The Town of Sundre will study the feasibility of having a second arena.
But it won't look at having a full multiplex, which would be too cost prohibitive.
“For the size of this community it is a pipe dream,” said Dean Pickering, the town's chief administrative officer, adding that the annual operating costs for a multiplex would be more than $1 million. “Even if we could go $20 million (construction costs) the town just could not afford it.”
He said a multiplex would not be an option for the town until at least 2030 when the town has a projected population of at least 7,000, and a tax base to support the cost.
“We got a ways to go,” said Pickering, noting Sundre's population, according to the latest census, is now only 2,695.
Pickering said town officials discussed the options at its Capital Budge Workshop on Sept. 22, a process that looked at what the town could do over the next 20 years. The cost of the study into a second arena is included in the $200,000 total amount the town has set aside for ongoing maintenance and upgrades at the existing arena, which was built almost four decades ago.
“We've been asked to look at solutions,” said Pickering, adding the second arena option could take as long as 10 years to fully realize.
He said it could cost the town between $6 million and $8 million to construct a second arena, which would include viewing and seating areas along with changing rooms.
Pickering said he and other staff members would research what other communities in the province have done with arena business plans. He said a report will be made available for council next year and it will be part of the town's Recreation and Culture Master Plan.
“We will examine the communities that have been successful and the ones that have not been successful,” said Pickering. “Usually the ones that have not been successful have been the ones that have not had agreements in place.”
He said the key agreement to have in place for Sundre is one with Mountain View County, which he said would be essential for a second arena's long-term sustainability.“
“The majority of users would be county users. We would have to have an agreement with the county,” he said, adding arenas are almost always unprofitable for municipalities who go ahead alone but with partnerships they can be sustainable.
Pickering said it was also important to note that arenas are expensive to operate on a long-term basis, as power costs, notably with lights and a compressor, can be prohibitive. He said the annual cost of running a modern arena in a municipality can be between $500,000 and $1 million.
However, he added that if the second arena is planned for extended ice time, with insulated flooring and a modern compressor, it could operate year-round, which could bring in more revenue and mitigate the high operating costs.
He said another important issue that has to be resolved is where to put the new arena. Pickering said the ideal place would be near the schools.
