INSIGHT: 

June 20, 2008: Article from the Plain Dealer of Friday, June 20, 2008.

"Lakewood:
Private firm renovates Winterhurst
Ice Land USA-Lakewood is renovating Winterhurst Ice Rink this summer under a lease to run it for five years. The city-owned rink, which has two ice surfaces, is closed until Sept. 4 for Ice Land's $1 million makeover, which is to include new locker rooms, flooring, rink boards and glass. Ice Land will pay the city $75,000 per year plus 10 percent of its profits. A related Ice Land company runs the private Hoover Arena in Strongsville."

 Strongsville's Hoover Arena:

 The $ 275,000 annual rental fee plus other costs have as yet to be offset by rental fees and will remain a constant expense through August 2017, and if renewed for an additional five years to August 2022 will, based on the established formula, increase in cost by a substantial amount per year.

Based on public information, records show that Strongsville has paid a total of $ 938,645.00 in annual payments and other rink related expenses from 2002 to March 3, 2005 and has received $ 189,104 in total revenue for the period, leaving "excess expenditures" of approximately $ 749,000 for the period. As of 6/20/2008 an updated financial report has not been provided by the city. This expense is carried within the over-all financial report of the Recreation Department.

"The following is a brief history of how the City committed its resources to this long term expense."

Resolution No. 2002-8 was introduced by Mayor Ehrnfelt and All Members of Council for first reading on January 14, 2002. The resolution expressing the City's intent to enter into a lease agreement for use of portions of a new ice rink recreation facility....because (1) Whereas the City presently does not own or have access to a National Hockey League size ice rink (s)...to offer for use by its residents and (2) Whereas, the City is desirious of entering into a long term lease agreement for use of a proposed National Hockey League size rink....as an adjunct to existing City owned recreational facilities.....This resolution was passed by Council on January 25, 2002 and approved by the Mayor on January 31, 2002.

Voting Ayes: Coyne, Demio, Kaminski, Roth

Voting Nay: Daymut, Gallagher, Haseley

ORDINANCE No. 2002-178 by Mayor Ehrnfelt and Mr. Coyne.

"An Ordinance authorizing the Mayor to enter into a lease agreement with Iceland USA, Ltd. was introduced for 1st reading on July 22, 2002.....and was adopted at a special meeting on July 31, 2002.

Voting Ayes: Coyne, Demio, Kaminski, Roth

Voting Nay: Daymut, Gallagher, Haseley

The lease agreement "made as of August 30, 2002".....and referencing.....on January 25, 2002, the City Council of Strongsville passed Resolution No. 2002-9.....with a "Term ......for fifteen (15) years commencing on September 1, 2002....and ending on August 31, 2017....option to renew this lease for an additional term of five (5) years.".....to pay Landlord the Rent.....$ 68,750.00 each three month period for lease years 2 through 15..."

In a local newspaper article, published 9/30/04, regarding the Ice Land owner, Strongsville Recreation Director Steve Kilo is quoted as saying...Ice Land officials do not provide the city with any information regarding fiscal operations at the public rink..."We don't get anything from them. We get ice time and it's not the best---from 8 (a.m.) to 3 (p.m.) Monday through Friday and an hour and half on Saturday or Sunday," -----"Whether they are fiscally sound or making money, I have no idea."

In an article published in the Sun on June 2, 2005 the article reads, in part,..

" In 2002, Ciity Council voted 4-3 to enter into an agreement obligating the city to pay $ 4 million over a period of 15 years to the rink's developers, Ice Land USA Ltd.

Update: as of 12/4/07 Ice Land USA is now Hoover Arena operated by Ice Land USA--everything else remains the same including the $275,000 annual fee from the taxpayers of Strongsville.

While Hoover Arena provides the home ice to the teams from Strongsville, Medina Hudson North Royalton and Padua High Schools there is no indication that the taxpayers of Strongsville are even close to a break even on their annual lease payment.