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Old Posted Sep 5, 2005, 4:27 AM
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Curtain's up: Breckenridge signs Kiel deal
From the September 2, 2005 print edition
Christopher Tritto


Developer Don Breckenridge got the green light to move forward on his $45 million redevelopment of Kiel Opera House and an adjacent garage.

The go-ahead appears to indicate a local buyer is in the wings for the St. Louis Blues.

Mark Sauer, president of the Savvis Center and the Blues, agreed to lease the Kiel Opera House to Breckenridge and assured Breckenridge that he could proceed with his planned parking garage next door, Breckenridge said.

The Kiel Opera House, which includes a 3,500-seat main auditorium and four adjoining smaller theaters, was closed in 1991 when construction of Savvis Center began. Breckenridge's renovations will include constructing a sound-proof wall between Kiel and the Savvis Center and expanding loading docks.

Breckenridge has been trying for three years to redevelop Kiel as a venue for Broadway shows. The Savvis Center and the Opera House are physically connected, and Savvis Center holds the long-term lease on the building.

Sauer's move indicates team and building owners Bill and Nancy Laurie are confident they will find a new owner who will keep the Blues in St. Louis.

When the Lauries put the Blues and Savvis Center up for sale June 17, parking became an issue for Breckenridge, who plans to convert the former L. Douglas Abrams Federal Building at 15th and Market streets into an 800-space garage to serve Kiel.

"There's no need for two parking garages," he said. "It depended on whether the team would stay and use their garage or not. If it would, we'd build another parking garage (in the Abrams building). (The Lauries and Sauer) certainly have to know where they are going for them to give us the go-ahead."

Sauer and the Blues declined to comment for this story.

Breckenridge said several local parties remain interested in buying the Blues. The Business Journal reported Aug. 19 that local groups being assembled by Michael Shanahan Sr. and his son Michael Shanahan Jr., Shaun Hayes, Tony Sansone Jr., and Tony Novelly and his son P.A. Novelly II have emerged as potential buyers of the Blues.

Michael Shanahan Sr., chairman emeritus of Engineered Support Systems Inc., helped build the St. Louis Blues franchise in the 1990s until he was forced out by Civic Progress leaders. His son, Shanahan Jr., owns the Huntleigh/McGehee Inc. insurance agency and an area minor league hockey team, the Missouri River Otters. That team plays in the St. Charles Family Arena. When the Lauries announced they were selling the Blues, Shanahan Jr. was among the first to express an interest in buying the club.

Hayes is regional president of National City Bank. Tony Novelly is chairman of Apex Oil Co., while his son is an executive with Stifel, Nicolaus & Co. Sansone is a principal in his family's commercial real estate firm, The Sansone Group.

Breckenridge also said Los Angeles-based AEG remains interested in buying the long-term lease on the arena. AEG owns and operates entertainment venues and sports teams around the country but would be prohibited from buying the Blues, because the company already owns the Los Angeles Kings hockey team.

Boston-based Game Plan LLC is managing the sale on behalf of the Lauries. Bob Caporale, Game Plan's chairman, said AEG is one of a few venue owner-operators that have expressed interest in the Savvis Center.

"We don't comment on any deals that are in negotiations," said AEG spokesman Michael Roth. "I can't even give you a gauge of our interest. But we own and operate venues as part of our core business."

Breckenridge said his architects were scheduled to arrive from Washington, D.C., and visit the building Sept. 1 to complete final measurements of the space and designate the formal division between Savvis Center and Kiel. "Once we do that, we can execute our leases with Central Parking and Clear Channel."

San Antonio, Texas-based Clear Channel Communications Inc. agreed in 2003 to sign a 20-year lease for an undisclosed amount to manage Kiel and bring Broadway shows and other cultural events to the historic building. Central Parking Corp., based in Nashville, Tenn., signed a letter of intent in 2003 to lease Breckenridge's planned parking garage for more than $1 million over 10 years, Breckenridge said.

ctritto@bizjournals.com
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