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4.7a SR 04-17-2023Request for Action To Item Number Mayor and Council 4.7a Agenda Section Meeting Date Prepared by Consent April 17, 2023 Tim Dalton, FT Center Superintendent Item Description Reviewed by Furniture and Things Community Event Center Cal Portner, City Administrator Ice and Facility Use Agreements: Minnesota Reviewed by Squatch Action Requested Approve, by motion, a three-year ice purchase and facility use agreement with the MN Squatch Junior A hockey team to utilize FT Center as their home venue. Background/Discussion The MN Squatch Tier III Junior A hockey team utilized the FT Center 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) They will continue to use locker room #12 as their resident team locker room and will continue to utilize office space for team coaches and staff. They expect to play 22-25 home games annually and practice weekdays while school is in session, for 100 minutes each day. Home games are generally Friday or Saturday evenings. The team manages 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 developed the proposed 3- year contract. The Multipurpose Facility Advisory Commission reviewed and approved this contract on April 10, 2023. MN Squatch Team Website: https://www.mnsquatch.com/ For comparison, revenue from the 2022-2023 MN Squatch season generated $37,888 in ice revenue, $3,000 in office/locker room rental, and $1300 in catering commissions for a total revenue of $42,188. Financial Impact Continuing the relationship with the MN Squatch will allow the FT Center to reach its financial goals, while utilizing underused time and space. Mission/Policy/Goal Creating an opportunity to foster pride in our community. Attachments  Agreement The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. 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 (FT Center) located at 1000 School Street, Elk River, MN 55330 for the period of September 1, 2023, through August 31, 2026. 1. SCHEDULE OF TIME: a. 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 representatives. 2. RATES: a. USER agrees to pay the following rates for FT Center usage: SEASON ONE 2023-2024 September 1, 2023, through August 31, 2024 $ 240.00 Prime hourly ice rate (Game Ice) $ 140.00 Weekday daytime hourly rate (Practice ice) $ 190.00 Off-peak hourly ice rate $ 75.00 Per game fee Meeting Room Rental three events at no cost (1 hour duration) Any additional events billed at $60/hr. Field house Use 20 sessions at no charge (30 min. Sessions) Any additional sessions billed at $30/half hour Estimated Contract Costs (9/1/2023 - 8/31/2024) Practice Ice (151 Hours) $ 21,140 Game Ice Costs (22 Games) 3hr./game (66) $ 15,840 Game Fee Costs (22 Games) $ 1,650 Office/Locker Room Lease $ 3,200 TOTAL $ 41,830 SEASON TWO 2024-2025 September 1, 2024, through August 31, 2025 $ 245.00 Prime hourly ice rate (Game Ice) $ 145.00 Weekday daytime hourly rate (Practice ice) $ 195.00 Off-peak hourly ice rate $ 80.00 Per game fee $ 3,400.00 Annual team room/office rent Meeting Room Rental three events at no cost (1 hour duration) Any additional events billed at $60/hr. Field house Use 20 sessions at no charge (30 min. Sessions) Any additional sessions billed at $30/half hour Estimated Contract Costs (9/1/2024 - 8/31/2025) Practice Ice (151 Hours) $ 21,750 Game Ice Costs (22 Games) 3hr./game (66) $ 16,170 Game Fee Costs (22 Games) $ 1,760 Office/Locker Room Lease $ 3,400 TOTAL $ 43,080 SEASON THREE 2025-2026 September 1, 2025, through August 31, 2026 $ 250.00 Prime hourly ice rate (Game Ice) $ 150.00 Weekday daytime hourly rate (Practice ice) $ 200.00 Off-peak hourly ice rate $ 85.00 Per game fee Meeting Room Rental three events at no cost (1 hour duration) Any additional events billed at $60/hr. Field house Use 20 sessions at no charge (30 min. Sessions) Any additional sessions billed at $30/half hour Estimated Contract Costs (9/1/2025 - 8/31/2026) Practice Ice (151 Hours) $ 22,650 Game Ice Costs (22 Games) 3hr./game (66) $ 16,500 Game Fee Costs (22 Games) $ 1,870 Office/Locker Room Lease $ 3,600 TOTAL $ 44,620 2 3. PRIME HOURS: Prime and Off-Peak hours are described as follows: a. Prime Hours: i. After 2:00pm Monday through Friday, September 1-March 15. ii. All hours on Saturday and Sunday and non-school days, September 1- March 15. b. Off-Peak Hours: i. All hours March 16 through August 31. ii. 5:00am-1:59pm on school days. 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), (when possible, two drivers during games) 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. PROVIDER agrees to have game ice available 30 minutes prior to the start of a game, i.e. ice available at 6:45 pm for a 7:15 pm start time. 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 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. 3 b.PROVIDERagrees 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 FT Center 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. PROVIDER agrees to be the sole venue and will not enter into another Junior hockey contract with any other Junior Tier I, II, or III, hockey team, during the term of this agreement. 7. FT CENTER ACCESS: a. Keys and/or electronic access cards to the FT Center and/or locker rooms are the exclusive property of the PROVIDER and will be issued as deemed necessary by the FTCenter management to USE 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 aches or personnel. 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 FT Center field house and meeting rooms for team activities at the standard rental rates as determined by the PROVIDER. A member of the must be present during any facility use. support staff shall have use of appropriate space, as determined by the PROVIDER. The USER shall pay for any addition use of FT Center facilities not delineated in this contract, at the standard rental rates as determined by the PROVIDER. 4 b.allowed to bring food and beveragesinto the facility for personal consumption, in the same manner that staff rd are permitted to do so. USER will have the option to contract with a 3 party vendor to supply supplemental game day food services, including alcohol, (Beer rd and Wine) for all home games. All 3 party food and alcohol vendors must be listed on the FT Center Approved Caterer List and receive prior written approval from the PROVIDER. The USER agrees that any food or concessions items rd offered by the 3 party vendor will not duplicate or conflict with items sold by the FT Center concession stand. The USER is responsible to ensure all local, state, and federal regulations, and rules pertaining to food and alcohol sales and service, rd are strictly adhered to. If USER contracts with a 3 party vendor to provide food services, vendor will pay PROVIDER the following percentage of the net revenue generated through food and liquor (Beer and Wine) sales: 7% 2023- 2024 Season, 8% 2024-2025 Season, and 9% 2025-2026 Season. Net revenues shall be defined as the , rebates, credits, or returns. c. All USER uses of FT Center facilities must be scheduled with the PROVIDER in advance and are subject to availability. PROVIDER has discretion to assign use of rooms or modify room assignments to accommodate other priority or paid users. USER agrees to keep the facilities in a clean and orderly condition and in at least as good a condition as existed prior use by the USER. USER agrees to pay for all actual costs of cleanup as determined by the PROVIDER if the PROVIDER determines the use by the USER required additional cleaning service. 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. USER may cancel this agreement for the following: 1. Sale of the franchise to a non-related person or entity that results in a team relocation. 2. USER deems the MN Squatch franchise is no longer a viable business and ceases operation as a USPHL hockey team. 11. SCHEDULING: 5 a.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 control. In the event of such an occurrence, PROVIDER will attempt to return of any fees paid. PROVIDER will not cancel or reschedule any game scheduled ice time without consultation with the MN Squatch. 12. 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. 13. OPTION TO RENEW: a. PROVIDER will grant USER the exclusive option to renew for an additional term of up to three additional years with 90 by USER to PROVIDER. 14. 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. 15. SIGNAGE: a. USER recognizes it does not have rights to post signs without the express written consent of PROVIDER. Any signs so consented to 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. 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. PROVIDER will allow placement of a team logo to be displayed in the front lobby area. 16. LIABILITY: 6 a.USERacknowledges 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 rmance 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. 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 17. 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 7 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 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: 8