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Kennedy vs. Engelstad Foundation: GF herald feature


jdub27

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On 6/14/2018 at 11:09 PM, BarnWinterSportsEngelstad said:

"The usage agreement differs from the 30-year lease agreement between the university and the Ralph"  from the last GF Herald article posted.

 

So we have 4 entities (3 non profits & 1 LLC) that is in short known as "The Ralph" all on top of UND land.

We have a 30 year "Lease Agreement" that ends in September of 2030, which at such time, the improvements become part of the land. 

There is a "Usage Agreement" with UND Athletic Department that is presently being worked on and has been adjusted in the past. Apparently a majority of the board of directors need not get involved to renegotiate this agreement.

 

Be interesting what really is disclosed to the public in this next week. If all the money stays within The Ralph and the U (like board of director Strinden claims), what does it matter what %(52/48) is used up front at ticket collection time?  Because, funds get shifted in other various ways (rent, adv, services, police, & etc.) between the two which also could get adjusted. Where do the proceeds from concessions, parking, & etc. come in, do any of these $ get forwarded to the AD in some way, or does The Ralph have a piggy bank? Any potential season ending overage $ given to the AD? What changes in 3 years when The Betty bond is paid off?

How much more are MH tickets today than they were in 2001 for the first season in The Ralph?

 

On 6/15/2018 at 2:06 PM, streetsahead said:

 

This 2000 article sheds some light on initial ownership. 

ENGELSTAD ARENA: Cost to top $80 million

Architect working with want list, not budget

By Michael Benedict 
Herald Staff Writer

The new Engelstad Arena is expected to cost in excess of $80 million.

The price tag for the arena was estimated at $65 million to $70 million in September, and the estimate before construction started was about $50 million. Interviewed Monday, a principle with the architectural firm that designed the arena said Ralph Engelstad never mandated a $50 million budget for the arena.

When Engelstad, a UND alumnus and casino owner, announced a donation of $100 million to UND in December 1998, he said then that half of the money -- $40 million to $50 million -- would fund the new arena.

Engelstad and UND didn't know then where they would spend the remainder.

The casino owner declined to talk to the Herald for this article, but through a spokeswoman, he did confirm the arena will cost "$80-million plus."

"All I know is we're trying to build what Ralph wants," said James Kobetsky, the principle with the building's design firm, Schoen Associates. "We didn't really have a budget. (He) was telling us what to design."

At the end of 1998, Engelstad also didn't know what such a facility would cost, said Earl Strinden, emeritus chief executive officer of the UND Alumni Association and Foundation.

Strinden said Engelstad came up with the $40 million to $50 million total based on other university arenas he toured before his donation announcement.

Strinden said the new Engelstad with its 11,400 seats won't be the largest university arena in the country.

"It will be a facility that will be the finest in the world," Strinden said. "It will be a diamond."

He said UND President Charles Kupchella and Engelstad continue to discuss the remainder of the $100-million gift.

Among highlights that weren't included in initial thoughts, a building connected to the arena that will contain an indoor, Olympic-size ice sheet for practice and other community needs.

The extra building cost several million dollars, Strinden said.

"Ralph and UND wanted to get everything in they wanted," said Kobetsky, adding material costs are lower here than in other areas of the country. "At this point, we're getting very good value for the money.

Another highlight is a 3-foot-high, 900-foot-long video screen that wraps the arena for instant replays, scores and "more excitement."

Called dasher boards, the boards that will surround the main building's NHL-size rink also are spring-loaded. The boards flex four inches on impact, which will lead to fewer hockey injuries.

In large construction projects, there are always add-ons, but, with 95 percent of the building's contract bids now final, Kobetsky said he doesn't anticipate costs will continue to increase.

"These are the kind of things (Engelstad) spent more money on," Kobetski said. "He knows exactly what he wants in the facility to make it more successful."

Through his Arena Construction Inc. and Ralph Engelstad Arena Inc., Engelstad technically owns and operates the new arena, but he does plan to give it to the university soon after it's completed, said Strinden.

For charitable tax reasons -- to prove the property valuable -- Engelstad's lease agreement with UND, however, state's he can own the facility until Sept. 30, 2030.

"His full intentions are that it will be turned over to the university in the very near future," Strinden said. "I do know in my visit with him, he will turn it over."

Any profit the facility makes in his ownership, Engelstad plans to donate to UND athletics.

Grand Forks Herald, October 17, 2000

http://und-fraud.com/UND/Campus/Arena/engelstad_arena.htm

 

 

What went wrong or maybe right since the beginning ???????  

The lease continues. Ralph Engelstad never gave the building (shortly after completion) to UND. It now won't happen till September 30th, 2030, why? The ND State Legislature was not eager with the responsibility of possible paying for potential operating financial shortfalls of the Diamond. Imagine that? This concern eventually brought Ms. Kris McGarry into our lives?

Issues? Would the hockey program and building still be top tier if UND owned the building shortly after it's completion, and would UND be diverting funds elsewhere? Would The Betty have ever been built? Or, maybe the state legislature should of should said thank you for The Ralph?

The whole initial $100 million that Ralph donated to UND went into the arena plus $4M. The building was paid for before the first puck was dropped, amazing!

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3 hours ago, BarnWinterSportsEngelstad said:

 

 

This 2000 article sheds some light on initial ownership. 

ENGELSTAD ARENA: Cost to top $80 million

Architect working with want list, not budget

By Michael Benedict 
Herald Staff Writer

The new Engelstad Arena is expected to cost in excess of $80 million.

The price tag for the arena was estimated at $65 million to $70 million in September, and the estimate before construction started was about $50 million. Interviewed Monday, a principle with the architectural firm that designed the arena said Ralph Engelstad never mandated a $50 million budget for the arena.

When Engelstad, a UND alumnus and casino owner, announced a donation of $100 million to UND in December 1998, he said then that half of the money -- $40 million to $50 million -- would fund the new arena.

Engelstad and UND didn't know then where they would spend the remainder.

The casino owner declined to talk to the Herald for this article, but through a spokeswoman, he did confirm the arena will cost "$80-million plus."

"All I know is we're trying to build what Ralph wants," said James Kobetsky, the principle with the building's design firm, Schoen Associates. "We didn't really have a budget. (He) was telling us what to design."

At the end of 1998, Engelstad also didn't know what such a facility would cost, said Earl Strinden, emeritus chief executive officer of the UND Alumni Association and Foundation.

Strinden said Engelstad came up with the $40 million to $50 million total based on other university arenas he toured before his donation announcement.

Strinden said the new Engelstad with its 11,400 seats won't be the largest university arena in the country.

"It will be a facility that will be the finest in the world," Strinden said. "It will be a diamond."

He said UND President Charles Kupchella and Engelstad continue to discuss the remainder of the $100-million gift.

Among highlights that weren't included in initial thoughts, a building connected to the arena that will contain an indoor, Olympic-size ice sheet for practice and other community needs.

The extra building cost several million dollars, Strinden said.

"Ralph and UND wanted to get everything in they wanted," said Kobetsky, adding material costs are lower here than in other areas of the country. "At this point, we're getting very good value for the money.

Another highlight is a 3-foot-high, 900-foot-long video screen that wraps the arena for instant replays, scores and "more excitement."

Called dasher boards, the boards that will surround the main building's NHL-size rink also are spring-loaded. The boards flex four inches on impact, which will lead to fewer hockey injuries.

In large construction projects, there are always add-ons, but, with 95 percent of the building's contract bids now final, Kobetsky said he doesn't anticipate costs will continue to increase.

"These are the kind of things (Engelstad) spent more money on," Kobetski said. "He knows exactly what he wants in the facility to make it more successful."

Through his Arena Construction Inc. and Ralph Engelstad Arena Inc., Engelstad technically owns and operates the new arena, but he does plan to give it to the university soon after it's completed, said Strinden.

For charitable tax reasons -- to prove the property valuable -- Engelstad's lease agreement with UND, however, state's he can own the facility until Sept. 30, 2030.

"His full intentions are that it will be turned over to the university in the very near future," Strinden said. "I do know in my visit with him, he will turn it over."

Any profit the facility makes in his ownership, Engelstad plans to donate to UND athletics.

Grand Forks Herald, October 17, 2000

http://und-fraud.com/UND/Campus/Arena/engelstad_arena.htm

 

 

What went wrong or maybe right since the beginning ???????  

The lease continues. Ralph Engelstad never gave the building (shortly after completion) to UND. It now won't happen till September 30th, 2030, why? The ND State Legislature was not eager with the responsibility of possible paying for potential operating financial shortfalls of the Diamond. Imagine that? This concern eventually brought Ms. Kris McGarry into our lives?

Issues? Would the hockey program and building still be top tier if UND owned the building shortly after it's completion, and would UND be diverting funds elsewhere? Would The Betty have ever been built? Or, maybe the state legislature should of should said thank you for The Ralph?

The whole initial $100 million that Ralph donated to UND went into the arena plus $4M. The building was paid for before the first puck was dropped, amazing!

Why? Maybe the nickname issue plays a big part. It started in 2005 with the NCAA’s list and Engelstad told Strinden he could see UND’s name being changed prior to that list coming out (there is a Valley News Live story on it). Now that UND has a new name and logo they are wanting to wait as long as possible to hand it over. No Hawk on the ice, on the outside of the building, or even on center court of the Betty. 

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16 hours ago, SWSiouxMN said:

Anybody want to take bets on what the SBoHE decides to do next Thursday in regards to his contract.  Jacobs is pretty much saying fire him without coming out saying it. 

http://www.grandforksherald.com/opinion/columns/4461730-mike-jacobs-big-issues-loom-nd-board-higher-education-including-kennedys

When did Forum Communications become a Fortune 500 company? I checked the website and it wasn't listed...

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6 minutes ago, siouxkid12 said:

When did Forum Communications become a Fortune 500 company? I checked the website and it wasn't listed...

He was latching on to Knight-Ridder's status...because you know, the GF Herald was a YUGE part of that overall success of the parent company.  :)

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50 minutes ago, siouxkid12 said:

When did Forum Communications become a Fortune 500 company? I checked the website and it wasn't listed...

I'd question the GF Herald being "one of Grand Forks' bigger enterprises" as well but it is written subjectively enough that I'm sure there is a way to argue it.

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20 minutes ago, forksandspoons said:

This seems to be the only difference:  So basically instead of the REA deciding how much they will give to UND at the end of the year, they have agreed to a minimum deposit of $500,000. 

"At the end of each year, Ralph Engelstad Arena funds a capital reserve fund for extraordinary repairs, maintenance, and building enhancements as well as an operating reserve fund to cover unanticipated operating expenses, and then allocates the balance of its annual net income to UND Athletics. The agreement notes that while there is no cap on the amount that can be funded annually to the account, the entities desire to make an annual minimum deposit of $500,000, which is also consistent with previous usage agreements."

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IMHO....The visit to Vegas was to get a major donor calmed down and remove Kennedy's piss poor approach from the situation immediately.  To that extent, my understanding is he visited for about 5 minutes and left the room to have others proceed with the meeting.  Kennedy and the University has no leverage in these situations because they have to beg for more money when the State decides to cut funding (Will continue this way for a while).  In the eye's of the largest donor to UND, Kennedy was arrogant and incompetent - these folks are not political adversaries who he needs to fight and beat...these are people who have a heartfelt need to express appreciation for their experiences at UND by giving significant $$$s to the University (Please spare me the BS about how you think they should act with their own money - once you pony up $100 million then I'm willing to take your advice). 

Retroactively, I think once Ralph saw how the management of the University really works during the initial planning of the REA, he felt they would piss away the gift and in no time would be begging the State to support their poor decisions.  The end result would be a substandard building for a premier college hockey program and a diminished University given to spending significant amounts on maintenance and capital building support versus academic scholarship and department development.

"Meet the new boss, same as the old boss..."

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4 minutes ago, Siouxperfan7 said:

This seems to be the only difference:  So basically instead of the REA deciding how much they will give to UND at the end of the year, they have agreed to a minimum deposit of $500,000. 

"At the end of each year, Ralph Engelstad Arena funds a capital reserve fund for extraordinary repairs, maintenance, and building enhancements as well as an operating reserve fund to cover unanticipated operating expenses, and then allocates the balance of its annual net income to UND Athletics. The agreement notes that while there is no cap on the amount that can be funded annually to the account, the entities desire to make an annual minimum deposit of $500,000, which is also consistent with previous usage agreements."

This is not a totally insignificant concession. I still think REA has no business getting its grubby little hands on FB revenue, since FB doesn't play in either arena.

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