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HomeMy WebLinkAbout09.10.12 Work Session Packet City of Farmington Mission Statement 430 Third Street Through teamwork and cooperation, Farmington,MN 55024 the City of Farmington provides quality services that preserve our proud past and foster a promising future. AGENDA CITY COUNCIL WORKSHOP September 10, 2012 6:30 p.m. 1. CALL TO ORDER 2. APPROVE AGENDA 3. ICE FOR TIGERS PRESENTATION 4. CITY ADMINISTRATOR UPDATE 5. ADJOURN PUBLIC INFORMATION STATEMENT Council workshops are conducted as an informal work session.All discussions shall be considered fact-finding,hypothetical and unofficial critical thinking exercises,which do not reflect an official public position. Council work session outcomes should not be construed by the attending public and/or reporting media as the articulation of a formal City policy position. Only official Council action normally taken at a regularly scheduled Council meeting should be considered as a formal expression of the City's position on any given matter. aRif City of Farmington &AS* City 430 Third Street `, ,x;,_ Farmington,Minnesota t46, 1�0 651.280.6800•Fax 651.280.6899 www.cifarmington.mn.us TO: Mayor and Councilmembers FROM: David J. McKnight, City Administrator SUBJECT: Ice for Tigers Presentation DATE: September 10, 2012 INTRODUCTION The Ice for Tigers group will be in attendance at your September 10, 2012 work session to discuss a partnership focused on bringing more ice to Farmington. DISCUSSION Attached for your review is the presentation that the Ice for Tigers group will be going over at the work session. BUDGET IMPACT To be determined. ACTION REQUESTED The work session is intended to provide a forum for discussion and questions on this issue. Respectfully submitted, David J. McKnight City Administrator Ice for Tigers A Partnership focused on bringing more ice to Farmington. Contact@lceForTigers.com http://www.icefortigers.com Mission TO BRING ANOTHER SHEET OF ICE TO THE FARMINGTON SKATING COMMUNITY SCHOOL, HOCKEY, FIGURE-SKATING AND LEARN-TO-SKATE) SO THAT OUR ATHLETIC PROGRAMS CAN BE MORE COMPETITIVE, OUR DRAW CAN BE MORE WIDESPREAD, OUR CHILDREN CAN GROW UP WITH THE DISCIPLINE OF AN ORGANIZED SPORT, OUR CITY CAN GROW AND OUR COMMUNITY CAN BE MORE FAMILY-FOCUSED BY REDUCING CONSIDERABLE DRIVE-TIME TO PLAY SPORTS OUR CHILDREN LOVE. Why us and Why now? • We're focused on: o Partnering with the city o Partnering with the community. • Partnering with our schools. • Partnering with the FYHA. o Partnering with the figure skating club (Heritage) • To build a: o Fiscally responsible expansion plan. o Optimized for low-cost, but fast build. o Revenue positive go-forward facility. o Minimize the capital investment of relative associations. • Construct in an environmentally friendly manner. • Utilizing local business and contractors to see this be a success. Current Economic Challenges For Parents l ' n41° Time to Shattuck: 45 Minutes Rink Efficiency:62% Traveling 36 Miles Net Loss to City:$14,000 Gallons of Gas: 3 Outside Spending: $67,420 Cost per Gallon: $3.64 We send people out of town... Cost per trip(round):$22 Lack of economic development Cost for team (15)trip: $330 opportunities to bring people in. For the FYHA cow C I Hours of local ice: Low Hours of distance ice: Med. We lose family time. No capabilities to host Not enough grows up with Cost per ice hour (avg): $200 skating skills. Families in FYHA: 100's We"shun" native sports like $'s to distant cities: Lot's. With hOs Skating. amth000 o ® 000 Our cause has residents behind it. Great article in Thisweek! Thank you for spearheading this effort. We would love to see another rink in Farmington. Our son loves hockey but we have decided to have him play a different sport this winter-last winter was such a commitment and we can't do that again for 5 months! I think two local rinks would really ease some of the financial burden associated with hockey. We hope to see you next year at the TWO rinks :-) Jeff and Melissa It's great to see the crossroads of motivation and action result in positive energy targeted at solving community problems that tear at the connective tissue of our family. Our love of skating (both figure with our daughter and hockey with our son) have stretched the boundaries of our ability to participate. Thanks for taking up the cause for us. Shannon & Richard This is a Journe y - Not a event. The Backstory. How did we get here? x r y;� � € �� ,„`� � rw°8 ,' � �sir d r,� ee� i r ro-�?�+,�' � 5s° e o` ,°.fie a y" ^.,a Y P �£ F rx5,. 4 k r,a '; „'��Fq,�' • Can this be done? • Can we build at the site • Seek approval. • Can this be built? and what does it take? • Seek alignment from all • What are some good • What does our"Proof parties involved. examples of this being of Parking"turn out to • Complete the completed? be? "Fundraise" equation. • What can we learn • What"assets" can we • Determine the cost of from the failures that market for the capital. have happened? fundraise? • Determine what needs • Who can be the • What do the relative are outside the bounds "trusted advisors" in parties need for their of our"Basic Build" this mix? "intake"of the new and how are those • Can we make sure this arena? needs met? is revenue positive? • What can we do to • Determine our • How much can we do help businesses derive operating plan. revenue from the new on our own? • Determine our revenue site? plan. December 2011—May 2011 May 2011—August 2011 August 2011-Current Good and the Bad What we've learned from studying others The Good The Bad Joint Powers Don't overbuild (Mega- Agreements. builds tend to fail) Make sure you have the Make the increase in demand before you supply less than the build. demand (and Have a revenue plan that predictable). is verifiable. Use reputable builders Be conservative in your and industry experts. estimates. Consider the structure Ensure you have for the duration of the "redundant ice" build. Incent like a business... get everyone at the table. Above all . . . Have a great build and don't mis-build the structure. Be sure to have quality ice. Don't leave the arena in a lurch. -- Have a solid revenue plan up front. Don't neglect the rink. -- When you are done building, don't forget to maintain it. Construction Considerations • Construction concerns ® Bleacher Height 6'4" at Schmitz-Maki • 2-Compressor system can lead to a brown-out /fail-out on ice. • Existing Schmitz-Maki arena can't be sealed (Economically). ® "Proof of Parking" plan needs work Hot/ Humid Open/Air Corrugated Steel A Dry/Cold 292DesIgnGroup • Incorporated in 2009, three architects that have build 28 rinks in the last three years. ® Local Rinks: National Rinks: °. Champlin c Phoenix Coyotes Practice • Buffalo (Expansion sheet) ° Anaheim Ducks Training • Maple Grove (Expansion sheet) © St. Louis Blues Training • Rogers Locally owned • St. Croix o Red Wing Skilled rink builders • New Hope ° Tied to all reputable refrigeration • Minot experts. • Fargo o Lacrosse (Reskin) New Construction Requirements New sheet goals: le Cost Effective to run and manage 2. Environmentally Responsible to the natural resources it consumes and those that surround it. 3. Utilize best in class Energy Reclamation systems • 292 Design Group - Plan E r -- mg' _0.0 I , I] 3 1 Gib 1, nH{{ i : 1.:1 05 n.. . _ .w:— • 1_ 111 r o 111 e 1[y ll 1111 i IDDHO .o_ 0 o 1 ' '''' \ -a iit - 1 .,= 7 galA Y Me131M0 RRMA %5Y ARENA®FlAUN Fundraising Methodology adopts Triangle- ais al Financial Sourcing ® Goal is to raise a portion of the funds via private funding but look to retire the debt over a 5 year period. Sheet Naming Rights* - Players Bench naming Rights* _ } Penalty Box&Scorers table Rights - Locker Room Naming Rights Build Sponsors III- Founding Sponsors *Seeking ability to sell naming rights and build-site approval on September 17th Oty Council Meeting Flagship Programs Tap or Tigers it . ,,.... „ ailFarMi sit "Orange" Pride ''} The $43K Tiger Wall Dasherboard Programs If 19 1 10 7 12 r 7.- w,,, , Sell Dasherboard space Opportunities for Local Economic Development FBA / Grow Farmington Interest in brochure/visitor center "Walk of Farmington" for Tournament Go-ers Ability to attract individuals driving away to come into Farmington. Opportunity for Concession Stand Increase accessibility to main level (shared space) and retire non-ADA space (turn to storage) Partner beyond current capabilities to have a "Pond"-like experience. Bring more dollars to the arena by trafficked entrance and services The Revenue Projections ... Which will build off the FYHA and School demands only... (Rest of the upside is gravy) FYHA Ice Purchase Balance Sheet 2011-2012 Season Farmington Youth Hockey Association Ice-Purchases 2011-2012 Season Total October No%mber December January February March Total Farmington 158.25 132.75 110.25 133.75 128.25 95 758.25 Shattuck 0 0 27.75 32.5 25 0 Hasse 0 0 20 0 0 0 Hastings 0 6 8 3 4 0 Wakota 49 56 18 45 45.17 56 Total Hockey-On Ice 0 20 33 20 24 21 Total Hockey-Off Ice 0 24 24 24 24 0 The Pond 0 0 0 0 15 13 28 Total 207.25 238.75 241 258.25 265.42 185 1395.67 `. FYHA — 513 Ice Hours of demand for 2011-2012 season. Revenues Expenses Protected 2nd Projected Two Sheet Projected 2nd Projected Two Sheet 0 Account Name 2012 Budget Sheet Revenue Facility Total Revenues 0 Account Name 2012 Budget Sheet Expenses Facility Total Expenses 4810 Ice Rental $255,000.00 $74,430.00 $329,430.00 600 e n el Services FYHA hr rented 875 317 1,192 6110 Salaries-Full Time $94,880.00 $0.00 $ 94,880.00 Revenue $179,375.00 $65,000.00 $244,375.00 _ 6112 Overtime-Full lime $0.00 $2,000.00 $ 2,000.00 6120'Salaries-Part Time $37,390.00 $17,810.00 $ 55,000.00 ISD 192 practice 6135 Other Pay $0.00 $4,000.00 $ 4,000.00 hrreMed 195 46 241 6152 FICA/Medicare $10,117.00 $3,883.00 $ 14,000.00 Rewnue $37,392.00 $9,430.00 $46,822.00 6154 PERA $7,530.00 $0.00 $ 7,530.00 6156 HCSP $0.00 $3,000.00 $ 3,000.00 ISD 192 Game 6158 Employee Benefits $26,903.00 $0.00 $ 28,903.00 hr rented 110 0 110 Revenue I $29,713.00 $0 00 $29,713.00 Total Personnel Services $178,800.00 $30,493.00 $ 207,293.00 Sr Mans $39u oolies hr rented 20 0 20 Revenue $4,100.00 $0.00 $4,100.00 6502 Cost of Goods Sold $1,400.00 $600.00 $ 2,000.00 6220 Equipment Supplies $1,600.00 $5,900.00 $ 7,500.00 Boys Captains 6240 Building Supplies $7,800.00 $2,400.00 $ 10,000.00 hr rented 14 0 14 6250 Other Supplies $750.00 $450.00 $ 1,200.00 Rewnue $2,100.00 $0.00 $2,100.00 6255 Landscape Materials $0.00 $500.00 $ 500.00 6272 Fuels $2,000.00 $2,500.00 $ 4,500.00 Girls Captains , 6290 Uniforms $1,100.00 $400.00.$ 1,500.00 hr rented 10 0 10 Revenue $1 500 00 $0 00 $1,500.00 Total Supplies $14,450.00 $12,750.00 $ 27,200.00 Alumni Game I A409 Other Services&Charges hrrented 4 0 4 Rewnue $820.00 $0 00 $820.00 6401 Professional Services $6,000.00 $3,000.00 $ 9,000.00 6404 IT Sertices $2,936.00 $0.00_$ 2,936.00 Total Hours 1,228 383 1,591 _6411 Telephone $1,000.00 $0.00 $ 1,000.00 6412 Cellular telephone $500.00 $0.00 $ 500.00 4512 Summer Activities $500.00 $0.00 $500.00 6421 MunicipalSences $7,000.00 $2,000.00 $ 9,000.00 4668 Concessions $1,000.00 $0.00 $1,000.00 8422 Electric $45,000.00 $30,000.00 $ 75,000.00 4815 Instruction $17,000.00 $0.00 $17,000.00 6423 Natural Gas $23,000.00 $7,000.00 $ 30,000.00 *4825 Admission $0.00 $0.00 $0.00 6426 Insurance $8,000.00 $8,000.00 $ 18,000.00 4820 Open Skating $2,500.00 $0.00 $2,500.00 8450 Outside Printing $500.00 $0.00 $ 500.00 4830 Skate Sharpening $2,500.00 $0.00 $2,500.00 6455 Legal Notices Publication $0.00 $0.00 $ - 4835 Advertising $9,500.00 $0.00 $9,500.00 8460 Dues&Subscriptions $3,020.00 $0.00 $ 3,020.00 4840 Skate Show $4,500.00 $0.00 $4,500.00 6470 Training&subsistence $1,500.00 $0.00 $ 1,500.00 5010 Merchandise Sales $800.00 $350.00 $1,150.00 8505 Equipment Maintenance Service $4,750.00 $3,250.00 $ 8,000.00 6515 Building Maintenance Service $3,300.00 $8,700.00 $ 10,000.00 Subtotal $38,300.00 $350.00 $38,650.00 6570 Program Expense $4,000.00 $2,000.00 $ 8,000.00 Total OtherServtces&Charges $110,506.00 $81,950.00 $ 172,458.00 Total Revenue $293,300.00 $74,780.00 $388,080.00 Total Operating Expense $301,756.00 $105,193.00 $ 408,949.00 •No longer have admission revenue from high school hockey games Equilibrium Analysis With current demand, the existing supply when augmented with another sheet shows a positive revenue opportunity for the city and a lot more local ice for our skaters. a Constructing meaningful J Powers Agreement Our Joint Power Agreement will have Opex Management and Capex Ownership allowing us to decrease our cost of capital and speed up our build. Joint Powers Agreement ,i,,,, ler Sea ed artiest ligniment ' • City Cost of Capital • City (Learn to Skate) Upfront Capital • Parks & Recreation Commitment for payback Rink Period for payback. Structure of build • Farmington Youth Hockey Association (Requirements) • Heritage Skating Association • Any specific intake deviations • Ice For Tigers (Arbitration & Capital) from core build. Outcome Defined ratable build that determines long-term capital responsibility with cost of I capital determined and a joint-incentivized agreement to see a successful outcome with a supported on-going re-investment model. Fundin g Programs go beyond the build ngoing,create a revenue structure of reinvestment and programs Responsible Party: Joint Powers o Levers: Gitinued execution of programs, Over a period of time, Repay any debt or Capital Loans ro Responsible Party: Joint Powers ink Profitability, Ice-commitments, co-op marketing. C 0 Raise the up-front Capital necessary to out a shovel in the ground. Responsible Party: Ice For Tigers Levers: Cost of Capital, Total Build Cost, Association Capital, City ° support. next ste int e Our Journey Our asks for 9/17 our requested 9/17 motions 1. To approve the ability for a new rink to be added to the Schmitz-Maki Arena contingent upon agreement of a Joint Powers Agreement (JPA) by all seated JPA parties. 2. To approve the ability to sell both naming rights to the new sheet and naming rights to the arena (Schmitz-Maki retains current sheet and our group also recognizes their instrumental contributions to our community) contingent to City Council/Parks and Recreation approval. 3. To approve the ability to sell sponsorship opportunities in the new rink with sponsored player benches, scoreboard, penalty boxes, scorers table, locker room and seats contingent upon City Council approval. 4. To approve the ability to sell sponsorship dasherboard panels for upfront capital investments over a period of 5 and 10 years, contingent upon City Council approval. 5. To approve the ability to sell pucks for donations for our$500K wall which will be mounted at the new sheet on the wall in the format of a "TIGERS" display. 6. To approve a joint-working session alongside JPA parties to reach mutual agreement on a JPA. Thanks . Ice for Tigers Contact@icefortigers.com http://www.icefortigers.com