City mulls closing Saint John rink to help save money

A Saint John arena could be on the verge of closing its doors after city councillors decided it would help cut city costs.

A staff report that was released Monday, says either the Charles Gorman Arena in Millidgeville or the Hilton Belyea Arena on the city's lower west side could be sold with a condition it not be used as a rink by the new owner. 

The report says the city only needs 3.5 rinks to serve its population of under 70,000 people. Right now, there are four city-owned rinks and costing the city an average of $199,000 a year to run. 

Two other arenas, Lord Beaverbrook Rink and the TD Station, are larger venues operated at arm's-length.

Protecting other arenas 

The report also recommends Peter Murray Arena on Dever Road be protected because it is part of a regional recreation complex.

The Stewart Hurley Arena would also be off-limits because the building sits on land owned by the province. This means the city would not benefit from a real estate windfall with its sale.

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City manager John Collin said any decision on which facility closes would follow discussions with user groups and the community at large.

And a final decision could be made by the end of March.

Rinks and a private sector operator 

Coun. Gary Sullivan questions why the city would insist a new owner could not operate the facility as a rink.

Sullivan says if a private sector operator takes business away from other city arenas, the municipality could then save more money by targeting a second facility for closure.

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"I don't think we should shut that door," he said.

Collin told councillors that staff will return in the near future with an additional and, potentially, alternative proposal that could see the city essentially "contracting out" all of its arena services.

But that plan would see the city rinks leased to a private sector operator.

Targeting debt reduction 

Councillors also approved a 10-year financial plan Monday night.

Saint John finance commissioner Kevin Fudge told the meeting a property tax reduction to $1.70 per $100 assessed value is possible by 2025 if the plan is followed.

It targets debt reduction and limits wage escalation to the rate of tax base growth.

He said the rate could then keep falling to $1.57 by 2028.

Council also gave final approval to the municipality's $166 million operating budget for 2020.

The document had been formally presented and debated at a special meeting on Dec. 4.