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HomeMy WebLinkAbout1999-09-08 CC MIN r CITY OF STILL WATER CITY COUNCIL MEETING NO. 99-20 September 8, 1999 SPECIAL MEETING 7:00 P.M. The meeting was called to order by Mayor Kimble. Present: Councilrnembers Bealka, Cummings, Thole, Zoller and Mayor Kimble Also present: City Coordinator Kriesel City Attorney Magnuson Finance Director Deblon St. Croix Valley Recreation Center Manager Brady Springsted, Inc. Dave McGillavary, Sharon Klumpp Mahtomedi City Council: Mayor Yale Norwick Councilrnembers Ellen Blasena, Ken Lohr, Lael Ramaley City Administrator Jon Hohenstien Finance Officer Marlin Amundson Press: Julie Kink, Courier Mark Brower, Gazette PROPOSED PARTNERSHIP TO CONSTRUCT SECOND ICE ARENA (' Mayor Kimble welcomed Mayor Yale Norwick and other members of the City of Mahtomedi council. Mayor Norwick thanked the mayor and council of the City of Stillwater for working with the City ofMahtomedi to construct a second ice arena at the St. Croix Valley Recreation Center. Stillwater City Coordinator Kriesel explained the history of the development ofthe St. Croix Valley Recreation Center and the proposed plans for the second sheet of ice. Mr. Kriesel also stated that the architects and the construction manager that were involved in the construction of the new recreation center, estimated that the cost to build an additional sheet of ice would be about $3.1 million. Mahtomedi City Administrator Hohenstien presented an overview of the process that the two cities followed to determine whether or not it would be feasible to build the second sheet of ice. Mr. Hohenstien stated that the key issues were: 1. Is a partnership to build a new ice sheet between the cities of Stillwater and Mahtomedi feasible? 2. If the City of Stillwater were to build a second sheet of ice at the Recreation center, would it be better to do so individually or in partnership? 3. Does the proposal, as presented, offer the basis for an acceptable partnership for both cities? And r 4. What is an appropriate term or time period for the partnership? Dave McGillavary and Sharon Klumpp of Springsted, Inc. presented a financial feasibility report. The report contained three graphs that indicated the impact that the City Council Meeting 99-20 September 8, 1999 r cost of operations and increase in debt service would have on the finances of the City Stillwater compared to the current operations. Graph I was based on the City of Stillwater's actual experience and projected expenses for the Lily Lake arena and the new recreation center. Graph 2 was based on comparable expenses and Graph 3 was based on the City of Stillwater's actual experience with no increases in rental rates. Mr. McGillavary explained that because the City of Stillwater's expenses seemed to be low, a survey was made of other communities that currently operate two sheets of ice. Therefore, Graph 2 included comparable rather that actual expenses. Graph 3 was developed to show what the results of operations would be if rates were not increased from time to time. r Mr. McGillavary further explained that the report assumed that the construction costs would be about $3.1 million and that the City of Mahtomedi would make an up-front contribution to reduce the bond issue amount to about $2.4 million. Mr. Kriesel stated that he was more comfortable with Graph 1, which was based on the City of Stillwater's actual experience, and that he also thought that the revenue projection used by Springsted, Inc. might be somewhat understated. As an example Mr. Kriesel pointed out that the advertising revenue projection used by Springsted was $40,000 per year, whereas a more accurate projection would put the revenue at about $65,000 per year. Mr. Kriesel also stated that the up-front contribution proposed by the City of Mahtomedi needs to be reconsidered based on the added costs of installing locker rooms and bleachers to accommodate Mahtomedi teams that would be using the new facilities. Discussion was held on the financial feasibility report and other issues related to the construction of a second sheet of ice. Mayor Kimble and Mayor Norwick recommended that the staff from each city continue to work together to resolve the issues that were identified at the meeting and to come up with a plan for constructing and financing the proposed second ice arena. Motion by Councilrnember Thole, seconded by Councilrnember Cummings to direct staff to continue to meet with City of Mahtomedi officials to resolve issues related to the proposed partnership and to develop a plan for the construction and financing of an additional sheet of ice at the St. Croix Valley Recreation Center. All in favor. ADJOURNMENT Motion by Thole, seconded by Bealka to adjoum the meeting at 9:33 p.m. All in favor. , ~ Attest:~.A~L X-~.A I ~ ,.f Acting City Clerk ~/ yor r 2