Spokane Valley council agrees to negotiate lease for donor-backed two-sheet ice arena

Spokane Valley — The City Council on Sept. 30 authorized staff to continue negotiations over a proposed two-sheet ice arena on an 11-acre parcel north of Sullivan Park after a lengthy public input session and technical presentation from city staff and Innovia Foundation.

City Manager John Homan and Innovia representative Shelly O'Quinn described the project as a donor-funded proposal to build two NHL‑size rinks, spectator seating and a conditioned mezzanine. Innovia and a private benefactor would finance and construct the facility with GARCO as a design/construction partner; Innovia proposes operating the arena or creating an operating entity. Council members were asked to direct staff to work out the details of a 99‑year ground lease and potential city infrastructure contributions.

Why it matters: Council members and dozens of residents said the facility would expand low- and no-cost ice access for youth hockey, figure skating, sled hockey and other programs at a time when demand outstrips available ice time in the region. Staff and consultants said the proposal could generate an estimated 6,000–9,600 hotel room nights by year five and $4 million–$6.9 million in annual economic impact if the pro forma holds.

Key details and city costs - Project footprint: the arena and immediate site are planned to occupy roughly 11 acres north of Sullivan Park; renderings presented show two regulation rinks and space for a potential hotel and commercial pad. The city acquired the parcel from the Washington State Department of Transportation years ago and has been planning park and utility service for it. - Construction estimate: Innovia’s materials and the consultant pro forma cite construction ranges between about $42 million and $51 million for the ice facility (private construction, per Innovia/GARCO estimates). The donor would finance construction; Innovia requested a city ground-lease arrangement rather than city-funded construction. - City infrastructure estimate: city staff estimated roadway, signal modifications and two entrance drives at roughly $1.8 million and sewer (including a required lift station and hookup fees) at about $1.25 million, for a round‑figure total of approximately $3.0 million in infrastructure costs the benefactor has asked the city to help fund. Separately, the city is completing a waterline project to serve the site; staff estimated the city share at about $1.5 million (the city noted a Washington State Department of Commerce grant of about $126,000 and a benefactor contribution toward part of the water line). - Purchase option: Innovia’s proposal includes a city option to purchase the ice facility for $9.4 million at some future date. Staff said that sum reflects the donor’s charitable gift conversion under IRS rules and would be applied to charitable purposes aligned with the rink if exercised; details depend on timing and agreement language. - Operations: Innovia proposed that it or an Innovia-created entity would operate the facility and that commercial development (hotel or other pad uses) could generate revenue to offset operations and maintenance. Staff said the pro forma assumes the city owning the facility for operating-cost modeling but that the donor intends to operate the venue initially.

Financial forecast presented - Operational forecast: a consultant pro forma projected an operating shortfall in early years (staff cited about $445,000 in year one under the pro forma) and an expectation that the facility would approach break-even by year five assuming the modeled revenues and complementary development occur. - Tourism and visitation: the pro forma projected nearly 25,000 “nonlocal days” in year one rising to roughly 38,000 by year five, and 6,000–9,600 room nights by year five. Staff and Spokane Sports said tournaments and youth events would be primary drivers of out-of-area visitation.

Public comments and stakeholder support A large turnout of parents, youth hockey leaders and athletic officials spoke in favor of the facility. The Spokane Chiefs hockey club’s president, Mark Miles, said the Chiefs would use the rink as a practice site and join operational and program planning; Spokane Sports CEO Ashley Blake said the commission would help with event prospectuses and tournament recruiting. Youth‑program leaders and several speakers cited long practice hours, late‑night ice slots and unmet demand as key reasons for supporting new sheets of ice. Several speakers asked council to retain the radio-control track and the Western Dance Hall uses on the existing park site; staff said the design team would work with those groups.

Council action and next steps Council voted unanimously to authorize staff to continue discussions with Innovia and the benefactor and to refine potential ground‑lease terms, operational agreements and possible city funding sources for infrastructure. The motion explicitly left final approval and appropriation to future council votes; staff and the proposer will return with negotiated terms for further public review and council consideration.

Quotes from the meeting - “This is a unique opportunity ... a generational opportunity,” Shelly O'Quinn, Innovia Foundation, said during the presentation. “At the end of the day, this is about the kids.” - “We do everything with a plan. We're very careful about moving forward with any proposals unless we look through all the details,” City Manager John Homan said, noting prior tourism planning in 2016 and 2023 that identified sports facilities as a gap.

Outstanding questions and council concerns Council members repeatedly pressed for specificity on the donor amount (the benefactor asked to remain anonymous), long‑term risks to the city if the private partner fails, exact maintenance responsibilities for new infrastructure (signals, lift station, snow removal) and contingency plans if complementary development (hotel or commercial pads) does not materialize. Staff said those are negotiation items to be resolved in the ground-lease and other agreements and would return to council for final approval. Several residents asked the council to consider a shorter ground-lease than the proposed 99 years or to include specific public-access and termination provisions in any lease.

What the vote did and did not do The council’s vote authorized staff to continue negotiations and develop lease and infrastructure proposals; it did not commit the city to purchase construction, fund operations, or appropriate the estimated infrastructure dollars. Any expenditure or final agreement will return to council for a future public vote.

Ending note Staff said they will work with Innovia, GARCO and local stakeholders (Spokane Chiefs, Spokane Sports, youth hockey, radio‑control club and Western Dance Hall representatives) to refine designs, access and parking plans and to return with a draft ground-lease and funding plan for public review and council action.