New ice arena deal, lower rent for RoughRiders

The Cedar Rapids RoughRiders should get a new lease for the Ice Arena soon, but it's a lease that will mean significant cuts in revenue for the Five Seasons Commission and the city.

The Cedar Rapids City Council is scheduled to set a public hearing on the new lease deal with Newco Riders at the meeting Tuesday night. The hearing would take place May 11.

The biggest change, according to Scott Schoenike from the Five Seasons Commission, is a cut in the yearly rent. Right now, the junior hockey club is paying $156,000 per year. The new deal calls for $90,000 a year for the first year and then $70,000 a year for five years.

Schoenike called the new rent about average for United States Hockey League teams, but did point out that the Riders get 100 percent of advertising revenue and 100 percent of the money spent on arena suites. Schoenike said other teams don't have that benefit.

Concessions under the new deal will be negotiated separately. However, Schoenike noted that under a letter of intent, the Riders were promised a 10 percent cut of concessions. Currently the hockey team does not get any concession money.

Schoenike said last year, the lease with the hockey team returned an approximate $7,000 profit to the city. Under the new deal, the city will get enough to cover debt payments for the arena, but will have to make up the differences elsewhere.

Schoenike said the Five Seasons Commission considered the reductions the only option to keeping a junior hockey club in Cedar Rapids.

-- Dave Franzman, KCRG-TV9