a few additional details. The ND corporation, UND Sports Facilities Inc., owns the arena; but the Nevada corporation, UND Arena Services Inc., still has management authority. Call my cynical, but this has nothing to do with "limiting UND's liability", rather, this is keeping complete control of the arena out of UND's hands.

Frankly, I think the independent ownership is a good idea; but let's just call a spade a spade and say that direct control of the arena was not and never will be transferred to UND to isolate the arena from the fickle political machinations of the University.

[redwing77]

Will this have any impact over student presence in the arena? Is there any benefits at all to UND with this development?

[CoteauRinkRat]

Frankly, I think the independent ownership is a good idea; but let's just call a spade a spade and say that direct control of the arena was not and never will be transferred to UND to isolate the arena from the fickle political machinations of the University.

I was thinking the same thing when I read the article.

[ScottM]

Keeping REA away from direct control of the University does indeed protect the arena from the PC nazis, empty-headed academics and others who would seek to mismanage it. I would guess that Engelstad trusts probably control the Nevada entity, so they benefit from a revenue stream, exercise control over Ralph's legacy and are buffered from liability as well as gaining a tax benefit built into the structure. The North Dakota entity is really just a straw-man between REA and the University. The "corporation" owns REA, but I presume the corporation is owned by UND Foundation, which is a separate entity from UND, and not subject to the whims of present/future administrations. I'm presuming, management, including the Sioux name/logo usage in REA is controlled completely by the Nevada entity.

[CoteauRinkRat]

ScottM

You always say it better than I can. I totally agree.

[The Sicatoka]

A letter to the Fargo Forum.

Tim O