Dundee Ice Arena is to be taken over by the charity that runs many of the city’s sports and arts venues.
Three-way talks between its board of directors, Leisure and Culture Dundee and the city council have been under way behind closed doors for several weeks.
These have now concluded with the announcement of the plan to transfer responsibility for the day-to-day operations of the Dayton Drive arena at the end of the 2013-14 financial year.
All parties described the move as securing the arena’s future and being in the best interests of its users.
The arena is home to Dundee Stars ice hockey team, which competes in the professional Elite Ice Hockey League, and also hosts figure skating, speed skating and curling on its 2,300-seater rink.
Although owned by the city council, an independent board has been responsible for overseeing its operations.
Chairman Molly Reid said: “We have the third-largest ice rink in Scotland here in Dundee and it plays an important part in the lives of the many people who use it and come to enjoy watching top-class sports.
“Since it opened almost 14 years ago it has become an integral part of the sporting life of the city and we feel that when it is added to the already successful portfolio of Leisure and Culture Dundee that they will be able to take the place to the next level.”
The arena has never been able to cover its running costs from the income it generates from users and it depends on a management fee from the city council to provide a substantial chunk of its annual budget.
The fee for 2013-14 was set at £281,000 and the council also provides other in-kind support to the board.
Last year doubts emerged about the arena’s viability after councillors met in private to agree to write-off an £80,000 debt.
At the time directors insisted the business was sustainable, despite a downturn in skater numbers.
Efforts were made to cut costs by reducing energy use, carrying out minor repairs in-house and closely monitoring staffing levels.
The board also ran into trouble with the Scottish charity regulator and Companies House by failing to file its annual return and accounts on time.
Discussions to work out details of the transfer of operational control are still going on, but staff have been informed.
The arena has nine full-time employees, along with 16 part-time and 20 sessional.
Lord Provost Bob Duncan, who is chairman of Leisure and Culture Dundee said: “Dundee Ice Arena is an excellent resource, which adds a great deal to the life of the city by providing leisure facilities for many people.
“The move to support the ice arena and for Leisure and Culture Dundee to assist with its operation will help to ensure that it continues to be available for ice sports and other activities into the future.”
Leisure and Culture Dundee was set up as an arms-length organisation to run city council assets and benefit from charitable status.
Its portfolio includes the Olympia swimming pool, Dundee International Sports Centre and the Camperdown and Caird Park golf courses.
It also runs cultural attractions including the Caird Hall and The McManus.
Its managing director is Stewart Murdoch, the council’s leisure and communities director, and several councillors serve on its board along with independent directors.