Lakeland's RP Funding Center could keep name in exchange for $1.25M

LAKELAND — Widespread speculation over whether the name of Lakeland's RP Funding Center would change could be settled if Lakeland City Commissioners agree to a proposed deal to keep it.

Lakeland officials have publicized they were in negotiations with several companies for the naming rights to the municipal-owned entertainment complex last year. A new five-year contract with Mortgage Lenders Investment Trading Corporation, publicly known as RP Funding, will go before city commissioners for their consideration Tuesday morning.

Lakeland officials have publicized they were in negotiations with several companies for the naming rights to the municipal-owned entertainment complex last year. A new five-year contract with Mortgage Lenders Investment Trading Corporation, publicly known as RP Funding, will go before city commissioners for their approval Tuesday morning.

The proposed deal gives the financial company the naming rights to the RP Funding Center for five years, from October 2022 to Sept. 20, 2027, in exchange for $250,000 annually. This is $100,000 more per year than the prior agreement, according to City Manager Shawn Sherrouse. It is expected to net $1.25 million for the center.

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"We’re happy to have the increased revenue now associated with the naming and have a direct relationship with RP Funding versus it being funneled through the Orlando Magic," Sherrouse said.

First known as the Lakeland Civic Center, the complex underwent its first name change to The Lakeland Center in 1996. The city first sold the naming rights to RP Funding through the Lakeland Magic's G-League team in 2017. Sherrouse said RP Funding would pay approximately $350,000 to The Magic, of which $150,000 would be forwarded to the city.

The center's second name change has created confusion among longterm residents and businesses.

"When it initially happened, people were still referring to it as The Lakeland Center," Sherrouse said. "More and more you are hearing it referred to as RP Funding Center. This is an opportunity to not have it change names, to continue to have people recognizing it."

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The city manager said the new contract builds on Lakeland's direct relationship with RP Funding. The proposed deal will allow the city to maintain the naming rights to the individual sections and rooms within the center, including the Jenkins Arena, Youkey Theater, Sikes Hall, the box office and other rooms. Sherrouse said the opportunity exists for the city to sell naming rights to these areas to other corporations to provide a stream of revenue.

"There could be potential for facilities within the center that are not named after people for honorary purposes," he said. "There would be some public sensitivity to some of those rooms that have been named in honor of someone, we would have to be mindful of that."

Selling the naming rights to the facility is part of the city's larger, overall strategy to improve its financial position. In fiscal year 2021, the city's subsidy of RP Funding Center was about $4.8 million. By implementing operational efficiencies and cost-savings measures, Director Tony Camarillo reduced the subsidy to approximately $3 million. The center has also increased its event rates by 5%, more than the usual annual increase of 3%.

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The RP Funding Center is changing its operational model to become a more rental oriented facility, rather than run its own self-promoted events. These changes will gradually take place in 2023 as scheduled event contracts expire, leaving space to be rented out local organizations or traveling companies who would be responsible for promoting their own shows or concerts. The city expected to make guaranteed revenue on the rental, while the renting party would bear the outcome of ticket sales and attendance.

Camarillo presented a financial plan to city commission at its February strategic planning meeting that aims to achieve 7% growth in fiscal year 2023, with 5% growth per year. If he can accomplish this by identifying operational savings and focusing on sales revenue, it would decrease the city's subsidy of the RP Funding Center to less than $2 million by 2027.

Sara-Megan Walsh can be reached at swalsh@theledger.com or 863-802-7545. Follow on Twitter @SaraWalshFl.

This article originally appeared on The Ledger: Lakeland's RP Funding Center could keep its name in exchange for $1.25M