6.1 MFACSR 10-10-2022
Discussion Item
To Item Number
Multipurpose Facility Advisory Commission 6.1
Agenda Section Meeting Date Prepared by
Discussion October 10, 2022 Tim Dalton, FTCENTER Superintendent
Item Description Reviewed by
Elk River Youth Hockey Association Ice
contract 2022-2024
Reviewed by
Action Requested
Review 2022-2024 ERYHA Ice Contract
Background/Discussion
On 9/12/2022, the commission approved an ice rate of $230 for ERYHA with a minimum purchase of 1900
hours. The original contract included use of space in the facility for board meetings, tryouts, tourney, and event
use at no cost, in addition to ER Hockey logos on both ice surfaces. The original contract also included rental
space of two storage areas and an office space. The contract presented has been modified to only include a
minimum ice purchase of 1800 hours at $230 per hour for the 2022-2023 and 2023-2024 (two seasons). This
contract also includes limited use of space in the facility for board meetings, tryouts, tourney, and event use at no
cost, in addition to ER Hockey logos on both ice surfaces.
The rental of the office, two storage areas and the training area are now located in a separate lease document.
Financial Impact
Establishes a minimum ice purchase of $414,000 per year for each two seasons 2022-2023 and 2023-2024.
Mission/Policy/Goal
Provides revenue to support sustainable facility practices while creating opportunities that foster pride in our
community.
Attachments
Attachment 1 ERYHA Ice only 10 10 22 MPFAC
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: August 2020
FURNITURE AND THINGS COMMUNITY EVENT CENTER
CITY OF ELK RIVER
ELK RIVER YOUTH HOCKEY ASSOCIATION 2022-2024 (Two Seasons)
This ice facility use agreement (Agreement) is made and entered into this ___ day of
____________, 2022 between the City of Elk River, a Minnesota municipal corporation, herein after
referred to as (PROVIDER) and the Elk River Youth Hockey Association, herein after referred to
as (USER). PROVIDER and USER agree to the following use of ice skating facilities within the
Furniture and Things Community Event Center (FTCenter) located at 1000 School Street, Elk River,
MN 55330 for the period of __________ to ____________.
1. SCHEDULE OF TIME: PROVIDER agrees to make ice time available to the USER
at the time and dates shown on the attached ice use schedule for the USER. Such
schedule may be amended from time to time upon the written agreement of both
parties’ representatives. USER is required to schedule all facility use in abidance with
all facility scheduling protocols.
2. USER agrees to purchase a minimum of 1800 hours of ice per hockey season
according to the rates below.
3. RATES: USER agrees to pay the following rates for FTCenter usage:
$230 Prime Hourly Ice Rate 9/1/2022 – 8/31/2024
$180 Non-Prime Hourly Ice Rate 9/1/2022 – 8/31/2024
No Cost ERYHA will be allowed exclusive use of Party Room # 1 for up to
two weeks during fall tryout period. (Overnight storage as needed)
No Cost ERYHA will be allowed use of a suitable space for Board Meetings
No Cost ERYHA will be allowed 25 hours of room space annually
No Cost ERYHA will be allowed use of Lobby Space, Tables and Chairs as
for tourneys and special events
No Cost Placement of two ER Hockey Logos on each Ice Surface
4. Estimated Annual Costs
a. Cost for 1800 hours of ice for the 2022-2023 Season: $414,000
b. Cost for 1800 hours of ice for the 2023-2024 Season: $414,000
5. PRIME HOURS: Prime and Non-Prime Hours are described as follows:
a. Prime Hours:
i. After 2:00pm Monday thru Friday, September 1-May 31. All hours on
Saturday and Sunday and non-school days, September 1-May 31.
b. Non-Prime Hours:
i. All hours June 1 through August 31.
ii. 5:00am-1:59pm on School days.
6. SERVICES: PROVIDER agrees to provide a usable ice surface, secure and clean
locker facilities, parking facilities and, on the day of games, FTCenter seating for
spectators. In addition, on game dates, PROVIDER shall provide appropriate
management, Zamboni driver(s) and any cleanup/maintenance staff required by the
USER. The USER shall provide ticket seller(s), time/score keeper(s), penalty box
attendant(s) and all security staff. All USER staffing of games to be reviewed and
approved by the PROVIDER. USER is responsible for the management and control
of all spectators that attend its games, practices, or any events sponsored by the USER.
a. USER shall be responsible for the complete repair of any damage to space within
the FTCenter that is damaged while being utilized by USER.
7. PAYMENTS: PROVIDER shall bill USER monthly beginning in October of each
season. USER will be billed in eight even increments of $51,750 each.1800100
2022-2023
Payment #1 October 1, 2022 $ 51,750.00
Payment #2 November 1, 2022 $ 51,750.00
Payment #3 December 1, 2022 $ 51,750.00
Payment #4 January 1, 2023 $ 51,750.00
Payment #5 February 1, 2023 $ 51,750.00
Payment #6 March 1, 2023 $ 51,750.00
Payment #7 April 1, 2023 $ 51,750.00
Payment #8 May 1, 2023 $ 51,750.00
$ 414,000.00
2023-2024
Payment #1 October 1, 2023 $ 51,750.00
Payment #2 November 1, 2023 $ 51,750.00
Payment #3 December 1, 2023 $ 51,750.00
Payment #4 January 1, 2024 $ 51,750.00
Payment #5 February 1, 2024 $ 51,750.00
Payment #6 March 1, 2024 $ 51,750.00
Payment #7 April 1, 2024 $ 51,750.00
Payment #8 May 1, 2024 $ 51,750.00
$ 414,000.00
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8. USER will promptly pay PROVIDER any required deposits and an amount equal to
the number of hours of practice and game ice usage at the rate agreed to.
9. CANCELLATIONS: PROVIDER may cancel this Agreement for any material
default by the USER in terms of this Agreement. PROVIDER may also reschedule
the dates or times of the scheduled ice usage upon five days written notice to the
USER. PROVIDER shall not be held responsible for the cancellation of ice time for
reasons beyond the reasonable control of PROVIDER, its agents, or employees, such
as but not limited to equipment failure, loss of power, severe weather or acts beyond
PROVIDER’S control. In the event of such an occurrence, PROVIDER will attempt
to reschedule USER’S ice times or USER may cancel and promptly receive a return of
any fees paid.
10. ASSIGNMENT: if scheduled ice time cannot be used by the USER, they shall
promptly notify the PROVIDER in writing within 14 days and the PROVIDER will
attempt to reassign that time to another group. If the time cannot be assigned to
another group, the USER will pay the charged fees for their scheduled time.
11. RULES AND REGULATIONS: USER agrees to use the facilities according to the
Rules and Regulations of PROVIDER which will be adopted and posted from time
to time within the facility.
12. SIGNAGE: USER recognizes that it does not have rights to post any signs without
the express written consent of PROVIDER. Any signs so consented shall conform to
and be consistent with the sign usage policy of PROVIDER and be subject to
PROVIDER review and approval.
13. LIABILITY: USER acknowledges that PROVIDER has not asserted or accepted any
responsibilities for supervision, security or control of USER’S property or activities.
USER shall be solely responsible to provide security for its equipment kept on the
premises and shall be solely responsible to provide supervision of its players, staff, and
spectators, on and off the ice. PROVIDER shall be solely responsible for the action
of its employees, agents, and invitees.
USER assumes all risks of personal injury arising from its usage of the FTCenter or
any part connected or contiguous thereto which result from an act or failure to act on
the part of the USER or others over whom it has supervisory responsibility. USER
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assumes responsibility for damages to the property of PROVIDER arising out of the
negligence of USER under its performance of this agreement. PROVIDER will notify
the USER of any damages and allow the USER a reasonable opportunity to review the
damage before repairs are made. PROVIDER is responsible for the repair or
replacement of PROVIDER’S property and will invoice the USER for the damages.
USER’S obligation shall be to reimburse PROVIDER for the cost of labor and
replacement of like-kind and quality equipment.
PROVIDER agrees to indemnify and hold harmless USER from and against all claims,
costs, expenses(including attorney fees) and liabilities of whatever nature arising
from(i) any negligent or wrongful act or omission of PROVIDER, its licensees, agents,
or employees; or (ii) arising from any accident, injury, including death, or damage to
any person or property occurring on the premises and caused by the negligence or
other wrongful conduct of PROVIDER, excluding claims arising from USER’S
performance under this agreement. This paragraph shall not act as a waiver of any tort
liability caps or legal immunities that may exist to protect the PROVIDER.
USER agrees to indemnify and hold harmless PROVIDER from and against all claims,
costs, expenses(including attorney fees) and liabilities of whatever nature arising from
(i) any negligent or wrongful act of omission of USER, its licensees, agents, or
employees; or (ii) arising from any accident, injury, including death, or damage to any
person or property occurring on the premises and caused by the negligence or other
wrongful conduct of USER, excluding claims arising from PROVIDER’s
performance under this agreement.
INSURANCE: Both USER and PROVIDER shall maintain liability insurance against
claims for bodily injury, death or property damage occurring on or about the
FTCenter. Such insurance shall be written on an occurrence basis with a combined
single limit of not less than $1,000,000 per occurrence. If the insurance policy is written
on a “claims-made basis,” the party will maintain coverage for a minimum of three
years past the expiration of this agreement. The retroactive date of the policy shall be
indicated on the certificate of insurance outlining coverage.
In addition, both parties shall name the other party as an additional insured with
respect to its own operations on said policies of insurance. Both parties will maintain
all workers compensation insurance required by law.
THIS CONTRACT AND ANY ATTACHED SCHEDULES OR SIGNED ADDENDUMS
CONSTITUTES THE ENTIRE AGREEMENT BETWEEN PROVIDER AND USER. THE
UNDERSIGNED USER AGREES TO PURCHASE ALL HOURS OUTLINED IN THE
ATTACHMENT. NO PROVISION OF THIS AGREEMENT MAY BE CHANGED, WAIVED
OR TERMINATED UNLESS DONE IN WRITING AND EXECUTED BY BOTH PROVIDER
AND USER.
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Dated: ______________________ USER:
By:
Its:
Dated: _______________________ PROVIDER: CITY OF ELK RIVER
By:
By:
Approved as to form: By:
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LEASE AGREEMENT
By and Between
CITY OF ELK RIVER, MINNESOTA
(“L ANDLORD”)
and
ELK RIVER YOUTH HOCKEY ASSOCIATION
(“T ENANT”)
This Instrument Drafted By:
CAMPBELL KNUTSON, P.A.
860 Blue Gentian Road, Suite 290
Eagan, MN 55121
(651) 452-5000
LEASE AGREEMENT
This LEASE AGREEMENT (“Lease”) is made and effective as of ______________,
2022, by and between the CITY OF ELK RIVER, a Minnesota municipal corporation
(hereinafter referred to as the “Landlord”) and ELK RIVER YOUTH HOCKEY
ASSOCIATION (hereinafter referred to as the “Tenant”).
The Landlord and Tenant hereby agree as follows:
ARTICLE 1 – LEASED PREMISES
Subject to the terms, covenants and conditions of this Lease, Landlord does hereby lease
and let unto Tenant, and Tenant does hereby lease and take from Landlord, in the building
(“Building”) owned by Landlord located at 1000 School Street, Elk River, MN 55330, that space
identified on Exhibit A attached hereto and incorporated herein, (hereinafter referred to as the
“Leased Premises”). Tenant agrees to take and does take the Leased Premises in its “as is”
condition. The Building and the Property are known as and hereinafter jointly referred to as the
“Community Center”.
ARTICLE 2 – TERM OF LEASE
A. The term of this Lease shall be for 24 months (hereafter referred to as the “Initial
Term”) upon the rentals and subject to the conditions set forth in this Lease, including Exhibit A
attached hereto.
B. Landlord shall have the right to terminate this Lease for any reason upon 30 days’
written notice to Tenant. The notice to terminate shall state the date upon which the Lease is
terminated and the Leased Premises must be vacated. Tenant shall vacate the Leased Premises on
or before that date. Failure by Tenant to vacate the Leased Premises on or before the termination
date shall entitle Landlord to enter the Leased Premises, remove all property of Tenant and cause
the Leased Premises to be put into the condition and state of repair required by this Lease. Tenant,
on demand, shall pay the Landlord’s costs thereof.
ARTICLE 3 - USE
A. The Leased Premises shall be used by the Tenant solely for the purposes set forth
on Exhibit A hereto and for no other purpose without the prior written consent of the Landlord.
B. The Leased Premises shall not be used in violation of any applicable federal, state,
or local law, ordinance, rule, or regulation, and Tenant shall comply with the same at its sole cost
and expense.
C. Notwithstanding anything to the contrary herein, Tenant shall have the reasonable
non-exclusive right to use the Common Areas (as hereinafter defined) of the Property and the
Building with the Landlord, its employees, agents and invitees, as may from time to time exist,
including but not limited to the parking facilities, sidewalks, driveways, access ways, common
hallways, walkways, landscaped areas and public restrooms (“Common Areas”) and the Landlord
shall have the full control, management and direction of the Common Areas. The Landlord
reserves the right at any time and from time to time to reduce, increase, enclose or otherwise
change the size, location, layout and nature of the Common Areas.
D. Tenant covenants and agrees that Tenant shall not handle, use, store or dispose of
any flammables, explosives, hazardous or toxic wastes or materials (as may be defined by Federal
or State Law), on or about the Leased Premises or the Property, without Landlord’s prior written
consent (which consent may be withheld or denied for any or no reason).
E. Tenant shall not perform any act or carry on any practice that may damage the
Leased Premises or any other part of the Property.
F. Tenant shall keep the Leased Premises safe, clean and in as good condition and
repair as they were in at the time Tenant took possession of same, reasonable wear and tear
excepted.
G. Tenant agrees that it and its guests, employees, contractors, invitees and all others
connected with the Tenant’s operations at the Leased Premises shall abide by all reasonable rules
and regulations from time to time established by the Landlord by written notice to the Tenant with
respect to the Community Center and/or the Common Area portions thereof.
H. Tenant shall keep all trash, refuse, and the like in covered metal or plastic cans,
which cans shall be kept within the Leased Premises at all times, unless an exterior storage area is
specifically designated for Tenant’s use by Landlord in which event the Tenant shall deposit all
trash, refuse and the like in the exterior storage area.
I. Tenant shall ensure that the Leased Premises are secure at all times.
J. If Tenant shall fail to keep and preserve the Leased Premises in the state of
condition required by the provisions of this Lease, Landlord may at its option put or cause the
same to be put into the condition and state of repair agreed upon, and in such case the Tenant, on
demand, shall pay the cost thereof.
ARTICLE 4 – RENT
Tenant agrees to pay to Landlord as rent (hereinafter called “Rent”) for the Leased Premises
the amounts shown on Exhibit A attached hereto.
ARTICLE 5 - NON-LIABILITY OF LANDLORD
Except in the event of gross negligence or willful misconduct of Landlord, its agents,
employees or contractors, Landlord shall not be liable for any loss or damage for failure to furnish
heat, air conditioning, electricity, water, sprinkler system, sewer or gas service. Landlord shall not
be liable for personal injury, death or any damage from any cause about the Leased Premises or
the Community Center except if caused by Landlord’s gross negligence or willful misconduct.
ARTICLE 6 - INSPECTION
The Landlord, its employees or agents shall have the right without any diminution of rent
or other charges payable hereunder by Tenant to enter the Leased Premises at all reasonable times
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for the purpose of inspection, cleaning, repairing, testing, altering or improving the same or said
Community Center, but nothing contained in this Article shall be construed so as to impose any
obligation on the Landlord to make any repairs, alterations or improvements. Access by Landlord
to the Leased Premises shall be preceded by 24 hours written or verbal notice by Landlord to
Tenant, except in the event of an emergency.
ARTICLE 7 –ALTERATIONS
Tenant will not make any alterations, repairs, additions or improvements in or to the Leased
Premises or add, disturb or in any way change any locks, plumbing or wiring therein without the
prior written consent of the Landlord.
ARTICLE 8 - ASSIGNMENT AND SUBLETTING
Tenant agrees that Tenant does not have the right to assign, sublet, license or encumber
this Lease, the Leased Premises, or any part thereof, whether by voluntary act, operation of law,
or otherwise, without the specific prior written consent of Landlord in each instance.
ARTICLE 9 - LOSS BY CASUALTY
If the Community Center is damaged or destroyed by fire or other casualty, Landlord or
Tenant shall have the right to terminate this Lease, provided it gives written notice thereof to the
other party within ninety (90) days after such damage or destruction.
ARTICLE 10 - WAIVER OF SUBROGATION
Landlord and Tenant hereby release the other from any and all liability or responsibility to
the other or anyone claiming through or under them by way of subrogation or otherwise for any
loss or damage to property caused by fire or any of the extended coverage or supplementary
contract casualties, even if such fire or other casualty shall have been caused by the fault or
negligence of the other party, or anyone for whom such party may be responsible; provided
however, that this release shall be applicable and in force and effect only with respect to loss or
damage occurring during such times as the releasing party’s policies shall contain a clause or
endorsement to the effect that any such release would not adversely affect or impair said policies
or prejudice the right of the releasing party to recover thereunder. Landlord and Tenant agree that
they will request their insurance carriers to include in their policies such a clause or endorsement.
If extra cost shall be charged therefor, each party shall advise the other of the amount of the extra
cost, and the other party, at its election, may pay the same, but shall not be obligated to do so.
ARTICLE 11 - SURRENDER
On the last day of the Term of this Lease or on the sooner termination thereof in accordance
with the terms hereof, Tenant shall peaceably surrender the Leased Premises in good condition
and repair.
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ARTICLE 12 - HOLDING OVER
Tenant will, at the expiration of this Lease, whether by lapse of time or termination, give
up immediate possession to Landlord. If Tenant fails to give up possession the Landlord may
pursue all remedies available to it for recovering possession of Leased Premises.
ARTICLE 13 - INDEMNITY, INSURANCE AND SECURITY
A. Tenant will keep in force at its own expense for so long as this Lease remains in
effect public liability insurance with respect to the Leased Premises in which Landlord shall be
named as an additional insured, in companies and in form acceptable to Landlord with a minimum
combined limit of liability of Three Million Dollars ($3,000,000). Said insurance shall also
provide for contractual liability coverage by endorsement. Tenant will further deposit with
Landlord the policy or policies of such insurance or certificates thereof, or other acceptable
evidence that such insurance is in effect, which evidence shall provide that Landlord shall be
notified in writing thirty (30) days prior to cancellation, material change, or failure to renew the
insurance. Tenant further covenants and agrees to indemnify and hold Landlord and Landlord’s
manager of the Community Center harmless for any claim, loss or damage, suffered by Landlord,
Landlord’s manager or Landlord’s other tenants caused by any act or omission by Tenant or
Tenant’s members; or Tenant’s failure to comply with any and all governmental laws, rules,
ordinances or regulations applicable to the use of the Leased Premises and its occupancy.
B. Tenant shall be responsible for the security and safeguarding of the Leased
Premises and all property kept, stored or maintained in the Leased Premises. Tenant shall maintain
in force throughout the Term, insurance upon all contents of the Leased Premises, including that
owned by others and Tenant’s equipment and any alterations, additions, fixtures, or improvements
in the Leased Premises acknowledged by Landlord to be the Tenant’s.
C. Landlord shall carry and cause to be in full force and effect a fire and extended
coverage insurance policy on the Community Center, but not any contents owned, leased or
otherwise in possession of Tenant.
ARTICLE 14 - NOTICES
All notices from Tenant to Landlord required or permitted by any provisions of this Lease
shall be directed to Landlord postage prepaid, certified or registered mail, at 13065 Orono
Parkway, Elk River, MN 55330.
All notices from Landlord to Tenant required or permitted by any provision of this Lease
shall be directed to Tenant, postage prepaid, certified or registered mail, at the Leased Premises
and at:
____________________________
____________________________
____________________________
ARTICLE 15 - APPLICABLE LAW
This Lease shall be construed under the laws of the State of Minnesota.
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IN WITNESS WHEREOF, this Lease has been duly executed by the parties hereto as of
the day and year indicated above.
LANDLORD:
CITY OF ELK RIVER
By:
John J. Dietz, Its Mayor
And:
Tina Allard, City Clerk
TENANT:
ELK RIVER YOUTH HOCKEY ASSOCIATION
By:
Name: _______________________
Its: _______________________
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EXHIBIT A
Leased Areas and Rent:
OFFICE:
ERYHA will have exclusive use of the office area located in the West Locker Room (Room #126,
209 SQ/FT), Regular Rate $22/SQ/FT/$4598/Yr. - $383/Mo. ERYHA RATE: 50% DISCOUNT
$2299/Yr. - $192/Mo.
STORAGE (A):
ERYHA will have exclusive use of the Storage Room in the East Locker Room Hallway, adjacent
to the Coaches Room (Room #148, 271/SQ/FT) Regular Rate $15/SQ/FT/$4065/Yr. - $399/Mo.
ERYHA RATE: 50% DISCOUNT $2033/Yr. - $169/Mo.
STORAGE (B):
ERYHA will have exclusive use of the Storage Room in the East Locker Room Hallway, across
from Girl’s HS Locker Room (Room #NA, 238 SQ/FT) Regular Rate $15/SQ/FT/$3750/Yr. -
$298/Mo.
TRAINING AREA:
ERYHA will have exclusive use of the Training Area in Rear of Fieldhouse (1800 SQ/FT) 90′x20′.
$10/SQ/FT/$18,000/Yr. - $1500/Mo.
A-1