#05 Discuss/possible action to build new ice rink
CITY MANAGER DEPARTMENT MEMORANDUM
September 8, 2009
TO: City Council
FROM: Eric J. Levitt, City Manager
SUBJECT: Discussion/possible action on request from Janesville Youth
Hockey Building Committee for City Council consideration on
City providing funding to build new ice rink.
Summary
In 2009, the City has been evaluating issues and possible deficiencies at the ice
rink. The areas that need attention include areas such as the compressor and
cooling system for the ice. During the spring of 2009, the City experienced
several small failures and one large failure of the ice cooling system.
A group of individuals proposed, during the spring, that the City consider building
a new rink rather than renovating the current rink. This group is currently within
the Janesville Youth Hockey Association.
Request
Janesville Youth Hockey Association has proposed that the City of Janesville
provide $2 million in seed funding and potentially an additional $500,000 to build
a phased two sheet rink. The Association would provide $2.5 million through
donations to build the rink.
Possible Motion
I move that the City Council approve providing up to $2 million in funds for a new
ice rink if the Janesville Youth Hockey Association can receive commitments of a
minimum of $1.5 million in funding by December 1, 2009.
City Manager Recommendation
After reviewing the proposal, I have several continuing concerns. The first and
primary concern is that the City of Janesville is currently faced with multiple
budget issues and is considering service reductions in the upcoming budget.
While I agree that Janesville will need to make improvements to the rink or build
a new rink, I believe that we can make improvements within the $1.3 million
range. Finally, there is a current concern of location of the rink, I believe it would
be more prudent to do improvements to the current rink and lay out long term
plans for a new rink if the Council places that as a priority in the future.
Background
In 2008, the City began evaluating costs to improve the rink in response to the
potential to attract a Junior A hockey team to Janesville. The initial estimates for
full improvements to the rink ranged in costs from $1 million to over $2 million,
but averaged out to approximately $1.5 million.
As the City negotiated the contract with the Junior A team (now named the
Janesville Jets), the City Council authorized $200,000 in improvements to the
rink. Concurrently, the rink experienced a variety of problems this spring and
was shut down for almost 2 months fixing issues with the ice cooling system.
A group of Janesville residents, now affiliated with the Janesville Youth Hockey
Association, began developing a proposal to form a partnership with the City of
Janesville to build a new rink. The proposed rink is located adjacent to the Youth
Sports Complex and built on 11 acres of City owned land.
The proposed partnership evolved over the summer and has evolved into the
attached proposal. The attached proposal has the following elements:
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The building and one sheet of ice would cost approximately $4 million (not
including land).
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The expansion to a second sheet of ice would cost approximately an
additional $1 million.
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The City is requested to commit an initial $2 million and an additional
$500,000 when funds are raised for a second sheet of ice.
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The proposal projects the City to close its current $85,000 actual subsidy
to a $0 operational subsidy when 2 sheets of ice are operational.
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The proposal discusses the expansion of users at the current rink over the
last year
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The ownership of the rink would be initially the Janesville Youth Hockey
Club, but would be sold to the City of Janesville for $100 at the completion
of 5 years of operation (the City would operate the rink during the 5 years).
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