MORGAN PARK — The Chicago Park District has approved a management agreement for the Morgan Park Sports Center.
SMG, a management company based in suburban Philadelphia, will operate the park district's new indoor ice arena and gymnastics facility at 11505 S. Western Ave.
The venue management, marketing and development company also operates the McFetridge Sports Center at 3843 N. California Ave. in Irving Park. This similar facility also includes an indoor ice rink and serves more than 2,000 people each week.
In addition, SMG manages Soldier Field, McCormick Place and the Arie Crown Theater. The management company further lists the stadium at Devon and Kedzie, formerly Thillens Stadium, among its clientele.
The Morgan Park Sports Center will employ a total of 55 people — a combination of full- and part-time employees, said Jessica Maxey-Faulkner, a spokeswoman for the Chicago Park District.
The 65,000-square-foot facility is expected to open sometime next month, according to a Facebook post on Thursday by Ald. Matt O'Shea (19th).
Five of workers at the Morgan Park Sports Center will share time between Morgan Park, McFetridge and Soldier Field. This arrangement is expected to save $96,000 annually, Maxey-Faulkner said.
Indeed, SMG will manage both the ice rink and gymnastics center as part of a three-year contract that includes a pair of optional one-year extensions, Maxey-Faulkner said via email on Thursday.
The management company will be paid $100,000 in the first year, $103,000 in the second year and $106,090 in the third year. Should the park district choose to extend the deal, SMG would make $109,273 in the fourth year and $112,551 in the fifth year, she said.
Maxey-Faulkner added that over the five-year course of the deal, SMG has agreed to spend $130,000 to market the new facility as well as provide capital improvements. The company will spend $50,000 in the first year and $20,000 annually thereafter.
The Morgan Park Sports Center is expected to generate annual revenue of $1.63 million. Management fees and operating expenses, including employee salaries, are expected to be drawn from these funds. Any additional revenue will go back to the park district, Maxey-Faulkner said.
Revenues will be generated from various teams and groups renting the facility. Already, Mount Carmel High School, Marist High School and the St. Jude Knights Hockey Club have all signed deals to use the new ice rink.
Founded in 1977 with the management of the Louisiana Superdome, SMG was one of two bidders interested in managing the Morgan Park Sports Center. Virginia-based Rink Management Services Corp. also bid on the contract, Maxey-Faulkner said.
Park District Supt. Mike Kelly lauded SMG for its management at McFetridge during the board meeting on Wednesday, adding he has the same expectations for the company in Morgan Park.
"Hopefully you guys can hit the ground running on Morgan Park. I need you to be operating in the black from day one," Kelly said.
For more neighborhood news, listen to DNAinfo Radio here:
