AUBURN — Councilors moved a proposed dual surface ice rink forward Monday night, but it took two executive sessions, a 50-minute public comment period from ice rink supporters and some last-minute negotiations with developer George Schott.

City Manager Clinton Deschene said a discovery on Friday complicated the deal and he, city staff and attorneys and worked through the weekend with Schott to reach an understanding.

The result was bad news for supporters. Councilors walked into Monday’s meeting assuming they had three choices — dispense with the arena all together, put it to a vote and borrow the money themselves or sign the lease but also agree to a potential 10 percent property tax increase.

After listening to youth hockey fans and rink supporters, councilors went back behind closed doors with Schott and emerged with a new deal that did away with the potential tax increase.

“Just make sure you tell everyone, this was messy,” said Joe Gray of Sopers Mill Road, who was opposed to the deal. “This was a nightmare.”

It’s not the deal councilors started off with before Monday’s meeting.

According to an outline agreement approved in July, 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. The city would have the option of buying the property outright during that time.

Deschene said city staff discovered Friday that a key clause in the lease language had been removed. That clause gave future city councilors the right to walk away from the lease if they chose, and Deschene said it cannot be removed, according to state law.

“But the problem here is that it puts the developer at significant risk,” Deschene said.

Economic Development Director Roland Miller said Schott needed financial cover in case a future City Council did decide to end the lease. The best deal they could negotiate would have required the city to pay a year’s worth of the lease, plus expenses and a penalty.

Miller said it would have amounted to up to $4 million in penalties and fees.

What’s more, the current City Council would have to set aside that money now, in the 2013-14 fiscal year, and keep it in an escrow fund. That would mean a 10 percent property tax increase.

It also would have made the lease a de facto bond package, which would have forced a referendum vote and a potential to delay the project.

Deschene said that any vote, for the lease or the bond, would require four months to set up, according to the City Charter. That means that Schott would not be able to break ground until next spring, forcing local amateur and high school hockey teams to wait another year.

A few hockey supporters argued the deal was worth it.

“Lewiston-Auburn gets bypassed by a lot,” Kevin Fletcher of 240 Fairway Drive said. “It takes place in Portland or Augusta but Lewiston-Auburn gets overlooked. Well, this is our chance. There are no two-sheet rinks in Maine and it could be here.”

Evan Cyr of 245 Broad St. agreed.

“This is more than an ice arena,” Cyr said. “It’s a possible conference center, a place to hold home shows, a concert hall and a place for Edward Little to hold its graduation.”

Others, such as Andy Titus of 17 Lamplighter Circle, said they were concerned the rink was a bad deal.

“I was nervous in the beginning that we were committing to 30 years,” Titus said. “Plus add in a tax increase from the penalty, this isn’t working for me.”

And several councilors sounded like they agreed. Councilors Belinda Gerry, Tizz Crowley and Robert Hayes said they would not support the rink if it meant a property tax increase.

That issue was settled after the second executive session with Schott.

Councilors emerged with a newer deal. Schott had agreed to do away with the penalty, requiring the city to two years’ worth of the lease plus expenses should a future City Council choose to terminate the lease.

Councilors agreed to those terms in a 6-1 vote, with Gerry the dissenter.

Councilors set a final vote on the lease for their Oct. 1 meeting. They agreed to pay Schott up to $250,000 for any costs he sinks into the project between now and then, if they change their minds on supporting the project.

Miller said the decision means Schott can break ground right away.

“He can start as soon as he can get his permits from downstairs,” Miller said. “He can start clearing the lot, dropping 12 feet on the Turner Street side, and he can start pouring concrete. And we want to be doing that before winter starts.”

Plans call 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.

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

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