Max Rabner, part owner of Seven Peaks Water Park, received a call Tuesday night from an Orem woman who supports the proposal to build a two-sheet ice facility at the resort.
She said two ice sheets are desperately needed in Utah County, and residents prefer a location with a recreational-type ambience, such as that found at Seven Peaks.After several meetings with Seven Peaks officials, members of the Provo/Utah County Ice Sheet Authority agree.
Seven Peaks would be a great site for an Olympic practice ice sheet, and authority members are starting to think that perhaps a proposed site near East Bay Golf Course isn't such a good location after all.
Jim Young, one of Utah County's representatives on the Utah Sports Authority, said Olympic facilities should be built in locations with synergism like that found at Seven Peaks. "We put them in neighborhoods where safety isn't a problem," he said.
But the authority received news Wednesday that makes the Seven Peaks proposal doubtful. The proposal to build a $7 million two-sheet structure at Seven Peaks and then lease the facility to the resort for 20 years can't be financed with tax-exempt bonds.
Mainly, the proposal doesn't meet tax regulations because of the length of the proposed management agreement. But Seven Peaks doesn't want to donate two acres of prime land and parking space unless it has a secure future in operating the facility.
Funding the facility with taxable bonding is an option but would cost about $1 million more in interest. Authority members are not interested in covering the additional costs, but Seven Peaks officials said they might be.
The group only learned one hour before Wednesday's meeting that its proposal doesn't qualify for tax-exempt financing, and it hasn't had time to develop an alternative plan. "We believe there is a solution, we just don't know what it is yet," Rabner said.
Still, Seven Peaks would have to address concerns over operational control and the length of the management agreement. The authority wants a board of directors to oversee the facility. Also, some members believe the public would object to letting a private enterprise operate the facility.
"I think it continues to pose problems," Provo Mayor George Stewart said.
Other members said residents are only concerned with getting the best facility possible, regardless of who builds it and operates it.
"I think the citizens are interested in us coming up with the best facility for the least amount of money that can function properly," Utah County Commissioner Gary Herbert said.
The authority agreed to give Seven Peaks time to come up with one more plan. However, members also want Seven Peaks to consider selling the land outright to the authority, which would allow the authority to build and operate an ice arena at Seven Peaks. Under this scenario, the resort owners could bid for the management contract.
The authority also will reconsider building the ice arena at Riverwoods Research Park, a location that was eliminated in the past because of the expense of the land. But the authority might be able to pay the higher price if it sells the naming rights to the arena.
Stewart also believes the authority should consider building a facility with two sheets. "(Seven Peaks) has convinced me that there are enough positives," he said.
The $7 million facility would be financed with $2 million from Provo and $2 million from Utah County. The Salt Lake Olympic Committee will contribute $3 million after the 2002 Winter Games are complete. For four weeks in February 2002, the arena will be turned over to Olympic athletes for use as a practice facility.
The authority is scheduled to meet again Sept. 16, at which time it will tour the proposed locations and might choose a site.