ICE ARENA RESOLUTION

What is MII’s debt to the City of Madison?

Despite being able to generate sufficient revenue through operations, grants, sponsorships and other fundraising activities to sustain day-to-day operations, over the years, MII sought alternative funding from the City of Madison for unexpected, immediate facility needs to remain operational. In 2004, Madison sold the two arenas to MII for $1.1 million, structured into semi-annual payments of $12,358 of principal and interest over thirty years. Then, in 2017, the City of Madison loaned MII $1,075,240 to make the essential improvements at Hartmeyer Ice Arena in the form of a ten-year loan with twenty-year amortization. Currently, MII’s debt to the City of Madison is $1.6 million.

Did MII default on its payments on its debt to the City of Madison?

No, up until the pandemic, MII was able to continue making its payments on its debt to the City of Madison (over $450K) while also investing nearly $5 million in facility and equipment repairs and upgrades since 2010. However during the pandemic, like many other organizations, MII had to close its doors for a significant amount of time, which created an unexpected financial hardship. In 2021, MII worked with the City of Madison and agreed on a suspension of debt payments.  

Once MII resumed operations post-pandemic, EMIC and MII began working with the City of Madison on the Ice Arena Resolution. Part of this proposal included a continued suspension of debt payments without penalty until a decision was made. This allowed MII to prioritize day-to-day operations over satisfying long-term debt. Going forward, without the heavy debt burden, MII and EMIC aim to develop a sustainable financial model that eliminates future debt reliance.

Why was the pandemic especially difficult for Madison’s Ice Rinks?

MII operates on a tight budget with just over $100k in reserves against $1.4m in annual operating costs. MII, like other organizations and businesses, received approximately $150k in federal funding during the pandemic that was used for wages as intended. It did not replace lost revenue or cover operational expenses that remained flat regardless if the facility is open or closed.

How does MII generate revenue and support community programs and scholarships?

MII has two distinct yet collaborative revenue models. The main source of revenue comes from the sale of ice time to our primary user groups including youth and high school hockey teams, figure skating clubs, adult leagues and skating organizations, sled hockey teams, and other organizations looking to buy ice for large groups. Ice is sold by the hour at the market rate aligned with all other area rinks. Each of these groups charge their members accordingly and provide low-cost and introductory options for new skaters to join their organizations and oftentimes have scholarships for those needing financial support.

Secondly, MII operates and manages its own programming such as the MII Ice Skating School, the Synchronized Team Skating program, and community skating such as open hockey and figure skating, public skate sessions, charitable events and tournaments, and school group functions. With the support from the primary user groups, MII is able to offer financial assistance, low-cost, or free programming as well as scholarships for its programs.

Why is MII in need of funding when tax records indicate a surplus over the years?

MII’s recent 990s demonstrate expenses exceeding revenue whereas in earlier years, the reverse. While this can appear to be excess income accumulated over time, what is not fully recognized here are the significant repairs and capital upgrades to the facilities. Since 2010, MII has made nearly $5 million in facility repairs and upgrades for both ice rinks. These capital investments are accounted for differently than normal operating expenses and revenue. As a result, these capital investments may appear smaller than they actually are due to the way spending is amortized in the returns using a 39-year depreciation period for building repairs and a 7-year depreciation period for equipment upgrades (i.e. chiller equipment required for ice production).

More importantly, these returns do not reflect the continued improvements needed for each rink including roofing, HVAC systems, rink subflooring, and chiller equipment – all of which are critical to extending the life of these facilities.

Why should the City of Madison forgive this debt?

The rinks were purchased from the City of Madison in 2004.  At the time, the city spent approximately $250k per year to operate the rinks with no capital improvements.  Since MII assumed management of the rinks, they have kept them operational, paid over $450k on the loan to the city and invested over $5m in capital improvements.  All while navigating an unprecedented pandemic that forced them to close their doors for a significant amount of time. A rough estimate indicates that MII, supported with fees from user groups and donations, has saved Madison’s taxpayers roughly $9 million in operating and capital expenses since purchasing the ice arenas in 2004.  Forgiving our loan would allow us to focus on further essential improvements, ensuring these invaluable community services thrive.

Why not increase prices to fund the debt?

From inception, the MII mission statement has been to ensure that Madison’s Ice Rinks remain accessible and open for all skaters in the community. Raising prices beyond the market value contradicts this mission and MII’s commitment to ensuring Madison’s Ice Rinks are accessible to a greater portion of the community.

When is the City of Madison discussing the Ice Arena Resolution?

There are a number of upcoming city engagements to consider and discuss the Ice Arena Resolution. A full listing can be found below.

Why is the public just hearing about the Ice Arena Resolution now?

While this may seem like new news to the public, partnership with the City of Madison on this agreement has been in the works since 2022. While MII and EMIC are led by a team of highly qualified professional volunteers, navigating local government and process has been challenging. It has taken a significant amount of time to engage all the necessary city officials and to get on the city’s agenda to hear and consider this resolution. That said, the City of Madison has been a valuable partner in helping both MII and EMIC address financial hurdles and strategize long-term solutions for Madison’s Ice Rinks.

Who is East Madison Ice Collective (EMIC)?

East Madison Ice Collective is a newly formed nonprofit organization (501(c)3 pending) composed of representatives from arena user groups including Patriots Youth Hockey and the Figure Skating Club of Madison. EMIC was formed in 2022 to preserve and enhance Hartmeyer Ice Arena as a vital community asset. EMIC is dedicated to ensuring Madison’s ice sports and recreational skating continue to thrive in an inclusive, accessible, and sustainable environment. They seek to serve the community by providing opportunities adaptive skaters, figure skaters, hockey players, and public skaters of all ages and abilities.

Did MII consider other alternatives for future leadership of Hartmeyer Ice Arena?

Yes. Over the years, MII has been approached by one for-profit entity. In consideration of this option, which also offered $1 for the facility and was also contingent upon debt forgiveness, MII determined that Madison Ice Rinks are best led by a nonprofit to ensure skating diversity and community accessibility. This is why MII believes that the East Madison Ice Collective (EMIC), a newly formed nonprofit composed of representatives from the invested skating community, should assume ownership of Hartmeyer Ice Arena (HIA) to provide dedicated attention and support to HIA and preserve the diverse skating opportunities for the east side skating community.

How are EMIC and MII working together?

While EMIC and MII have a shared vision for maintaining and improving Madison’s ice facilities, each organization has distinct objectives and responsibilities tailored to the unique needs of each facility and the communities they serve. Both organizations aim to enhance the skating and recreational experience for Madison residents.

What about Madison Ice Arena?

MII will continue to lead Madison Ice Arena focusing on the ongoing maintenance of the facility as well as plans for necessary repairs and upgrades to keep the facility operational long term. MIA’s aging equipment presents unique infrastructure challenges that make ongoing summer operations challenging. Priority for MII is to focus on the facility upgrades needed to sustain operations evenly throughout the year to address the growing demand for year-round ice programming.

What steps are MII and EMIC taking to set a more successful course for the future?

A dedicated transition team has been established that includes key members from both MII and EMIC to ensure a smooth transition between the two organizations. While each facility has outlined a path of dedicated ownership, MII’s first focus is reorganizing the Board to employ more rigor around financial operations and to better assess MIA’s facility needs. Recognizing that a capital campaign will be needed to sustain year-round operations, greater attention and energy will be directed toward marketing and fundraising efforts.

How can I demonstrate my support for the Ice Arena Resolution?

There are 3 things you can do to ensure the City of Madison hears how vital these ice rinks are to our community.  

Share Your Story on Why Madison’s Ice Rinks Matter to You!

Write and call your Alder! If you live in the City of Madison, go here and plug in your address to get the email/phone number for your Alder. Let them know how much the ice rinks mean to you and the community.

Ensure your voice is heard, by also sharing your story with the following City of Madison officials: 

Alders: allalders@cityofmadison.com
Mayor Satya Rhodes-Conway: mayor@cityofmadison.com
Finance Committee: financecommittee@cityofmadison.com  

Then, be sure to share your story with us on our Why Madison’s Ice Rinks Matter webpage so we can include your voice in ongoing efforts to save Madison's Ice Rinks!

Attend the upcoming City of Madison meetings and engagements! Details here!

Thank you for supporting Madison Ice Rinks! Together we can keep these historic facilities open for the community for years to come!