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CuTV OF <br /> 11lREQUEST FOR COUNCIL CONSIDERATION Agenda Section: 2 <br /> OUN� STAFF REPORT Report Number: 96-16470 <br /> or <br /> OWReport Date: March 28, 1996 <br /> let `8ierf. <br /> � ti�' AGENDA SESSION DATE April 1 1Q46 <br /> PartneR <br /> ISPOSITION <br /> Item Description: <br /> Discussion of Proposed Facility for Volleyball Association <br /> Administrator's Review/Recommendation: <br /> - No.comments to supplement this report <br /> - Comments attached. <br /> Explanation/Summary (attach supplement sheets as necessary.) <br /> SUMMARY; <br /> Staff met with Mr. Rick Kuehiwein who represents Northern Heat, the largest volleyball club in the state,to <br /> discuss the possibility of sites to build a 20,000 - 30,000 sq.ft. facility for 4 volleyball courts plus office, <br /> meeting and banquet space. It was proposed to review constructing the building at 2625 Highway 10 and the <br /> adjoining vacant land parcels which amounts to approximately 2 total acres. The initial proposal includes a <br /> main floor with two mezzanine floors. <br /> Joyce checked into stormwater runoff and parking requirements. SEH did not anticipate that a pond would <br /> need to be constructed for the facility. There would be ample parking space with two floors but the company <br /> illmay need to apply for a variance for the three floor plan. In any case, it is doable at this location but it may <br /> be a tight squeeze. <br /> The project is estimated to cost between$1 - $1.2 million and would be funded through the club and <br /> financed by Mr. Kuehlwein and a developer. Mr. Kuehiwein is working on a similar project with the City of <br /> Duluth whereby Duluth will provide assistance for the project to enable usage of the facility. <br /> This poses another option that was briefly discussed with Mr. Kuehiwein. Could this project be constructed <br /> on the Bel-Rae Ballroom site with additional space for community service activities to fit the City's need. <br /> This type of project could be structured similar to the facility in Duluth whereby the facility is financed and <br /> owned by the Association with a long term lease/joint powers agreement with the City of Duluth. Another <br /> option would be for the Ctiy to own and finance the project with a lease to the Volleyball Association. The <br /> lease revenues could be used to pay back any debt service on the project. <br /> The EDC will be reviewing this project at their meeting on March 28th. Questions they will address include: <br /> Would the EDC recommend this type of use for 2625 Hwy 10 property?What type of assistance should the <br /> City provide? Should the City pursue a joint powers agreement for use of the facility? Should the City <br /> pursue access to these sites or should the developer?Would this type of arrangement be better served as part <br /> of the Bel-Rae facility? <br /> Mr. Kuehlwein will be in attendance to better explain the project and its opportunities on Monday evening. <br /> n addition, I will bring the recommendations from the EDC meeting. <br /> 410` <br /> RECOMMENDATION: ' <br /> lr .... 41:1_. 4 <br /> :thy Be / Interim City Administrator <br />