Bankruptcy is usually the last way out for most groups and is often seen as a worst possible outcome.
Upon declaring for Chapter 11 bankruptcy protection on June 5, The Dome in Anchorage sees its move as a necessary and positive step in the right direction.
“It was the only way to make sure The Dome was going to remain here… so we see it as a positive,” Alice Federenko said, CEO of The Dome since December 2008.
Now of course, the idea of having to take this measure is one the leaders of The Dome would rather not have to take. However, by declaring for Chapter 11, The Dome can take a step back and look to bring their annual payments down to a more reasonable and attainable level with their creditors and bondholders.
The restructuring of the long-term debt and bankruptcy protection will not close down The Dome. In fact, the venue will have no disruptions and continues to be open to the public and organizations that use it.
Since opening its doors in 2007, The Dome has seen troubles due to a large unforeseen property tax as well low revenue numbers in the summer months.
The Dome has to pay just over $200,000 annually to the Municipality of Anchorage. The grey space in between comes from The Dome being owned by a non-profit corporation, Anchorage Sportsplex, Inc., but being on for-profit lands.
“98 percent of our users are non-profit organizations, so we’re really baffled as to why we don’t meet the same criteria as other groups for non-profit exemptions,” Federenko said.
Conversations with the creditors about how to avoid this have been ongoing for some time, according to Federenko.
“They’ve been going on since January of last year, but they really got serious the last four to six months,” Federenko said.
Both sides took action to increase revenues and cut expenses. The simple fact, though, was the long term debt was something The Dome and its leaders could not avoid any longer.
The Dome has become the place to go year round for any type of sports. Within its walls, it hosts a full size soccer and football field and regulation size track. Everything from softball to lacrosse and flag football is played inside year round in perfect conditions and weather.
The largest air supported structure in all of North America cost just around 14 million to construct. It has become home to many club organizations, including the home of the UAA Track and Field and Cross Country teams.
UAA Athletic Director Dr. Steve Cobb has noticed how important The Dome has become for the teams and is a valuable tool for them to continue to grow.
“The fact of the matter is The Dome is very important to us. Our programs have improved fairly dramatically since we’ve been training there,” Cobb said when talking about the resurgent Track and Field and Cross Country teams.
This past year alone, both the men and women’s Cross Country teams returned to the NCAA Championships after very successful seasons. The women’s team even captured their first GNAC and West Region titles.
The Track and Field team got into the act by sending nine athletes to the NCAA Championships and having four All-American finishes. That came on the heels of a combined nine titles at the GNAC Championships, along with three GNAC records and 16 new UAA record finishes.
“We have a great relationship with (UAA),” Federenko said. “(Head Coach) Michael Friess is very supportive and vocal about The Dome, as well as Dr. Cobb. We are trying to partner and find ways to work out ways they could use (The Dome) more.”
According to Dr. Cobb, UAA spent about $45,000-$50,000 in rentals last year to The Dome.
But UAA isn’t the only one who could feel the effect if The Dome were to shut its doors. Many of Anchorage sports organizations and clubs would get the worst of it.
“I think it would be devastating to the Alaskan sports community, not just for soccer, but all sports, if The Dome were to cease to exist,” Barat Killian said, a Cook Inlet Soccer Club staff coach and Dimond High School soccer coach.
Killian, an Alaskan resident for the past three years, was not around to here to experience training in gyms and small spaces inadequate for soccer, but doesn’t want to imagine what it could be like.
“In the winter time, it’s our haven,” Killian said. “That’s where we go to play and train during that time, and we need it.”
Fellow CISC and South High School coach Tim Valesko said The Dome has been essential not only to his team’s success, but his own as well.
“It’s great for coaching development. I have the appropriate space to run better sessions,” Valesko said. “You can work on so many different aspects of the game without the confinement of a gym floor.”
The Dome hopes to be out of Chapter 11 bankruptcy by the end of summer, and has every reason to believe their talks with the creditors will be successful in keeping the facility open in Anchorage for generations to come.
“Right now, were going to go forward with the idea they’re going to continue to operate for some time,” Cobb said.
One can only hope that these ongoing talks will not deflate both The Dome’s and its user’s hopes of year round sports and activities.