Scope Arena, Norfolk, Va. at twilight.
Built in 1971, Scope Arena, Norfolk, Va., is ripe for renovation and expansion.
John Rhamstine, director of cultural facilities, arts & entertainment, for the city of Norfolk, which runs the SevenVenues of Norfolk, of which Scope Arena is one, said they were in the beginning stages of the project.
“We’re hopefully going to work hand-in-glove with Oak View Group (OVG) to take a look at what we may be able to do to Scope in the future,” said Rhamstine.
Currently, using the largest configuration, Scope Arena can hold 13,600 people. Rhamstine’s hope is to add 5,000 seats. Despite $15-$20 million of improvements over the years, Rhamstine believes the aging arena is due for a major renovation. “The primary driver of what we are looking at is expansion of the seating capacity and how that can be affected,” he said.
Rhamstine said picking up 3,000-5,000 more seats would be ideal, with the goal being to set Scope Arena apart from the other venues in the market.
Rhamstine said plans to expand the arena go back to 2004 when the city hired architectural firm Ellerbe Becket to do a study. That study proved too expensive to pursue. Scope Arena tried again in 2012, hiring Populous to do a study to expand the restrooms and concessions. That wrapped in 2014, but bids came in much higher than expected and that work did not get done either.
“We’ve been in a holding pattern ever since,” said Rhamstine, whose wait looks to be over now that Peter Luukko, chairman of OVG’s Arena Alliance, is interested in the project.
“Peter was here to see his son play hockey,” said Rhamstine about how OVG got involved in Scope’s destiny. “We sat down and chatted, and then he met with the mayor and things just took off from there.”
Luukko said the Scope Arena project reminds him of the KeyArena project that OVG has a bid on in Seattle. “They both have these iconic free-standing signature roof structures,” he said. “Scope’s roof is a big part of the community and the community loves the roof. This means that in order to increase capacity, the best approach is to dig down.”
The city’s previous studies indicated that digging down would be possible, but that further studies would be needed, said Luukko.
OVG has entered into a predevelopment agreement with the city and OVG has already brought in Populous, International Facilities Group (IFG) and Live Nation to support the project. “Live Nation will play an important part in the process as a potential content provider,” he said.
The city has already committed $100,000 for another study to look at expansion of seating, other improvements and the costs associated with achieving those goals. A Request For Proposals will be going out shortly, according to Rhamstine, who expects OVG to be involved in that process.
There are no estimates for what the renovation might cost. “The city has enhanced and improved a number of large projects in the past five years, and our hope is that a public/private partnership can be formed and most of the improvements can be paid for by using outside equity,” said Rhamstine.
Luukko said it was too early to discuss how the renovation will be paid for. “First we have to assess the costs and find the most cost-effective way to make the building serviceable and important in the marketplace, and then we’ll look at ways to pay for that,” he said. “We’ll look at all kinds of financing solutions and look at what kind of an event-load can be there, sponsorship opportunities, naming rights and what kind of VIP premium spaces can be built.”
Luukko laughed when asked about a ‘typical’ revenue split when entering into a public/private partnership. “There is no formula,” he said. “It all depends on how the building is financed; it goes city by city.”
Rhamstine also said the renovation would help Scope Arena compete against a new arena being built in Virginia Beach and stay viable against “a number of existing facilities actively competing in this market.”
Luukko is not concerned at all with competition from Virginia Beach. “Our focus is renovating Scope,” he said. “It’s an existing facility that’s been there for many, many years. It just needs to be updated and then it will be very serviceable.”
Aside from increasing the seating capacity, Rhamstine said that they also want to take a look at VIP areas, luxury boxes and improvements to the loading dock.
“We’re really excited and are looking forward to a great partnership with OVG,” added Rhamstine. “The city is going to be a very willing partner.”