The Civic Center Board of Directors will be asked Tuesday morning to formally approve the agreement that gives naming rights of the facility to Monument Health.
The agreement was announced at a public ceremony and groundbreaking for the new expansion arena last weekend. On Tuesday, the Civic Center Board of Directors will make it official.
At last weekend's event, Civic Center Executive Director Craig Baltzer said the naming rights contract will be beneficial to both parties.
“This naming rights agreement is a great win for all parties,” he said. “Our mission has always been to provide Rapid City and Black Hills residents and visitors with a great, memorable and enriching experience, where our patrons can enjoy a user-friendly facility for entertainment, concerts, plays, conventions, sporting events and civic gatherings. Monument Health continues to make a strong statement of commitment to Rapid City and the entire Black Hills Area. And the name provides a strong, durable identity for the facility, including our new arena. It seemed like a natural fit.”
As announced, the contract provides that Monument Health — currently doing business as Rapid City Regional Hospital — will pay the city $30,000 per month for 10 years. The $360,000 per year, $3.6 million total contract provides naming rights to the entire 250,000-square-foot complex with multiple arenas, convention halls and meeting rooms and the expansion arena.
The name Rushmore Plaza Civic Center will be retired as of July 1, 2021. The contract for naming rights has legal effect for 10 years from that date. The contract stipulates that the hospital will pay $360,000 on Sept. 1 of each year of the agreement beginning with Sept. 1 of 2021.
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The contract goes beyond naming rights, however. Monument Health will have advertising rights at all locations within the current civic center — exterior and interior. Monument will also have advertising exposure on the digital billboard at Omaha and Mount Rushmore Road and at all points of sales — including concession areas — within the venue.
In addition to advertising space inside the facility, the hospital will be provided with "at least 2,000 square feet of space in a high-traffic area" for quarterly health fairs. According to the contract, the space shall be provided in conjunction with major events in the facility such as the stock show, powwow, Lakota Nation Invitational events and the annual sports show.
The hospital will also receive a minimum of eight tickets to every event, a theater box to accommodate 12 people in the expansion arena, and an Ice Arena suite for 12 people.
The hospital will also become the official sports medicine provider for all events in the venue. The civic center also agrees to require those using the venue to "employ Monument Health's medical providers for any event that requires sports medicine coverage as long as there is an attendance of 1,000 or more people."
“We are thrilled to have our new name associated with memories that will be created at The Monument,” Paulette Davidson, Monument Health President and CEO, said in a recent release. “The Rushmore Plaza Civic Center has long been known as a place to gather and experience sporting events, performances, the arts and more. We hope family and friends come together at The Monument to create memories that will be associated with our name.”
Few things could derail the agreement. If payments become 45 or more days late, failure to abide by any provision of the contract, or a bankruptcy proceeding provide possible reasons for the contract to be dissolved.
The hospital may leave the agreement if the construction at the new facility hasn't begun by June 1, 2020, or if the construction stops for more than six months after it begins. Also, failure to complete the expansion arena by Dec. 31 of 2021 would give the hospital the legal right to modify or end the agreement.
The vote is scheduled as the last item on Tuesday morning's Civic Center Board of Directors meeting. The meeting begins at 8:15 a.m.