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Municiple Purchase
Kitchener secures more ice time for residents by purchasing the Sportsworld twin-pad arena
KITCHENER - Last night, Kitchener city councillors made a significant investment in the long-term stability and reliability of the city's indoor ice facilities by approving the purchase of the Sportsworld twin-pad arena property, located at 100 Sportsworld Dr.
In doing so, council also agreed to allocate $8 million the city has received through the Investing in Ontario Act grant toward the purchase.
''This is a good deal for us and it's the right time to be taking advantage of this opportunity,'' said Mayor Carl Zehr. ''The savings we'll enjoy by purchasing this facility, as opposed to having to build from scratch, are very significant.''
The terms of the purchase agreement are as follows:
. an agreement of purchase and sale for the building and three acres of land, at a price of $7.8 million;
. a lease and maintenance agreement for two acres of shared parking at an annual cost of $50,000;
. a right-of-way agreement for the maintenance and replacement of the city's share of the site roadway network for an annual cost of $25,000, to be adjusted annually by the consumer price index.
Council's decision to purchase the Sportsworld twin pad arena will provide stability to the City's current ice requirements that had been previously identified in an ice demand study in 2005.
That study identified the need for replacement of two existing arenas -- Queensmount Arena and Patrick Doherty Arena -- and a 10-year plan for two additional twin pads. Since then, the Activa Sportsplex has opened; another facility is scheduled to open in 2016.
In the meantime, the city has also been renting ice at the Sportsworld twin-pad arena, with the intent of securing long-term rental of ice time to replace its two aging ice facilities.
The rental arrangement between the city and the original owner of the property, Sportsworld Inc., has allowed the city to avoid a major capital expense for a new facility and provide greater access to ice time for both minor-sports and adult groups.
However, the ownership of the property has changed; and the agent of the new owner, GPM Investment Management -- who is developing the overall Sportsworld Crossing site for commercial and retail use -- recently asked the city to consider purchasing the property.
By purchasing the property, the city ensures the site will remain an arena, rather than be redeveloped for some other use; and continue to provide needed ice time to local groups.
''We are pleased that the twin pads will now be in the hands of the city, ensuring that the facility stays a community asset,'' said Brent Chapman, president and chief executive officer of GPM Investment Management. ''This is a good scenario for the city, the local community, Kitchener Minor Hockey and others who enjoy using the rinks.''
''The Sportsworld facility has become an integral component to the city's long-term plan for the delivery of ice for our users,'' said Pauline Houston, the city's general manager of community services. ''The site is close to the 401 for out of town visitors and easily accessible for our residents via Highway 8. The purchase of this property is a cost effective, long term investment for the city and ensures long term stability and reliability in the provision of ice facilities/capacity for our residents.''
''This agreement will go a long way in fulfilling the community's ice-surface needs; and it will take the pressure off the groups and organizations who are worrying whether there will be ice available to them in the coming years,'' said Coun. Geoff Lorentz, chair of the city's community services committee.
''Although I had initial concerns with the location, given the cost savings and efficiencies this agreement brings, and considering the growth our city is experiencing and will continue to see in the future -- this is the right move for us to make,'' added Coun. Kelly Galloway, vice-chair of the community services committee.
Details around operating and ice scheduling at the Sportsworld twin-pad arena will be determined and shared once the purchase is finalized.
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