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I I I Council Meeting Minutes January 28, 1997 Page 6 Council Business. continued New Brighton is a member of a community coalition (Shoreview, Mounds View, and Arden Hills). The ice facility is a cooperative project involving the coalition and Blaine, Coon Rapids, and Minnesota Amateur Sports Commission (MASC). The master agreement provides for a 25~year contract at a total cost of $9,500,000. Other funding sources include Ramsey County, Mounds View Hockey Association, Irondale Hockey Association, and Mighty Ducks Grant. The resultant provides for bonding which Anoka County will be responsible for in the amount of $7,000,000. The MASC will retain ownership of the facility. The anticipated opening will be fall of 1998. The City Councils of Arden Hills, Mounds View, and Shoreview have given final authorization to their participation. The master agreement provides for a joint board of directors comprising representatives from Ramsey County and the involved communities. Local obligation will be an annual rental guarantee of 2,080 hours at a rate of $125/hour. With this obligation, the communities receive priority scheduling rights during peak hours. Each community's allocation is defined by population and participation in youth hockey associations. New Brighton's allocation will be 25.5%. In addition to the master agreement, a supplemental 25-year agreement has been created between the local communities, Ramsey County, and the lrondale and Mounds View Hockey Associations. The members would meet annually to discuss project status and any other issues. According to the agreement, Ramsey County will provide $500,000 in funding, and would receive 50% of any profits determined after certain criteria is met. The hockey associations will provide a $300,000 escrow account which is intended to cover unexpected shortfalls in terms of guaranteed rental hours. Financial exposure would occur if the project became a significant failure or if the escrow account is depleted due to unforeseen circumstances. This financial exposure would be shared based on the formula. Over the next four years, the hockey associations will contribute an additional $25,000 until a total of $400,000 is reached. If the escrow fund goes below $300,000, the hockey associations are jointly responsible for refunding to maintain the minimum balance of $300,000. Ramsey County has requested the hockey associations continue to rent 1,000 hours of ice time from their system. The hockey associations will have rights to schedule at least 80% of the ice time. In Fulton's opinion, this project is structured in a way that minimizes risks to a municipality and meets the needs and desires of the hockey associations. Gunderman questioned if the escrow fund was originally $500,000. Fulton said the escrow balance has been restructured somewhat, and the $300,000 minimum balance would be maintained for the entire 25 years of the contract. Fulton confirmed that the school district has not expressed interest in purchasing ice time. A Hockey Association member noted that in Vancouver this type of multi-ice sheet facility is the norm and appears profitable. Benke confirmed that the City will be given easy access to all financial records to verify any existence of profits or losses. Fulton said the master agreement states that profits or losses will be presented to the board of directors. Council Business Agreement for 4-Sheet Ice Facility Report 97-021