By JEFF LIPTON
Bernard Shereck, 72, operator of the Arena of Long Beach since October 2006, was given a 30-day eviction notice by the city, which has ordered him to turn over full operations of the city-owned facility by April 30.
“If the city wants to come in and take it over, they should have given me three to five years to recoup my investment, not 30 days,” Shereck said, claiming that he has invested $220,000 in renovations and the city has no plans for him to recoup that money.
“I don't know what he's talking about,” said City Manager Charles Theofan. “I don't believe there's been any major investment of money.”
Theofan said the city has no choice but to take over operations of the arena because it wants to install a co-generation system to replace the facility's outdated heating and cooling system. If Shereck were to continue operating the facility, Theofan said, the question of who would pay for the new system would arise.
As many as 30 employees may lose their jobs with the transfer of operations, Shereck said, adding that the city approached him in the summer of 2006 and asked if he would manage the arena, at 150 W. Bay Drive, which he said was in shambles.
The previous operator owed the city $335,000 in rent on the arena, Shereck said, and he was chosen to take over operations because he wanted to bring a hockey league to Long Beach. Initially, he said, his annual rent was $175,000, and he gave the city a check for $43,750 to cover the first quarter. Then he began renovating the building, painting the arena, replacing lobby lighting, building a new pro shop and repairing the public restrooms.
According to Shereck, in his first full year he lost $51,000, mostly because there were no programs in place. He said he did not take a salary for his work, but hoped to eventually turn a profit by building the schedule of programs.
He tried to back out of the business, he said, but was persuaded by city officials to stay on the job. He met with former City Manager Edwin Eaton, who imposed a moratorium on the rent until July 31, 2008, Shereck said.
The City Council agreed to create a new long-term lease, but when council members lost their seats in the 2007 election, Eaton believed that drawing up a new lease at that time would have been unethical, Shereck said.
Theofan, who became city manager in January 2008, informed Shereck that he had to start making rent payments — which were reduced to $60,000 a year — on Aug. 1, 2008. “I was told that I was alienating those in the City Council who were supporting me,” Shereck said.
In November 2008, he said, he paid $22,500 to cover the rent from August to November, and was expecting a long-term lease after Jan. 1, 2009. Shereck said his ice-making equipment was breaking down and he needed $39,000 to repair it, but it was not prudent for him to invest the money if he did not have a long-term lease. He complained to the city about the problem, but got no response, he said.
Shereck was called to Theofan's office on March 24, and was told the city was taking back the arena and that he was being served with a 30-day eviction notice.
“I feel the city administration and City Council have been disingenuous with me,” he said. “I invested a lot of money into the building, and the community has benefited. There has been no good will on their part at all, not even a mention of any reimbursement. The City of Long Beach is trying to force me out of business and not allow me to recover my investment.”
Theofan said that Shereck did not pay any rent for a year and a half, which amounted to close to $200,000 in lost revenue for the city. “Letting a guy go almost two years without paying rent, there's no better show of faith than that,” Theofan said.
Shereck said that he and his attorney, Richard Cahn, have requested a meeting with city officials in an attempt to resolve the dispute amicably, but if that fails, he will take the case to Nassau County Supreme Court.
Theofan said that the city’s parks commissioner, Joe Brand, will oversee operations of the arena, and that the city will try to retain some of its 30 employees after the transition. “We do think that the arena was not doing so well because perhaps the payroll was too much,” Theofan said.
The arena's office manager, Marianne Jakoby, said she fears for her job security. She, her husband and two sons moved to Long Beach from Colorado in August 2008 when her husband accepted a job locally. A victim of the recession, he was laid off in December. “Oh God, what are we going to do?” said Jakoby, who added that her health insurance was supposed to kick in this month.
Roberta Dunn, director of the facility’s skate school, said she had to suspend the start of the eight-week program and refund fees to the families of 50 children who were signed up. “I spent a year building up the program, and now I have to suspend it,” said Dunn. “I like my job. I don't know, if the city takes it over, [whether] I’ll have it or not.”
Shereck said he has started new programs, and the arena has drawn between 150,000 and 170,000 patrons a year. With a seating capacity of 775, it is open for public skating at an hourly rate, as well as youth hockey.
Shereck, a former hockey player from Montreal, said that operating the arena was a dream come true. “It was a chance for me to get back into the game I love, and give back to the sport of hockey and the community,” he said.
Comments about this story? JLipton@liherald.com or (516) 569-4000 ext. 213.
