Abby Nadeau
Staff Writer

With city approval Forest Lake could see a new ice arena in operation by August of 2008.

During a special workshop with the Forest Lake City Council on Monday, the Community Center Task Force's ice arena and fieldhouse steering and planning committee presented a business plan for the facility.

The group, composed of members from the Forest Lake Area Athletic Association, Forest Lake Hockey Association and other community members, created a plan that provides the community with an arena without using taxpayer dollars.

The $4.6 million project would offer one full-sheet of ice year round and partner it with a field house. The field house would potentially hold ice six months of the year, but then be converted for other indoor activities like basketball and volleyball.

Financing

Through a community survey last spring, the Community Center Task Force found that while residents would like such amenities like an ice arena in the community center complex, many were unwilling to pay for such a facility.

Therefore, one charge the steering committee had was to find a way to fund the project without using taxpayer dollars.

The group decided on an Industrial Revenue Bond.

In the business plan the group states that the bonds are "securities issued by a government agency for development, but backed by the credit of private enterprises, such as a local bank or group of banks.

"Unlike general obligation bonds, in which taxpayer dollars are used to pay down the debt, industrial revenue bonds use the facility's operating revenue to meet the bond obligations."

The plan states the city would lease or deed the land to a private enterprise, therefore eliminating the city's responsibility to pay off the debt.

An industrial revenue bond for $3 million would be needed to fund the building. The arena complex would pay 5 percent over 25 years, equaling to an annual payment of $213,000. A $400,000 industrial revenue bond from the Forest Lake Youth Hockey Association would also be needed at 5 percent for 10 years equaling an annual payment of $52,000.

In addition to the industrial revenue bonds the group plans to raise the additional $1.2 million in donations through a capital campaign that would consist of naming rights, advertising, private donations and grants.

The business plan states the planned revenue and expenses could leave the arena with an excess of $102,000 annually.

Revenues such as rentals, advertising, facility charges and advertising quickly add up to $754,000 annually. Expenses like salaries, benefits, utilities and insurance add up to roughly $439,000 annually. When the group factored in the arena complex debt payment of $213,000 the excess was $102,000.

In the business plan the committee said that FLAAA will be the owner and operator of the arena and field house.

"FLAAA is overseen by a 16-person board of directors, but will assign a separate steering committee to manage the arena and field house."

The planned steering committee is expected to manage the start up of the facility and the ongoing operations, which includes hiring two full-time employees and six to eight part-time employees to run the facility, equalling roughly $240,000 annually.

Council concerns

Throughout the presentation of the business plan the city council raised concerns.

Council member Susan Young questioned how the facility is going to offer opportunities for people who are not in hockey or ice skating.

Steering committee member Larry Schminski said the plan all along has been to go beyond just hockey.

He said that by joining FLAAA and FLHA together the group would represent more sports like baseball, soccer and volleyball -- sports that do not involve ice. However, he said the money is in ice time rental.

"The ice is the big thing, that is where you're really going to generate money," Schminski said.

He added that by having one sheet of ice in full-time operation revenue will come in, but by having the additional field house the group can offer more opportunities for other sports.

Schminski said he had a conversation with Brian Rabbe, the baseball head coach, who was excited to have an indoor facility to work with when the spring weather is not cooperating.

Both Young and Council member Judy Bull questioned the affordability the school had to pay for gym time. Schminski said booster clubs could easily pay for such time.

Mayor Stev Stegner questioned what the group needed from the city.

Schminski said the group needs the land itself, the road and utilities to the site.

"You also need to be the conduit," Schminski said. "The bonds need to be issued through the city so they can get the taxes and the status."

City Engineer Phil Gravel said the city cost for the site including items like the utilities and the road would be about $20,000 an acre or $120,000 for the six acres the facility would sit on.

Bull questioned if the association supports those who cannot afford to pay for such an expensive sport.

Carl Brandt, varsity boys hockey coach, said both associations offer athletic scholarships to help students who cannot afford equipment.

"We also have parents who recycle equipment," Brandt said. "We also have programs such as ëLearn to Skate.'"

Audience concerns

Toward the end of the special workshop, Council member Greg Ochs brought to light a letter the council had received from a resident who stated the city is "turning its back on the poor and lower income families of Forest Lake."

Ochs stated it was one of the "worst, most bigoted, racist letters I've ever seen."

The letter, written by Jim Heck, stated that "the Community Center Task Force roster makeup is also disparately represented by hockey zealots.

"The disparity of favored attention and effort that the hockey arena is receiving is a continued reinforcement of socioeconomic and racial discrimination and bias which is endemic to our community and reinforced by city government actions."

Heck questioned how the hockey scholarships were given out and if the community knew that used hockey equipment was available for children who needed it.

He added that his allegation is that the city is catering to primarily wealthy, white people.

Stegner said he appreciated Heck's comments and promptly adjourned the meeting.

City Administrator Chip Robinson said the proposed business plan would be added to the city council agenda 7 p.m. Monday at city hall.

The council could potentially act on the proposal during Monday's meeting.

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