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Firland Management

City ice arena up for new agreement; Firland to leave

By Joanne Beck

 If you have always wanted to operate an ice rink, you have until May 20 to submit your intent to file a request for proposal to City Manager Rachael Tabelski, she says.

Tabelski announced the move Wednesday night to secure a new agreement for leasing the David McCarthy Memorial Ice Arena. Former management company Firland Management, which took over the ice arena in 2006, has opted to cease operations of the Evans Street site as of May 31.

“Over the last year, the City has hosted Ice Rink Meetings with a group of community leaders representing the aforementioned hockey programs, Friends of the Rink, and the current operators.  These meetings have been helpful in creating the vision and strategy that the City seeks for the rink moving forward,” Tabelski said in a press release. “City Council has committed funds sponsoring a capital project to address the locker rooms and City staff is pursuing grants (to) make needed infrastructure investments.  The City looks forward to partnering with a professional operator to bring recreation opportunities to the City, and thanks (to) Firland and all of their employees for their work over the years.”

The city would like RFPs to be for no less than five years, and further details for proposals are below.

Opened in 1978, the Batavia Ice Rink consists of a single sheet of ice (200’ x 85’) with a capacity for 480 fans to attend games.  The ice rink has a warming room, locker rooms, and a refreshment stand.

The rink is located just outside of the downtown district and in the Creek Park redevelopment area.  The Ice Arena is a prime spot for fall and winter recreation in the City of Batavia, Tabelski said. “The arena is home to the Genesee Amateur Hockey Association (GAHA), Batavia Men's Hockey League (BMHL), and Batavia/Notre Dame High School hockey program.

The City of Batavia anticipates that the prospective operator will be able to be profitable while running the rink and will enter into an operation and lease agreement, she said.

RFP Responses shall be no more than 20 pages in length and contain the following:

1.      Corporate Structure/Respondent Information- Organization name, description, address, and form of entity (C Corp, S Corp, Partnership, LLC., LLP., Sole Proprietorship, Not for Profit). 

2.      Respondent Resumes- Organization employees and biographies describing the structure you envision to carry out operations at the rink (manager, scheduling, maintenance, promotions, concessions, etc.).  Include an organizational chart.

3.      Primary Contact- provide contact information (address, phone and email) for the primary contact for this proposal.

4.      Executive Summary- provide an executive summary to explain how you will operate the David McCarthy Memorial Ice Arena, what your organization will do to enhance the level of participation, and focus on revenue streams.

5.      Value Statement- describe how your organization will enhance the rink and bring value to the City of Batavia and City residents.

6.      Experience- provide details regarding experience/resume of staff/potential staff with ice rink operations and/or a general statement of experience running recreational, retail, or commercial operations.

7.      Proof of Insurance- respondents shall provide proof of insurance at the time of agreement execution.

8.      Proof of Financing- respondents shall provide a written description of how they will finance the operations of the rink examples include private capital, secured loan, bridge loan, and line of credit.  A proforma financial statement shall be provided with the response. 

9.      Budget- create a five-year budget plan and incorporate your projected operating expenses, projected revenue, projected net income, and lease rate (suggested lease rate to the City of Batavia and planned capital investment fund expenses are listed). 

Capital Investment Fund expenses are $5,000 suggested lease for Year 2022-23 with $0 suggested capital contribution; $10,000 for Year 2023-24 with a $10,000 suggested contribution; $20,000 for 2024-25 and $15,000 contribution; $25,000 for 2025-26 snf $18,000 contribution; and $25,000 lease for 2026-27 with $20,000 capital contribution.

Prospective operators should heed the important dates below, Tabelski said:

  1.  May 20 – Interested respondents are encouraged to indicate your intent to respond to this RFP to Rachael J. Tabelski, City Manager, and City of Batavia by May 20. 
  2. May 23 to May 27 – Interested respondents will be scheduled for Zoom or in-person meetings to review the prior financials, prior usage by major tenants, as well as tours of the rink as requested. 
  3. May 31- Addendum, if any, will be issued to all respondents who have signed up with the City Manager.
  4. June 10 - RFP’s are due on Tuesday, June 10 at 4:30 p.m. Four written copies of the proposal must be received at the City Manager’s Office by the deadline, and one emailed copy must be provided. 
  5. July 11 - Final Selection will be made on or around  July 11. 

Revised lease enables City of Batavia to buy time as it considers future of Evans Street ice arena

By Mike Pettinella

It seems as though the City of Batavia is playing somewhat “shorthanded” when it comes to the financial arrangements surrounding the operation of the Batavia Ice Arena on Evans Street.

On Monday night, City Council voted in favor of an extension and modification of its lease agreement with Firland Management, the firm that has managed the rink for more than a decade.

Negotiated changes call for the Virginia-based company to hold off on its lease payment of $25,000 to the city until Jan. 1, 2022, instead of the original due date of March 1 of this year, and also for the reduction of Firland’s contribution to the rink’s capital fund for 2020-21 from $32,958.30 to $5,000.

Additionally, the contract will be extended for two years through March 2023; Firland’s lease payments will be $20,000 annually for 2021-22 and 2022-23; and its capital fund contribution will be $5,000 annually for the next two fiscal years.

City Manager Rachael Tabelski said concessions were made because the rink was closed for several months last year, adversely affecting Firland’s bottom line. With the changes, the city has escaped (at least in the near future) the possibility of Firland walking away.

When the resolution came up for a vote toward the end of Council’s Business Meeting, Council Member Rose Mary Christian requested that it be amended to a one-year lease instead of two in order for the city to explore opportunities to find private ownership of the facility.

Her request, however, did not receive a “second” so the original resolution stayed on the table.

Council Member Robert Bialkowski said he understood what Christian was attempting to do, but pointed out that a one-year lease could come back to haunt the city.

“If we have a one-year lease and they have not paid the bulk of the money that was supposed to be paid the second year, we would really come up short on that,” he said. “I think this is the best we can do. We have to support it and that’s it.”

Council Member Paul Viele, a longtime youth hockey enthusiast, said he has observed that “Firland is doing a lot better job than they have in the past.”

“With people like Mr. (Robert) Gray (of the Friends of the Rink organization) helping out and volunteering – good things are coming,” Viele said.

Bialkowski said the only ice rinks making money are the ones backed by wealthy sponsors, and then brought up the naming rights to the rink (formerly known as the Falleti Ice Arena).

“I don’t think $500 should put your name up there for five years. That’s like giving that away,” he said.

Viele said the rink would make money “if you have more than one sheet, and that’s expensive to get another sheet.”

Earlier, during the public comments portion of the session, Gray encouraged Council to vote yes to the amended operating agreement.

The Stafford resident said that under the current lease, Firland had the option to extend the lease for another five years.

“Due to extenuating circumstances caused mainly by the COVID-19 pandemic and the fact that the rink was closed from March 17 to September of the last year, both parties agreed to the two-year lease,” he said. “A new section was also added for the first time that dealt with the sale of the facility -- in the event that the city sells the facility or transfers ownership of the facility.”

Gray said that the new lease isn’t perfect, but "it does give requested consideration to Firland for the late payment to someone who has operated the ice rink for the last 14 years. It will allow the rink to be operated for another two years instead of sitting vacant.”

“City Council recently approved the new lease for Dwyer Stadium that was agreeable to both parties. Why wouldn’t you do the same for the Batavia Ice Arena? I think the proposed lease serves both Firland’s interest and the interest of the City of Batavia. The Batavia Ice Arena is a productive community asset.”

He cited a 2018 Creek Park feasibility study that indicated the estimated annual use hours at 1,600, estimated annual attendance at 68,500 and estimated economic output at $2.3 million.

Gray then took a veiled jab at Christian, who previously said the rink (for hockey) was used only by the “elite.”

“These elite people are your neighbors, coworkers and friends, and are found in every ward in the city and almost every village in the county,” Gray said. "Many people also believe that GAHA youth hockey is the only user of the ice rink. This is not true. The Batavia Men’s Hockey League, both high schools, public open skate, figure-skating lessons and pickup hockey all pay to use the ice at the rink. GAHA currently pays $200 for a 50-minute session – that’s four dollars a minute.”

He then commended Council for hiring Tabelski as manager, saying he has met with her twice to implement a program for his organization that would allow volunteers to identify and complete rink improvements at no or low cost to the city.

Council Member Christian objects to proposal to defer ice rink payments; supports YMCA running youth program

By Mike Pettinella

Anyone who follows the activities of the Batavia City Council is fully aware of the fact that longtime Council Member Rose Mary Christian – in her unique brusque and outspoken style – strongly advocates for her Sixth Ward (the Southside), fully supports the city’s police and fire department, and constantly looks out for the taxpayer.

On Wednesday, she contacted The Batavian to share her views on a few items currently on Council’s docket, starting with the management situation at the Batavia Ice Rink on Evans Street.

Christian said she is not on board with a recommendation before the city’s governing body to allow Firland Management, the company that operates the rink, to make a lease payment nine months after the original due date and to contribute a reduced amount to the rink’s capital improvement fund.

Council, at Monday night’s Conference Meeting, agreed to forward the proposal to its March 8th Business Meeting for a formal vote.

A memo from Interim City Manager Rachael Tabelski to Council spells out a reworking and extension of the lease agreement with Firland, reducing and deferring the firm’s payments due to the impact of COVID-19 upon its bottom line in 2020. The rink was closed for most of the year and just recently has welcomed back youth league and high school hockey teams.

Christian said she doesn’t buy that reasoning.

“There are numerous businesses in the City of Batavia that are hurting,” she said. “Are we going to defer anything for them – property taxes, school taxes, anything? I don’t think so, and that’s why I’m not voting for the resolution coming in two weeks.”

Tabelski, through negotiations with Firland, introduced a plan to let Firland make its next lease payment of $25,000 on Jan. 1, 2022 instead of the current due date of March 1, 2021, and also to reduce its contribution to the rink’s capital fund for 2020-21 from $32,958.30 to $5,000.

She also is proposing to extend the contract from its current ending date of March 31, 2021 for two years through March 2023.

Therefore, Firland’s lease payments will be $20,000 annually for 2021-22 and 2022-23 and its capital fund contribution will be $5,000 annually for the next two fiscal years.

Christian said the city has seen its revenue decline and, noting the costs involved with maintaining the rink, feels it would be unwise to go this route.

“Rachael sent me an email stating that the annual cost for keeping the refrigeration system at the rink is $11,500, and the city pays for that,” Christian said. “So, in reality, taxpayer money is used to cover that expense.”

Tabelski explained that the intent of the lease and capital payments (paid to the city by Firland) covers the costs of maintenance at the facility and contributes to the Ice Rink Reserve for Capital Improvements.

The city currently has $370,000 in ice rink reserves. If the refrigeration system was to fail, it could cost up to $750,000 to purchase and install a new one.

“That’s a far cry if it comes to $700,000 and we have to replace it,” Christian said. “And that becomes another burden upon city taxpayers.”

In a story posted on The Batavian on Tuesday, Tabelski suggested the manager’s office – within a year or so -- conduct an analysis and study, and present a strategy to Council “with the goal of bringing it back to full capacity and to potentially attract a buyer.”

Christian said she hopes someone or an organization would purchase the facility.

“We do not belong in business. I, myself, would like to privatize that all the way so someone can own it and take care of the responsibility,” she said. “Not every child in Batavia is afforded that ice rink. They can’t afford the fees charged to play hockey; it’s just the elite.”

Christian sounded off on a couple of other recent City Council agenda items:

-- On having vacant public safety positions in the 2021-22 budget:

“I’m sorry that we have to not fill a couple positions with the police department and the fire department. Safety is my No. 1 concern,” she said.

Christian said city funds used to support the Batavia Development Corp. should go back into the general fund, and potentially could be used to hire public safety personnel.

Tabelski, in response to an email from The Batavian, stated that the city is paying $95,000 to the BDC this year – down from the usual amount of $110,000 -- “via an agreement that was established years ago to provide economic development services in the City.”

She explained that the BDC is a public authority and has its own budget and operating costs, and can bring in its own revenue at times from grants, project fees or real estate sales. Recently, the entity has been successful in obtaining New York Main Street grants and money from the state’s Downtown Revitalization Initiative for several building renovation projects in the city.

The BDC employs a full-time director of economic development at a current salary of $65,000.

Christian said the corporation should be at a point where it can sustain itself.

“Do you know where that salary belongs? It belongs with the BDC. They should be paying for it,” she said.

-- On the strong possibility that the city will contract with the Genesee Area Family YMCA for its after-school and summer recreation programs:

“I’m happy that (District Executive Director) Jeff Townsend is going to be in charge of it for the YMCA. I think they are going to do an outstanding job for the kids,” she said.

Christian said the $1,100 rent payment to City Church for the use of the Liberty Center for Youth (the former St. Anthony’s School building) on Liberty Street is fair.

“It’s a good fee for that building. It will serve the kids well and also it will be used on Tuesday nights for their open gymnasium.”

Council debates proposal to defer lease payment, reduce capital fund contribution from ice rink operator

By Mike Pettinella

As Batavia City Council members ponder giving the company that manages the city ice rink a break on their lease and capital improvement fund payments, they also realize they can no longer skate around the need for renovations at the Evans Street facility.

Interim City Manager Rachael Tabelski on Monday night introduced a resolution that would amend and extend the lease agreement with Firland Management, the Virginia-based firm that has operated the Batavia Ice Rink (formerly Falleti Ice Arena) for more than a decade.

Speaking at Council's Conference Meeting at the City Centre Council Boardroom, Tabelski explained that Firland’s finances have taken a severe hit due to COVID-19 as the rink was closed for most of 2020 and just recently saw the return of youth league and high school hockey.

She is recommending that Council let Firland make its next lease payment of $25,000 on Jan. 1, 2022 instead of the current due date of March 1, 2021, and also to reduce its contribution to the rink’s capital fund for 2020-21 from $32,958.30 to $5,000.

Furthermore, she is proposing to extend the contract from its current ending date of March 31, 2021 for two years through March 2023. As a result of negotiations, Firland’s lease payments will be $20,000 annually for 2021-22 and 2022-23 and its capital fund contribution will be $5,000 annually for the next two fiscal years.

Rink Has Some Big-Ticket Items

Currently, $370,000 is in the rink’s capital improvement fund, Tabelski said. That may seem like a large amount, however, a new refrigeration system could cost around $500,000 and a Zamboni dasher board could cost up to $250,000.

Contacted this morning, Tabelski said the time has come for the city manager’s office to conduct a study and analysis, and present a strategy to Council to “move that facility forward.”

“This should be done within the next year with the goal of bringing it back to full capacity and to potentially attract a buyer,” she said.

Council did put $19,500 into the 2021-22 budget to fix the front doors and the locker rooms, both “minor repairs,” Tabelski noted.

Another issue at hand is finding a business or organization interested in having its name affixed to the building. Falleti Motors is not interesting in renewing its “naming rights” agreement with the city, said Tabelski, suggesting a request for proposal will be forthcoming.

During the meeting, Council Member Robert Bialkowski asked about events scheduled for the rink, noting that he couldn’t remember if the activities stated in the contract actually took place.

Tabelski said that events were added during the last negotiation period with Firland “because we’d like to see more done with the facility” and mentioned that the home show is held there and she hopes to see indoor soccer events there.

Council Member Rose Mary Christian asked how much the city is paying to take care of the ice-making system (refrigeration) per year. Tabelski said the city contracts with a separate firm and estimated the price tag at $2,500 to $5,000 annually, but believed that is billed back to Firland. She said she would check on that and get back to Council.

Deferring Costs in a Tough Time

After hearing that the locker rooms have been painted recently, Christian said it was important to know about the refrigeration contract since she believed the city was reducing Firland’s lease payments.

Council President Eugene Jankowski Jr. said lease payments were being reduced for the one year, but the city was giving Firland more time to make its payments.

“They’re paying the same amount, right?” he asked, and Christian replied, “Only for this year?”

Van Nest entered the conversation, stating “we’re deferring the lease payment that would have been due in March, based on the COVID shutdowns that affected all hockey rinks as Councilman (Paul) Viele and I are well aware because we don’t see each other at the rinks anymore.”

“Deferring it and then basically reducing the capital contributions … so that gives them a little bit more flexibility as Council president indicated to get the operations back to a normal level of service and normal level of programming.”

Christian said she heard that the rink is doing well now, with the Genesee Amateur Hockey Association and the adults leagues in action once again.

Viele said officials are “trying to lump a lot of games in a short amount of time, so what you would play in October, they’re trying to get everything in February and March, and that’s why they’re deferring the payment to get the money.”

Jankowski noted that the rink was closed for many months, and that’s why the city is looking at deferring the payment until Jan. 1, 2022.

Hockey Players Return to the Ice

Van Nest said hockey wasn’t permitted until Feb. 1 of this year, and only skilled-based practices were allowed. Viele said that open skate sessions also were closed to the public.

“It will be the same amount but only the capital part will be reduced dramatically for the two years (since the city has some money in reserves),” Jankowski said. “That will give them two years – one year to get back on their feet, one year to assess and then we’ll be back, talking to them about an extension or whatever we need to do after that. It’s only a two-year agreement.”

Council agreed to forward the measure to its March 8 Business Meeting, where a formal vote will take place.

Van Nest said that Firland would be interested in participating with city officials about future capital projects at the rink.

“Firland has significant experience with capital planning for rinks, development of rinks, renovation of rinks,” he said. “They actually assisted the Buffalo Sabres with development of their practice facility, so in talking to Firland … they indicated they would be happy to look forward to assisting with general capital planning discussions for the facility.”

Roach: Public Safety Comes First

In other action, Council held public hearings for the 2021-22 budget; water rates, meter fees and capital improvement fees, and a local law amending the Business Improvement District plan. All three resolutions were forwarded to the March 8 Business Meeting for a final vote.

City resident John Roach was the only public speaker, expressing his view that the city should not pay the salary of the Batavia Development Corp.’s director since that is not a city position.

“As long as you have any public safety positions vacant, then I think it's wrong that you pay the BDC money to pay for their employee, no matter how good a job, how worthy,” he said. “It’s not a city employee and I think public safety should come first.”

He also questioned giving money to GO ART! for Picnic in the Park and said if the agency doesn’t hold the summer event, the money should go back into the city coffers.

Council Member Patti Pacino responded that there is no money in the 2021-22 budget for that event, and Tabelski said that appropriation was not paid out in 2020-21 as Picnic in the Park was cancelled.

Tax Rate to Increase by 14 Cents

Concerning the budget, Tabelski reported a 2021-22 spending plan of $27.78 million, with $16.855 million of that in the general fund.

The property tax rate would increase by 14 cents per thousand of assessed value – from $9.59 to $9.73. That would cost a homeowner with a $100,000 house about $13 more per year in property taxes.

She said Council has approved reductions in purchasing, overtime and training, and are keeping three firefighter positions, two police officer positions and one laborer position vacant.

Water rates and meter fees would increase by 3.5 percent while capital improvement fees would go up by 10 percent – numbers that have been the norm in recent years.

Amendments to the BID Plan will include three proposed capital projects -- downtown marketing banners ($9,000), downtown music equipment ($30,000) and downtown Christmas decorations ($38,000) – and spell out the amount of the BID’s assessment charge to its members.

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