These minutes are for informational purposes only. For official minutes contact either the Town Clerk's office or the First Selectman's office.

Special Meeting

February 4, 2000

1. CALL TO ORDER

The meeting was called to order at 8:12 a.m. Present were First Selectman Anita Mielert, Deputy First Selectman Joel Mandell, William Garrity, John Romano, Madeleine Gilkey and Thomas Vincent. Also present were: Paul Fetherston, Assistant to the First Selectman, Robert DeCrescenzo and Jim Conner, Town Attorneys, and other interested parties.

2. DISCUSSION AND POSSIBLE ACTION ON REQUEST BY CHAMPION SKATING CENTER TO APPROVE ACQUISITION OF INTERNATIONAL SKATING CENTER OF CONNECTICUT, LLC PURSUANT TO THE TERMS OF THE GROUND LEASE BETWEEN THE TOWN OF SIMSBURY AND ISCC

Louis Green, Green & Levine LLP, spoke on behalf of ISCC Limited Liability Company, a business formed for the purchase of the ISCC. He stated that Steve Fish and Champion Skating Center are purchasing the ISCC and are requesting assignment of the lease to Champion Skating Center. Jacob Weiselman was present representing Mr. Fish.

Jay Satler, Blum Shapiro, distributed financial information regarding the Cromwell Skating facility and the ISCC. He identified areas in which they plan to increase the revenue in Simsbury. He stated that they plan to increase the operating income from the Simsbury facility due to the synergy from wages and salaries through the ownership of 2 facilities.

Alan Lazowski, a partner in Champion Skating Center, stated that they will assume the existing contracts in Simsbury and they plan to re-hire all of the employees in Simsbury. Mr. Green stated that there is an urgency factor to close this deal because they do not want the employees to leave and currently there is concern with the financial viability of the existing owner.

Mr. Mandell questioned how the purchase will be financed. Mr. Green stated that it is a cash deal and everything will be paid off. He noted that they intend to get a mortgage in the future at which time they will come before the BOS.

Mr. DeCrescenzo stated that this is a complex real estate transaction and a list of questions is being compiled. He advised the Town not to approve this purchase until more information is obtained. Mr. Conner stated that they need to review the escrow from the previous purchase and need to consult with the Board of Finance and Town Staff and determine who is responsible for the payment of the sewer assessment.

Mr. DeCrescenzo noted that the Cromwell and Simsbury facilities have different market niches and the Town needs assurance that the Simsbury facility will stay in its present form. Mr. Lazowski stated that it is important to Champion and to Mr. Fish that the Simsbury facility continue to be the best worldwide figure skating center. He stated that Mr. Fish met with Coach Galina Zmievskaya and she stated that she will stay at the facility. Ms. Mielert questioned whether there is a written agreement with Coach Galina Zmievskaya. Mr. Lazowski stated that the agreement includes the assignment of her contract to Champion. Mr. Green stated that the sewer assessment will be paid off at the closing.

Ms. Mielert stated that in the past the Town has been reimbursed for their legal fees attributed to the purchase of the facility. Mr. Green stated that they will work out a payment to the Town. He stated that if they do not have BOS approval, they will close in escrow and have until March 1st to receive BOS approval. He noted that they will take over the operation after the distribution out of escrow.

Mr. Lazowski stated that this is not a short-term interest for their local partnership. He stated that they want to keep the existing employees in place and add expertise in the hockey area. He noted that the seller needs to raise capital quickly and a delay could effect the financial stability of the facility.

Bob Crawford, Managing Partner of Champion Skating Center, stated that he ran a youth hockey program when ISCC opened. He stated that it is their intention to continue the international figure skating portion of the facility and to develop the off-season hockey programs. Mr. Crawford pointed out that the Spring/Summer hockey program in Cromwell has been their biggest success at the facility. He stated that they would bring hockey professionals to train in Simsbury and would hold a championship between the 2 rinks.

Dick Wagner, Wagner Ford Sales, expressed his concern with rumors that the present staff have been offered the opportunity to leave and that other parties are interested in buying the rink. He urged the Town to research the entire aspect of this sale.

He pointed out that if the property maintenance people leave it effects his business.

Ms. Gilkey questioned whether the employees are obligated to stay with Champion as part of the purchase agreement. Mr. Green stated that Coach Galina Zmievskaya, Mr. Young and the professional skaters are under contracts which will be carried over to Champion with the purchase of the facility. He stated that the other employees will be terminated at the time of the sale and will be re-hired by Champion.

Mr. Garrity stated that his only concern is that the Town Attorney's questions are answered satisfactorily. He stated that he is not comfortable approving this proposal today since they only received the information yesterday. Mr. Mandell stated that he is comfortable with the deal and those involved, but will rely on the Town Attorney to direct the board.

Mr. Vincent requested clarification that Coach Galina Zmievskaya has 1 year left on her contract. He expressed his concern that Zane Collins is not under contract. Mr. Lazowski stated that there is 1 year left on Coach Galina Zmievskaya's contract and they will offer a contract to Mr. Collins. Mr. Vincent questioned whether Mr. Crawford will spend half of his time in Simsbury. Mr. Crawford stated that he will spend at least half of his time at the Simsbury facility. He stated that he will bring David Roberts to Simsbury for the Spring and Summer programs. Mr. Vincent expressed his concern that the residential leasing portion of the contract stay in place, that the Simsbury High School hockey schedule remain intact, and that a reasonable public skating rate remain. He stated that the Cromwell facility has improved under the ownership of Champion, and Mr. Crawford has done a good job. He recommended that they try to keep Mr. Collins in his position.

Ms. Mielert noted that 6 years ago the Town invested $350,000 at this site and therefore they have to perform due diligence for the citizens. She noted that $20,000 remains in escrow from 6 years ago and $21,000 in property taxes are currently in arrears. Mr. DeCrescenzo stated that they will have their questions completed by the end of the day and should be able to offer an opinion next week. Mr. Lazowski stated that they will close on the purchase today, in escrow, and will answer the questions as quickly as possible.

3. ADJOURNMENT

Mr. Mandell moved to adjourn the meeting at 9:14 a.m. The motion was seconded by Mr. Romano and carried unanimously.

Approved February 14, 2000