AUBURN — Councilors took another step Monday toward a dual ice rink facility, agreeing to pay up to $30,000 in development costs if they don’t go forward with the plan.

Councilors approved an agreement with developer George Schott that broadly outlines a potential lease agreement and lets work designing the facility proceed.

Councilors agreed on June 25 to begin working with Schott to put the facility and parking on 8.5 acres he owns on Turner Street, behind Shaw’s Supermarket.

City Manager Clinton Deschene said Monday’s agreement lets him begin negotiating the final lease. He said he expects councilors will see the final lease and financial details of the agreement in August or September.

“There are still things that could happen to stall this, if the council so chooses,” Deschene said. “The biggest thing this does is it obligates us to a portion of the design and costs if we don’t proceed. The developer is going to spend a good deal of money.”

According to the agreement, the city would pay for half of the costs to design the facility and engineering and development studies on the property if they don’t proceed. Deschene estimated those costs would be less than $60,000, split evenly between the Schott and the city.

If the council does proceed with the project and the property is developed, those costs would be included in overall costs.

According to the agreement so far, 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.

The facility would be a money-making enterprise, taking in more than $1.25 million in annual revenues and paying just less than that in expenditures, according to estimates. Expenses include lease payments to Schott and $140,000 in property taxes to the city each year.

Plans call for having the arena ready for operation in 2013.

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

Economic Development Director Roland Miller said Schott would donate the land to the city when the lease is signed, only maintaining ownership of the building. Schott would keep the naming rights of the facility and would be able to sell them, and the city would agree to pay for all maintenance for the facility.

Not everyone thinks the deal is a good idea. Joe Gray of Sopers Mill Road told councilors that putting a potential city facility on taxable land in the mall area was a bad idea.

“This is on the highest taxable land in the city,” Gray said. “We are giving away potentially millions in taxes by putting this on that lot.”

Gray also said the council is moving too quickly.

Councilor Tizz Crowley said Monday’s decision was not a final approval.

“I look at this as an investment,” Crowley said. “Yes, there is a risk of approximately $30,000. But I think the project has enough potential to invest that $30,000.”

staylor@sunjournal.com