If the city were to sell the Falliti Ice Arena, it would have to get at least $450,000 for the 30-year-old facility according to City Manager Jason Molino.
That base price would cover current debt on recent improvements to the facility, the Zamboni ice resurfacer as well as the cost of separating the HVAC and sewer line, which is shared with the Batavia Fire Department headquarters.
Councilwoman Patti Pacino, for one, doesn't think any investor will pay as much as $450,000 for a facility that old and attached to a municipal building. What's more, she's worried that once the building has new owners, they will be under no obligation to provide community services, such as hosting local hockey leagues and high school programs.
What if some day they wanted to turn it into a discotheque, or something else, she mused.
"That (loss of community use of the facility) frightens me," Pacino said.
Councilman Bill Cox (pictured) said he's pleased with how well things are going with the current management company, but doesn't think the city should own an ice arena.
"The ice arena is (a) great service and it’s enjoyed by people from throughout the county, but it’s not a vital service to the city," Cox said. "I believe we have to get out of areas that really aren't vital city services and involve private business."
Councilman Bob Bialkowski is all for selling the facility. He said he already received calls from local business people supporting the idea of selling it, wondering what the city was doing running an ice rink to begin with.
Technically, the city doesn't run it. For the past four seasons, a management company, Firland, has run the rink, and by all accounts, has done a good job. Firland has made all of its obligated payments to the city, totaling more than $160,000.
If the agreement were renewed -- which Firland wants to do -- the city could expect $400,000 from Firland over the next 11 years, enough to cover debt service, including the $75,000 still owed on the Zamboni machine.
If the city were to sell the facility, Molino said in a report, the sale price might only be four or five times current revenue, or between $300,000 and $400,000.
That's just a guess at this point. If the city were to get serious about selling the arena, a request for proposal would need to be written and an appraisal done -- a process that would cost the city thousands of dollars.
That cost scared off some council members from supporting the RFP process and by consensus, the council went along with a suggestion by Molino that the city generate a request for interest statement and float it around to potential buyers -- just to see if there is a market for the facility.
"It’s not every day that an ice rink goes on the market that’s 30 years old in a rural market like this," Molino said.
City Attorney George Van Nest also cautioned council members that finding a buyer could be difficult.
"There are going to be several strings attached, which is going to make it less attractive to a purchaser," Van Nest said.
Councilman Frank Ferrando said the currant arrangement with Firland seems to be working out well and from what he hears, hockey and ice skating are "booming" at Falleti.
"We need more booming kind of things happening in Batavia," Ferrando said. "I would hate to see us lose that just because we want to get rid of (the building)."
I don't recall the history of
I don't recall the history of the ice rink, so does anyone know how it got the name "Falleti"? Is it time to offer up the name to the highest bidder? If it is truly used by people from "...all over the country" then it must be an o.k. sort of place. Sell the name and buy the stupid Zamboni
Ya know what gets me? It
Ya know what gets me?
It seems as though every time someone at city hall gets their shorts in a knot about saving money, someone comes up with the idea that we should "SELL THE ICE ARENA".
What I'd like to know is: why is the Ice Arena always the whipping boy?
Why doesn't someone suggest that we sell Dwyer Stadium? Or sell the city parks?
They're all the same you see. Dwyer stadium, the parks, the Ice Arena are all part of the fabric of the city. They all enhance the lives of the residents in one way or another.
How many people know how the Ice Arena came to be? It is a result of a community development grant which was secured through the office of Congressman Barber Conable. Easily the best person to ever represent Genesee County. The point is that it cost the city NOTHING to build it. It was a classic case of your tax $$ at work. Given the above, I'm not sure if it's even LEGAL for the city to sell that building.
Now having said that, everyone knows what you get when you have a government contract...you get the lowest bidder. And to be fair there were issues with the refrigeration system as it was initially installed (by that low bidder) and yes the floor and the refrigeration system did have to be replaced. But that's water under the bridge. Why does everyone still hold that grudge?
In it's present state, the physical plant seems to be in good shape and well maintained. The city is NOT in the business of running the Ice Arena Mr. Bialkowski (who by the way probably hasn't spent 5 minutes inside the Ice Arena). The city has done the right thing and leases the rights to a management firm and if the report in the Daily News was accurate realizes some $160K as a result of that. Hey Bob...how about we sell THE MALL???
One other thing that not too many people ever mention is the economic impact of having that Ice Arena in the city. That building buzzes starting in September and runs through late March-early April with youth hockey, high school hockey, mens league hockey, figure skating and public skating. All those activities bring A LOT of people to the city who otherwise would never think of or have a reason for coming to Batavia.
While they're here, they purchase gasoline, rent hotel rooms, have dinner, shop at local stores and generally enhance our local economy. In fact, I'll put the economic impact of the Ice Arena up against that generated by Dwyer stadium ANY DAY OF THE WEEK.
I'm pleased to hear that most of council doesn't seem to be on board with young Mr. Molino's idea. Hopefully this will go no further.
By the way, I understand Mr. Molino does play hockey at the arena. You would think that if anyone would appreciate the benefits of the arena, he would.
I grew up only blocks from
I grew up only blocks from <a href="http://www.sandiego.gov/park-and-recreation/centers/colina.shtml">Colina Del Sol</a>, a park in San Diego.
It offered tennis courts, indoor and outdoor basketball, four softball fields, rolling hills for picnics, a full-service gymnasium, meeting rooms, kitchen facilities, a craft room, and one one side was a public swimming pool and on the other a pitch-and-putt 18-hole public golf course.
I spent most of every summer of my youngest years doing one thing or another at that park. I learned to play tennis and golf there, tap dancing, basketball leagues and hours and hours in pick-up softball games (usually the only kid on a team of adults).
I just grew up with the notion, I guess, that among the essential services a city provides is park and recreation. It keeps kids out of trouble, gives families a place to gather with other families and helps bind a community together.
I fail to see the difference between Falleti and Austin Park.
What Dave wrote word for
What Dave wrote word for word!
Don't under estimate the economic draw the rink has.
When I work in Rochester it isn't uncommon for coworkers to mention that they come to the rink for their child's tournment and usually stay for dinner at Alex's. Other than the casino pulling them in they usually say they haven't been here in years. The other follow up comments are versions of;"seems like it's a nice place to live", and "but there's nothing to do there".
So we as a community really want to mess with a good thing ?
I have a couple questions
I have a couple questions that I would like to have the answer to. One is I wonder why no real estate taxes are being paid on the ice arena. I understand that a municipality is owning it but if there is "rent" being charged, doesn't that mean that it is no longer a not for profit situation? Maybe their is like a pilot program the municipality pays? Just wonndering? If they sold the building then maybe it could be put on the tax role and the new owner could help the tax base?
The other thing is most people don't know that the city owns rental property. They have an arm of the government run it (batavia housing authority), but why is this the case? The BHA rent to the same people I do and the "subsidized" rent given is not always as big a discount as expressed. I know these "developments" do not pay real estate taxes but a portion of them like the pilot program. Is this an essential project forthe city. I don't see how it can be?! Sell those properties and put them on the tax role. I feel those who own rental property are competing against the city, which we are. I can understand 400 towers and the senior housing but there is plenty of low income families that the city rents to as well.
Edwards street, 193 S. Main and Macarthur are just to name a few
With regard to Howard's post
With regard to Howard's post above, that's precisely my point.
Particularly when they (apparently) admit that to even pursue this notion, they're going to have to spend money.
Hmmmm...let's see. You have an arena, that you didn't have to pay for when it was built. It's running smoothly with the management firm who pays you money for that privilege.
How about this? Abandon this idea and save the money. The arena and the arrangement for running it isn't broken and you don't have to fix it.
As a father of twins that
As a father of twins that play and have played for the Batavia Ramparts for years..I strongly suggest that the City of Batavia not sell the rink. If anything they should look into other local entities that are willing to step up and take on management of the rink once the Firland contract is up. Since Firland has taken over management of the rink there has been minimal re-investment/improvements into the rink. Anything made goes back to their company. The 10% profit that they are supposed to be giving back to the city is (or should be) in question. Ice time costs have gone up and are "put on" Genesee Amateur Hockey Association parents to make up. I think it is time that the whole process is audited and the results made public. If you have a local group take over the rink..they are much more likely to invest money back into the rink and really care about the kids, organization and parents who use it.
Ummm...Jeremy. With regard to
Ummm...Jeremy. With regard to no real estate taxes being paid on the arena. If the city owns it, why would the city tax itself?? I think they're smart enough to figure that one out.
As far as the other stuff, it's off topic. Please post that in another thread. Don't hijack this one.
Lori- The name "Falleti" was
Lori- The name "Falleti" was a result of a bid to get naming rights that Falleti Motors won. I believe it was something like $25,000 for 5 years.
Previous post on the effects of the rink on local business: (The rink gets packed numerous times each year).
http://thebatavian.com/blogs/twalton09/ice-rink-events-drawing-crowds-a…
Thanks Tim!
Thanks Tim!
Dave, Sorry to rain on ur
Dave,
Sorry to rain on ur parade with a different thought off topic. I was simply wanting to know if a nonprofit (whether municipality or not) is responsible to pay taxes if a money making business "rents" from it? I do believe they have to pay based on square footage used for that business. Maybe Howard can get a correct answer instead of just assuming.
Dave, The other reason I
Dave,
The other reason I mentioned BHA on this thread, is to make mention if they want to sell something, sell some of those complexes that they have that we the tax payers help pay and maintain but receive NO benefit from unlike the ice arena
Now if we could get some kind
Now if we could get some kind of feed back from Mr. Molina.
I don't personally use the arena but have plenty of friends and other acquaintances that do use it on a regular basis. I think it would be irresponsible for the city council to make a decision that would have such a long term impact on the local economy and the recreation available to the city residents.
On another note, I'm curious about the tax issue as well.
Sounds an awful lot like the
Sounds an awful lot like the ambulance issue in the past. The city got out of that business, I haven't heard any complaints since. Who knows.....
Dave, People have suggested
Dave,
People have suggested sell the baseball stadium. As for the ice rink, it comes down to taxes. Most people who use it don't live in tv
he city and don't have to pay for it. How about a non resident surcharge for use?
I would like to know what
I would like to know what kind of debt they are in for "repairs" to the rink.
My son has played there for 11 years and they have painted once. The only reason it even was painted is because GAHA organized a volunteer effort to do it because the city wouldn't help.
The mens room is missings a sink and the broken or missing plumbling fixtures along with the drainage problems have been there for years.
I have heard comments from out of towners. It's embarrasing.
I'm not sure what the answer is but it can't been run any worse than the City has done it.
John, Now just how the hell
John,
Now just how the hell do you know that "most of the people who use the arena don't live in the city"??
Seriously, do you sit down there and survey everyone who goes in there?
What a ridiculous comment!
You seem to have missed my entire point about the economic impact of the arena. Whether people who use it live in the city or not, they **come to Batavia** and while they're here they **spend money**.
This entire effort is just the most bizarre thing yet. Do the Council and young Mr. Molino want to remove all quality of life from the city? This arena is an extension of the recreation landscape in the city and I don't see this as any different than a city park (which are surely sacred when it comes to cuts - as they should be).
On top of all this is the fact that the building was FREE and there is no debt on it whatsoever.
I just don't get it.