by Richard Gleeson
Northern News Services

NNSL (Mar 13/98) - The focus of debate on the proposed twin-pad arena has been affordability, but one of the crucial factors in that equation has received little attention.

Mayor Dave Lovell has pointed out more than once during exhaustive debates on the complex that he is more concerned about the annual costs of operating the new arena than the costs of building it.

Ongoing operation and maintenance costs for the twin-pad arena and community centre will, during the life of the complex, reach more than the estimated $9.1-million cost of building it. (Earlier estimates of put construction costs even higher, at $10.5 million.)

City officials estimate the annual costs of running the twin arena will be about $200,000.

According to the 1998 budget, the city spent $91,600 to operate the Gerry Murphy arena in 1997. The Yk Community Arena cost another $88,000 to heat, service and manage.

Both figures represent the difference between the revenues the arenas generated and their operating costs.

Accordingly, the estimated operating cost of the new arena will vary according to the amount of revenue it generates in ice rentals, etc.

If the proposed complex arena does proceed as currently envisioned, Gerry Murphy will be closed down, leaving the city with annual arena operating costs of approximately $288,000, about $110,000 more than it pays today.

Added to the increase in operating costs will be annual interest and principal charges on the $2.9 million the city intends to borrow to fund the arena and other components.

Those costs are a little more difficult to pin down, since the city will not fix the interest rate at which it will borrow until about 14 days before the planned ratepayer plebiscite, which will likely be held April 15.