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8.1 sr 02-13-2023 Request for Action To Item Number Multi-Purpose Facility Advisory Commission 8.1 Agenda Section Meeting Date Prepared by Action February 13, 2023 Tim Dalton, FTCENTER Superintendent Item Description Reviewed by Three-year Agreement (2023-26) with the Minnesota Squatch Junior A hockey team for Reviewed by ice and facility use at the FTCENTER. Action Requested Approve by motion, a three-year ice purchase and facility use agreement with the MN Squatch Junior A hockey team to utilize FTCENTER as their home venue. Background/Discussion The MN Squatch Tier III Junior A hockey team has utilized the FTCNTER as their home practice and game venue for the 2022-23 season. The team wishes to extend this relationship for the next three seasons (23-24, 24- 25, 25-26) The team will continue to utilize locker room #12 as their resident team locker room. The team will also continue to utilize office space for team coaches and staff. The team plans to play approximately 22-25 home games annually. Team practices are during the weekdays while school is in session, utilizing 100 minutes for practice each day. Home games are generally Friday or Saturday evenings. The team will manage all game functions, ticket sales, admission, spectator control, announcers, minor officials, referees, scoreboard and video presentation services, game food and liquor services, etc. Staff has enjoyed working with the Squatch and appreciates the Squatch as a valuable addition to our facility and community. Staff has developed the proposed three-year contract presented. MN Squatch Team Website: https://www.mnsquatch.com/ Financial Impact For reference 22-23 Total Revenue: $39,995. 23-24 Prime ice hours (games) 66 hr. @ $245/hour- $16,170. Weekday ice hours (practice) 151 hr. @ $145/hour- $21,895. Total value of Ice sold: $ 38,065. Other Revenue: Annual Team Room/Office Rent $3,200 and Game Service Fees $1,650. 23-24 Total Expected Revenue: $42,915 24-25 Prime ice hours (games) 66 hr. @ $255/hour- $16,830. Weekday ice hours (practice) 151 hr. @ $155/hour- $23,405. Total value of Ice sold: $ 40,235. Other Revenue: Annual Team Room/Office Rent $3,400 and Game Service Fees $2,200. 24-25 Total Expected Revenue: $45,835 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. 25-26 Prime ice hours (games) 66 hr. @ $265/hour- $17,490. Weekday ice hours (practice) 151 hr. @ $165/hour- $24,915. Total value of Ice sold: $ 42,405. Other Revenue: Annual Team Room/Office Rent $3,600 and Game Service Fees $2,750. 25-26 Total Expected Revenue: $48,755 Three-year Agreement Aggregate Revenue: $137,505 Four-year Relationship Aggregate Revenue: $177,500 Mission/Policy/Goal Utilize the FTCENTER as a regional event center by housing a Tier III Junior A hockey team for practices, games, and other team events. Optimizing use of the FTCENTER by entering long term agreement for ongoing ice sales, the majority during off-peak hours. Attachments 8.1 at1 MN Squatch Contract 23-24 24-25 25-26 3-yr.2 N:\\Departments\\Parks and Recreation\\Multi Purpose Facility\\Advisory Commission\\2023\\02-13-2023\\8.1 sr SQUATCH Contract 2023-26 Three year.docx Furniture and Things Community Event Center Contract Minnesota Squatch 2023-2026 (Three Year) This ice facility use agreement (Agreement) is made and entered into this ___ day of ____________, 2023 between the City of Elk River, a Minnesota municipal corporation, herein after referred to as (PROVIDER) and the Minnesota Squatch, a member of the United States Premier Hockey League (USPHL), 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 September 1, 2023, through August 31, 2026. 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 2. RATES: USER agrees to pay the following rates for FTCenter usage: SEASON ONE 2023-2024 September 1, 2023, through August 31, 2024 $ 245.00 Prime hourly ice rate (Game Ice) $ 145.00 Weekday daytime hourly rate (Practice ice) $ 190.00 Off-peak hourly ice rate $ 75.00 Per game fee $ 3,200.00 Annual team room/office rent Estimated Contract Costs (9/1/2023 - 8/31/2024) Practice Ice (151 Hours) $ 21,895 Game Ice Costs (22 Games) (66 Hours) $ 16,170 Game Fee Costs (22 Games) $ 1,650 Office/Locker Room Lease $ 3,200 TOTAL $ 42,915 SEASON TWO 2024-2025 September 1, 2024, through August 31, 2025 $ 255.00 Prime hourly ice rate (Game Ice) $ 155.00 Weekday daytime hourly rate (Practice ice) $ 200.00 Off-peak hourly ice rate $ 100.00 Per game fee $ 3,400.00 Annual team room/office rent Estimated Contract Costs (9/1/2024 - 8/31/2025) Practice Ice (151 Hours) $ 23,405 Game Ice Costs (22 Games) (66 Hours) $ 16,830 Game Fee Costs (22 Games) $ 2,200 Office/Locker Room Lease $ 3,400 TOTAL $ 45,835 SEASON THREE 2025-2026 September 1, 2025, through August 31, 2026 $ 265.00 Prime hourly ice rate (Game Ice) $ 165.00 Weekday daytime hourly rate (Practice ice) $ 210.00 Off-peak hourly ice rate $ 125.00 Per game fee $ 3,600.00 Annual team room/office rent Estimated Contract Costs (9/1/2025 - 8/31/2026) Practice Ice (151 Hours) $ 24,915 Game Ice Costs (22 Games) (66 Hours) $ 17,490 Game Fee Costs (22 Games) $ 2,750 Office/Locker Room Lease $ 3,600 TOTAL $ 48,755 3. PRIME HOURS: Prime and Off-Peak hours are described as follows: a. Prime Hours: i. After 2:00pm Monday thru Friday, September 1-March 31. ii. All hours on Saturday and Sunday and non-school days, September 1- March 31. b. Off-Peak Hours: i. All hours April 1 through August 31. ii. 5:00am-1:59pm on school days. 2 4. SERVICES: a. PROVIDER agrees to provide a usable ice surface, secure and clean locker facilities, parking facilities, and on the day of games, 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 security staff. All USER staffing of games to be reviewed and approved by the PROVIDER. 5. TEAM ROOM, OFFICE SPACE, AND SALES OF MERCHANDISE: a. USER will be allowed to utilize Locker Room #12 as its resident team room until such time that another option may become available. Team Room location is delineated on Exhibit 1. In exchange for exclusive use of the assigned locker room, USER agrees to keep the locker rooms in a clean, safe, and sanitary condition, free of debris, unsightly conditions, and unreasonable odor. PROVIDER shall clean the locker rooms and bathrooms on a regular schedule as determined by PROVIDER. PROVIDER will furnish bathroom tissue and paper towels. PROVIDER and USER will conduct a locker room inspection before and after each hockey season to evaluate locker room physical conditions. PROVIDER shall have the right to use the locker room outside of the hockey season with said events to be be coordinated with USER. USER will be responsible for all labor and costs associated with the installation of any improvements or attachments, including player locker stalls in Locker Room #12. USER shall not install any improvements or attachments without prior written approval. At the conclusion of the use of Locker Room #12 by the USER, the USER will be responsible for all costs and labor to facilitate a full and complete restoration of Locker Room # 12 to its original condition. b. PROVIDER agrees to identify and provide for use by the USER office space described on Exhibit 1, , and to provide for use by USER such additional space, as designated by PROVIDER merchandise. c. The USER shall be responsible for the complete repair of any damage to Locker Room #12, or any other locker room or other space within the FTCenter that is damaged while being utilized by the USER. 6. EXCLUSIVE VENUE: a. The USER agrees to hold all Minnesota Squatch branded practices, home games, training sessions, and any other in-season hockey activities at the FTCenter. 3 7. FTCenter ACCESS: a. Keys and/or electronic access cards to the FTCenter and/or locker rooms are the exclusive property of the PROVIDER and will be issued as deemed necessary by cards must be signed for at the beginning of each season and returned no later than two weeks after the last day of the season. Keys and/or electronic access cards may not be Duplication of keys and/or electronic access cards or other security breaches may be considered a breach of this Agreement and, in addition to other remedies, may result in restriction or loss of after-hours access privileges. If PROVIDER determines that a breach of security has resulted due to a violation of this paragraph PROVIDER may change the locks or change electronic access codes to the FTCenter at 8. USE OF FACILITIES: a. PROVIDER will allow USER reasonable access to and use of the FTCenter field house and meeting rooms for team activities at the standard rental rates as determined by the PROVIDER. A member of the staff must be present during any facility use. All use of the facilities must be scheduled with PROVIDER in advance and are subject to availability. USER agrees to keep facilities in a clean and orderly fashion use. USER agrees to pay for the actual costs of cleanup as determined by PROVIDER if the PROVIDER determines the use required additional cleaning service. b. into the facility for personal consumption, in the same manner that staff are permitted to do so. rd c. USER will have the option to hire a 3 party vendor to supply supplemental game rd day food services, including alcohol, (Beer and Wine) for all home games. All 3 party food and alcohol vendors must be listed on the FTCenter Approved Caterer List and receive prior written approval from the PROVIDER. The USER agrees rd that any food or concessions items offered by the 3 party vendor will not duplicate or conflict with items sold by the FTCenter concession stand. The USER is responsible to ensure all local, state, and federal regulations, and rules pertaining to food and alcohol sales and service, are strictly adhered to. Full and proper licensure of the vendor is the responsibility of the USER. IF USER rd contracts with a 3 party vendor to provide food services, vendor will pay PROVIDER 6.5% of the USER/vendors net revenue generated through food and 4 liquor (Beer and Wine) sales. N gross sales less taxes, refunds, rebates, credits, or returns. 9. PAYMENTS: a. PROVIDER shall bill USER on a monthly basis by submitting an itemized list of hourly practice, game ice, and room usage to the USER. Upon proper billing and documentation, 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. 10. CANCELLATIONS: a. 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 a return of any fees paid. 11. ASSIGNMENT: a. 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. 12. RULES AND REGULATIONS: a. 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. 13. SIGNAGE: a. USER recognizes it does not have rights to post 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. USER will be allowed placement of two ten foot by seven foot ( x ) on-ice team branded logos on the Cornerstone Automotive Arena ice surface. All costs for creation of the logo art, ice applique or template, and any costs for installation, will be the responsibility of the USER. 5 Any on ice applications shall conform to and be consistent with the sign usage policy of PROVIDER and be subject to PROVIDER review and approval. 14. LIABILITY: a. USER acknowledges that PROVIDER has not asserted or accepted any 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. b. 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 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. property and will invoice to reimburse PROVIDER for the cost of labor and replacement of like-kind and quality equipment. c. 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 is agreement. This paragraph shall not act as a waiver of any tort liability caps or legal immunities that may exist to protect the PROVIDER. d. 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 6 15. INSURANCE: a. 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 -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. b. 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. Dated: ______________________ USER: By: Its: Dated: _______________________ PROVIDER: CITY OF ELK RIVER By: By: 7