Irvine in talks with Ducks for city ice rink

Irvine is considering a partnership with the Anaheim Ducks management company to build and operate a public indoor ice skating facility in the Orange County Great Park.

The proposal is a resurrection of an idea city leaders first explored in 2011. At the time, staff members outlined an agreement with H&S Ventures, the company that operates the Ducks. But it was determined that infrastructure was insufficient to move forward with the project.

With newer developments, utilities and streets now in place or under construction, Mayor Pro Tem Jeffrey Lalloway raised the item again at the City Council meeting Tuesday.

“The opportunity to leverage city-owned land to attract a highly regarded private developer/operator appeared to be an ideal arrangement to avoid city costs while adding a valuable community amenity,” Lalloway said.

H&S would build and operate the multi-rink facility under the umbrella of its nonprofit Anaheim Ducks foundation, with the mission of promoting youth hockey among other ice sports in the community.

“This is not going to be a Ducks facility,” said Ducks CEO Michael Shulman as he addressed the council. This is primarily a facility for public use for the development of ice skating and ice hockey. Our hope is to design, develop, construct and maintain a facility without any taxpayer money.”

Preliminary design concepts include at least three and possibly up to five sheets of ice on the property. One primary rink would have room to seat 2,500 spectators.

“We want to promote the sport. I think this a perfect place to do that,” Shulman added.

Eric Tolles, assistant city manager for the Great Park, whose lagging development has been the focus of grand jury investigations, outlined a lease proposal. It calls for the management company to incur all building and operational costs, including maintenance and repairs on the facility, with the city being responsible for infrastructure leading to the building. This would include electricity, gas, sewer and water lines as well as off-street parking.

The proposal also calls for a 35-year agreement with rent of $1 per year. With the possibility of three five-year extensions, the facility could be operated by the nonprofit management company for up to 50 years, after which ownership would be turned over to the city of Irvine.

“The biggest problem I have is this $1-a-year lease,” said Councilwoman Christina Shea while still supporting the motion. “I don’t think we’re negotiating very well.”

Shea pointed out that the infrastructure costs to the city are significant, including a property appraisal estimated at $25,000.

“The city has to be smarter than just giving this land away for a dollar a year,” Shea said. Councilwoman Beth Krom echoed the sentiment, saying she believes setting a baseline of a dollar a year for a land lease deal is a bad idea.

With some questions remaining about the structure of the lease, the council ultimately agreed 5 to 0 to advance the project. City staff was directed to return with a more formal lease proposal in 30 to 60 days.