School District 544 Hockey Arena

What?  You thought it was a “Community” Ice Arena?

To provide some background, remember that during the initial months of the City Council’s campaign in late 2009 to build the high school hockey arena, they touted such things as “the arena will be an amazing capital asset for the city – how else could the city obtain a $7.6 million asset for only $3 million cost?”

Often Fergus Falls’ voters heard about how the generous hockey supporters would donate $3 million, and the school district was chipping in a huge amount of support for the city’s community ice arena,

“…the Fergus Falls School District pledged an in-kind contribution of $1.6 million, which included providing land for the project” ~ Hage, J. (2010, May 18). Fundraisers surpass $3 million arena goal. Daily Journal (Fergus Falls, MN)

It will be a good deal for the taxpayers of Fergus Falls, the City Council said.  Fergus Falls’ taxpayers will only pay $3 million to finally have ownership of their very own “community” ice arena.  No more being stuck with “leasing” old broken-down county-owned ice arenas…

This is a big layer being peeled off the onion now, and I think it stinks.  Read the following from District 544 superintendent Jerry Ness very carefully, and you will hear who will actually own the ice arena which you are paying for.

The usage of the ice arena would be very similar to the current way we are doing business… The first agreement would be a Ground Lease between the District and the Port Authority to allow the construction of the ice arena on School District property. The School District would retain ownership of the land and building.” The second agreement would be an Operating Lease… whereby we lease the ice arena according to the district’s use of the facility…” ~ Ness, J. (2010, October 20). Schools: ‘Where excellence is expected’. Daily Journal (Fergus Falls, MN)

Did you hear it?  The school isn’t “contributing” the property to the city taxpayers – it’s contributing to the “project”… the project to build a District 544 Hockey Arena.  Yep, we’re building a hockey arena for the school district.

But it doesn’t end with building it and paying for it.  It is obvious to me that the City Council is planning to have Fergus Falls’ taxpayers shoulder the responsibility for the annual operating expenses of the District 544 Hockey Arena.  Sure, the school district and the hockey association will kick in a few dollars to “help” the city with the operating costs, as Mr. Ness states in the same article,

The second agreement would be an Operating Lease, which is the current way we are doing business with the City, whereby we lease the ice arena according to the district’s use of the facility…” ~ Ness, J. (2010, October 20). Schools: ‘Where excellence is expected’. Daily Journal (Fergus Falls, MN)

But what’s the point of such a complicated arrangement?  Why wouldn’t the school district just take care of the expenses for its hockey arena?  The only thing that makes sense is that the annual operating costs of the new District 544 Hockey Arena will likely be much higher than the school and the Hockey Association are willing (or able) to spend.  So this City Council has decided that Fergus Falls’ taxpayers should step up to pay the bill for the school district.

Have you tried asking the City Council or city staff for a proforma annual operating budget for the arena (not past budgets for the current county-owned arena)?  No luck with that, right?  After 14 months of planning, they still don’t have that information “available”.  Can you figure out why?

That is why I will now refer to the ice arena as the District 544 Hockey Arena.  We were sold the idea of a “Community Ice Arena”, but it’s obvious that was just a bill of goods.

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