Innovia Foundation proposes two-sheet ice arena at Sullivan Park; city staff to analyze costs and benefits

Innovia Foundation presented a proposal to build a two-sheet, 67,000-square-foot ice arena on city-owned property at Sullivan Park and asked the Spokane Valley City Council to consider a favorable ground lease, infrastructure support and backing for future state funding requests. The project team said the facility would host youth and regional hockey, include an elevated, conditioned mezzanine to view both rinks and aim to provide low- and no-cost opportunities for youth sports.

Shelly O'Quinn, vice president at Innovia Foundation, said the foundation and a “generous donor” are offering the project and that Innovia is coordinating community and philanthropic support. “This is an exciting opportunity,” O'Quinn said, adding the donor is present and engaged with the proposal.

Kevin Shaffer of GARCO Construction described a simple, pre-engineered metal building with locker rooms, concessions, offices and an elevated viewing platform. He said the project footprint fits comfortably on the roughly six-acre build parcel of the city's 11-acre site and indicated the developer envisions a supporting hotel and a 4,500-square-foot food and beverage venue adjacent to the rink.

City Manager John Holman told council that staff is preparing a staff-level cost-benefit analysis and a pro forma developed with an outside firm to estimate economic impacts. He proposed that, after next week's presentation of those analyses and public input, council could either give staff consensus to negotiate a lease or decline to proceed.

Council members asked for details about ownership, operations and community access. Merkel asked who would initially own the facility; O'Quinn said the ownership model is to be determined but that Innovia would likely be an initial owner. Merkel asked about a 9.4 million dollar purchase-option listed in the proposal and whether it would bind the city later; Innovia representatives said the purchase option would be negotiable and not an immediate city obligation.

Council members also pressed on assumptions behind the projected 5.6 million dollars in annual visitor spending and on hotel-room-night estimates tied to a proposed 120-room hotel. Shaffer and O'Quinn said more detailed economic and operational assumptions will be included in the materials staff will present next week.

Public commenters at the earlier public comment period included supporters and cautious voices. Ashley Blake, CEO of Spokane Sports, spoke in favor of the project and said Spokane Sports would prepare an event prospectus to show what tournaments and events the facility could host. Ben Lunda and other residents called the project a significant regional opportunity. Mike Dolan urged caution, saying the current proposal lacked “concrete figures” and financial detail and asked council not to “chase the shiny object.”

Innovia's proposal asks the city to consider: a 99-year ground lease for the 11-acre site (with an option to purchase later at a reduced price in the proposal), infrastructure investment and reimbursement for site access and utility improvements at Sullivan Road, support for any state-level funding requests the project team pursues, and ongoing collaboration during environmental, traffic and permitting reviews.

Next steps identified by city staff: (1) staff will complete and present a cost-benefit and pro forma analysis and collect public input at the council meeting next week, (2) if council provides consensus to proceed, staff will negotiate lease and project terms and return to council for formal approval, (3) any state funding requests would be developed in partnership with the city's legislative delegation and require separate approvals.

The proposal team provided letters of support from local hockey organizations and school districts and said they expect additional community endorsements if the council holds a public hearing. No formal lease or funding decision was made at this meeting.