City considering selling the Novi Ice Arena

NOVI — The Novi City Council discussed options for the future of the Novi Ice Arena March 23 and is considering selling the facility to Suburban Arena Management, which currently manages the facility for the city.

“I recognize that not everything in the city should be viewed and evaluated like a business, and I know I tend to get a rap a little bit for that, but I understand that at the same time we’re a city and our job is to provide services that matter to the residents,” Mayor Justin Fischer said. “Not because they necessarily generate profit, but at the same time, we’re talking about something like an ice arena, which is a large capital asset set up as an enterprise fund. It is certainly prudent to occasionally take a look at the ownership structure and make sure it still makes sense and ensure that we expect to operate this entity in a financially stable way.”

According to city documents, the Novi Ice Arena is a 75,000-square-foot facility that features two 85-by-200-foot sheets of ice.

The building opened to the public in September 1998. Since then, the building has helped develop the figure skating talents of several national, world and Olympic champion figure skaters; hockey players; and more. It is also a popular place for fundraisers, such as the Novi Youth Assistance fundraiser to be held on April 12, and it offers a place for the community to have fun. According to the rink manager, Jeff Mitchell, approximately 700,000 people come to the rink each year. 

The Novi Ice Arena was originally funded with bond funds, but it is now operated through an enterprise fund. Enterprise funds are funds set up for government facilities or services where user fees are supposed to make the facility or service self-sustaining.

“As a self-sustaining facility, the arena must generate sufficient revenue to cover operational costs,” City Manager Victor Cardenas said in a letter to the council on the subject of the rink. 

“With the facility now debt-free and in very good operational condition, the Finance and Administration Committee (FAC), back in July 2025, began discussion on the future of the Novi Ice Arena,” Cardenas said in the letter. 

He said that the committee reviewed data on budget projections, future capital improvement project needs, lease and sale options, elimination of the debt service, an appraisal of the arena, and more before asking the council to consider three options:

1. Solicit bids for the sale of the ice arena with potential deed restrictions on any potential resale of the property/building.

2. Obtain bids on additional studies such as a 20-year capital needs assessment estimated to cost $8,000-10,000; site, building and operational due diligence estimated to cost $25,000; and/or an operational and ownership options analysis estimated to cost $45,000.

3. Maintain current operations. City staff will continue to monitor the financial performance and projections of the management company, including the arena’s capital needs.

“Obviously, we’re not out there to make money on this ice area, although I do wish there were ways for us to do that,” Fischer said. 

He said that because of laws and the way things are set up, at best the city is meant to “break even.” He said the building is now 25 years old and has increasing maintenance costs and “likely growing” capital needs. 

“So, realistically, here we are breaking even, continuing to carry a lot of downside risks with zero meaningful upsidet,” Fischer said. 

“It’s kind of like looking at your car after about 100,000 miles, and at some point it’s like, OK, it’s great. It’s paid off, it’s still running, but at some point those repairs are going to become more frequent, and they’re going to become more costly, and at some point we need to make a decision if that continued investment makes sense, and I think that’s where we are with this ice arena facility,” he said. 

Fischer emphasized that the council is not deliberating on the value of ice skating but rather the value of continued ownership of the building. He said that it is likely if you return ownership to the building manager, the facility will be operated even better than it had been. 

“Talk about a win-win,” he said. 

Fischer and Mayor Pro Tem Laura Marie Casey both said they would like to see some guardrails put in place if the building is sold. Fischer said he would want to ensure the facility’s continued use as an ice arena and that school and youth programming would continue.

The financial negotiations would start at around $4 million, according to Fischer, which would go back to the Parks and Recreation Department to be reallocated. Casey said she wants to have something put in place to protect the ice arena from potential owners who would not continue to advance the arena. 

“So, my concern really is the second sale to that company that really wouldn’t take the same level of care that we have,” Casey said. “So, I would be looking not just for really stringent requirements on that sale. I would like the City Council to veto that. If we don’t like where that sale is going, I want us to have the chance to say no. Actually, I would love for us to be able to sell the ice rink and keep the land.”

She suggested having it written into the contract that it must always be an ice arena and the city has the first right of refusal if they try to sell. 

Councilman Brian Smith said that he was in favor of selling it to Suburban after looking at other facilities that the company owns in the area. He said that he didn’t really see any difference between the offerings. 

“Selling it to Suburban would have essentially no impact on people who use it that live in Novi; they have what looks like the same rate structure, same hours, same programs,” Smith said. “We’re currently, as the mayor said, not receiving any money from this to the city. By selling it, we not only get the $3 or $4 million from the sale, but it becomes a privately owned property, which is subject to property tax. So, there would be some money coming in continually to Novi.”

Councilman Aaron Martinez said that they would have to have the parcel, which currently includes the dog park, divided up. He also said that with 31% of users being from the city, it makes him think they should consider consolidating operations elsewhere.

“I think between these options I certainly understand my colleagues’ inclination to go with option one, and if I have to choose between these options, I’m certainly happy to hear what offers we get and see what that could become, but I do want to ensure that we can still have hockey and ice skating in Novi,’ Martinez said. “These are valuable things. We raise Olympians in this city. We train Olympians in this city. That is such a feather in our cap. So, I would hate to see a subsequent sale or some other unforeseen thing as of this moment take that away from our city.”

The council did not decide on any of the options.