Seibold outlines athletic complex presentation
Published on February 8th, 2006
STONEHAM, MA - Selectman George Seibold will pitch a daring Stoneham Arena renovation proposal at Town Meeting calling for the construction of a second skating rink and an indoor athletic field.
According to the rookie Selectman, who first outlined a similar vision for the recreation facility last October, he has no doubt that some residents will oppose the proposal, which could cost anywhere between $3 to $5 million.
However, Seibold believes that the town needs to take a more aggressive approach toward bolstering the municipality’s faltering revenue streams, which have led to significant layoffs and operating cost reductions in recent years.
“I can definitely see the opposition. But there was also opposition against the billboards and selling town land. All we can really do is bring these types of ideas to the table and let the residents decide,” the life-long Stoneham resident said.
“The demand is there [for facilities like this] and it’s a shame that the private sector always seems to be the ones going after this. We have to start being more aggressive,” the Selectman added, believing that as much as $500,000 in net revenues could be realized from the new construction.
During the Selectman’s annual goals meeting last October, Seibold and Selectman Chair Robert Sweeney detailed a two-part renovation proposal for the Arena and Stoneham Oaks Golf Course.
According to Sweeney, with the par 3 golf-course losing money each year, eliminating the use and redeveloping it into a driving range was likely to draw more interest, especially with the lack of similar business’ in the surrounding area.
Seibold then proposed renovating the existing Arena to include a second rink, which would stretch out from the rear of the current structure toward the club-house area of the Stoneham Oaks Golf Course. The remaining area would then be leveled for the driving range.
“What I want to do now is put in an indoor facility that has lining for three fields. So besides the other rink, I’d like to add that structure off to the side,” Seibold explained in an interview this week, envisioning that lacrosse, soccer, and field hockey teams could use the playing area.
“They’d still have plenty of room down there. What would happen is a driving range would actually go off the back so you were hitting toward William Street, although no-one would ever be able to hit a ball that far,” the Selectman elaborated.
A little wary of the proposal at this point, Selectmen Cosmo Ciccarello and John DePinto both commented that they’d need to see the figures surrounding the plan before they’d endorse the renovations.
Specifically, while both town officials approve of the general idea, they believe it would be inappropriate to build such a facility if it failed to generate revenues, especially given the current fiscal climate.
“I think it’s a great idea, but if we’re going to lose money like we have in the past at the Arena, it’s a no-no. On the other hand, if it could make money like the [Unicorn] golf-course, then it would be great for the kids,” said Ciccarello.
According to Arena Manager Louis Chiulli, who has been largely credited with turning around the current facility from an annual budget buster to a money-maker, he can guarantee that Seibold’s proposal would result in a big-return on the initial investment.
Since assuming his role last summer, says Chiulli, he has booked all the prime ice-time available for use, meaning that only early morning and late night hours remain.
“Absolutely,” Chiulli responded, when asked if the proposal would be profitable. “If you build it, I can sell it. Many people continue to call me for ice-time. There just aren’t enough facilities around to handle the demand.”
“I know for a fact that if this second rink is built, we would make money. Once they see a new facility, they’re going to be coming out of the woodwork,” the Arena Manager added.
According to Town Administrator Ron Florino, the larger issue is not whether the proposed construction would make money, but rather how much of a gain it could generate.
Specifically, Florino explained that the current facility will probably exceed the $100,000 profit margin on just ice-time revenues alone either this year or next year.
Adding that the rink carries significant overhead costs, largely due to outdated and poorly maintained equipment prior to Chiulli’s hiring, Florino believes that once energy efficient fixtures are installed, those gains could grow even larger.
However, says Florino, the problem is not the issue of whether the proposal could generate additional revenue — as Chiulli has already proved that the current facility can turn a profit — but the question of whether those gains could pay for the borrowing costs associated with the renovations.
“This would definitely have to be paid for through borrowing. So what we’d have to do is see if it could fund itself. For a $4 to $5 million bond, I would guess that would cost between $400,000 to $500,000 a year,” the Town Administrator estimated.
“We would have to show a net increase in revenues to that amount for this [proposal] not to affect the general budget. If we could tie this in to the current rink to conserve costs, that might work.”
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