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10.1 SR 06-17-2024City of Elk - River To City Council Meeting Date June 17, 2024 Item Description FT Center Room Rental, Turf, and Ice Rates Request for Action Item Number 10.1 Prepared By Joe Stremcha, Business Services Director/Assistant City Administrator Reviewed by Joe Stremcha Cal Portner Tina Allard Action Requested Discuss fundamental changes in the FT Center rate structure. Background/Discussion The current rate structure has numerous rates based on time of day, resident/nonresident, thresholds regarding when or if discounts apply, etc. Staff will present the current rates and discuss an alternative methodology for establishing rates going forward. Financial Impact The FT Centers rates impact the overall budget revenues. Mission/Policy/Goal Elk River Mission Attachments 1. Ft Center Rates Presentation The Elk River Vision A avelcoming community with revolutionary and spirited resourcefulness, exceptional service, and community p p W E H E 0 B R engagement that encourages and inspires prosperity 372 FT Center 2025 Rates Ice, 'Turf, and Room Rentals raye 353 of 372 USER GROUPS 2023 # of Prime Hours Sold. # of Non -Prime Hours Sold Total Hours FYE Revenue ERYHA 1757.53 102.17 1859.7 $427,733 Two Brothers 66 441 507 $88,700 Figure Skating Club 174.1 168.75 342.85 $67,837 ERRS Practice 238 12.5 250.5 $57,800 S uatch 75 152.12 227.12 $39,528 Other 181.38 237.75 419.13 $81,165 Total 2492.011 1114.29 3606.3 $762,762 Page 354 of 372 ICE 2024 Current Rates Prime $250 Non -Prune $195 School Hours $140 2025 Prop-osed Rates Prime $260 80% of Prime $208 50% of Prune $130 Discount Based on FYE 2023 Hours Percentage Rate Percentage Rate Percentage Rate 500+ 95% $247 75% $156 100% $130 400+ 96% $250 80% $166 100% $130 300+ 97% 1252 85% $177 100% $130 200+ 98% 1 $25 1 90% $187 100% $130 100+ 99% $257 95% 1 $198 100% $130 1+ 100% $260 100% 1 $208 100% $130 "p- 4 Page 355 of 372 ICE USER GROUPS Prime Rate 2024-2025 Non Prime/School Hour Rate. Estimated Revenue Non -Prime Prime cost cost Based on 2023 Total cost Hours Sold Difference Percent change g ERYHA $247 $156 $434,110 $15,939 $450,048 $22,316 5.22% Two Brothers $247 $156 $16,302 $68,7961 $85,098 -$3,602 -4.06% Figure Skating Club $252 $177 $43,908 $29,835 $73,743 $5,906 8.71% ERHS Practice $257 $198 $61,261 $2,470 $63,731 $5,931 10.26% S uatch $257 $130 $19,305 $19,776 $39,081 -$447 -1.13% Other 1 $260 $208 $47,159 $49,452 $96,611 $15,446 19.030l0 Total N/A N/A $622 045 $186,267 $808,312.05 1$45,549.4415.97°l0 Contract Renewal Year Effective 2024-25 Effective 2026-27 Effective 2024-25 Effective 2024-25 1ffective 2026-27 Effective 2024-25 Page 356 of 372 TURF 2023 USER GROUPS # of Prime # of Non -Prime gYE Avg. Hours Sold Hours Sold Total Hours Revenue Cost/Hour November - April Ma%- - October Elk River Youth Softball Association 116 0 116 $17,600 $151.72 Rogers Otsego Softball Association 84 0 84 $8,693 $103.48 Rogers Otsego Youth Baseball Association 76 0 76 $10,236 $134.68 Stephanie Powers 10.5 38.5 49 $5,659 $115.49 Vitali Cirlan 7.5 33.5 41 $3,883 $94.70 Elk River Youth Lacrosse Association 34.5 0 34.5 $5,793 $167.90 Elk River High School 27 6 33 $3,160 $95.76 Elk River High School Boys Lacrosse Booster Club 31.5 0 31.5 $4,770 $151.43 Elk River Youth Baseball Association 35 0 31 $4,576 $147.62 Rogers/Otsego Lacrosse 31 0 31 $6,046 $195.03 Other (1-30 Hour User Groups) 463 181 626 $59,214 $94.59 Total 916 259 1153 $129,629 $112.43 f� Page 357 of 372 TURF 2024 Rates FULL Resident Weekday $105 Weekday $145 Weekends $175 Days Nights 2024 Rates FULL Non -Resident Weekday $120 Weekday $166 Weekends $201 Days Nights 2024 Rates HALF Resident Weekday $60 Weekday $85 Weekends $100 Days Nights 2024 Rates HALF Non -Resident Weekday .,, $75 Weekday $93 Weekends $114 Non -Prime 2025 Rates FULL Prime $195 Days $117 Nights/Weekends 60% of Prime Prime Non -Prime 2025 Rates HALF Nights/Weekends $117 Days $78 60% of Prime 40% of Prime Eliminate Resident/Non-Resident Rates: **Facility was constructed with Local Option Sales Tax (LOST) revenue (60% non-resident funding) rather than a property tax levy. There is no governmental fund transfer supporting a Resident/Non-Resident rate differential subsidy. **No bulk buy discounts given the number of hours purchased by top 10 users. 5 Page 358 of 372 TURF 2024 CURRENT RATES __ INL�Y-OCTOBER 2024 Rates FULL Resident Weekday $55 Weekday $75 Weekends $90 Dar=s Nights 2024 Rates FULL Non -Resident Weekday $63 Weekday $85 Weekends $103 Days Nights 2024 Rates HALF Resident Weekday $30 Weekday $45 Weekends $50 Dares Nights Weekday Weekday 2024 Rates HALF Non -Resident $34 $40 Weekends $57 Days Nights Non -Prime 2025 Rates FULL Prime $100 Days $60 Nights/Weekends 60% of Prime Prime Non -Prime 2025 Rates HALF Nights/Weekends $60 Days $40 60% of Prime 40% of Prime Eliminate Resident/Non-Resident Rates: **Facility was constructed with Local Option Sales Tax (LOST) revenue (60% non-resident funding) rather than a property tax levy. There is no governmental fund transfer supporting a Resident/Non-Resident rate differential subsidy. **No bulk buy discounts given the number of hours purchased by top 10 users. TURF 2023 hours/2022-23 and 2023-24 Race Revenue # of Non- Non- USER GROUPS # of Prime FYE Non -Prime Percent Prime/Shool Total Hours Prime Rate Prime/School Prime cost Total cost Difference Hours Sold Revenue cost change Hours Sold Hour Rate Elk River Youth Softball 116 0 116 $17,6001 Association Rogers Otsego Softball 84 0 84 $8,693 Association Rogers Otsego Youth Baseball 76 0 76 $10,23G Association _ Insufficient data for projections: Ste 2hanie Powers 10.5 38.5 49 $5 659 Vitali Cirlan 7.5 33.5 41 $3 883 "`*Too many user groups (104 groups) Ells River Youth Lacrosse 34.5 0 34.5 $5,793 **Purchases are low volumes (1 hour to 116 hours) Association **24 different rates based on resident/non-resident, time of day, and season Elk River High School 27 6 33 $3.160 Elk River High School Boys 31.5 0 31.5 $4,770 Lacrosse Booster Club Elk River Youth Baseball 35 0 31 $4,576 Association Rogers/Otsego Lacrosse 31 0 31 $6 046 Other 1-30 Hour User Groups) 4631 1811 626 $59,214 Total 9161 2591 1153 $129,629 Page 360 of 372 ROOMS USER GROUPS 2023 hours/2022-23 and 2023-24 Rate Revenue # of Resident Hours Sold # of Non- Resident Hours Sold Total Hours gyE Revenue Average $/Hour Part' Room 1 \\, 23.25 19.25 42.5 $2,279 $53.62 Parrs Room 2 (E 8.5 16.5 25 $1,382 $55.28 Meeting Room 1 (N) 50 59.25 109.25 $7,088 $64.88 Meeting Room 2 (S) 57.5 58.5 116 $7,487 $64.54 Flex S _ ace 10.5 19.25 29.75 $3,004 $100.97 Senior Center 7 6 13 $7231 $55.63 Upper Lobb 31 0 31 $3,760 $121.29 Totall 187.75 178.75 366.5 $25,723 $70.18 ROOMS 2024 CURRENT RATES ROOM SQ FT Resident Non -Resident Average Avg. Price/ SQ FT Party Room I M 532 $50 $58 $54 $0.10 Party Room 2 (E) 532 $50 $58 $54 $0.10 Meeting Room 1 ff) 945 $60 $69 $65 $0.07 Meeting Room 2 (SI 1051 $60 $69 $65 $0.06 Flex Space 1690 $100 $115 $108 $0.06 Senior Center 2641 Varies Varies Varies Varies Upper Lobby 3410 Varies Varies did Varies Varies Deposit, 2 hour minimum, charges for 15 minute increments there after). *Subject to time of day (8 rates) Page 362 of 372 ROOMS RATES ROOM I SQ FT I Cost/SQFT Part.,, Room 1 ViT 532 $0.100 Party Room 2 E 532 $0.100 Meeting Room 1 945 $0.075 Meeting Room 2 S 1051 $0.075 Flex Space 1690 $0.065 Senior Center 2641 $0.023 Upper Lobby 34101 $0.037 Rental Eliminate Resident/Non-Resident Rates: Rate/Hour Facility was constructed with Local Option Sales Tax (LOST) revenue (60% non-resident funding) rather than a $53 property tax levy. There is no governmental fund transfer $53 $71 supporting a Resident/Non-Resident rate differential .1. subsidy. ROOMS USER GROUPS 2023 hours/2022-23 and 2023-24 Rate Revenue WOMMEM � � Difference Percent change # of Resident Hours Sold # ofNon- Resident Hours Sold Total Hours FYE Revenue Rental Rate/Hoax Estimated Revenue ParrN Room 1 C 23.25 19.25 42.5 $2,279, $53 $2,261 -$18 -0.79% Party Room 2 (E) 8.5 16.5 25 $1,382 $53 $1,330 -$52 -3.76% Meeting Room 1 (1) 50 59.25 109.25 $7,088 $71 $7,743 $655 9.24% Meeting Room 2 (S) 57.5 58.5 116 $7,487 $79 $9 144 $1,657 22.14% Flex Space 10.5 19.25 29.75 $3,004 $110 $3,268 $264 8.80% Senior Center 7 6 13 $723 $60 $780 $57 7.85% Upper Lobb% 31 01 31 $1251 $3875 $115 3.06% Total $187.75 $178.75 $366.50 2$3,760 $,722.75 N/A $284 $2,6781 10.41% Page 364 of 372 TOTAL I M PAC T FT CENTER 2025 RATE PR.OjECTIONS Area 2024 Revenue 2025 Revenue Difference Percentage Ice $7621762.61 $808,312.05 $451549.44 5.97% Turf $1291628.75 $129,628.75 Unknown Unknown Rooms $25,722.75 $28,422.18 $2,699.43 10.49% Total $918,114.11 $966,362.98:$48,248.87 5.26%