HOCKEYVILLE IS BEING PUT to the test as Marquette begins the process of determining the future of Lakeview Arena.
A packed Community Room… at the aforementioned Lakeview Arena, leaned in and listened intently (because there were no microphones) as city officials detailed a fairly dire financial outlook for the city-owned facility at an informational work session this past Wednesday night.
City Manager Karen Kovacs went over the history of the 50-year-old Lakeview Arena, as well as the financial challenges that have gotten us to where we are.
And where is that? It’s that point in the life of a community asset where you have to decide… how much more money can we afford to put into this aging and increasingly more expensive building?
There were a lot of numbers being thrown around, so I’ll try to simplify it with this… we (the taxpayers of the City of Marquette) are losing upwards of $300,000 a year, just to keep the doors open and the lights on.
Maybe “losing” isn’t the right way to characterize it. That money is going towards a facility that serves a number of community activities, not the least of which are our many hockey and skating programs. So, is money put towards valuable recreational opportunities really being lost? The city earmarks funds for a lot of things that don’t result in a benefit to the bottom line. In fact, most city services don’t result in any financial Return on Investment. That’s not the purpose of city programs.
How Much is Too Much?
The problem appears to be in the measure of funds needed to keep Lakeview operating, when compared to the number of people and activities it facilitates. Plus, there’s the simple fact the city isn’t exactly flush with cash these days. It’s taken a substantial increase in property taxes just to keep up with the monthly bills. An extra three-hundred grand on the “expense” line… shelled out to a non-essential initiative, has the bean counters’ pencils sharper than the Sentinels skates.
And, again… that’s just what it costs to keep the place open. In the very near future there’ll be some big-dollar improvements staring us in the face requiring an infusion of cash currently out of reach for the city. Things like new Zambonis, Hvac systems, bleachers, dehumidifiers, the parking lot, and new doors. Yes… doors. You want to get in, don’t you?
Hockey folks like to say… kids on ice aren’t in hot water. Well, if something doesn’t change, there isn’t going to be any ice, or hot water.
To The Rescue?
Enter Base Hospitality Group, the local company challenging the Verideas, O’Doveros, and Currans of the world for commercial property primacy. Check their website and you’ll see their handiwork all over town, in many cases, rehabilitating underperforming or stagnant establishments, like the soon-to-open EXPLORE MQT hotel on Baraga Avenue.
Base owners Charlie Holsworth and Josh Paquette took the floor after Kovaks’ cloudy forecast for the venerable hockey headquarters and made their pitch to purchase Lakeview Arena and, in somewhat of a surprise… turn it into a nonprofit. Well, make that an official nonprofit.
Like others in attendance, I figured the Base Hospitality Group would be looking at Lakeview Arena as another profit center to add to their growing portfolio. Nope. They’re hockey guys, raising hockey families, and they want to see Marquette’s rich hockey tradition continue, and flourish, in a revitalized all-purpose arena.
At least, that was the pitch. They talked about physical improvements to the building as well as a robust effort to bring in more events… with the idea of cutting into that annual operating deficit. If passion could ensure success, I think they’d stand a good chance of making it work. Their plan, admittedly still in its infant stages, sounded so good to me I could only wonder… when can you start?
Not So Fast
Commissioner Sally Davis was the first to hit the brakes, suggesting our current financial footing probably won’t last forever, and we might rue the day we gave up a cherished public asset when we should have hung on and rode out the storm. Certainly something to consider, regardless of the optimistic picture painted by Holsworth and Paquette.
Things like year-round ice and the acknowledgment that hockey is already pretty pricy seemed to sound good to the parents in the crowd. And though the city can’t continue to foot the bill forever, cooler heads suggested a closer look… due diligence if you will, before the keys get turned over to anybody.
Do I believe the Base guys primary motivation is to keep local hockey alive for current and future generations? I do. But it should also be noted their other properties are of the lodging variety, and if they can fill weekends with hockey tournaments, they’ll also stand a better chance of putting heads in beds at their area hotels. Nothing wrong with that.
What’s the Deal?
One minor point, something that’s usually a factor in the purchase agreement, is… how much? Kovac’s assertion that Lakeview Arena falls a healthy six figures short of breaking even isn’t exactly a selling point. Could this be one of those $1 deals that allows the city to get out from under a financial burden, with no be better option in sight? Could be.
And for all those who insist Base Hospitality’s real goal is to raze the building and put up condos, apparently the property is deed restricted to prevent anything other than the kind of thing we have there now.
As with all things municipal, this will be a process, with hearings and inquiries and probably more opportunities for community input. There will be those in favor, like those who are ready to accept new ownership, and those opposed, like the lady who let her feelings be known in no uncertain terms… “I don’t want Lakeview sold!”
Base Hospitality Group, nonprofit status, and community support may just be the hat trick Lakeview Arena needs to stay in the game, and out of the fiscal penalty box.