Will the Santa Ana Star Center get new management? That question will be answered by the end of November.

That’s the directive Rio Rancho city councilors have issued to new city manager James Jimenez.

The councilors voted unanimously to approve a resolution that directs city staff into conducting a review of how the Santa Ana Star Center is managed and operated. District 5 councilor Larry Naranjo amended the original resolution that would have directed city staff to investigate the orderly transition of the center to a city operated and managed facility.

Naranjo said that he does not know anyone on staff who can manage the arena. He said that the resolution directs the city manager and staff to investigate the situation and find the best possible solution.

The city could take over the center, a new contract could be reached with Global Entertainment (who currently operates the center) or a new company could manage the center.

There was neither discussion among the councilors on the amendment nor any public comment.

Mayor Tom Swisstack pitched the resolution to the councilors on Sept. 10, but the council voted to postpone action for two weeks.

Acting City Manager James Babin presented the resolution to the council.

Specifically, the resolution directs Jimenez to present a business plan that will detail the city’s recommended management and operation of the center to the council no later than Nov. 30.

Deputy Mayor Mike Williams said that more advertising is needed. He suggested billboards, specifically electronic billboards, be placed in the city to advertise events at the Santa Ana Star Center.

Williams said zoning changes would need to be made to install the billboards, but he didn’t see it being a major hurdle. He also said they could be used for Amber Alerts and public safety.

“One of the problems right now is not knowing the niche for the area,” Williams said. “However, the involvement of community events is helping to a certain degree. Anything we can do to get more people to see the arena is going to be a benefit for us.”

He said he would gladly sit in on any contract renegotiations.

Williams said that Global has told him that the company will forego $350,000 in management fees.

“That’s very important,” Williams said. “That is $350,000 less that would have to come out of city coffers.”

He explained that the next step is for Jimenez to familiarize himself with the contracts, analyze them and see where they need to be changed.

In addition to marketing, Williams said another problem with the facility is location.

“I’m not going to deny the fact that it’s in the middle of nowhere,” Williams said. “The sooner the area builds up, the better possibility exists that we can start filling the arena.”

District 2 councilor Delma Petrullo said there are obvious problems that the city staff needs to investigate.

“It is a wonderful building it just has not been properly used,” Petrullo said. “That’s what we have to figure out.”

Presently, the city is paying $1.4 million a year from the general fund to offset the $2.8 million a year debt service owed on $45 million bonds. The bonds were used to construct the 160,000-square-foot center in 2006. Swisstack is looking to break even.

He said that if nothing changes, then the city would more than likely be on the hook for more than $2.3 million.

The mayor also wants the city-owned event center to be more community friendly. He said he is astonished that for the past two years the city has had to pay Global to use the facility.

Global Entertainment tacks on a 12 percent surcharge on its sales to defray the costs of the debt service. However, the original contract states that Global will pay for the entire debt service.

The bottom line, according to Swisstack, is he is frustrated with the city having to subsidize the arena.

Making changes with the center has been one of the mayor’s focuses since being elected in March.

Swisstack’s transition teams studied the issue earlier this year and some suggestions include looking to other types of entertainment apart from live music and comedy acts which also appear at other venues.

Some ideas, which circulated were to have the Pork & Brew and sporting events at the arena, refinancing the debt service, making events more affordable and competitive within the current market and encouraging the Rio Rancho Convention and Visitors Bureau and the Chamber of Commerce to explore opportunities for Rio Rancho to compliment major regional events to attract visitors to the city.

Global Entertainment is a publicly traded company on the American Stock Exchange. As of closing on Thursday, the stock was trading at $1.35.

For the company’s fiscal year, which ended May 31, the company earned $14 million in revenue, but had a net loss of $3.52 million.