ICESR INFORMATION 2 04-05-2005AGREEMENT
ELK RIVER ICE ARENA COMPLEX
THIS AGREEMENT is made and entered into this day of February, 1998, by and
between the City of Elk River, a municipal corporation under the laws of the State of Minnesota
("City") and Elk River Youth Hockey Association, anon-profit corporation under the laws of the
State of Minnesota ("ERYHA").
RECITALS
1. The Elk River Ice Arena Complex (the Ice Arena Complex) is located at 1000 School
Street in the City of Elk River, on the property legally described on Exhibit A attached hereto.
2. The Ice Arena Complex originally consisted of a single sheet of ice and associated
space (the Original Ice Arena) constructed by ERYHA in 1971. The Original Ice Arena was
renovated and expanded by ERYHA in 1985. This renovation was financed by the City but paid for
by ERYHA.. ERYHA obtained more favorable financing terms by a transaction pursuant to which
ownership of the Original Ice Arena was transferred to the City in consideration of obtaining the
financing package and the Original Ice Arena was leased back to ERYHA under a lease dated
October 1, 1985. The October 1, 1985 lease included a provision pursuant to which ERYHA could
obtain ownership of the Original Ice Arena for $1.00 in consideration of ERYHA's retirement of the
debt issued by the City to finance the renovation. This debt was retired on November 1, 1995, by
ERYHA payments.
3. 'The City and ERYHA have cooperatively undertaken an effort to further expand and
improve the Ice Arena Complex. Pursuant to these efforts the City is :currently completing
construction of a second sheet of ice at the Ice Arena Complex, together with associated
improvements to the Original Ice Arena and the property on which the Ice Arena Complex is located.
The costs of these improvements are being financed from a variety of sources, including bonds issued
by the City, a state "Mighty Ducks" grant, and contributions from ERYHA and Independent School
District No. 728 ("ISD 728"). ERYHA's contributions include ERYHA's ownership interest in the
Original Ice Arena, presently valued at $1.4 million.
4. The financing for the expansion and improvements of the Ice Arena Complex requires
that:
a. The City hold clear title to the entire Ice Arena Complex;
b. The City manage and operate the Ice Arena Complex as a City facility;
c. The City establish sufficient cash flow to make the bond payments by entering
into long temp leases for space within the Ice Arena Complex and long term agreements with
major users, including ERYHA, for ice time rental.
BcckP 136759.2
d. ERYHA commits to purchase all of its ice time needs from the
Ice Arena Complex.
5. This Agreement is entered into for the purpose of establishing a contractual
relationship between the City and ERYHA with respect to the ownership and operation of
the Ice Arena Complex.
CAPITAL IlvIPROVEMENTS AND DEBT SERVICE
6. ERYHA will contribute Thirty Thousand Dollars ($30,000.00) to the City
which will be placed in a reserve fund for capital improvement costs and debt service
payments.
OWNERSHIP AND MANAGEMENT
7. The city will own the entire Ice Arena Complex, including the property
legally described on Exhibit A hereto and all improvements. located thereon.
8. ERYHA will quit claim to the City all of its interest in the Ice Arena
Complex by execution of the quit claim deed attached as Exhibit B hereto.
9. ERTHA will assign its rights and interests in that certain easement from ISD
728 dated July 15, 1985 to the City by execution of the quit claim deed attached as
Exhibit C hereto.
10. On January 1, 1997, the City took over the operation and management of the
Ice Arena complex. All amounts received from and after that date from ice rental, sign
rental or other sources shall be paid to the City, along with any amounts received by
ERYHA prior to that date-for ice rental or sign rental from or after January 1, 1997. The
City shall reimburse ERYHA, or offset against amounts due the City from ERYHA, for
any expenses ERYI~A has incurred that are attributable to the period of time after
January 1, )`.997.
11. ERYHA will assist the City on a transaction basis in selling sign advertising
within the Ice Arena Complex. All revenues derived from sign rentals will be paid to the
City.
12. All revenue generated by the Ice Arena Complex, including revenue derived
from ice time rental, sign rental and rental of concession and other space within the
Complex, will be used by the City to repay debt on the Complex and, to the extent the
Complex generates cash flow in excess of that required to repay the debt on the. Ice Arena
complex, for capital improvements or renovations to the Complex.
ICE TIME
13. ERYHA shall have priority in the allocation of ice time, subject to the City's
contractual obligations to ISD 728 and the City's need to accommodate all users of the
Ice Arena Complex. Decisions on the allocation of ice time shall be made by the
manager of the Ice Arena Complex.
BeckP 136759.2 2
14. ERYHA agrees to rent 1,200 hours of ice time each skating season
(September 1-April 1) from 1997-98 through 2012-2013.
15. Ice time rental rates for ERYHA shall be set by the City at an amount that is
competitive with similar facilities in the Twin Cities Metropolitan Area and sufficient to
ensure the financial viability of the Ice Arena complex. Ice time rental rates shall be set
by April 1 for the following skating season. The rental rate schedule shall identify the
"prime time" (6:30 a.m. - 9:.30 p.m.) hours for that season.
16. The Ice Arena Manager, in consultation with the Ice Arena Commission and
subject to approval of the City Council, will develop a set of policies for allocating and
selling ice time to the various users of the Ice Arena Complex. These policies will be
consistent with the City's agreements with ISD 728 and ERYHA regarding the allocation
and cost of ice time:
LEASED SPACE
17. In addition to ice time rental, ERYHA will lease the following spaces within
the Ice Arena Complex from the City:
a. Concession stand.
Arena.
b. Storage, office space and meeting rooms in the Original Ice
18. The City and ERYHA shall enter into a lease in the form attached as Exhibit
D hereto for the Ice Arena Complex concession- stand located as shown on Exhibit B to
the lease.
19. The City and ERYHA shall enter into a lease in the form attached as Exhibit
E hereto for storage, office space and meeting rooms in the Original Ice Arena in the
locations shown on Exhibit B to the lease. The rental amount under the lease shall be
Ten Thousand Dollars ($10,000.00) per year for the first five (5) years of the lease, and
$1.00 per year each year thereafter. Annual rental payments shall be payable October 1
of each year beginning in 1997. The lease shall provide that:
ERYHA may use space within the Ice Arena Complex not
specifically identified in Exhibit B to the lease for up to four (4) days
per year to conduct ERYHA functions such as team or group
meetings, "garage sale" and other non-ice events. The dates for
these events shall be scheduled with the Ice Arena Manager and
subject to the Manager's approval.
BeckP 136759.2
• Keys to the Ice Arena Complex may be checked out by authorized
ERYHA personnel for access to the arena on a specific day, subject
to the approval of the Ice Arena Manager.
CONTRIBUTIONS FOR OPERATING EXPENSES
20. ERYHA may make periodic contributions to the ongoing operating
expenses of the Ice Arena Complex from lawful gambling proceeds or other sources.
21. ERYHA shall have the right to make such contributions, and the City
shall accept such contributions and apply them to the operating expenses of the Ice Arena
Complex.
22. At the end of each calendar or operating year, the City shall transfer to a
capital improvement fund for the Ice Arena Complex an amount equal to the
contributions to operating costs made by ERYHA during the preceding year, unless said
funds are necessary to balance the Ice Arena Complex operating fund or to pay debt.
TERM
23. This Agreement shall be effective from the date of its execution to and
including December 31, 2013.
This Agreement is entered into the day and year first above written.
CITY OF ELK RNER
By:
Henry A. Duitsman
Its Mayor
By:
Sandy Thackeray
Its Clerk
ELK RIVER YOUTH HOCKEY
ASSOCIATION
By:
Its:
By:
Its:
BeckP 136759.2 t}
EXHIBIT A
Legal Description
The North 289 feet of the East 88 feet, as measured along the East and North lines respectively, of
the Northeast Quarter of the Northeast Quarter of Section 33, Township` 33, Range 26, Sherburne
County, Minnesota. EXCEPTING therefrom the following described parcel:
That part thereof lying southwesterly of the line connecting the Southeast corner of
said North 289 feet of the East 88 feet with the Southwest corner of the North 222
feet of said East 88 feet of the Northeast Quarter of the Northeast Quarter.
The North 289 feet of the West 383 feet,. as measured along the West and North Iines respectively,
of the Northwest Quarter of the Northwest Quarter of Section 34, Township 33, Range 26,
Sherburne County, Minnesota.
BeckP 136759.2
EXHIBIT B
QUIT CLAIM DEED
(Between ERYHA and City)
No delinquent taxes and transfer
entered; Certificate of Real
Estate Value ( )filed ( )not
required.
County Auditor
By
Deputy
(reserved for recording data)
STATE DEED TAX DUE HEREON: $1.65
Date: February _, 1998
FOR VALUABLE CONSIDERATION, ELK RIVER YOUTH HOCKEY ASSOCIATION,
a non-profit corporation under the laws of the State of Minnesota, Grantor, hereby conveys and
quitclaims to the CITY OF ELK RIVER, a municipal corporation under the laws of the State of
Minnesota, Grantee, real property in Sherburne County, Minnesota, described as follows:
See Exhibit A attached hereto and incorporated by this reference.
Total consideration for this conveyance is less than $500.00
BeckP 136759.2
Grantor hereby certifies that Grantor knows of no wells on the above-described property.
ELK RIVER YOUTH HOCKEY
ASSOCIATION
By~-
Name:
Title:
STATE OF I~~NNESOTA }
ss.
COUNTY OF SHERBURNE )
The foregoing instrument was acknowledged before me this day of February, 1998, by
,the of the ELK RIVER YOUTH
HOCKEY ASSOCIATION, anon-profit corporation under the laws of the State of Minnesota, on
behalf of said corporation.
Notary Public
This instrument drafted by:
DOHERTY, RUMBLE & BUTLER (LKS)
Professional Association
3500 Fifth Street Towers
150 South Fifth Street
Minneapolis, Minnesota 5402
(612) 340-»5~
Tax statements for the real
property described in this
instrument should be sent to:
City of Elk River
P.O. Box 490
13065 Orono Parl.-~vay
Elk River, MN »330
Attn: Patrick Klaers
BeckP 136759.2 2
EXHIBIT A
Legal Description to Quit Claim Deed
The North 240 feet of the East 67 feet, as measured along the East and North Lines respectively, of
said Northeast Quarter of the Northeast Quarter of Section 33, Township 33, Range 26, Sherburne
County, Minnesota; and
The North 240 feet of the West 113 feet, as measured along the West and North Lines respectively,
of the Northwest Quarter of the Northwest Quarter of Section 34, Township 33, Range 26,
Sherburne County, Minnesota.
BeckP 136759.2
EXHIBIT C
QUIT CLAIM DEED
(Between ERYHA and City)
No delinquent taxes and transfer
entered; Certificate of Real
Estate Value ( )filed ( )not
required.
County Auditor
By
Deputy
(reserved for recording data)
STATE DEED TAX DUE HEREON: $1.65
Date: February _, 1998
FOR VALUABLE CONSIDERATION, ELK RIVER YOUTH HOCKEY ASSOCIATION,
a non-profit corporation under the laws of the State of Minnesota, Grantor,. hereby conveys and
quitclaims to the CITY OF ELK RIVER, a municipal corporation under the laws of the State of
Minnesota, Grantee, real property in Sherburne County, Minnesota, described as follows:
See Exhibit A attached hereto and incorporated by this reference.
This deed is given to assign the easement rights and interests given to the Grantor over the
real property described in Exhi it A attached hereto, under that certain Quit Claim Deed given by
Independent School District No. 728, a municipal corporation under the laws of the State of
Minnesota, dated July 15, 1985 and recorded July 19, 1985 in the office of the County Recorder, in
and for Sherburne County, Minnesota, as Document No(s) 190068 and 190069.
Total consideration for this conveyance is less than $500.00
BeckP 136759.2 1
Grantor hereby certifies that Grantor knows of no wells on the above-described property.
ELK RIVER YOUTH HOCKEY
ASSOCIATION
By:_
Name:
Title:
STATE OF h~NNESOTA )
ss
COUNTY OF SHERBURNE )
The foregoing instrument was acknowledged before me this day of February, 1998, by
,the of the ELK RIVER YOUTH
HOCKEY ASSOCIATION, anon-profit corporation under the laws of the State of Minnesota, on
behalf of said corporation.
This instrument drafted by:
DOHERTY, RUMBLE & BUTLER (LKS)
Professional Association
3500 Fifth Street Towers
150 South Fifth Street
Minneapolis, Minnesota 55402
(612) 340-5555
Notary Public
Tax statements for the real
property described in this
instrument should be sent to:
City of Elk River
P.O. Box 490
13065 Orono Parkway
Elk River, MN 55330
Attn: Patrick Klaers
BeckP 136759.2 2
EXHIBIT A
All that part of the NE 1/4 of the NE 1/4 of Sec. 33, T. 33, R. 26, Sherburne Co., Minn. described
as commencing at the Northeast corner thereof; thence south along the East line of said NE 1/4 of
NE 1/4 for 240.00 feet; thence west parallel with the North line of said NE 1/4 of the NE 1/4 for
67.00 feet; thence north parallel with said East line thereof for 19.30 feet to the actual point of
beginning of the easement to be hereby described; thence continued north along said parallel line for
29.40 feet; thence west at right angles for 5.10 feet; thence south parallel with said East line for 29.40
feet; thence east at right angles for 5.10 feet to the point of beginning; and
All that part of the NE 1/4 of the NE 1/4 of Sec. 33, T. 33, R. 26, Sherburne Co., Minn. described
as commencing at the Northeast corner thereof; thence south along the East Iine of said NE 1/4 of
NE 1/4 for 240.00 feet; thence west parallel with the North line of said NE 1/4 of the NE 1/4 for
67.00 feet; thence north parallel with said East line thereof for 46.00 feet to the actual point of
beginning of the easement to be hereby described; thence continue north along said parallel line for
29.00 feet; thence west at right angles for 15.00 feet; thence south parallel with said East Line for
29.00 feet; thence east at right angles for 15.00 feet to the point of beginning.
BeckP 136759.2
EXHIBIT D
Lease :or Concession Stand
BeckP 136759.2
EXHIBIT E
Lease for Storage, Office Space and Meeting Rooms
BeckP 136759.2