AUBURN — Plans for a dual-rink ice arena near the Auburn Mall could have fewer seats than first discussed.

“It’s based on costs and on the actual purpose of the arena,” City Manager Clinton Deschene said. “It’s there for ice skating, not for spectators. If you want that kind of large spectator event, that’s what the Colisee is good at. We don’t want to compete with the Colisee.”

City councilors are scheduled to review the latest drafts of the lease with more updated information at their special meeting Tuesday night.

Ice rink plans originally called for the proposed rink to have seats for 1,200 spectators in one rink, 200 in a second rink, 300 in a shared mezzanine and standing room for hundreds more.

“Instead of 1,200, we’re going to be closer to 800,” Deschene said. “How those will be configured still needs to be determined.”

Deschene said the additional seating added to construction costs without bringing in more revenues.

“Our profits are not based on seating, but on the rental of ice time,” Deschene said. “One thing that’s come out is the two to four large high school hockey games per year. Those games require an additional 400 seats but they accounted for a large portion of our project budget. So I could not justify that. The need here is to have a good facility.”

Additional bleachers could be added later on, he said.

The new arena should also feature 14 locker rooms for teams, a pro shop and second floor warm spectator area with a concessions stand.

Tuesday’s discussion will also consider updated financial information.

Developer George Schott would borrow the $8.5 million to build the facility using private financing, leasing it back to the city each year for 30 years, according to an outline agreement approved in July. The city would have the option of buying the property outright during that time.

According to the updated financial forecasts, the ice arena would bring in $1.35 million it’s first full year, about $100,000 more than forecast in July.

Costs would come in about $1.33 million that first year, leaving a $19,000 surplus. Costs include lease payments to Schott and $140,000 in property taxes to the city each year.

“One thing we were told is that we had severely underestimated the amount of marketing we’d be able to sell,” Deschene said. “That’s advertising on scoreboards, signs and sponsorships.”

Higher costs were associated with hiring professional ice managers, he said.

“We felt that some of the positions we’d need to fill needed higher pay so we can get people that are more familiar with the field and marketing and operating an ice arena,” he said.

It’s still a thin bottom line. The center could make about $350,000 that first year, according to a best-case scenario if all available ice rental hours are claimed.

On the other hand, the center could lose $938,000 under its worst-case scenario. That assumes that only clients that rent ice at Ingersoll Arena today will use the new facility and no marketing or advertising signs could be sold. According to the lease agreement, those operating losses would be made up by the city with general fund revenue.

“Both are very unrealistic, but I thought it was important for people to see that entire window,” he said.

Tuesday’s discussion also considers two different timelines, one that puts the matter before city voters to approve a bond and one that doesn’t. Without a referendum, Schott would find private financing, would break ground in September and open to the public a year later.

A referendum to approve city debt for the ice arena would add four months to the start date. Work would begin in December if voters approve, with the arena opening in November 2013.

“There could be savings on bonding,” Deschene said. “We would save on paying taxes because we would own it outright, and there could be savings, too, on the interest rate. But the overall price could be higher.”

The new document also begins to grapple with the future of the current ice facility at the Ingersoll Arena. Recreation Department staff suggests turning it into a year-round indoor turf facility that could be used as a winter training center for football, lacrosse, soccer, baseball and football teams. Other uses could include indoor rock climbing walls, batting cages or indoor tennis courts.

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