03/06/2006 Park Board Packet - Laserfiche WebLink

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AGENDA ITEM 5B STAFF ORIGINATOR: Rick DeGardner, Public Services Director • MEETING DATE: February 27, 2006 TOPIC: Consideration of Resolution 06 -37, Approving National Sports Center Super Rink Expansion Guarantee Agreement VOTE REQUIRED: Simple Majority BACKGROUND The City Council approved Resolution 06 -28, Approving City Participation in the Super Rink Expansion Project at the February 13, 2006 city council meeting. The requested action this evening is to approve the master agreement that outlines the details within Resolution 06 -28, the information discussed at the January 18 and February 8 work sessions, as well as the February 13 city council meeting. In summary, the Minnesota Amateur Sports Commission (MASC) and National Sports Center (NSC) have proposed constructing and operating a facility consisting of four new ice sheets to the Super Rink on the property of the National Sports Center located in Blaine, Minnesota. The City of Lino Lakes, along with the cities of Circle Pines and Centerville, has been requested to participate with the Centennial Youth Hockey Association (CYHA) in the financing of the expansion and operations of the facility. In addition to use by the hockey association, the public will have access to the facility for public skating, senior skating, figure skating, skating lessons, as well as various hockey and broomball leagues. As reviewed at the February 13, 2006 city council meeting, the city of Lino Lakes is to provide a capital contribution of $72,000 over a three year period ($24,000 in 2007, 2008 and 2009) payable directly to the National Sports Center Construction Fund. In addition, the participating entities are also required to back up to 1,340 hours of ice rental income to cover any unsold hours during the months of September through March over the 20 year repayment period. In 2005, each of the four sheets of ice at the NSC experienced approximately 2,875 hours of use. The City of Lino Lakes' commitment of guaranteed hours is 346 hours per year. Section 5 - Special Terms outlines the provisions that the city of Lino Lakes is entitled to including one free skating session, 216 annual free skating passes, and the city's recognition on the exterior and inside of the building. Attached is an analysis that was prepared by Ehlers and Associates, Inc. The analysis focuses on the financing, past utilization, and projected revenue /expenses of the Super Rink facility. The city attorney has also reviewed the attached agreement. OPTIONS 1. Approve Resolution 06 -37. 2. Do not approve Resolution 06 -37. • 3. Return to staff for further review. RECOMMENDATION Option 1