NIU student groups get a big discount when renting the Convocation Center, but the cost still is too steep for virtually all organizations.

The charge for external agencies using commercial events using the full arena is $2,000 per day or 12 percent of gross ticket receipts (after taxes), whichever is greater.

For student groups, ticketed events cost $1,000 per day or 9 percent of gross ticket receipts (after taxes), whichever is greater.

Although there’s a 50 percent discount, the price only includes the use of the arena.

“The costs are so high for rentals and employees that it’s unrealistic for us to run an event there,” said John Ugolini, concerts coordinator for Campus Activities Board, which recently arranged an Andrew W.K. concert at the Holmes Student Center’s Duke Ellington Ballroom. “We would love to do events at the Convo Center, but with the budget we have right now, it just doesn’t seem advantageous for the students at this school to do one big show out there.”

CAB’s annual budget is $63,000, Ugolini said, who’s a junior communication major. In the fall, CAB presented its budget to the Student Association, which said CAB should plan according to the cost of holding events at the arena.

Ugolini estimated it would cost $40,000 to $50,000 for a Convo Center show, because in addition to the $1,000 arena charge, CAB would have to pay for the artist, arena staff and equipment. He said those costs would mean CAB would have to charge at least $15 per ticket, if not more.

While use of the student center is free for groups like CAB, the Convo Center must charge a rental fee to cover its own costs. Plus, the arena offers much more than a place like the student center, said Joe Coots, director of marketing and corporate sales for the Convo Center.

“It’s a different entity, one with 215,000 square feet,” Coots said of the arena. “You can do more here, you can have bigger events. The Holmes Student Center is a great building, but it’s only so big.”

Additionally, the Convo Center would lose money if it didn’t charge student organizations for its use.

“It’d be pretty substantial,” he said. “We’re a bond-revenue facility, and we’re here to create and generate revenue.”

The Convo Center gains revenue from three main sources, said Bob Albanese, NIU’s associate vice president for Finance and Facilities. Student fees only are used to pay for the original $35.8 million cost of the arena, which involves a loan-like annual payment of about $2 million toward a debt service.

Secondly, the arena earns revenue through rental income, which includes payments from permanent tenants (such as the athletic department) and the operational costs incurred by athletic teams (such as removing or installing the basketball floor).

The arena’s largest revenue source is from events for which the arena is rented by external agencies, Albanese said. Examples include concerts, trade shows and other events.

“We’re trying to generate money to keep the fees down,” Albanese said. “We’ve got to make sure we recover enough dollars to cover the operational expenses for the year.”

Coots encourages students to bring forth ideas for the arena, and said he’d be happy to discuss any potential events. He said the arena plans to hold 161 events this year. The only student event thus far was the Mike and Joe concert in August 2002, which was co-sponsored by the arena and CAB. Ugolini said that was the only way CAB could’ve afforded the event.

“The prices help student organizations a lot, having that discount,” Ugolini said. “I just wish there was more money to go around, but there isn’t, unfortunately. I think in the coming years, hopefully CAB Concerts will get a few increases, and we’ll be able to entertain the option of working with [the arena] in the future, and build a relationship with them in the future.”

The second-ever student-organization event at the arena is on Saturday, when the Indian Student Association will hold a cultural show. There are no more student-organization events scheduled at the Convo Center.