Concessions Deal May Be Consolation Prize

Ogden Corporation intends to make money after negotiating to build a $94-million arena, whether the facility is built or not.

If plans for the indoor arena in Anaheim fall through, Ogden still hopes to win a lucrative five-year concessions contract at Anaheim Stadium, as sort of a consolation prize, according to a tentative agreement between the city and the firm obtained by The Times.

Although Assistant City Manager James Ruth said Ogden’s attempt to obtain the concessions contract was rejected by the city, Ogden officials insist the issue still is being negotiated.

“It’s still possible,” said Marie Monet, president of Ogden Financial Service, who along with Ruth signed a letter of intent in July detailing the proposal.

Monet said the city has not ruled out giving Ogden the Anaheim Stadium concessions contract, and “neither have (the) Angels or Rams.”

“It depends on a number of things,” Monet said. “It depends on the Angels and Rams being happy with it. As long as the Angels and the Rams get what they ordinarily receive . . . they should have no objections.

“It’s certainly a contract we’d love to have.”

Under the current contract, which was purchased from the previous concessionaire in 1986, ARA Leisure Services of Philadelphia operates all Anaheim Stadium concessions through Dec. 31, 1990, splitting revenue with the Rams, Angels and the city.

In the 11-month period ending Nov. 30, 1989, ARA Leisure Services received $972,000 and the city $8.7 million, which it split with the Rams and Angels. The Angels received $4.47 million and the Rams about $734,000, city officials said.

Ogden has proposed to build and operate a 20,000-seat indoor arena within walking distance of the stadium. Last year, Ogden entered into an agreement with the city calling for the firm to be awarded the Anaheim Stadium concessions contract as a hedge against losses on the arena.

The July 12, 1989 letter of intent provides that if the arena is not built because of a failure to acquire necessary permits or land, Ogden could be granted the contract to operate Anaheim Stadium’s food, beverage and novelty concessions.

Lawsuits filed in January by the Rams, a development firm and a nearby mobile home park seek to prevent the city from issuing permits and acquiring land for the arena.

City officials concede that the lawsuits probably will delay completion of the arena beyond its targeted fall, 1991, deadline and could jeopardize the ability to attract a professional basketball or hockey franchise. Most observers believe a sports franchise is necessary to make the arena economically viable.

Although the terms of the letter must be approved by the City Council, the contract provides that should the arena fail, Ogden can have its choice: Be reimbursed by the city for out-of-pocket arena expenses or be granted the stadium concessions contract for five years.

The Anaheim Stadium contract, believed to be one of the richest in the nation, grossed $21.8 million through the first 11 months of 1989.

Douglas Logan, Ogden’s vice president for facility services, said that proceeds from the concessions contract “are possible revenues that could offset” his firm’s risk of losses on the arena.

Ogden would be “taking an enormous amount of risk for construction of a facility of this type,” Logan said.

OGDEN AND THE ANAHEIM ARENA:

Ogden Allied Leisure Services would operate the Anaheim Arena while Ogden Financial Services is arranging the construction financing.

Parent company: Ogden Corporation, a publicly traded, diversified corporation based in New York, N.Y. with revenue of $1 billion in 1988.

Ogden Allied Leisure Services bills itself as: “A promoter of family-oriented entertainment events at arenas and other places where (it) provides a full range of services.”

The Nederlander organization, which operates the Pacific Amphitheatre in Costa Mesa and the Greek and Pantages theaters in Los Angeles, will be the booking agent for the arena concerts, family shows and other events.

Background: In 1988 Ogden Allied Leisure Services entered a contract to take over management for 30 years of the Los Angeles Forum, home of the NBA Lakers and the NHL Kings, providing concessions, novelties, parking, maintenance, security and booking of events.

Among Ogden’s other management contracts are:

* Bayfront Auditorium, Pensacola, Fla.

* Carlson Community Center, Fairbanks, Alaska.

* Eagan Convention Center, Anchorage, Alaska.

* Five Seasons Center, Cedar Rapids, Iowa.

* Great Western Forum, Inglewood, Ca.

* Hilton Coliseum, Iowa State University, Iowa.

* Houston Field House, Troy, N.Y.

* Jacob K. Javits Convention Center, New York, N.Y.

* Paramount Theater, Cedar Rapids, Iowa.

* Pensacola Civic Center, Pensacola, Fla.

* Rosemont Horizon, Rosemont Ill.

* Saenger Theatre, Pensacola, Fla.

* Sioux City Convention Center and Auditorium, Sioux Falls, Iowa.

* Stephens Auditorium and Fisher Theater, Iowa State University, Iowa.

* Sullivan Arena, Anchorage, Alaska.

* Ogden also operates concessions at outdoor amphitheaters, NFL stadiums and runs an off track betting parlors in Illinois.