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Hoteliers and LTAC back Innovia ice rink; council asked to allow LTAC applications for operations and infrastructure
Summary
The lodging tax advisory committee and local hoteliers signaled support for accelerating an Innovia ice rink project; staff said LTAC could consider applications to backfill early operational losses (projected by a consultant at ~$445,000 loss in year one) and potentially provide up to $2 million toward about $3 million in infrastructure costs, pending council consensus to hold a special LTAC meeting.
City Manager John Holman and the lodging tax advisory committee chair summarized an LTAC request to expedite review of an Innovia Ice Rink proposal and accept applications from the Innovia Foundation. Holman said the LTAC and area hoteliers were enthusiastic about the rink and recommended the committee convene a special meeting to accept applications for both operational support and capital infrastructure.
Holman summarized consultant analysis indicating the facility could experience an estimated $445,000 operational loss in year one, improving toward roughly an $80,000 loss by year five; he said the hoteliers would consider backfilling those losses to speed construction. Holman said the committee would consider an application from Innovia for up to $2,000,000 toward approximately $3,000,000 of infrastructure needs (intersection improvements, access road, sewer lift station) and that staff expects to schedule a special LTAC meeting around Nov. 20. He emphasized that LTAC funds are lodging-tax revenues collected from hotels and that the hotel industry has a strong ownership interest in how those funds are used.
Council discussed whether it is premature to consider LTAC funding before final land-lease terms are presented; Councilmember Merkel urged caution and asked for land-lease details before committing to large operational or capital support. Holman and LTAC supporters said preliminary approval to accept applications would allow Innovia to better plan its financing and lease negotiations. Several councilmembers expressed support for moving forward with the LTAC application process while acknowledging the need to preserve that operational responsibility with the facility operator should LTAC funding be insufficient.
