Ice hockey will continue in the First Arena in the coming season. An interim agreement has been reached between Chemung County and the operator and former owner of First Arena that will allow the Elmira Jackals to play in the facility during the 2012-13 hockey season.
Also, a court date has been set for next week in a lawsuit accusing the county of not following proper procedure when it foreclosed on the arena earlier this year. County Executive Tom Santulli announced the memorandum of understanding Wednesday that was signed May 17 by Tamer Afr for Elmira Downtown Arena (EDA), Santulli for the county and Kevin Keeley, who is now president of Southern Tier Economic Development (STED).
The agreement allows EDA to continue operating the arena but gives the county the same rights as STED to oversee arena operations to ensure EDA complies with the agreement, Santulli said. The pact expires the day after hockey season ends in 2013, he said.
"We want to have hockey next year at the arena. The ECHL is putting their schedule together right now, and Elmira is either going to be in, or Elmira's going to be out. We want Elmira to be in, and because of that, we've entered into a memorandum of understanding," Santulli said. If there isn't compliance with the agreement, the county will take appropriate action, he said.
"Believe me, we are not going to go through another year of fire systems that don't work, insurance not on the facility," Santulli said."The county will not hesitate for a moment to pull the trigger should any of the agreement not be lived up to. This is not going to be fly-by-the-seat-of-your-pants, business-as-usual."
In a related development, Santulli said he wants to start new negotiations with Elmira College to have the college hockey team play at the arena. There was a proposed agreement years earlier, but college President Thomas Meier has said that STED rejected it the day it was to be signed, Santulli said.
The county foreclosed on the arena earlier this year because its operator failed to meet the deadline to pay overdue taxes. The county legislature voted March 12 to table an attempt by STED to buy back the arena by paying the back taxes and a penalty. Subsequently, EDA filed a lawsuit accusing the county of acting illegally by not allowing STED to buy back the arena. EDA and Key Bank also filed a lawsuit challenging whether the county followed proper procedure in its foreclosure process.
In addition, EDA sued the arena's former general manager Robbie Nichols and former assistant general manager Donald Lewis, alleging they tried to sabotage the arena operator, the Jackals and First Arena. In April, Chemung County Supreme Court Judge Judith O'Shea dismissed one complaint. She said she would not order the county to accept the repurchase offer. She also dismissed an injunction filed against Nichols and Lewis but allowed that suit to go forward.
At 9:30 a.m. June 8, O'Shea will hear the suit accusing the county of not following proper procedure during foreclosure, Santulli said
It does not make sense for the county to seek proposals for the sale and management of the facility with litigation still pending, he said. "While we have a very aggressive plan to move forward with the operation of the arena, it's going to be very difficult to get anyone in a new owner capacity until all this litigation is settled," Santulli said.
The county essentially owns the arena and must sign the deed to take possession of the property, but Santulli has delayed signing it because of liability concerns.
