Financing Considerations for Building an Ice Rink

Building a new ice rink or recreation center is an exciting undertaking, but securing the money to make it happen is rarely straightforward.

"Each and every situation is going to be different," says Jeff Campol, Recreational Facilities Consultant at Campol Consulting Group. "Whether you're a private developer, a nonprofit or a hockey parent, everyone comes at this from a different angle, with different motivations for why they want to build."

Even when the finished facilities look alike, the funding paths behind them can be vastly different. Your location, the level of community interest and who's driving the project all play a major role in what financing looks like for you.

Here are three key financial considerations to keep in mind as you move forward.

1. Do your homework

No matter your background, whether you're a seasoned developer or a first-time community organizer, the first step is the same: do your homework.

"You have to go in armed with information," Campol says. "That means having a business plan that includes a feasibility study and a market analysis before you approach anyone for funding."

A SWOT analysis is a great place to start. Breaking down the strengths, weaknesses, opportunities and threats of your proposed facility will help you spot potential issues early and make a stronger case to lenders. From there, you'll want to build a pro forma financial statement, essentially a five-year financial projection.

"A good pro forma is realistic and conservative," Campol says. "It's your best estimate of how the facility will perform financially, and it shows lenders that you've thought this through."

This groundwork isn't just due diligence; it's often what separates funded projects from those that don't get funded.

2. Find the right funding

Once your research is in place, you'll have a much clearer picture of which funding model makes the most sense. There's no single right answer. The best approach depends on who's building, why and where.

Private investment and limited partnerships are one route. A group of like-minded individuals pool their own funds, then turn to traditional lenders to cover the rest. This model often works when there's a shared vision, say, a group of hockey families who want a rink in their community.

Established associations like youth sports organizations bring their own advantages. "They already have lawyers, bankers, and other professionals in their network," Campol notes. "That gives them more credibility and more leverage when they walk into a lender's office."

Public-private partnerships are increasingly common, especially for community facilities. In many cases, a city or county issues a bond to fund construction and retains ownership of the building, while a private organization handles day-to-day operations and shares revenue with the municipality.

Whatever path you choose, understanding how your funding sources interact and what gaps still need to be filled is essential before approaching any lender.

3. Surround Yourself With the Right People

When you sit down with a bank or lending institution, they're going to dig into the details. They'll want to understand the people behind the project, the local market, and the realistic revenue potential of the facility.

"Ultimately, what lenders care about is what the building can produce," Campol says. "They'll look at historical data for the area, compare it to your projections, and evaluate everything around it."

That's why it pays to work with partners who have specific experience in sports and recreation. A lender who regularly finances facilities like yours will be more comfortable with the risk profile — and more likely to work with you.

The same logic applies to other members of your team.

"Get a consultant on board who knows these types of facilities, and find an architect who has actually built them," Campol advises. "That expertise makes a real difference. Do your homework early, find the right people, and you won't be wasting time or money down the road."

Building an ice rink or recreation center is a long journey from idea to opening day. But with solid research, the right funding strategy and experienced partners in your corner, you'll be well-positioned to make it happen.