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Madison finance committee approves resolution to preserve Hartmeyer Ice Arena pending $3 million campaign

2081254 · January 7, 2025
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Summary

The Finance Committee voted unanimously Jan. 6 to advance a resolution that would transfer Hartmeyer Ice Arena to a newly formed nonprofit if that group raises $3 million in capital repairs; the plan restructures about $1.6 million in outstanding debt and adds a deed restriction and nonprofit-ownership requirement.

The Finance Committee of the City of Madison voted unanimously Jan. 6 to advance a resolution that would transfer Hartmeyer Ice Arena from Madison Ice Inc. to the East Madison Ice Collective if the collective raises $3 million in cash or equivalent in-kind services for capital repairs.

The resolution matters because Hartmeyer faces urgent capital needs — a new roof, chiller and compressor, HVAC upgrades and electrical work — and the proposal is designed to keep both city ice rinks operating without additional direct city funding. Under the agreement, the city would restructure roughly $1.6 million in outstanding debt as a forgivable loan and apply deed restrictions limiting future uses to sports and recreation; the committee added an amendment requiring future ownership to be held by nonprofit organizations.

Matt McCloshevsky, Economic Development Director for the City of Madison, told the committee the proposal gives the East Madison Ice Collective (EMIC) three years to raise the $3 million needed to make Hartmeyer safe and operable. "Prior to completing any of the transactions that are contemplated in this resolution, EMIC would need to raise that $3,000,000 or the equivalent of in kind services," McCloshevsky said, summarizing the staff recommendations and the proposed timing for a master agreement between the city, Madison Ice Inc. and EMIC.

If EMIC meets the fundraising requirement within three years, the city would terminate the existing land contract for Hartmeyer and transfer title from Madison Ice Inc. to EMIC for a nominal amount. The outstanding debt associated with Hartmeyer would be restructured as a forgivable loan that is not reduced for the first five years and then is forgiven in 10% increments during years 6–15, according to McCloshevsky.

Madison Ice Inc. would retain Madison Ice Arena on the west side but the land contract would be converted so Madison Ice Inc. holds fee simple title; the remaining debt on that site would be restructured under a similar 15-year forgivable schedule. McCloshevsky said the city expects no additional city capital or operating subsidies under the proposed deal, and staff recommended applying deed restrictions to both properties and requiring each nonprofit operator to maintain a cash reserve equal to 25% of annual operating expenses.

Speakers during the public comment period urged the committee to preserve Hartmeyer for its community programs. Helen Leong, a District 3 resident and team manager for a Patriots recreational hockey team, said, "It is the only recreational hockey team in the area" and described Hartmeyer as the home for youth and new skaters who otherwise lack access to recreational hockey in Madison and Dane County.

Thirteen-year-old skater Morgan Burris Desert said Hartmeyer "has become a second home to me," describing personal benefits including reduced anxiety and social connections made through skating. Other registrants — representatives of the Figure Skating Club of Madison, Madison Patriots, sled hockey programs and community volunteers — described learn-to-skate programs, adaptive skating, sled hockey, synchronized teams, public skate and competitions that use the rinks.

Several committee members pressed staff on legal protections and precedents. Alder Latimer Burse said she was "unsettled" by gaps in earlier agreements and urged tighter contractual safeguards; Alder Rummel and others asked why the original 2004 land contract contained no deed restriction and whether the city could have required nonprofit ownership earlier. McCloshevsky said some details — the legal definition of "sports and recreation," the precise deed language, and whether a future release of the deed restriction would require a supermajority council vote — would be negotiated in the master agreement and in consultation with the city attorney.

The resolution before the committee reflects a policy choice staff laid out: return properties to the city and close the rinks (which could generate sale proceeds), return the properties to the city and continue city-run rinks (which could carry significant capital and operating costs), or continue private ownership with deed restrictions and fundraising commitments (the option the committee approved). Committee members who spoke said they preferred keeping year-round ice available while minimizing new city expenditures.

Next steps: if the Common Council approves the resolution, the city would negotiate a master agreement within months and give EMIC three years to raise the funds or secure equivalent in-kind work. If the fundraising succeeds, property transfers and loan restructurings would close under the agreed schedule; if not, the city would revisit options, including reclaiming the properties. The committee recorded a unanimous vote in favor of the resolution as amended to require nonprofit ownership and the deed restriction described above.