Enron Paying $100M to Name Houston Ballpark
If you build it, a corporate sponsor will come. This time around
it's Houston's new baseball stadium and Enron Corp., which said
Wednesday it will pay $100 million over 30 years for naming rights
to the ballpark to be known as Enron Field. Enron Energy Services
(EES) also will provide energy management to the facility.
Under the agreement with the Houston Astros, EES will manage the
energy contracts at Enron Field, as well as provide services for
heating, ventilation and air conditioning. EES also will administer
various subcontracts for maintenance of all mechanical and
electrical equipment. In addition, Enron agreed to develop a
parking garage adjacent to the ballpark, pending local approvals.
"Enron's ability to provide a total energy and facilities
management product for sports facilities will help maintain a
first-class ballpark created by the Astros and the Sports Authority
in Downtown Houston," said Enron CEO Kenneth L. Lay.
Enron has the potential to earn as much as $200 million for
managing energy services over the life of the contract. The
agreement is Enron's second sports facilities management agreement.
In December, EES said it signed a deal to become the exclusive
provider of electricity and facilities management services for the
San Francisco Giants. EES is the exclusive electricity provider and
energy facilities manager for the Giants through a 10-year
commodity agreement and a 15-year management contract for Pacific
Bell Park. The two contracts are worth more than $60 million.
"Enron Energy Services' partnership with the Astros further
validates our belief that entertainment facilities, especially
sports stadiums, represent a tremendous opportunity for our
comprehensive energy and facilities management services," said Lou
Pai, EES CEO.
Enron Field, which is scheduled to open in April 2000, is
leading the revitalization of downtown Houston. The 42,000-seat
stadium has been designed as an open-air ballpark with a natural
grass playing field and the ability to close a retractable roof and
air condition the seating bowl.
Planning on 20 to 30% growth of its Houston work force by 2001,
Enron in February announced plans for a 40-story office tower on a
downtown Houston city block adjacent to its existing 50-story tower
(see Daily GPI Feb. 3, 1999).
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