Jordan Valley Ice Park crosses red line by $258,122

|tab|

Public response to Jordan Valley Ice Park has been a little chillier than projected by Group Seven LLC, the company that manages the Ice Park. |ret||ret||tab|

Anticipating a net profit of $109,635 based on Group Seven's 11-month management projection for the park from Oct. 1, 2001 to Aug. 31, 2002, the Ice Park has instead realized a $258,122 deficit. |ret||ret||tab|

The loss, which is based on the Springfield-Greene County Park Board's year-to-date profit-and-loss comparison statement, includes operations through August. Full first-year figures will not be available until mid-October when the city completes its September report.|ret||ret||tab|

Gross revenues for the park in its first year were $915,479, while total expenses ran in at $1,173,601. The total discrepancy between projected profit and actual shortfall is $367,757.|ret||ret||tab|

Jeff Cumley, Group Seven's manager for the ice park, declined comment pending the release of Group Seven's own report.|ret||ret||tab|

|ret||ret||tab|

Who pays the piper?|ret||ret||tab|

The shortfall has been handled by the park board's general budget fund, said Jody Kemp, administrative services coordinator for the Park Board. |ret||ret||tab|

Three cash sources make up the park board's general fund, said Mary Mannix, acting director of Finance. These are property taxes, fees charged for park board services and a subsidy from the city's general fund. |ret||ret||tab|

For the 2001-2002 fiscal year, the city deposited $1,741,592 into the park board fund, Mannix said. Full information on the park board general budget fund for the fiscal year ended June 30 was not available because the year-end financial report is not yet complete, Mannix said.|ret||ret||tab|

|ret||ret||tab|

Expectations|ret||ret||tab|

Bill Hobbs, assistant director of Parks and Recreation, said the concept of year-round recreational ice hasn't caught on yet with Springfieldians. |ret||ret||tab|

"Where the deficit is, is the fact that there's not a lot of demand for group skate rentals yet," Hobbs said.|ret||ret||tab|

Dan Kinney, park board director, said Group Seven's contract gives it control of the ice park for one more year. After that its performance is reviewed yearly with the board deciding on any management changes. |ret||ret||tab|

|ret||ret||tab|

Money makers|ret||ret||tab|

Not all was bleak, however, Hobbs said, noting a strong showing by the park in pro shop sales with solid figures in concessions and skate rentals. |ret||ret||tab|

Revenues from pro shop sales were at $163,773 against a Group Seven projection of $142,077, while concessions dollars figured at $134,125 against a forecast of $175,621.|ret||ret||tab|

The concessions projection did not include alcohol sales, but the Ice Park was able to sell alcohol once, netting $2,431. Alcohol sales have been banned at city-owned facilities pending a public vote on the Nov. 5 ballot.|ret||ret||tab|

Skate rentals took in $114,104 and public skating admission charges produced another $211,045 for the park.|ret||ret||tab|

The park also generated $186,977 in combined hockey revenues, including clinics, broomball and drop-in/stick-n-puck, as well as adult and youth hockey leagues, and ice rentals to the park's three tenants: Springfield Spirit, Southwest Missouri State University Ice Bears and Springfield Youth Hockey Association.|ret||ret||tab|

|ret||ret||tab|

Expenses |ret||ret||tab|

On the expense side of the ledger, almost 45 percent was accounted for in the $523,347 paid to Group Seven's employees. Manage-ment fees came in at $86,483 for the 11-month period.|ret||ret||tab|

Kinney wasn't surprised by the ice park's showing. "The first three years are kind of touch and go usually in a business," he said.|ret||ret||tab|

"We're at the touch, and we're ready to go." |ret||ret||tab|

[[In-content Ad]]