LEWISTON — With some conditions, city councilors Tuesday night showed their support to guarantee a $1.4 million IOU that will allow Milltown Sports and Entertainment LLC to purchase The Colisée. 

The sale, valued at $4.9 million, is being financed in part with a $3.5 million loan from T&M investments. The remaining $1.4 million would be paid over time to owner Darryl Antonacci. The city’s role under the proposal would be to guarantee payment of the $1.4 million should Milltown Sports fail to pay.

Interim Economic and Community Development Director John Blais explained that the guarantee comes with protections for the city, including the ability to put a lien on the property, personal guarantees from Milltown Sports owners, and operational commitments from Milltown Sports.

Those commitments include continued access to the facility for youth and high school hockey and expanded year-round programming, including concerts, lacrosse, wrestling and indoor soccer.

“That’s the end goal, to get The Colisée under new ownership so we have some longevity,” Blais said. “This sale moves the sale forward to the underwriting of T&M Investments to include appraisals and financial checks.”

Milltown Sports owner Nate Bostic said that since assuming management and control of The Colisée in July, the company has invested some $1.3 million for a new roof and parking lot. 

The council was being asked to vote on the city’s guarantee. Some councilors expressed concerns about a lack of financial and business planning information.

“There was talk about sustainability and plans for growth, but we haven’t had anything put in front of us,” Councilor Scott Harriman said. “I’m also concerned about collateral if something were to happen. We don’t know what the building is worth. If we’re third in line after the other investors … what happens to our $1.4 million? It’s a lot to put on the line without much of a plan in front of us.”

Council President David Chittim said his concerns about financial risk was a sticking point that could be addressed by making sure the financial guarantee agreement Milltown Sports will strike with city administration comes back before the council. The agreement would then likely be approved, he said.

Chittim made a motion to amend the proposal to include language stating the agreement would come back before the council for consideration.

Bostic said any requirement to come back before the board in the future puts Milltown Sports in a difficult position to begin any operations at The Colisée, specifically with youth hockey. The council’s approval means more than assurances for the other investor; it also assures families investing in upcoming sports leagues that the facility will be available for use.

“We don’t have time to build a company by that point,” Bostic said. “We don’t have time to have youth tryouts this week. We can’t collect money, we can’t build our product unless we have this time. Coming back for another approval in four weeks puts us out of business for a year.”

Concerning potential financial numbers, Bostic said, over the past 12 years there have been no purchase and lease agreements, expense sheets, water bills or utility bills left behind by previous owners.

“I’m writing this script every day. … I’m starting a business completely blind of numbers,” Bostic said. “Every month that’s gone by, we’ve figured out those costs on our own.”

Gale Rogers, president of Midcoast Youth Hockey, said his organization has already made a commitment of over $250,000 for ice time at the facility for the following season. The commitment is built on trust between the organization and Milltown Sports, he said, adding that a recent University of New England study attributes $6.1 million in economic activity in Portland to the Maine Mariners.

The economic impact of youth hockey alone in Lewiston, Rogers said, is about $1.2 million to $1.3 million.

“That’s me bringing my kid to Italian Bakery after every game, win or loss,” Rogers said. “The impact of youth sports and sports in general cannot be understated and underestimated. What you’re being asked to guarantee is less than the economic impact.” 

In a 4-3 vote, councilors approved the amendment requiring that the financial guarantee agreement come back before the council. Voting yes were Chrissy Noble of Ward 5, Joshua Nagine of Ward 1, Chittim of Ward 6 and Harriman of Ward 3. Voting no were Bret Martel of Ward 7, Susan Longchamps of Ward 2 and Michael Roy of Ward 4.

A separate motion to approve support of the sale passed unanimously.

Mayor Carl Sheline said Wednesday that due to the amendment requiring the financial guarantee agreement come back before the council, the overall vote holds no weight and is the equivalent of tabling the agenda item.

“Rather than trusting the buyer and our economic development team, the council is insisting on bureaucratic delays,” Sheline said. “If the project passes underwriting for the T&M $3.5 million loan and addresses any concerns from our economic development director, then I have no idea why we would vote against it. We need to be open for business, and last night we put out the ‘closed for lunch, come back later’ sign.”