Arena Promises Turn to Burdens for Small Cities

Construction of a multi-use event arena in Rio Rancho, New Mexico, was supposed to be a boon for the city. But when events dried up, costs mounted and a big building became a big mistake.

1 minute read

May 19, 2011, 6:00 AM PDT

By Nate Berg


The company behind this failed arena has also planted stadia in other small cities with similarly poor results.

"The arena, which Global Entertainment said would be profitable in a year, has lost so much money that Rio Rancho has had to spend millions of dollars each year to keep it afloat. The city fired Global Entertainment in 2009 and sued it to recoup hundreds of thousands of dollars in unpaid bills.

A new arena manager has brought in more business, but the losses have continued to mount, eating into the city's already tight budget and pushing lawmakers to eliminate jobs and cut costs, including asking police officers to buy their own practice ammunition.

"If you look at the numbers that Global Entertainment presented to us, it was really, really questionable then, let alone during a recession," said James C. Jimenez, the city manager in Rio Rancho, who was hired after the arena foundered. "If we didn't have to allocate the money for debt service, our employees would have had raises and our budget would be in a better position." "

Monday, May 16, 2011 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Tunnel for pedestrians, bikes, and buses in Lyon, France lit up with purple lights.

The French Solution to Congested Tunnels: Make Them Car-Free

Bay Area transportation officials keep expanding car capacity. Lyon’s Croix Rousse Tunnel offers a different way.

6 hours ago - Streetsblog San Francisco

Missouri state Rep. Chris Brown speaking in government chamber.

Missouri Governor Reverses Anti-Discrimination Housing Policies

A new state law bars cities from prohibiting source-of-income discrimination against tenants using Section 8 housing vouchers.

7 hours ago - Missouri Independent

Pedestrians crossing a rainbow painted crosswalk in New York City.

USDOT Launches Unfunded 'SAFE ROADS' Program

The program targets “distractions” and “political messages or artwork,” and paves the way for autonomous vehicles.

7 hours ago - Urban Milwaukee