Council approves plan to transfer Madison ice arenas if private fundraising meets $3 million target

The Common Council on Jan. 14 approved a resolution that lets Madison Ice Inc. transfer ownership of Hartmeyer Ice Arena to a newly formed nonprofit, East Madison Ice Collective (EMIC), and restructures outstanding debt for both Hartmeyer and Madison Ice Arena — but only if EMIC raises $3,000,000 in private funds for specified capital repairs within three years.

The measure passed by roll call, with 16 alder votes in favor, 1 opposed and 1 abstention. Under the agreement the city would terminate existing land contracts and record deed restrictions limiting future uses of the properties to sports and recreation; the outstanding loans would be converted to forgivable notes that begin to be canceled after a five‑year period and are fully forgiven only if the nonprofits continue operating the arenas.

Why it matters: Hartmeyer’s roof, chillers and electrical systems were described in staff and nonprofit briefings as at risk and in need of roughly $3 million in repairs to remain operable. Speakers at the council meeting — from youth skaters and parents to longtime volunteers and nonprofit leaders — said the arenas provide year‑round programming including adaptive skating, learn‑to‑skate lessons, sled hockey and scholarships for low‑income families.

Background and the terms approved Madison Ice Inc. bought the properties from the city via a land contract in 2004 and later took a city capital loan in 2017. Council documents and staff said payments stopped in 2020 and the outstanding balance tied to both properties is approximately $1.6 million. Economic Development Director Matt McColodjeski told the council that Hartmeyer requires about $3,000,000 in capital work, and that Madison Ice Inc. had approached the city proposing a privately led solution to preserve the arenas.

Under the resolution the city attorney is authorized to negotiate a master agreement that would: (a) permit Madison Ice Inc. to transfer Hartmeyer to EMIC for $1 if EMIC raises $3,000,000 or equivalent in‑kind capital investment within three years; (b) restructure the outstanding Hartmeyer loan as a 15‑year forgivable loan with no forgiveness in years 0–5 and annual 10% forgiveness in years 6–15 contingent on continued operation; (c) convert the Madison Ice Arena loan into a similar 15‑year forgivable note tied to continued operation there; and (d) require both nonprofits to maintain a cash reserve equal to 25% of annual operating expenses. The city would place deed restrictions ensuring the land remains used for sports and recreation unless the council agrees to a future release.

Supporters and opposition at the meeting Madison Ice Inc. staff and nonprofit leaders framed the plan as a way to preserve community programs without creating a new city budget obligation. “MII was founded with the mission to provide skating for all with community as the focus,” Madison Ice Inc. staff member Emily Diemer said in public comment. Madison Ice Inc. board leaders argued they could not raise the needed capital if funds were diverted to repay legacy debt: “We could raise prices and pay off the debt by simply raising prices. It’s simply not the path that’s in the best interest of the community,” said Laura Franzen Elmer, president‑elect of the Madison Ice Inc. board.

Representatives of EMIC described a fundraising plan and a pledge to raise $3,000,000 specifically for Hartmeyer improvements. “We reached out to the city. We had our first meeting in the summer of 2023,” said Tom Conti, one of EMIC’s organizers, describing the groups’ negotiations with city staff. EMIC board members told the council the organization will pursue private philanthropy; Rachel Neal highlighted built‑in safeguards, saying the $3 million condition “ensures financial accountability and commitment.”

Several alders and some public commenters urged more time for analysis. Opponents asked whether the city was surrendering a valuable public asset without a full feasibility or equity analysis and wanted clarity about remedies if the fundraising campaign fails. Supporters said the city would still have options if EMIC failed to meet its fundraising targets, and that returning the properties to city operation would cost taxpayers more in capital and operating funds.

Council direction and next steps McColodjeski told the council staff and the nonprofits would spend the next six months negotiating the detailed master agreement. If EMIC raises $3,000,000 within three years, transfers and closings would follow. If EMIC fails, the council will revisit options for Hartmeyer and Madison Ice Arena.

Alder comments at the meeting showed the council split between members inclined to accept the private‑led approach with the fundraising condition and those who wanted additional studies or a longer public review. Former mayor Paul Soglin, who spoke in public comment, urged the council to make a durable, long‑term plan: “I suggest we do this right,” he said.

Ending: What the vote means now The council’s vote authorizes staff to complete legal documents required to implement the fundraising‑contingent transfer. The most immediate, concrete test is whether EMIC can raise the dedicated $3,000,000 for Hartmeyer repairs within the three‑year window; if EMIC succeeds, deed restrictions and the forgivable‑loan structure will be recorded and the nonprofits will operate the facilities under the negotiated terms. If EMIC fails to raise the funds, council members said the city will revisit alternatives.