Arena Concession Deals To Bring More Than $2,000 to City

2008-11-20 / Front Page

By Karen Gould

More than $2,000 in new revenue is expected for the St. Ignace Recreation Department this coming year, under two new agreements about concession operations at Little Bear East Arena.

The terms of a one-year agreement with the Hockey Association and a five-year agreement that names Pepsi products as the exclusive beverage at the arena were announced by Recreation Director Scott Marshall during the Wednesday, November 12, Recreation Advisory Committee meeting.

Under the agreement with the Hockey Association, 100% of the proceeds from electronic games and vending machines now go to the city instead of the association.

From May 2007 through April of this year, the Hockey Association recorded income of about $1,600 from the machines at the facility. The city pays for the electricity to operate the machines and they are in a city building, said Mr. Marshall, so it makes sense the city should be receiving the revenue they generate.

The Hockey Association will continue to operate concessions during hockey events, and the city now will operate the concession at open skating hours and during new events. Next year, the Recreation Department will operate the concession during any hockey tournaments it hosts.

Projected revenue for next year from concessions at new events, including wrestling matches and cage fighting, will be at least $2,000, said Mr. Marshall.

The first cage fight competition held earlier this month raised approximately $875, he said, including concessions and room rental. The event was organized by Jamie Stelmaszek of the Straits Area Tae Kwon Do Academy. The next event is scheduled for January 10, and future matches are planned every two months.

Events like cage fighting generate new revenue for the arena, said Don Gustafson, who chairs the Recreation Advisory Committee.

In previous years, the Hockey Association operated the concession at all events, giving 10% of the proceeds to the city. Last year, the city received $477. The Hockey Association will continue to pay the city 10% of concession revenue when it operates the concessions during hockey events.

Last month, the Advisory Committee agreed to waive ice time rental charges to the Hockey Association for younger players, worth about $4,000 for the season. Capturing the interest of young players, reasoned committee members, would help continue and build the hockey program in St. Ignace, and lowering participation costs through the waiver could help boost enrollment of younger players into the hockey program. With the free ice time, the Hockey Association was able to reduce fees for players eight years old and younger to $35, the cost to cover insurance.

There has been some interest of potential new young players, said Mr. Marshall.

"Although this is kind of short notice for this year," he said, "I think we might have to continue to do something like this next year to make it easy for parents."

Now, the Recreation Department and Hockey Association are working together to establish fundraisers targeted to replace lost revenue for the free ice time.

The five-year agreement to serve only Pepsi products includes a onetime payment of $1,500 to the arena, said Mr. Marshall. The previous

contract with the company was between the arena and the Hockey Association. It was set for seven years with a one-time payment of $2,800.

The company used past sales at the arena as a gauge for the agreement. With new events being scheduled, he said, sales should increase.

"Hopefully, we'll be able to sell more of their product," he said. "Then, after five years we'll have a better offer."

In other business, the fitness center now is open Sundays from 8 a.m. to 4 p.m. Work on the new cardiovascular room is nearly complete, said Mr. Marshall, and should be ready for equipment the week of November 17.

The Recreation Department also will be open until 5 p.m. Wednesdays, while other days the office closes at 3 p.m. The board discussed the need for a cordless phone for use when staff is working out of the office but in the building. No action was taken during the meeting.

At the community swimming pool, the removal of old, peeling paint from the concrete pool deck has been completed by the inmate community work crew using sandblasting equipment from the Mackinac Bridge Authority. Moisture in the pool area continually caused the paint to chip, sticking to the feet of swimmers, and eventually it ended up in the pool. The deck will not be repainted, said Mr. Marshall, although if future funds are available, the concrete could be stained to make it more attractive.

The Moran Township representative on the board, Jerry Fenlon, is retiring from the committee and December will be his last meeting. He has been a member since the late 1990s.

The Recreation Advisory Committee next meets Wednesday, December 10, at 7 p.m. at the arena conference room.

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