TOLEDO, Ohio — The Lucas County Board of Commissioners approved a friendlier agreement with ProMedica Tuesday for naming rights to the Glass City Center as the company continues to navigate major financial woes.
ProMedica will still contribute $5 million overall, which is the amount the company agreed to when the deal was completed in December 2020. However a change in the payment schedule will save ProMedica some money in the short-term.
The initial agreement called for ProMedica to pay $333,000 annually for 15 years. Terms of the new deal allow the healthcare system to make one payment of $200,000 this year by July 31, two payments of $383,000 in 2024 and two payments of $266,500 in 2025.
ProMedica will then return to paying the $333,000 annual amount.
The vote to approve the restructured deal was unanimous.
"In response to the financial strain ProMedica, like many other health systems, has been navigating, we are requesting an amendment to the payment schedule for the Glass City Center naming rights agreement," ProMedica spokeswoman Tausha Moore said in a statement. "It will not change the overall amount of the commitment — just the timing of payments, which will be helpful as we continue to manage through issues like staffing shortages and overall rising expenses.
"We appreciate the Commissioners’ thoughtful consideration of this request as ProMedica works toward achieving greater stability and sustainability in these challenging times."
ProMedica will pay a $1,000 daily late fee if it fails to make payments on time.
According to documents provided by the county, ProMedica has made one $500,000 payment, which was paid last Sept. 14, but later than expected. The original agreement called for the company to make its first payment when the Glass City Center opened its ballroom, which debuted in August.
The facility recently underwent a massive $70 million renovation project. The commissioners oversee the Glass City Center through the Toledo-Lucas County Convention and Visitors Bureau.
ProMedica reported operating losses of more than $350 million through the first three quarters of 2022. The company has yet to announce fourth quarter results.
ProMedica recently asked the city and county for more money to host fewer concerts for this year's summer concert series.
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