The agreement’s history dates to 2011, when the building’s roof collapsed. At the time, owner Peter Prescott applied for a 20-year, 100% tax increment finance and credit enhancement proposal to help rebuild the facility.
The City Council voted to reduce the agreement from 20 years to 10 years, with the option to renew after the May 2022 expiration.
TIF districts allow municipalities to shelter property tax increases that would have occurred through new development.
The original assessed value of the arena was $254,200 when the agreement was approved in 2012. The arena’s assessed value for fiscal 2022 is $3,089,500. Through the TIF agreement, the $2.8 million worth of increased value is not factored into state and school funding formulas, resulting in more money for the community.
Through the credit enhancement agreement, the funds are paid back to the developer to help defray project costs.
The original extension proposal would see 95% returned to the ice arena for the first six years, and drop to 85%, 75%, 65% and 55% for the final four years.
According to financial estimates, $52,104 would be returned to the developer each year, and the community would see a $37,791 benefit through the TIF.
Some in favor of the TIF said the difference would be made up through the arena’s benefits to the community and surrounding business. The arena supports multiple youth sports programs, hosts blood drives and helps with food bank donations.
The original proposal saw more opposition than support during a public hearing Monday, at which residents strongly rejected the idea of using public funds to help the business stay afloat.
