7/16/2008 5:39:00 PM School undecided on
ice arena abatement
By Jennifer Edwards Staff Writer
The Big Lake Board of Education has deferred a decision on whether or not to grant tax abatement to the Big Lake Ice Association, which is trying to build an arena in the Big Lake Marketplace, until their next meeting.
"This is the first time we have seen this information," said Supt. Jonathan Miller. "We need more time to really look at the numbers and consider what this means to the community if we have to come back and ask them for more money again later this year."
"In simple terms, tax abatement means taking the property taxes from a parcel of land in the Marketplace which belongs to Great River Energy to use to help fund the ice arena," said Ice Association President Chris Stalpes.
"No money would be taken from current revenue streams," he said. "And $93,000 per year would go towards the ice arena bond debt service."
The Big Lake City Council has already approved tax abatement if the ice association can persuade at least two of the other three governing entities to agree to it. The ice association approached the Big Lake Township Board of Supervisors, who agreed to the proposal only if all the other governing bodies agree. The fourth stakeholder is Sherburne County.
"An ice arena offers overall quality of life improvements through expansion of the local economy, encouraging new investment, increasing employment opportunities and development of the area," Stalpes said. "The result will be a more attractive community."
Ice arenas stimulate a more diverse business community by bringing in retail, entertainment, hotel and restaurant businesses, Stalpes said.
"By saying yes to the proposed abatement, the school board would be investing in the future of kids in our community and area businesses," said Stalpes.
"For a small investment, they get an ice arena to call home. Families move to communities which have more to offer, providing growth. High school sporting events bring the community together."
Ice time at other rinks in St. Cloud, Monticello and Elk River, is increasingly more difficult and more costly to come by, said Kent Vickerman of the ice association. As demand for ice time grows, Big Lakers may find themselves with nowhere to practice.
"This isn't just a facility for the hockey association," Vickerman said. "It would be available for the whole community."
Estimated cost to build the arena with one sheet of ice is $3.5 million. The Big Lake Ice Association proposes to contribute $1,427,263. The City of Big Lake and Big Lake Township would contribute $334,758 each over 20 years through tax abatement.
The school district's share, also contributed through the tax abatement program over 20 years, totals $539,332. The county's share will be $650,918, if they agree to the plan.
"This leaves a shortfall of $1,038,009," said Stalpes. "But we haven't factored sweat equity into the cost of construction and we have yet to look for corporate sponsorship."
"We also think other communities will want to rent ice time from us," said Vickerman. "Elk River is already running out of ice time and Becker, which doesn't want anything to do with building the arena because of the location, may find they are happy to have an arena only10 miles away."
The ice association owns a lot in the Big Lake Market-place which was purchased by LAMP from Dynamics Development for the purpose of building an arena.
If no arena is built within a five year time frame, the land reverts to Dynamics Development.
"There have been several attempts to build an ice arena in Big Lake," said Stalpes. "This is as close as we have come. If it doesn't happen this time, it may never happen."
