The City of Toronto is looking at taking over the debt-plagued Lakeshore Lions Arena, also known as the MasterCard Centre for Hockey Excellence, where the Toronto Maple Leafs train.

Under a rescue plan going to council’s executive committee next week, the city would assume responsibility for repaying about $40 million borrowed to build the four-pad arena on Kipling Ave.

Since it opened in September, 2009, the centre has been making about $1.6 million a year with the major tenant being the Leafs and Marlies, and 500 hours a year of no-charge ice time allocated to the public school board, which owns the land.

But there’s been no money to cover debt payments and the Lakeshore Lions Club was in danger of defaulting, a city staff report said.

Arena president Bob Harris declined comment.

The facility — the first built in Toronto in two decades — features four NHL-sized rinks, one of which can be expanded to Olympic size. It replaced the single-rink Lakeshore Lions Arena, which opened in 1951.

And the rescue plan would not be the first time the city has decided to step in and take over from outside operators.

Council is being asked this week to approve a city takeover of Casa Loma from the Kiwanis Club, which has run the struggling tourist attraction since 1937. The city will pay the club $1.45 million for artifacts and trademarks such as the Casa Loma name. That amount is a $500,000 premium over the $950,000 the city already owed for the artifacts under a previous agreement.

In the case of the arena, Deputy Mayor Doug Holyday said the cost of building the facility increased to $44 million from $33.65 million and efforts to boost revenues never happened.

“There were a couple profit centres that never materialized, they were going to have a major restaurant that never came, and they were going to have a sporting goods facility that never came.”

However, the centre is charging adults top rental rates, Holyday said, noting the group he plays hockey with pays more than $300 an hour.

“It is a busy place,” he said. “Most times, all pads are going but to cover the debt, it required more than that.”

While it wasn’t a city project, council assisted the Lions Club to arrange financing by acting as guarantor, meaning the city would repay loans if the club defaulted.

City officials are now recommending that the city take over the debt, and also put up $1 million to cover expenses.

A new board would be created, chaired by parks general manager Brenda Patterson. The body would have two other city officials, a representative of the building’s tenants and two citizens.

“The intention is to get in there and see if we can get some additional business revenue,” Patterson said.

The city would try to find tenants for vacant second-floor space in the complex, and maximize year-round usage of the south Etobicoke facility, she said.

And at some point in the future, the plan would be to seek an outside party to take over, Patterson said.

Maple Leafs Sports and Entertainment would be “the logical party” to come in, said Councillor Peter Milczyn.

The company is not interested in owning the arena, said MLSE spokesperson Rajani Kamath.

“While we don’t have any interest in purchasing the facility, we are open to discussing the possibility of managing the facility on behalf of the City of Toronto,” Kamath said.

She noted MLSE currently manages city-owned Ricoh Coliseum and BMO Field — home venues of the American Hockey League Marlies and Toronto FC soccer team respectively.

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Milczyn said the city shouldn’t be the permanent landlord.

“This wouldn’t have been one of the city’s priorities to build this arena, so is there a way to get out of it now? That’s what I want to look into.”

The Lakeshore Lions Club has deep hockey roots in Etobicoke, having operated a single-pad arena since 1951 before expanding to the current complex.