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10.2. SR 05-04-2020City of Elk* River Request for Action To Item Number Mayor and City Council 10.2 Agenda Section Meeting Date Prepared by Work Session May 4, 2020 Steve Benoit, Recreation Manager Item Description Reviewed by Multipurpose Facility Rental Fees Michael Hecker, Parks and Recreation Director Reviewed by Cal Portner, City Administrator Action Requested Discuss multipurpose center rental fees. Background/Discussion At the December 2, 2019 Council Work Session, staff presented research into rental fees of spaces in facilities which are comparable to the new multipurpose center. Summaries of the research along with recommended rental fees and potential revenues were presented. Council directed staff to meet with the Youth Sports Association Committee to discuss their feedback on the proposed fees. This meeting was held on December 18, 2019. Summaries of the research and updated proposed fees along with feedback from the Youth Sports Association Committee will be presented. Financial Impact Potential revenues will be discussed. Attachments ■ N/A The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional,` 01 e service, and community engagement that encourages and inspires pi ospei l_ y INAMIRE1 Elk River Multipurpose Facility Fees Discussion May 4,2020 Background ■ December 2 City Council Work Session ■ Review and discussion of proposed fees ■ Council directed staff to review fee proposal with Youth Athletic Association groups Background ■ December 18 meeting between staff and Youth Athletic Association Committee ■ Key Points ■ Referendum covered construction ■ Operations ■ Special Revenue Fund ■ Obj ective is to cash flow ■ Revenues cover operational costs City of Elk *=-.-:, River Background Fee Development Based on: ■ Comparison Surveys ■ History and Frequency ■ Market Rates (Offices and Room Rentals) ■ Service Levels ■ Operating Costs ■ Configurations and Room Capacity Multipurpose Facility Rentable Spaces ■ Fieldhouse ■ Senior Flex Space ■ Party/Meeting Rooms ■ Upper Lobby ■ Two New Ice Rinks Multipurpose Facility Rentable Spaces ■ High School Locker Rooms ■ Figure Skating Office and Room ■ Youth Hockey Office ■ Dry Rink Special Events ■ Dryland Training Area ■ Lease Space Youth Athletic Association Discussion Recommendations ■ Set a resident and nonresident fee ■ Use recommended rate as resident rate ■ Set a higher fee as the nonresident rate ■ Nonresident rate does not need to be excessively higher 28,378 sq )ouse ELK RIVER MULTI -PURPOSE FACILITIES 292Des'ic MAIN LEVEL - 86,873 SF(NEW) + 33,195 SF (RENOVATED) 292 DESIGN G, FFRRU Y]R19 3533 E LIKE SIREEI MINNEAKIN MN 55406 / � a r, n Q � i R, .m- LflA ' l � .� me .'"`�"��1►_ a t� �. wt, Fieldhouse Rental Market Analysis City Season Imp Cost Blaine National Sports Center Permanent — Year Nov — April = $130/hour Round May — Oct = $75/hour Eagan Rink March — May $100 / hour — Full Field $650/day - Full Field 1713OOOsf 11 $25,000 annual revenue Domes (Edina, Maple Grove, Oct — April in Full fields - $350 - $380 Plymouth) & Woodbury Field Season Half fields - $200 House 11 Revenues $400,000 - $600,000 City of Elk River Fieldhouse Rental Market Analysis Adrenaline Sports Center (Ramsey) November - April Weekday Days $100 Weekday Evenings $140 Weekends $170 May - October Weekday Days $50 Weekday Evenings $70 Weekends $85 Fieldhouse I and 2 Fee Recommendation November - April Resident Nonresident Rate Rate Weekday Days $100 $115 Weekday Evenings $140 $161 Weekends $170 $196 May - October Resident Nonresident Rate Rate Weekday Days $50 $58 Weekday Evenings $70 $80 Weekends $85 $98 Fieldhouse I or 2 Fee Recommendation November - April Resident Nonresident Rate Rate Weekday Days $55 $70 Weekday Evenings $80 $88 Weekends $95 $109 May - October Resident Nonresident Rate Rate Weekday Days $25 $29 Weekday Evenings $35 $40 Weekends $45 $52 Fieldhouse Rental Revenues High End Possible $395,460 Estimate 20% of High End* * 60% Estimate of High End — 237,276 $79,092 _ Y AI,�AA Square feet: 1,754 , Capacity: 73 -146 k' -71 —1l LL 0 r - n�.L r.) ELK RIVER MULTI -PURPOSE FACILITIES MAIN LEVEL -86,873 S F(NEW) + 33,195 SF (RENOVATED) FF9RUll n19 x Senior Flex Space 292Des'lc 292 DESIGN MAY SF y i i v' SIME OATS 174 SF a i EM... SOME _ -° SENIOR s 1 SFr' 61 ` FIEF i 2641 SF — w-- STO 23D 5F ILl FLE 1754 r Senior Flex Space Rental Analysis Shakopee Sunday - Friday $75 Saturday $100 Plymouth Resident and Local Non -Profit $75 Nonresident ;;11 Senior Flex Space Fee Recommendation Resident Nonresident Rate Rate $100 $115 Senior Flex Space Rental Revenues High End Possible Estimate 20% of High End $135,200 $27,040 0 -... o®'.. Square feet: 540 Capacity: 22 - 45 ---------'-------- JL JL -- C 0 C� an w' tswa F�abuw � mrw C 0 oxITTC wv ..,iln 0 pcuewi . I .cu�x- Mwt _ _ .. e a o m, _ 111 Floor Party f h Rooms _ r n"rr MM � pQ py IF, ELK RIVER MULTI -PURPOSE FACILITIES 292Des'lc MAIN LEVEL - 86,873 SF(NEW) + 33,195 SF (RENOVATED) 292 DESIGN GROUP FEBRUARY MR 3533 E. LAM STREET WNEAMU5, MN 5506 A PARTY 547 SF 3 I Up Pa 4 ELK RIVER MULTI -PURPOSE FACILITIES 292D CONCOURSE LEVEL - 32,058 SF FERRJARY 2010 292 DESIGN C _: , 3533 E. LAKE SHEET MINREAPO US, MN 5540E esic City Brooklyn Park Meeting Rooms Rental Analysis Cost $25/hour Resident $35/hour Nonresident Shoreview Mon-Thurs.: Resident $40/2 hrs. Nonresident $55/2 hrs. Fri -Sun: Residents $60/2 hrs. Nonresidents $80/2 hrs. Plymouth Residents and local 5016 s, $30/hr. Nonresident $50/hr. Becker Weekdays: $40/hour Weekends: $50/hour Lower Level Meeting Rooms Fee Recommendation Resident Nonresident Rate Rate Meeting 1 or 2 $50 $58 Meeting 1 and 2 Combined $95 $109 Upper Level Meeting Rooms Fee Recommendation Meeting 3 or 4 Meeting 3 and 4 Combined Resident Nonresident Rate Rate $60 $69 $110 $127 Meeting Room Revenues High End Possible $311,480 Estimate 20% of $62,296 High End Square feet: 3,410 -- - Capacity: 142 - 284 Upper Lobby ELK RIVER MULTI -PURPOSE FACILITIES CONCOURSE LEVEL - 32,058 SF FE& WY 318 o- - L u 00 292deSIC 292DESIGN' 'L 3533 S. LAKL,IKILI VI'NLAVQ_'S IIOA05 I Upper Lobby Rental Fee Analysis city Cost Plymouth Mon — Thurs: Resident $390 / Nonresident $645 (Up to 6 hours) Friday: Resident $800 / Nonresident $1,105 (10am — midnight) Saturday, Holidays: Resident $1,015 / Nonresident $1,330 (10am — midnight) Sundays: Resident $585 / Nonresident $885 (10am — midnight) Maple Grove Mon — Thurs: Resident $375 / Nonresident $425 Capacity 250 Friday: Resident $425 / Nonresident $475 Saturday: Resident $750 / Nonresident $800 Sunday: Resident $425 / Nonresident $475 Monticello Event with alcohol - $1,100 Capacity 300 Event without alcohol - $850 Shoreview Sun — Thurs: Resident $750/ Nonresident $850 Capacity 300 Friday: Resident $1,150/ Nonresident $1,250 Saturday: Resident $1,400 / Nonresident $1,500 Upper Lobby Rental Fee Analysis City Cost Rockwoods (Otsego) Room Fee: $900 - $1,000 Food and Beverage Minimum: $3,000 — $8,000 Plated Meal Prices: Start at $20.95/person Keg Prices: Start at $299.95 (16 gallons) Onsite Ceremonies are available indoors or outdoors Crown Room (Rogers) Room Fee May -Oct: Friday $1,600 Saturday - $1,900 Sunday - $700 Room Fee Nov -April: Friday $1,200 Saturday - $1,500 Sunday $600 Food & Beverage Min May -Oct: Friday $7,500 Saturday - $9,000 Sunday $6,500 Food & Beverage Min Nov -April: Friday $6,500 Saturday — $8,000 Sunday $5,500 Upper Lobby Rental Fee Recommendation Mon-Thurs (up to 6 hours Fridays (10 am — Midnight) Sat/Holidays (10 am — Midnight) Sundays (10 am — Midnight) Resident Nonresident Rate Rate $645 $742 $1,105 $11271 $1,330 $11)530 $855 $983 Upper Lobby Revenues High End Possible $206,500 Assumes space Ps - four months for Estimate 20% of High End $41,300 utilized eight months of the year for rentals, and arena functions. 9 r Upper Lobby & Party Rooms Combined ELK RIVER MULTI -PURPOSE FACILITIES CONCOURSE LEVEL - 32,058 SF FERRWRY 2010 F 3 a'm�ear � ene / p\ 292Desl'c 292 DESIGN CPO- 3533 E. LAKE STREET MINNEAPtl'_IS, MN 35406 t P27A WARMER `EDotSTNG COOKIE WARAEM .2 PREME c(BCSTHG) a CHEESE SAUCE t TWGo _�y -------- - - vl�yl IL an F71 Ir2aera1 •` � LI, L J; ELK RIVER MULTI -PURPOSE FACILITIES MAIN LEVEL - 86,873 SF(NEW) + 33,195 SF (RENOVATED) FEERUM2019 Dryland 292QeSIC 292 DESIGN I.;': ;1! 4533E �KE UPHT MINNEAPOLIS MN 554[1 jp . . . . . . . . . . Arel ELK RIVER MULTI -PURPOSE FACILITIES CONCOURSE LEVEL - 32,058 SF EEDA.AM 2M 292Desic 292 DESIGN 3E; E. TAKE STHEE f V1WPPO-IS, MN 3 A4 Ice Rental Fee Analysis City Rate Andover Prime $220 Non -prime $165 (Sept -Mar) All spring/summer $165 Champlin Prime $220 Non -Prime $170 Fogerty (Blaine) Prime $210 Non -prime $180 Anoka Oct -March $185/hr to AAHA $205 for all others. March -October $130 for all customers Rogers Maple Grove Super Rink (Blaine) Prime $205 Non -prime $155 Prime $210 Non -prune $175 Prime $220 Non -prime $160 Rental Fee Analysis ,,ment rive Years uegiiiiiing z-v1 i Purchase NTinimum 1400 Hours/Year Rogers Anoka Cottage Grove Plymouth Elk River Ice Rental Rates Year 1 and 2 - $215/Hour Year 3 and 4 - $220/Hour Year 5- $220/Hour 2017 - $200/Hour 2017 - $195/Hour 2017 - $210/Hour 2017 - $210/Hour 2018 - $195/Hour Ice Rental Fee Recommendation Prime Non -Prime $205 $155 Ice Arena Revenues High End Possible $575,360 Estimate 20% of High End N/1 Based on past performance and applying new rental rate. Arel a ice— i— mom- i ELK RIVER MULTI -PURPOSE FACILITIES CONCOURSE LEVEL - 32,058 SF IEERUAR 200 292Desic 292 DESQ �F.0 1 3533 E.d "EU U NNFAfll'JS, W 554NE Dry Rink Special Event Fee Recommendation Resident Nonresident Rate Rate $700/Day $805/Day Available March - August Dryland Events Revenues High End Possible Estimate 20% of High End $50,400 $10,080 High School Locker ROT L ELK RIVER MULTI -PURPOSE FACILITIES 292Desic MAIN LEVEL - 85,873 SF(NEW) + 33,195 SF (RENOVATED) 292 DESIGN FFRRWYMI4 3 4k LO SIRW MiNUAKLS.MN 55406 WQMEN'# FVNARWr �.%f 4ICKs ,u 9.F f ii I F StiGV: ERS L 1 WOM@N'S Iyl 99AC H a2 BF NAMPI4 mom MACH m v f1P KS ,,A h: MENI$ FVAA*I BOB 4F High School Locker Rooms Currently being discussed. 0 0 r Figure Skating Rooms.,. ------ - a 1 11 EEdl ° o 99 .. �5 i w JL _ a � ww. GP gg ELK RIVER MULTI -PURPOSE FACILITIES 292Desic MAIN LEVEL - 86,873 SF(NEW) + 33,195 SF (RENOVATED) 292 DESIGN GROUP FFBFURM' mi9 3533 E, lAKF STREET MINNEAPOLIS. MN 559U6 FIGURE SKATE 302 SF F.S. OFFICE 11 SF RAMPaH LM1702. y 0 STORAGE 238 F Figure Skating Rooms Fee Recommendation ■ $15.50/square foot ■ Based on current Elk River office space rental rates C 0 1! h �MEN� .Qo fPf1 P tl Tl Ae > --------------- ---------------------------------- ---------------------------------- --- JL d —o m. n - - - - ----------------- - n, Youth Hockey Spa"e. o d a r 9_F� T Ell izz, IF JJ O ---------------------- ............ Ir �. mun 13 gv.ra ♦a d {�p p-� i ELK RIVER MULTI -PURPOSE FACILITIES 292Desic MAIN LEVEL - 86,873 SF(NEW) + 33,195 SF (RENOVATED) 292 DESIGN GROUP FE®RU1 2119 3533 €. LAKE STREET MINNEAPULIS, MN 559V6 ASSOC. OFFICE 209 5; 10 Youth Hockey Rooms Fee Recommendation ■ $15.50/square foot ■ Based on current Elk River office space rental rates Youth Hockey Rooms Fee Recommendation ■ $15.50/square foot ■ Based on current Elk River office space rental rates Questions? Take -a -ways ■ Consensus on rate recommendations ■ Need to develop marketing materials ■ Facility coming online ■ Ice rinks by mid July ■ Room and fieldhouse rentals by Fall ■ Rental requests received over last several months Recommendation ■ Bring to City Council at May 18 meeting for approval ■ Add to City Fee Schedule