Starting May 1, Performance Arena at Servus Credit Union Place will be known by a different name.
The city announced Tuesday afternoon it had reached a sponsorship agreement with Northstar Hyundai for the naming rights to Performance Arena. As a result, the rink will be named Northstar Hyundai Arena at the beginning of May.
“We’ve always been involved in the community,” said Dan Hoskins, general sales manager for Northstar Hyundai. “We’ve sponsored a couple of sports teams and the opportunity came up and we thought it was a great partnership to go after.”
A news release issued by the city stated the sponsorship agreement is for 10 years. In the same release, Hoskins said the sponsorship was a good fit for the company.
“Many of our staff, including myself, live in St. Albert and enjoy Servus Place, making this sponsorship important to us on a personal and professional level.”
The agreement is the first sponsorship for Performance Arena since Servus Place opened in the fall of 2006. Prior to the facility’s opening, the 2,000-seat arena had been listed as the second-most valuable sponsorship, behind only the naming rights to all of Servus Place, at $1 million over five years.
Hoskins declined to disclose the total of the sponsorship agreement. Mark Edwards, business and marketing manager for Servus Place, also wouldn’t comment but said in 2010, all of the facilities’ assets were re-evaluated. He wouldn’t reveal if the arena’s value increased or decreased during that process.
“[The sponsorship] definitely falls in line with what we valued [Performance Arena] at,” Edwards said.
According to Edwards, the deal arose out of a relationship with GoAuto, which he described as a parent company of Northstar Hyundai. It was through that relationship the two sides were brought together. Hoskins said negotiating with the city “wasn’t a lengthy process.”
“It was an opportunity that worked for both parties and we both are excited to move forward. It’s one of the bigger arenas there and a great way to get involved with the community and give a bit back,” Hoskins said.
Mayor Nolan Crouse was happy Servus had found a sponsor for such a significant component of the facility.
“I’m happy with where it’s at,” Crouse said. “We’ve got pretty good numbers on sponsorship for the whole package.”
Edwards said the biggest benefit to the facility from the arrangement was the sponsorship funds, which would go towards decreasing Servus Place’s operational deficit.
“It will go towards the operating costs of the facility. And I think just from a standpoint of credibility in the marketplace, I guess having that one signed off is good because it has taken so long.”
Northstar Hyundai is the second new sponsor to sign on this year. Kingsway Toyota signed a five-year agreement for an undisclosed amount to sponsor the indoor playground, leisure ice and two children’s program rooms. Tuesday’s announcement brings to 13 the number of sponsors partnered with Servus.
“We’re going to be ahead of the game when all the sponsorships are done,” Crouse said.
The city has lost one valuable sponsor — Sturgeon County allowed its agreement to lapse when it expired Dec. 31, 2011. That five-year deal saw the county contributing $100,000 per year.
