Santa Clarita City Council members approved the issuance of $15 million in bonds to finance the costs of buying a 93,000-square-foot ice rink, as well as approved funding for the Committee on Aging and extended a three-year lease for The Main.
Their unanimous vote for the ice rink in Valencia, which will mostly support ice sports and potentially business conferences and other recreational activities, green-lights the issuance of the bonds in two series: 75% as tax-exempt and 25% as taxable, according to Carmen Magaña, director of Administrative Services for the city.
“The bonds will fund property acquisition costs of $14.2 million and bond issuance costs,” she said during a presentation to council members.
The proposed term of the bond is 30 years, and payments are expected to be $730,000 annually, beginning in 2021 through 2050. Total payments over the 30-year period are estimated to be $21.6 million, and will be paid by the city’s general fund, including available revenues from the facility’s operations, said Magaña.
City officials have estimated that with use for “other economic development opportunities” the ice rink could see foot traffic of about 750,000 annually. This figure would place the property as the city’s second-largest service that it provides, just behind Santa Clarita Transit, which saw a ridership of 2.61 million in 2019 alone, according to Frank Oviedo, assistant to the city manager.
Extending The Main lease
Council members approved a three-year-lease agreement for The Main, which hosts performances, art exhibits and fundraisers in Old Town Newhall, for $76,800 annually from Jan. 1 to Dec. 31, 2023.
The vote comes after the City Council first approved a three-year lease agreement with MAGA L.P. to have the city take over the operations and management of the venue, formerly known as the Repertory East Playhouse and renamed The Main, or The Municipal Arts In Newhall.
During public comment, TimBen Boydston, executive director of the Canyon Theater Guild, which is also in Old Town Newhall, requested that the City Council consider assisting the guild “with a grant in a similar amount.”
“Unlike The Main, however, we do not have the taxpayers to pick up all of our bills,” he said. “And so we continue to have an incredibly large negative cash flow even though we are not operating.”
Funding for Committee on Aging
The City Council also directed $475,000 toward multiple programs and services for local older adults through the Santa Clarita Valley Committee on Aging as part of the city’s ongoing budgeted commitment every year.
More closely, funds are expected to cover $225,000 for recreation, health and wellness programs; $150,000 for transit-related services; and $100,000 for home-delivered meals, according to the city agenda report.
