City selects entertainment industry leader to operate Target Center
The Minneapolis City Council recently voted unanimously to approve AEG Facilities Inc. of Los Angeles as the new management company for the City-owned Target Center arena. AEG, one of the leading sports and entertainment presenters in the world, is also one of the most respected developers and operators of venues, owning or managing facilities such as STAPLES Center (Los Angeles), The Home Depot Center (Carson, CA), Nokia Theatre Times Square, The Colosseum at Caesars Palace (Las Vegas) and Toyota Park (Bridgeview, Ill).
Minneapolis’ contract with AEG is expected to provide economic stability for the facility and the City, and will lead to improvements at the Target Center. In the first two years of the contract AEG will invest $2 million in improvements and enhancements at the facility.
The deal means the Target Center will be a more attractive venue for major shows and events, since AEG is among the top sports and entertainment presenters in the world, and is also the second-largest live entertainment promotion and content provider in the United States.
AEG assumes management of the facility May 2, 2007, and has agreed to an 18-year contract. By September 2007, AEG will submit to the City a re-branding plan, designed to enhance the image of the Target Center and improve the experience event-goers have at the arena. A marketing plan will also aim to boost the national, regional, and local profile of the center.
The deal follows the City’s Request for Proposals to find a new company to manage Target Center. Three proposals were received, and City staff recommended to the Council that AEG be chosen.
The agreement also puts a cap on the maximum annual financial support the City will pay for Target Center operations. The maximum amounts are less than the Target Center’s average annual losses in the last three years.
April 13, 2007
Published Apr. 13, 2007