The expensive proposition of funding an ice arena in Montclair is creating turbulence in the township, as many residents as well as members of the township council disagree on whether funding Clary Arena is a wise decision during these difficult economic times.

At the last township council meeting, a majority of the members voted, 5-2, to keep the funding place. Councilor at large Kathryn Weller and 4th ward councilor Renee Baskerville were the only ones to vote against continuing the funding.

But the future of this township owned venture – being operated by a private business – is becoming as messy as slushy, melted ice.

The business at Clary Anderson Arena, located at 41 Chestnut Street, has been losing money for quite some time.

Prior to being run by Ohio company United Skates of America, who began their management of this facility in 2008, according to audited financials, the arena lost approximately $200,000 dollars in the 07-08 season.

Then, according to the terms of the past year’s contract of 08-09 between United Skates of America contract with Montclair, the town became responsible for all the utility bills, extraordinary maintenance, garbage, capital improvements and insurance. Thus, the utilities paid by the township came to approximately $130,000 dollars. This number is approximate because the final numbers have not been submitted by review by the township council members.

According to a source within the United Skates of America organization, the company grossed $353,000 but with expenses it appears to be a loss of $199,000 dollars which included pensions, benefits for five full timers and $50,000 dollars management fees to the town for payroll services and other items.

And, adding to the confusion of such a convoluted deal, the United Skates of America is supposed to pay Montclair a percentage of its profits, if there are indeed any profits from the venture.

This past year, the amount of $9,986 dollars per week was agreed to be paid to United Skates of America management at the arena per week for 35 weeks in 2008 – 2009, by the township as part of their contract.

Once this 35 weeks was done being paid, for a total of $349,000 dollars, any profits over that amount was supposed go back to the township. As of today, July 16, no one knows if there is a surplus yet, since the final numbers have not been released. The township has gotten zero dollars.

At the last township council meeting on July 7, the vote to re-commit to a contract to this management company was passed.

But the audit with specific numbers on the business was still not completed and offered to the council members.

Kathryn Weller, councilor at large, said she is disappointed with the vote, because she still had not received any numbers to review.

“Why couldn’t we wait for the numbers?” she asked. “I don’t feel this is fair to the residents of Montclair. How can we vote for something without the facts?”

Indeed, no final audit numbers were presented to the council before the vote, which is surprising considering the numbers that are clearly marked on

official paperwork received by thejerseytomatopress.com by a source from within the company. These daily sheets include detailed information, in an organized manner.

Copies of official United Skates of America receipts show exact dollar amounts, on a weekly basis, for everything from skate rental, adminssions, hockey fees (ice), pro-shop and more.

Yet, for some reason, these internal numbers never reached the desks of the township council members.

When the United Skates of America signed on with the township in 2008, they listed ‘Priority Benefits’ for Montclair. Number 6 on their list is clearly marked

“Real time bookkeeping, auditing and tracking of day to day fiscal activities and operations”.

So, what happened and why the big rush to get the contract re-approved?

Although the season is over for the time being, United Skates of America said they need to start booking their winter sports’ programs.

According to published reports, vice president of development Phil De Angelo said sports teams are booking their ice time now, and a delay could cost the company lost business.

Sadly, besides taking reservations for ice time, residents of Montclair can expect something else: higher fees next year.

According to Phil De Angelo, the fees will go up about ten percent.

Perhaps, since these fees have been set by ordinance in the past, and there are no ordinances passed on this issue of charging higher fees, it may not happen.

The new resolution awarding the contract to United Skates of America is now for five years, instead of the previous one year contract.

And, just like the slush that appears every warm day in the un-insulated arena, this issue seems to be ever changing and messy – and quite expensive.