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.
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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