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LTAC recommends up to $2 million capital and multi‑year operational support for proposed Innovia ice facility; council to consider motion Dec. 16
Summary
The Lodging Tax Advisory Committee recommended (1) up to $600,000/year in operational support in 2027–28 ($550,000/year in 2029–31) for Innovia’s proposed dual ice sheet facility and (2) a $2 million capital contribution for infrastructure contingent on a ground lease and conditions including a prohibition on a lodging facility while funds are provided; council asked for a motion on Dec. 16.
City staff presented Lodging Tax Advisory Committee (LTAC) recommendations tied to a proposed Innovia dual‑ice sports facility adjacent to Sullivan Park.
What LTAC recommended: Sarah Farr, accounting and finance program manager, said LTAC voted to recommend two linked actions: operational support beginning in 2027 (up to $600,000 per year in 2027–28, then $550,000 per year in 2029–31) to stabilize early operations, and a capital contribution of up to $2,000,000 from the 1.3% capital lodging‑tax fund for infrastructure (access, intersection, sewer). Both recommendations are contingent on the city executing a ground lease or similar agreement with Innovia and on LTAC conditions being met.
Contested condition: LTAC’s operational recommendation included a condition that no lodging facility be developed on the site while lodging‑tax funds support operations. Councilmembers pressed staff on why that restriction exists and whether it disadvantages prospective hotel developers. Councilmember Merkel questioned whether the hoteliers’ involvement could unfairly limit competition; City Manager Homan and staff said the hotel idea originally came from Innovia and that LTAC members (mostly hoteliers) sought to speed project delivery without waiting for private development. Staff emphasized that the city would not subsidize long‑term operations from the general fund and that Innovia must bridge any funding gaps beyond LTAC support.
Process and timing: Staff said they will bring the consolidated LTAC recommendations (first and second round) forward as a motion on Dec. 16. Council reached consensus to return the item for formal motion consideration with reservations from some members.
What to watch: The recommendations tie lodging‑tax resources to the outcome of a negotiated ground lease and the final terms of any agreement with Innovia; the LTAC condition prohibiting a hotel while funds are provided is likely to be a point of negotiation between Innovia, LTAC, and the city.
