Lakewood Skating Toward Lease Agreement for Winterhurst

The city is getting closer to finalizing a lease agreement with Ice Land USA, the company that runs Winterhurst Arena.

But first, there are a few details that still need ironed out.

Even though the current five-lease doesn’t end until September, city officials are hoping to have the finalized agreement in-hand by the next city council meeting next week.

Kevin Butler, the city’s law director, said the “conversations are still ongoing.” 

One of the items up for discussion is the possibility that the city may propose a stepped rent increase, rather than a 10 percent cut of the net revenue. After Ice Land USA made several expenses — including about $1 million in capital improvements on the property — the city brought in a total of only $2,200 in the past five years.

That’s in addition to the $75,000 the company pays the city each year in rent.

“It’s a big point of negotiations,” said Butler. “The tenant wants to do away with the rent structure.”

Council seemed to agree with Butler's recommendations.

“Operationally, I don’t think they can generate more revenue, because it’s a fully realized operation,” said Ward 3 councilman Shawn Juris.

Another portion of the new agreement includes capping the water and sewer usage at 9,000 centum cubic feet. The arena would cover the rest, should it use more.

“We’ve got a vast majority of things worked out as of today,” he said. “They’re good tenants. We’ve enjoyed a good relationship thus far.”

Council is expected to give the finalized lease another look before voting next week.

On a side note, Ice Land USA owner William Neiheiser is expected to be released from a federal prison in August after serving a sentence for his role in the county corruption scandal.

Butler said that Neiheiser didn’t have much to do with negotiations last time around, noting that Neiheiser didn’t impact the lease agreement.

“I don’t deal with him,” Butler told Lakewood Patch.

According to LoveLakewood.com, the city released the timeline of events that preceded the 2008 lease agreement, as well as a transcript of a related Council committee meeting discussion to dispel any notion of wrongdoing on the part of city officials.

FBI wiretaps showed that Neiheiser had Jimmy Dimora make a phone call on his behalf to then-Mayor Ed FitzGerald in an effort to get the Winterhurst contract and then later cheated on his wife with Winterhurst ice skating instructor Tonia Kwiatkowski.