Council expected to make ice arena decision during Monday meeting

The Worthington City Council is expected to decide Monday on what level of funding it will provide for either a new or renovated ice facility in the city.

In a crowded council chambers Wednesday afternoon, ice facility funding was discussed for nearly 90 minutes. Options under consideration include a new one-sheet facility that would be constructed on city-owned property, renovation and addition to the existing facility, renovation to the existing facility with no addition, or to not fund any ice arena upgrades. 

The agenda packet for Monday's council meeting explains that city staff have leased and operated the arena for the past two seasons and budgeted for 2025 operations. Over the course of two years of actual and one year of projected revenue and expenses, the arena generates approximately $87,000 in and $143,000 in expenses annually, resulting in a $53,000 deficit for a six-month season. Staff's estimated operational budget for a new arena, staffed and operated for 12 months, has an estimated annual deficit of $155,000, the agenda packet indicates.

It's also noted that funding for either of the three options above may come from several sources. Current projections of future local option sales tax revenue estimate the city will have approximately $2 million at termination in 2035. Current reserve funds may be borrowed against future payment with sales tax collections. Other sources of funding include undesignated reserve funds on hand and bonding funds.

Projected costs range from just below $21 million for a new arena to $10.7 million for a renovation and addition and $6.7 million for renovations alone. Many on hand during Wednesday's meeting spoke in a favor of a new arena, including several in Worthington's business community.

Brent Droll. who owns Forbidden Barrel Brewing Co. in Worthington, said his business received its highest revenue ever during a three-day hockey tournament, and added that he'd love to see that year-round. Phillip Benson of Benson Funeral Home said he's been in multiple hockey facilities over the years, and "we need a new one." Kim Milbrandt of Bedford Industries said he believed a new ice arena would help both his company and the community grow.