ICESR INFORMATION 1 04-05-2005ELK RIVER ARENA
1000 SCHOOL STREET N.W.
ELK RIVER, MN 55330
(763) 635 - 1141
Fax (7C3) 635 - 1144
rczech!~r?ci.elk-river.mn.us
To: Dave Hansen, Elk River Youth Hockey President
From: Rich Czech, Arena Manager
Date: March 24, 2005
Subject: Arena Concession Stand
In October of 2004, you had sent a memo to Pat Klaers, Elk River City Administrator,
regarding several issues regarding the Arena and the referendum that was voted down this
past fall. I would like to this time to address one of these items, the concession stand.
As you are aware of, Elk River Youth Hockey and the City of Elk River has an
unwritten agreement concerning the Arena Concession Stand. A Contract was never
signed, however both parties have abided by the principals of the contract.
The agreement was arranged during the negotiations when Elk River Youth Hockey
approached the City to build another sheet of ice next to the Barn. Part of the agreement
was that the City of Elk River would take over the operations of the Arena and Elk River
Youth Hockey would lease the concession stand from the city. To off set the Arena's
deficit each year, youth hockey agreed to a lease payment of $21,000 a year, which has
now been capped at $21,500 for the last few seasons. You proposed in your memo that
the lease payment should be reduced to $5,000.00 yearly to fall in line with other
surrounding Arenas.
The $21,500 is not just a lease for the concession stand; it was Elk River Youth Hockey's
commitment to the city when the city added a second sheet of ice and took over the
operations of the Arena. There are several Youth Hockey Associations that have made
similarly arrangements with their city to either add another sheet of ice to an existing one
or build their first sheet of ice. Some are contributing as much as $50,000 a year without
any compensation, while others not only contribute a lump sum, they have a user fee
attached to each player that is in their association.
The Arena is in the red between $30,000 - $50,000 a year, which does not include capital
improvement items such as the Barn's rink floor this year, which is close to $400,00.00.
Over the years there have been several other capital improvement items that the city has
purchased, Heaters and P.A. system for the Olympic rink, Dehumidifier for the Olympic
rink, Electric Zamboni, Bleachers for the Barn, a third of the cost for Bleachers for the
Olympic rink, new rubber matting throughout the building, a new condenser for the
Olympic ice plant, and this year a water softener for the Arena. There are also been many
updates to the Arena that have been completed over the years, and there are many others
which will be done in the future.
Until the Arena is paid for, the Arena cannot afford to reduce the lease payment for the
concession stand. If Elk River Youth Hockey is not interested in operating the
concession stand, the Arena is prepared to take over the operations of the concession
stand. If youth hockey decides to keep the concession stand, it needs to be opened at
peak times. There has been several times this season when the concession stand has been
closed or under staffed for varsity games. When the concession stand is closed, it not
only loses revenue for Elk River Youth Hockey; it reflects poorly on the Arena.
In order to start implementing the concession stand into the Arena's operations for next
season, I'm asking that you respond with your decision by July 151