In addition to serving as a Legislator for Chemung County’s 7th District, I am the secretary of the Chemung County Industrial Development Agency. In order to clarify and explain the state of affairs at Elmira’s First Arena, we offered this statement today.
A copy of the lease referenced in the statement and the specific requests for reimbursement are embedded at the end of our statement.
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The purpose of this communication is to update the community about the status of the Chemung County Industrial Development Agency’s lease of Elmira’s First Arena to CAN-USA, a company owned and operated by Chemung County resident Robbie Nichols.
Background
The Chemung County Industrial Development Agency (CCIDA) owns Elmira’s First
Arena.
On July 15, 2018, CCIDA entered into a one-year lease with CAN-USA. The lease
allows CAN-USA to renew its lease twice for additional one-year terms so long
as it is not in breach of the lease’s terms.
Under the lease, CAN-USA is obligated to pay $125.00 per month, property taxes,
and all expenses related to routine repair and maintenance of the building and
outdoor premises.
The lease required CCIDA to pay the first $103,000 of First Arena utility bills
issued to CAN-USA, after which CAN-USA assumed responsibility for them. CCIDA
honored its agreement to pay the first $103,000 of utility bills. Responsibility
for these bills has since shifted to CAN-USA.
The lease also requires CCIDA to reimburse CAN-USA up to $200,000 for repairs it
makes to the First Arena’s ice plant along with capital improvements completed within
the first year of the lease. All claims for reimbursement must be made in
accordance with a process set forth in the lease that calls for at least two
estimates and prior approval of CCIDA, and must meet the definition of capital
improvements, i.e. a permanent
structural change or the restoration of some aspect of a property that will
either enhance the property’s overall value, prolongs its useful life, or adapt
it to new uses.
Lease renewal
Last week CAN-USA sent a letter to CCIDA indicating it wishes to exercise its right to renew the lease from July of 2019 through July of 2020 if CCIDA reimburses CAN-USA over $122,000 for what CAN-USA claims it paid toward ice plant repairs and capital improvements.
The status of repayment from CCIDA
CCIDA, like all Industrial Development Agencies in New York, is a public entity subject to yearly audits. As such, CCIDA has a fiduciary duty to taxpayers to make sure any remittance of payment to CAN-USA is lawful and appropriate.
In May of 2019 CAN-USA presented CCIDA Board members with requests for reimbursement for ice plant repairs and what it characterized as capital improvements.
Upon receipt, CCIDA Board members internally analyzed the requests and has consulted with legal counsel to determine whether (1) these expenditures were made in accordance with the lease; and (2) they represent capital expenditures or routine maintenance and repair for which CAN-USA is responsible.
CAN-USA has made several public statements suggesting CCIDA is withholding repayment without justification. To the contrary, CCIDA has an absolute duty to taxpayers to make every dollar we spend is done appropriately. The expenditures CAN-USA has asked us to make raise many important questions that we must answer before any money can be paid. Specifically, many of the requests appear to be related to routine repair and maintenance, something CAN-USA is required to pay.
The future of the First Arena is very important to CCIDA and the community. We are working very hard to make sure this valuable asset is protected while also honoring our duty to the taxpayers to be watchdogs for their money.
CCIDA will provide updates to the public as this situation continues to develop.
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Open in new tab -Christina Sonsire
financial tips
Article writing is also a fun, if you be acquainted with afterward you can write if not it is complex to write.
Loading...Thanks Christina for providing the public with a clear explanation of the agreement between CCIDA and Mr. Nichols. And, continued clarity is what the public deserves.
Loading...Thsnk you for sharing this information.
Loading...In my understanding as a homeowner, the IRS certainly does not consider repair of roof leaks and equipment, etc as capital improvements. Please move forward with terminating the lease and finding someone who will PURCHASE this money pit. It is long past time to relieve the taxpayers of propping up a private enterprise that clearly does not have enough market demand to support the endeavor.
Loading...Kate you are correct. I will go further and state it should have never been built in the first place because the area never had the population and money to support it. Secondly it is in the wrong location. You don’t build an arena with no parking immediately adjacent to the property. Walking blocks to and from the parking garage is not a good idea in the daytime let alone at night. Thirdly it is too small and therefore big name acts won’t come here. It needed to be large like the Times Union center in Albany.
Loading...A blot on their attendance is parking. No way in the world can the handicap wallk from the parking garge to the Arena. When the County/City was considering the Arena the manager from Broom County’s Arena, advised the CC Legislature to not get involved. When I was in the Legislature I was strongly opposed to the Arena before its inception & thereafter. The building should never have been allowed to be in the bad condition it is in.
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