The Arena is not for sale
Published on September 12th, 2007
STONEHAM, MA - With perhaps one disheartened "yea" vote, the Selectmen unanimously elected this week to abandon any future talks on either leasing or selling the Stoneham Arena to a private company in the coming years.
Despite Selectmen Paul Rotondi's most ardent defense of the lease proposal, even he ultimately submitted to the eventual motion against the suggestion, which was met with overwhelming opposition from a crowded audience full of youth and high school hockey and figure skating proponents this Tuesday night.
At the outset of this Tuesday's meeting, Rotondi, who had originally placed the idea to sell or lease the skating rink to a private company on the agenda, shared a quite angry letter he had received in opposition to the proposal.
However, the first-term Selectman made it clear that regardless of popular opinion, he would push forward with the discussion in order to pave a path that was best for Stoneham's cash-strapped coffers.
"You think you're going to win tonight, Mr. Rotondi. Think again. You have no power. I do. I run this town. My network is extensive," the alleged opposition letter read by Rotondi said.
"This meeting is not about power. It is not about stopping hockey or ice skating. It's not about special interests. We need to figure out what the facts are and what's best for the Town of Stoneham, both long-term and short-term," Rotondi would counter.
According to the Selectman, who had previously argued that leasing or selling the rink would limit the town's liability, save on health insurance, pension and administrative costs, and slash capital needs, his research had underlined his original instincts.
Citing a 20-page report heralding the efficiency and money saving capabilities of private management companies, the lone lease proponent also unveiled his own survey, which showed that Stoneham's skating rink was amongst the few such municipal operations in Massachusetts.
According to Rotondi's figures, not only had studies shown that private management companies could in fact drive down costs and protect capital investments, nearly 80 percent of the 60 skating rinks statewide, were run in such a fashion.
That left Stoneham amongst the 20 percent or 17 other rink facilities that were operated otherwise.
Though never disputing those points, Asst. Town Accountant Ron Castignetti later provided a glowing report of the ice rink's operations, which had turned around nearly a decade of losses into a profit in just two years.
According to Castignetti, under the leadership of Arena Manager Lou Chiulli, the facility had earned a net profit of $79,000 in FY'07.
Although town officials had previously cited that gain at $150,000 to $160,000, the financial officer claimed that he had adjusted those figures to account for capital needs, pension, health insurance, and other employee costs, as well as liability coverage expenses.
"What you'll see is that the history back to 1996 is not very pretty. There's a history of losses and those don't account for any additional expenses that I just started putting on the schedule," said Castignetti.
"I have to pause and say thank-you to the fellahs who ran the rink [these past two years]. These are numbers on a piece of paper, but it didn't just happen," the asst. town accountant would add. "It's a great success story. It's turned itself around in two years time."
Agreeing with Castignetti, Selectman Chair George Seibold, who sponsored a failed bid to expand the skating facility to incorporate another sheet of ice and an indoor sports complex, later suggested that the time was ripe to revive the idea.
However, Rotondi refused to budge on his stance, again insisting that his research indicated that a private lease would save the town money. The proposal's only backer also took aim at those who tried to insinuate that he was trying to hurt children and youth sporting programs.
According to the first-term Selectman, while Castignetti may be right in that the facility was generating a $79,000 profit after all expenses were accounted for, a private management firm could turn over the same sum and save the town nearly $580,000 in operating costs.
"Towns should not be in business. That's not what our function is. I have no qualms about providing skating and rink services to our children. I'm not saying, 'Let's go sell the Arena and turn it into a retail center," Rotondi countered.
Planning Board member and Stoneham Youth Hockey advocate Kevin Dolan later pointed out that FMC, the last private company considered to run the Arena a few years ago, had recently filed for bankruptcy.
Dolan further contended that a management company would have no loyalty other than to turn a profit for itself, most likely to the detriment of youth hockey, figure skating, and high school user groups.
"What are you telling you're town employees?" said Dolan. "You turn around a rink in two years, 180 degrees, and you say, 'See you later. Hit the bricks.'"
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