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HomeMy WebLinkAbout2006-028 Council Resolution• Council Member z It z— introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 06-28 RESOLUTION APPROVING PARTICIPATION IN SUPPORTING A FOUR SHEET ICE FACILITY EXPANSION AND AUTHORIZING EXECUTION OF DOCUMENTS IN CONNECTION THEREWITH WHEREAS, the City of Lino Lakes in conjunction with the Cities of Circle Pines and Centerville have determined a need to provide its residents with access to an indoor ice arena intended to be used predominantly for youth athletic activities; and WHEREAS, the Minnesota Amateur Sports Commission ( "MASC ") and National Sports Center ( "NSC ") propose constructing and operating a facility consisting of four new ice sheet expansion (the "Facility ") to the Super Rink on the property of the National Sports Center located in Blaine, Minnesota; and WHEREAS, the City has been offered the opportunity to participate in the support of the operation of the new Facility for the purpose of supporting its community hockey association; and WHEREAS, the City is interested in promoting public skating programs such as open skating, learn to skate, figure skating, and senior skating at the new arena through its Parks and Recreation Department. WHEREAS, the financing of the Facility will be undertaken by the issuance of revenue bonds of the Anoka County Housing and Redevelopment Authority (the "HRA) backed by an annual appropriation lease purchase agreement of Anoka County, Minnesota (the County); and WHEREAS, the County and HRA have required , as a condition of their participation in the financing, a finding that the Facility's revenues and other available money will be sufficient to pay debt service with respect to the bonds; and WHEREAS, the County, the HRA, the MASC and the NSC will enter into one or more agreements setting forth the respective rights and obligations of the parties with respect to the Facility; and WHEREAS, the City is authorized by Minnesota Statutes, Section 471.191 to enter into an agreement with respect to support the financing of the Facility; including securing its obligations pursuant to the agreement by a first charge on the gross revenues of the Facility and to provide for the payment of operating costs of the Facility to the extent that revenues are insufficient thereof; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA. 1) The City hereby determines and agrees to participate in the support of the operation and use of the Facility, provided that the City's participation shall be in an amount equal to seventy two percent (72 %)" Percentage Share" of one of four ice sheets 1340 hours of the Facility from September to March annually (exclusive of certain time allocated to MASC). 2) The Centennial Cities hereby appropriate $100,000 dollars to be applied to costs of construction and financing of the Facility as follows; City of Lino Lakes appropriates $72,000 City of Centerville appropriates $16,000 City of Circle Pines appropriates $12,000 The City of Lino Lakes' contribution shall be paid according to the following payment schedule; three equal installments of 24k January 15, 2007, January 15, 2008 and January 15, 2009. The City of Lino Lakes shall have the opportunity to make payments in advance if funds become available. 3).The Cities agree to support rental income for the Facility in an amount equal to the agreed upon annual hourly rate times its Percentage Share of agreed upon prime time hours (not less than 1340 hours) which rental income shall be passed though for the purpose of paying debt service with respect to the bonds and paying operating costs of the Facility. To the extent that actual revenues of the Facility, after application to payment of debt service and accumulation and maintenance of required reserves, are inadequate to pay operating costs of the Facility, the City agrees to pay the amount equal to the unsold hours on its designated sheet of ice. In any given year of the 20 year bond repayment period, the City obligation shall be limited to the unsold hours on its designated one ice sheet in the high season of September, October, November, December, January, February and March. 4).The ice sheet shall be offered to primarily the Centennial Youth Hockey Association. In addition, the Lino Lakes Park and Recreation Department will be granted priority access to program ice hours at the new arena and will be given the opportunity to access and publicize all NSC Public skating programs to City of Lino Lakes residents in appropriate city • publications. CYHA and the National Sports Center are committed to expand the public use of the Super Rink and expansion to offer Centennial area skaters programs such as public skating, senior skating, learn to skate and figure skating. 5).The Mayor and City Administrator of the City are hereby authorized to execute an agreement with MASC and NSC including terms specifically authorized hereby, and such other terms as are not inconsistent therewith, and are necessary and appropriate to provide for the financing, construction, operation and use of the Facility, all as determined by the Mayor and City Administrator in their discretion. Execution by the Mayor and City Administrator shall be evidence of such determination following prior approval of the agreement by the City Council. Adopted by the Lino Lakes City Council this 13th day of February, 2006. 9731. Jo ° Ber sor 'Ma or 9 � Y idlianrie Bartell, City lerktt The motion for the adoption of the foregoing resolution was duly seconded by Council Member I` AAA...t and upon vote being taken thereon, the following voted in favor thereof: Sh Ifz, I1 tk, O'Pcy , et1, 13(- 13( The following voted against same: 0_at,ISave Whereupon said resolution was declared duly passed and adopted. • • • AGENDA ITEM 5A STAFF ORIGINATOR: Rick DeGardner, Public Services Director MEETING DATE: February 13, 2006 TOPIC: Consideration of Resolution 06 -28, Approving City Participation in the Super Rink Expansion Project VOTE REQUIRED: Simple Majority BACKGROUND As discussed at the January 18, 2006 and February 8, 2006 city council work sessions, 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. Under this proposal, the participating entities are to provide the following construction funding: Centennial Youth Hockey Association $680,000 City of Lino Lakes $72,000 City of Centerville $16,000 City of Circle Pines $12,000 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 for the revenue bonds issued by the Anoka County and Housing and Redevelopment Authority. As the CYHA is obligated to purchase 860 hours of ice rental, the city of Circle Pines to back 58 hours, and the city of Centerville to back 77 hours, the City of Lino Lakes commitment of backed hours is roughly 345 hours per year. The Lino Lakes Parks Board reviewed the proposal and recommended that the City Council find a way to contribute some monies to this project. After further discussions with Mr. Paul Erickson, Executive Director of the MASC, the following commitments have been made by the MASC to ensure opportunities for our residents to have access to the indoor ice at the NSC: • The Lino Lakes Park and Recreation Department (LLPRD) will be granted priority access to program ice hours at the new arena. • On an annual basis, the city of Lino Lakes will be granted at least one evening of free skating at the NSC for Lino Lakes residents. • On an annual basis, the LLPRD will be given 216 free public skating passes to be distributed to Lino Lakes residents. • The LLPRD will be given the opportunity to access and publicize all NSC public skating programs to residents in appropriate city publications. • CYHA and the NSC are committed to expand the public use of the Super Rink and expansion to offer Centennial area skaters programs such as public skating, senior skating, learn to skate and figure skating. Since this participation was not included in the 2006 budget and no contingency funds were budgeted, the City is not able to provide funds this year. The Minnesota Amateur Sports Commission and National Sports Center have offered the City the opportunity to make payments of $24,000 in 2007, 2008 and 2009. Please note that if approved, the City Council will need to include this commitment within the city's financial plan for 2007, 2008 and 2009. The Minnesota Amateur Sports Commission and National Sports Center have presented a resolution for consideration by the City Council for participation in the ice facility expansion. OPTIONS 1. Approve Resolution 06 -28 2. Do not approve Resolution 06 -28 3. Return to staff for further review RECOMMENDATION Option 1