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Arenas in red
<br /> (continued) were a real spectacle," Rakness
<br /> said.
<br /> because of anticipated cuts in The major sources of rev-
<br /> • state aid and a tougher ecolo- enue are youth and amateur
<br /> my, are prompting mayors and hockey leagues,including South •
<br /> councils in cash-strapped cities St.Paul's public school teams •
<br /> to boost revenues. Arena man- I lopes for Wakota's future as
<br /> agers are under pressure to a vein te for dry-floor events
<br /> attract more "dry-floor" events, rose on May 11 with the arrival •
<br /> such as concerts or trade shows, of the Mexican linden.The day-
<br /> or rent out more ice tune. long event, which featured hull
<br /> "'they're expecting us to riding and live Mexican music,
<br /> make money," Rakness said. took place our the main hockey •
<br /> • "IL's possible, if 1 didn't have rink, which is converted for
<br /> •
<br /> debt service." other uses during the spring
<br /> • Within the industry, Rak- and summer.
<br /> 'less'lament is a familiar one. The Mexican Rodeo may be
<br /> Al Payne manages the Rich- the start of something bigger," •
<br /> field Ice Arena and is the secre- haleness said. "It might give us
<br /> tary-treasurer of the Minnesota some leads to get other people
<br /> • Ice Arena Manager's Associa- to use the facility."
<br /> lino. The association's Web site Event organizer Claudia Del
<br /> (w promotes gado said Mexico-based promot-
<br /> about 175 arenas in the state and ers Garza and Sanchez Rodeo
<br /> elsewhere, listing locations, Productions will put on five
<br /> •
<br /> rates and contacts. more rodeos in South St. Paul
<br /> •
<br /> "When arenas [mat opened, this year, the next on June 1-
<br /> they were making money in the She said Wakol a is the perfect
<br /> •
<br /> early 19705. There we•en't that Win size,cost and proximity
<br /> many around;" Payne said. to the heart of the hispanic
<br /> -
<br /> No there's this mindset that community.
<br /> • - • arenas should make money,and "ht's really close to the Cities,
<br /> its difficult" and there's no way people can
<br /> • Payne said it's not easy to get gel lost or anything,"she said.
<br /> • a reading on profits and losses, But South St. Paul officials
<br /> even for municipally owned"are- still have their work cut out tor
<br /> nas. "You can be creative ill them in finding a niche in a
<br /> bookkeeping for one thing," crowded market Rakness has •
<br /> Payne said. "There are sonic few contacts in the trade-show •
<br /> budgets where they show every- industry,no promotional budget
<br /> •
<br /> thing." Ill other cases, he said, and little help.' They found us,"
<br /> maintenance, capital or iusur- he said of the Mexican Rodeo.
<br /> ante costs are accounted for dif-
<br /> ferently. A CROWDED MARKET
<br /> Rut he says many are losing
<br /> money. "Most of the arenas akota Arena has seen bet-
<br /> probably do not charge enough Wter days. Built in 1962 by a
<br /> rental rate for what it really group of private investors,it was
<br /> costs to operate the building;' one of the first indoor ice arenas •
<br /> Payne said. Arena managers in the stale.With few other corn-
<br /> _.. — are hod-pressed to charge pe lilors at the time, the arena
<br /> more than Lhe going rate, he made money for many years. It
<br /> said, which is about $150 an reverted to city ownership in
<br /> hour for teams. 1977 and, as more arenas
<br /> Generally, Payne said, cities entered the market, Wakota's •
<br /> that incurred debt for arena position gradually slipped.
<br /> expansions are struggling the The arithmetic is daunting.
<br /> r wost.The most common add-on The basic daily rental fee is
<br /> is a second rink. Whether a glut $1,500. That means more than
<br /> of arenas exists, Payne said, 100 non-ice events need to be
<br /> "depends on who you talk to. held to cover last year's losses of
<br /> Those in the arena business will $162,000.The city could also rent
<br /> say yes. People looking for ice out more ice time.Rut,given the
<br /> between 6 and 9 at night will say increasing competition, that
<br /> inn." prospect is dicey.
<br /> It also depends on how cities State taxpayers hail a hand
<br /> regard their arenas,Payne said, in building more rinks, includ-
<br /> - which is the crux of the matter. ing the second sheet of ice at
<br /> • If arenas are considered an Wakota. Flom 1905 to 2000, the
<br /> amenity comparable to a public Mighty Ducks Ice Arena Grant
<br /> park, Payne said, then cities and Program doled out$18.4 million. —
<br /> locl hixpayers should learn to lndividual grants of up to
<br /> live with break-even finances or $250000,distributed by the Min-
<br /> losses.If they are required to burn nesota Amateur Sports Com-
<br /> a profit, Payne said, tough times mission, helped in the construe
<br /> could lie ahead. Pion of Ol new rinks,or sheets of
<br /> The reason, Payne said, is ice.
<br /> • that many arena managers Barclay Kruse, the conlmis-
<br /> - (1011 t have the contacts, time Or sit n's associate director, said
<br /> marketing budgets to attract the grant program was Mimi-
<br /> non-Ice events. natal largely because it had
<br /> •
<br /> "I wonder if ice arenas won't achieved its goal.'
<br /> eventually become like bowling "The goal was not to run a
<br /> alleys and golf courses;' Payne grant program that would run
<br /> • said "You're now hearing about forever," Kruse said. "1'm not
<br /> golf courses overbuilt. A lot are exactly sure what the su ppl •
<br /> struggling, and l think that's and-demand situation is,bud it's
<br /> where ice arenas are." the communities that drove the
<br /> construction. There's no way
<br /> LOOKING TO you could build an ice arena for
<br /> BREAK EVEN a$250,11110 grant."
<br /> Few arenas in the South St.Paul,a first-ring sub- Ian area are privately owned.
<br /> a-b of 20,000 residents, may 'flat's proof to some that the
<br /> lose$2.4 million in state aid dm•- industry is inherently nnprof-
<br /> ing the next two years alone. it aide — tough in other slates
<br /> South St. Paul Mayor Belli Ban- privately owned arenas thrive. •
<br /> mom said Io igher tines leave Blaine's Fogerty Arena, one
<br /> city leaders no choice but to of the few privately owned are-
<br /> press for maximum use of city nas in the metro area, is the
<br /> assets. result of a partnership between
<br /> "Whenever you get in the sit- two youth hockey associations.
<br /> nation where money is taken But general manager Mark
<br /> away, then everything gets put C lasmt said that Fogerty is
<br /> under the microscope," Bail- unprofitable,if debt.-service pay-
<br /> . mann said. The arena should lnents are counted: Charitable
<br /> "at least break even," she said, gambling proceeds keep the
<br /> including debt-service pay- operation in the black.
<br /> meats. "There are a lot of rev- Whether cities should require
<br /> enue opportunities," she their arenas to make money"is a
<br /> believes. legitimate debate," Clasen said.
<br /> But South St.Paul's efforts to "No other piece of their recre-
<br /> attract non-hockey events anion infrastructure pays for
<br /> haven't amounted to much. A itself, so why should the rink be
<br /> couple of rave dances came to required to do so?"he asked.
<br /> the 1,500-seat arena in recent
<br /> • years,but drug use hi the crowd Brian Bonner eon be reached at
<br /> nixed any interest among city bbonn er@pioneerpress-coo or
<br /> officials in having more. "They (651)228 2173.
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