SOUTH LAKE TAHOE, Calif. – After years of what the City of South Lake Tahoe calls “significant concerns” about how Tahoe Sports & Entertainment (TSE) is running the Tahoe Ice Arena, their concessionaire agreement with the City is coming to an end.
The city-owned $30 million ice arena was built in 2002, and it operated until 2012, when the City issued a request for proposal (RFP) from companies interested in running the operations with a concessionaire contract.
When Heather Horgan came onto City Council at the beginning of the year, she asked for an update on ice arena operations after hearing from the public on their concerns about a lack of ice time available for the public, poorly maintained facilities, an out-of-date website, and other issues.
Some of the City’s concerns:
- Required reporting not submitted since 2023
- Unpaid water utility bill
- Potential underpayment of electricity bills
- Marketing and promotion requirements unmet
- Level of service and facility operations deficiencies
- Glass ice surface enclosure maintenance deficiencies
- Abandoned TSE Zamboni
Since 2022, the City has spent $681,507 on Ice Arena maintenance projects, and it still needs $5,103,620 for upgrades. With these investments, the City reinforces the importance of operating the Ice Arena responsibly as a community facility and providing high-quality programming for residents and visitors.
The City’s Director of Parks & Recreation, John Stark, outlined the situation for the Council during its meeting Tuesday, highlighting their list of concerns.
At this time, the City has lost faith that TSE is the group to run the arena, he said.
“The arena is not operating at expected standards,” said Stark.
Mark Martel, an attorney retained by TSE, spoke to the Council in response to their concerns. He said TSE is committed to getting current on its utility payments and the required financial reports. Martel said they responded to city concerns and just hired a part-time and a full-time assistant manager to help with the workload and are working on a website, which will help with marketing concerns. He said the arena was deeply cleaned the night before the meeting and they have a janitor now to address concerns. Martel said they have had maintenance problems for 15 years and have had 29 closures where the compressor failed
Martel said they had a procedural concern about this item coming to a vote at this time, and said not to rush to rule on the matter.
Many hockey players and fans in the community got up to speak, all of them with concerns about how the Ice Arena is being managed. Some of them said they go to Reno to get ice time, and locals cannot form leagues in South Lake Tahoe due to a lack of communication and nobody answering phone calls.
More than one public speaker said there has been no blade sharpener at the arena for a year, a necessity in the skating world. No supplies were available for purchase by visiting hockey teams often traveling from the Bay Area. They said the recent efforts by TSE to make changes were “too little, too late.”
There were concerns voiced about equitable access at the arena, and local teams have a hard time getting on the ice. The Tahoe Hockey Academy trains at the arena.
Once a popular site for birthday parties, the party room with snack bar is now a weight room, with other former public areas now dedicated to only a segment of the ice users.
“There are closed doors in a public facility that should be left open and accessible to all,” said another.
Former South Lake Tahoe Recreation Supervisor Rob Swain spoke to the council about how successful the ice arena was when the City ran it. He said it wasn’t unusual to earn over $750,000 a year at the popular venue.
“It was profitable and full service back then,” said Swain.
He said a former city manager was against full-time city staff being used for recreation and turned the arena over to a concessionaire.
“It was a giveaway, a misuse of city funds,” said Swain of the decision.
South Lake Tahoe once had the motto, “America’s All-Year Playground,” said Swain.
College hockey teams once used the Ice Arena for their “Final Four” tournaments.
Staff questioned whether TSE was managing the ice arena as a full-service, first-class ice arena. The City has received patron complaints, and staff has identified issues below based on observation:
- TSE management is not in the area full-time and is not responsive to staff or patron requests
- Lack of appropriate staffing levels for arena operations, with only one staff member available to operate the desk, operate the Zamboni, attend to patrons, and answer phones
- Concerns with ice and glass maintenance standards
- Lack of programming available to the public
- Lack of communication for the public to know how to participate in existing programs
- Concession not open
- No alcohol license
- Vending machine left empty
- Locker rooms and facility cleanliness issues
The Council voted to give TSE a 90-day notice to terminate the contract (as required), and staff would assume operations of the Ice Arena after TSE vacates the facility. They would operate as the City issues an RFP for long-term operations, and a concessionaire is being selected.
If Council directs City staff to operate the Ice Arena long term, additional staffing and operations budget will be necessary for Parks & Recreation to assume these responsibilities.