South Windsor Town Council Reviews Proposed Recreation Center Project

The South Windsor Town Council at its regular meeting on Monday briefly discussed the proposed recreation center, though no decision appears likely to be made in the near future on the controversial project that would be located at The Promenade Shops at Evergreen Walk.

Town Manager Matthew Galligan first presented to the council three iterations of the proposed recreation center, one of which dates back to 1998.

All three proposals, whose estimates include debt service and IRS depreciation, would include an aquatics center, a gymnasium and multipurpose rooms.

The operating cost of the smallest project - the 35,000-square-foot recreation center, would be $714,000, according to Galligan’s preliminary financial estimates. The estimated revenue would be $581,000. The end result would be an operating loss of about $133,000. The IRS depreciation and debt service would cost about $380,000 per year, resulting in a total town contribution of about $513,000 per year, according to Galligan.

Option ‘B’ would be cost the town about $727,000 per year for a $7.54 million, 52,700-square-foot project that would include a 50-yard swimming pool.

The three versions of the project Galligan presented also did not include the controversial hockey rink proposal. If two indoor hockey rinks are added to the project, then the lease payment, plus the net cost of the recreation project is $1 million per year, Galligan said. The excess revenue from the hockey would lower the cost to about $813,000 per year, according to Galligan.

But even with the numbers that he provided, Galligan said that there were some “pros and cons” to the project.

“We are facing some hefty items in the state budget,” Galligan said, noting a massive budget deficit that the state is facing that some have estimated to be up to $1.2 billion. “I would love the proposals to be revenue neutral, but that’s just not accurate.”

Also, Galligan said that he did not think that the town could have a gymnasium with exercise equipment constructed at Evergreen Walk, as LA Fitness has the ability to block such construction. The pool would be possible, according to Galligan, provided that it was used for competitions and does not compete with LA Fitness.

In addition, Galligan said that the numbers provided to the council - particularly the ones relating to the hockey rinks - required further scrutiny. Galligan suggested that requests for proposals be sent out to further get a handle on how much the hockey portion of the project would run.

But, Galligan said that there are also private investors that may be interested in the hockey project, leaving the town to possibly construct the rest of the recreation center with a 63-20 corporastion.

During the public comment portion of the meeting, Dick Grigorian, owner of the South Windsor Arena and a vocal opponent of the project, announced the formation of the Concerned Businesses of South Windsor, which Grigorian says represents 38 local businesses in the area.

Grigorian said that the local businesses opposed the use of a 63-20 corporation to what they believe circumvents the referendum process.

“It is a scheme to avoid a referendum,” Grigorian said. “This scheme allows the Council to pick winners and losers at the expense of the business community. The South WIndsor business community provides 20 percent of revenue, approximately $20 million per year. This is not accounting dust.”

Citing the last 10 years of business that the South Windsor Arena has done, Grigorian also said that there is no market for two new hockey rinks in town.

“We are South Windsor, Connecticut,” Grigorian said, referencing other towns that have succeeded in having multiple rinks. “The facts are the facts. … Nobody can create ice users.”

Grigorian concluded by saying that he was going to submit a petition requiring that the project go to referendum.

Bob Feher, the president of the South Windsor Youth Hockey Association who has been a proponent of the project and a critic of the South Windsor Arena, cited several counselors’ statements regarding the community’s need for a pool and that Evergreen Walk is one of the town’s great assets.

“Look at the details and you will see the benefits,” Feher said of the project, before adding that he would “love” to work with Grigorian on making the project work.

“Let’s get the numbers before you make a decision,” Feher said.

Because of the late hour, the Town Council only had a brief amount of time to comment on the matter.

Town Councilor Cincy Beaulieu said that while she appreciated Galligan’s report, additional numbers being bandied about from a private group and the South Windsor Arena were not necessarily as helpful without having the results from an RFP.

“Let’s get the RFP with real numbers that encompasses everything,” Beaulieu said, noting that “the more numbers that are out there, the more the waters are muddied.”

Beaulieu acknowledged the state and federal fiscal cliffs, but also noted that interest rates were at an all-time low.

Deputy Mayor Gary Bazzano suggested that the Town Council have a full work session on the matter in the new year.