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I I I Council Meeting Minutes September 24, 1996 Page 4 Council Business. continued The cities' involvement is based on a requirement by Anoka County that the cities guarantee annual purchase of 2,080 ice time hours at $125/hour for the period of when the bonds are outstanding (25 years). The cities of Blaine and Coon Rapids have authorized their participation in two of the ice sheets. Brooklyn Park was to participate in the fourth ice sheet, but their Council decided not to go forward with this project. However. there appears to be interest from other parties in the fourth sheet. Based on concerns expressed at the joint meeting, it was decided that the hockey associations maintain a $500,000 escrow fund to cover any potential shortfalls related to rental guarantee requirements. This protects the cities from levying taxes to cover expenses. If an unforeseen problem occurs which the escrow would not cover, then any financial exposure would fall to the four communities at a prorated amount. Fulton believes the agreement is structured to minimize any future risk exposure to New Brighton. Ramsey County also required a guarantee that the associations continue to purchase a minimum of 1,000 hours of ice time from the Ramsey County system. Michael Kriedler, Mounds View Hockey Association, believes the associations will easily utilize 2,080 hours in addition to 1,000 hours at the Ramsey County facility. The plan is fiscally responsible and the association is prepared to begin fundraising. Kriedler noted the continual interest in hockey, however, the school district appears noncommittal to the project. Gunderman would like to see some commitment from the school district, and asked if Shoreview amended the resolution to include the escrow. Kriedler said Shoreview required the escrow as a condition of participation. Fulton said Brooklyn Park decided not to go forward because of interest to build in their own community. All the cities involved have approached this on a unified basis, and there was discussion regarding nonresident surcharges to provide equity. Samuelson asked if hourly fees will increase. Kriedler said representatives from each ice sheet will meet periodically to review operations. Samuelson asked if an event could occur which could deplete the escrow. Kriedler said there could be a risk if the associations fail to use their guarantee hours and the escrow was depleted, however, the fund accrues interest which provides revenue, and the risk factors appear minimal. Linda Simmons, 631 - 17th Ave., has three sons who play hockey and emphasized the need for a new facility to provide additional ice time. Paul Bragstad, Shoreview, said New Brighton youths are involved in both hockey associations, and this agreement also allows the cities to use up to 200 hours for their own park programs. He presented a letter outlining the agreement, and noted that the escrow would grow to $650,000 over the next 25 years. The hockey association currently has $250,000; and the remaining will come from fundraisers, rental surcharges, non-resident fees, corporate sponsors, charitable gambling, and the Light Brigade. They expect the escrow to be fully funded in 3-5 years. Greg Bost, Shoreview, supports the proposal and noted the explosion of young women hockey programs which will also demand ice time. Council Business Four Sheet Ice Hockey Facility Report 96-221 Resolution 96-078