05-01-2023 WS - Laserfiche WebLink

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NSC Agreement Background Information A brief history of the NSC and current agreement o The first page and top of the second page of the attached document outlines phase 1 and phase 2 of the construction of the facility and the story behind the use. Phase 1 in 1998 included the first four rinks which we were a part of. Ramsey County contributed the $5ook to cover "our rink" which provided guaranteed hours of ice time which had to be used or could be rented to others. The hockey associations set aside an escrow fund in case the 208o hours was not used or rented to guarantee a revenue source for the NSC (which was only used once during COVID). o This agreement expires December 31, 2023 Reason for the new agreement (goals to be accomplished, and what would be funded) o The new agreement is needed due to the expiration of the old one, and without it, guaranteed ice time would not continue. It is the desire of both the NSC and the MVIYHA to continue this arrangement. The NSC also is in need of many costly improvements and is looking to the partner groups to assist with these improvements. o At least $12M in improvements have been identified (some of these are outlined on page 2) in the four -rink phase we are a part of. Each of the four rinks have been requested to provide $1.2M in funds which would total $4.8M or 40% of the anticipated costs of improvement necessary. The remaining funds would be derived from revenue of ice sales, hospitality/concessions, and sponsorships. o The agreement is proposed for 20 years from 2024-2044• How the NSC came to the $3ook request amount. o The $1.2M per rink request is somewhat arbitrary but loosely based upon what would be a similar investment in 2024 as compared to 1998 factoring in the financing needed to make all the improvements. ■ Using the CPI inflation calculator at https://www.bls.gov/data/inflation calculator.htm, an input of $500,000 in 1998 is about $930,000 today so it's not too far off. Ultimately the NSC feels they need to come up with $4.8M however, hence the math of $1.2/rink. ■ New new agreement is for 1,35o hours rather than 2,080 o The MVIYHA has signed a letter of intent to fund $600,000 of that amount. They have in -hand $400,000 of escrow funds remaining from the previous agreement and will fundraise the rest. ■ This would purchase 50% of the 1,35o hours (675 hours) without additional investment in the remaining $book. o The NSC believes this facility provides a great value to the residents of our communities and saves our cities the cost of needing to construct these facilities ourselves so is again asking for our assistance. The third page of the attached document is offered to show what they believe the cost would be to build a new facility as compared to the financial ask of all of us (take that for what you want). o Rather than asking the cities for the entire $book, the NSC believes that if the cities come up with the $3ook and support the agreement, the county would come along for the final Wok. Nothing has been requested of the county at this time FYI.