West St. Paul takes a step forward on sports center

City's Economic Development Authority has approved a project manager and subgroup to further study the proposed complex.

February 12, 2011 at 10:42PM

A sports complex that may be built just feet from West St. Paul's city hall can be "a rallying point" for the city, City Council Member Jim Englin said at a meeting last week.

"I can tell you as a 43-year resident of this town, there's something missing," Englin said about West St. Paul. But the sports complex can help change that, he said, by serving not only as a sports center, but as a community gathering place.

After almost three hours of discussion, Englin's argument rang true for enough of the City Council, which was acting as the Economic Development Authority, that the body voted 4-3 to hire a project manager and form a subgroup to further study the possibility of a sports complex.

If constructed, the complex is projected to bring about $1.6 million in annual revenues. Whether that money materializes will determine whether, and how much, the complex would be supported by public money.

While the debate has been heated at times, when Englin spoke during last week's meeting, he was mostly preaching to the choir.

Based on testimonials by audience members, the more than 100 people in attendance were mostly in support of the sports complex.

"I'm not a hockey parent. I'm not a soccer parent. ... I see this as a regional attraction to bring in economic development to Robert Street," said David Lynch, 39, of West St. Paul.

But Mayor John Zanmiller voiced his discomfort with moving ahead without getting more information about other options. "Have we truly exhausted the alternatives? I don't think we have," he said.

The complex is being considered as a replacement for the city's aging ice arena, which has a leaky roof and could use some new ice-making equipment. The arena is estimated to need $1.5 million worth of repairs.

Several leaders of sports organizations pledged during last week's meeting that they would use the complex.

"Our kids need this," said Dave Napier, a board member of the West St. Paul Youth Athletic Association.

Some of the council members also attested to the impact the complex could have on the community.

"I like to try to imagine myself driving down Robert Street right out here in three years and what it could look like with a reconstruction of Robert Street, with a facility like this and all of the people who will come to use this," said Council Member Tony Vitelli.

Three options

Oppidan Investment Co. and Conquest Development Services, which were both hired to conduct a feasibility study about what the city should do about its arena, laid out several options for what kind of complex the city could choose.

All of the options that were presented would make use of the city-owned land behind city hall where the maintenance facility used to be. Each conceptual option was projected to bring the city about $1.6 million annually in revenues from ice rink and dome rental, retail leasing, concessions and advertising.

The first option that was presented was for an ice arena and 86,000-square-foot FieldTurf dome that would be seasonal. That would cost about $11.7 million. After taking into account the annual operating expenses and debt service payments for the complex, the city would stand to make more than $102,000 in annual profits if revenue projections hold up.

The second option was a $12.8 million ice rink and turf dome of the same size but with a permanent dome. The city would be projected to make a little more than $21,000 a year with that option.

The last option would involve a similarly sized complex with a permanent dome and concrete walls, similar to a new sports dome in Vadnais Heights. That would cost a little more than $13 million. Projections have the city basically breaking even on such a facility, making about $1,000 a year.

To pay for the complex, city officials are considering using $1 million from the city's debt service reserve and issuing lease revenue bonds. Those bonds would be paid off with revenue from groups renting the facility; however, if the complex doesn't make enough money, the city would have to make up for the loss.

Mayor Zanmiller and a couple of other council members said they would rather the decision about the complex go to the public in the form of a referendum, but other members said it was unnecessary.

Englin expects the new study group to be able to deliver an update at the April EDA meeting. "There is a lot of work to do before we turn dirt," he said.

Nicole Norfleet • 612-673-4495

about the writer

Nicole Norfleet

Retail Reporter

Nicole Norfleet covers the fast-paced retail scene including industry giants Target and Best Buy. She previously covered commercial real estate and professional services.

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