The city entered a public–private partnership agreement with Nustadia in 1998 to build and operate the Guelph Sports and Entertainment Centre for 30 years. The city contributed half of the cost of the project and also guaranteed a $9-million loan for capital costs, which was to be paid back by Nustadia. However, in 2001, the city of Guelph had to take over the $10 million "senior" loan for the Guelph Sports and Entertainment Centre, plus the $9.5 million "subordinated" loan the city was already paying due to Nustadia failing to make a June 1 quarterly payment of $181,250. The city had to pay $3 million over the a four-year span to make Nustadia's payments on its bank loan for the downtown arena. Nustadia stated that difficulties in making payments were attributed to a number of factors, including the failure to generate anticipated restaurant and food court revenue and lower-than-projected ticket sales from Guelph Storm hockey games. Nustadia expected 3,500 people per game but the average was closer to 2,800 in 2000–01. A four-year reprieve was granted by Guelph City Council so that Nustadia could operate under ideal conditions. Nustadia was to repay the money but with a clause in the agreement between the city and the developer giving either side the ability to walk away with no financial obligations to the other. That deal expired on June 30, 2005.