Alaska Dome operators file for bankruptcy

June 07, 2010|by Christine Kim

Anchorage Sportsplex, Inc., the non-profit that manages the Alaska Dome, has filed for Chapter 11 bankruptcy. (Rich Jordan/KTUU-DT)

ANCHORAGE, Alaska — An Anchorage non-profit corporation that operates a popular indoor sports complex filed for Chapter 11 bankruptcy protection Saturday.

Anchorage Sportsplex, Inc., the non-profit that manages the Alaska Dome, says it needs to restructure its long-term debt. Officials say the facility, which opened in 2007 and cost just over $14 million, has faced unexpected financial difficulties from the start.

The Dome, as it's known, is the largest air-supported structure in North America at 601 feet long and 87.5 feet tall -- but this giant is struggling to break even.

"We've cut expenses as much as we can cut them, without our users feeling that cut," said Anchorage Sportsplex, Inc. CEO Alice Federenko.

At an initial hearing at bankruptcy court, the judge granted a motion to use cash collateral so that the dome could continue operating.

Anchorage Sportsplex, Inc. says it's having a hard time paying $95,000 a month, especially in summer months that aren't contracted by seasonal users like the University of Alaska Anchorage and the Anchorage School District.

"The problem is the debt load versus the revenue," Federenko said. "If we could get the Dome fully utilized during the day through the fall and winter and then pick up our summer revenues, sure, we wouldn't have to file (for bankruptcy)."

Officials with the Dome say many of its expenses, like utilities and payroll, were higher than they had predicted. The non-profit also faces an unexpected and ongoing $200,000 dollar property tax bill from the city.

"It's a bit of a confusing assessment, because the ground is owned by a for-profit company, even though the Dome itself is operated by a non-profit," said Anchorage Mayor Dan Sullivan. "But it's the underlying ground ownership that determines how they're assessed."

Officials at the Dome say the decision to file comes after 20 months of ongoing discussions with primary creditors for the facility.

"The goal is to drop our payment to a manageable level, based on what our current income and expenses are," Federenko said.

Federenko says discussions with creditors will continue so that both sides can come up with a solution.

The city adds that it supports the Dome as a major community resource. The next hearing is set for July.

Contact Christine Kim at ckim@ktuu.com

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