Kearney archway attraction files bankruptcy

KEARNEY (AP) — The Great Platte River Road Archway has filed for Chapter 11 bankruptcy protection so its finances can be reorganized.

Wednesday’s filing in U.S. Bankruptcy Court in Omaha said the tourist attraction owes more than $20 million to bondholders and other debtors. The filing will let the archway remain open and pay 10 staff members while the financial problems are addressed.

“We had a conversation with the bond managers about two months ago and told them we were at the end of the line,” said Joel Johnson, who leads the archway foundation’s board of directors.

The archway was built as habitable bridge of sorts, spanning Interstate 80 east of Kearney in south-central Nebraska. Its historical exhibits cover the Oregon, Mormon and California trails and also honor the nation’s highway systems and railroads.

Johnson told the Kearney Hub that the attraction has been unable meet the inflated attendance projections that lured investors to pay $60 million for bonds issued before construction.

Attendance was 223,013 in the archway’s first year, 2000. More people went through the next year, 249,174, but the number has dropped since. The Hub said attendance was 49,960 last year.

“Last year was not a good year,” Johnson said. “It was hot and dry and gasoline prices were high. When gas prices go up, attendance goes down, and that includes charter buses. That type of traffic is very volatile.”

Officials have said the archway success has been limited awkward access for interstate travelers. A new Kearney interchange being built just east of the archway will ease the way for visitors and scheduled to open later this year.

In addition to ticket sales, archway revenue includes $150,000 a year from the Kearney Visitors Bureau. The Visitors Bureau has already provided $90,000 for 2013, said archway executive director Gary Rubicek.

Johnson said he and other foundation board members want the archway to stay open during the reorganization and operate indefinitely under a favorable bankruptcy settlement.

“I think we stand a chance this way,” Johnson said.