5. - 11. ICESR 01-09-2008MEMORANDUM
TO: Ice Arena Commission, Members
FROM: Rich Czech, Arena Manager
DATE: January 9, 2008
SUBJECT: Agenda Memo -January 9, 2008
5. 2007 Financial update
Due to the fact that the cities fiscal year has just ended, the financial information
regarding the Arena has not been fuaalzed. ,At the ,April .Arena Commission meeting the
2007 Arena's budget will be completed and will be ready to review.
6. Lobby expansion for the Arena /Naming rights for Arena
Bill Maertz and I attended the December 10th city council workshop to discuss the
Area~a lobby expansi~,n. $elow are xhe minutes taken,during the city councils work
shop. .
Ms. Johnson presented the staff report.
Councilmember Farber indicated that the cost estimates seem to increase every time the
arena expansion is discussed. He questioned if the locker rooms are included in this estimate.
Mr. Maertz explained that the locker rooms have been included at the request of the school
district. He noted that the locker room addition would not move forward without a financial
commitment from the school district.
Councilmember Farber questioned if the estimate seems high. Councilmember Gumphrey
indicated that the cost for construction around $200 per sduare foot is reasonable. Mr.
Maertz stated that the arena expansion could be designed around a budget if the C:ounciI
desires.
Councilmember Gumphrey stated that he believes it is time for the city to step up and help
the arena program. He noted that construction costs are not going down and he believes
once the arena expansion is complete, the arena would experience a substantial increase in
revenues.
Mayor Klinzing indicated that she believes the arena expansion is a great project but she
does not see moving forward at this time due to financing issues. She noted that she is not
interested in seeing this project being funded through a tax levy. Counciliiiember's Zerwas
and Motin also expressed concerns over this project being financed through a tax levy.
Councilmember Farber stated that he would be interested in seeing more concrete estimates.
Ms. Johnson indicated that staff will obtain quotes for architectural services needed in order
to get a more concrete price estimate and present the quotes to the Council for further
discussion at a future meeting.
Since the meeting Bill has meet with the architect to get different options and better
numbers on the project. Attached for your review is the revised construction estimate
from R.J.M. The attachment shows three different options that has different square
footages .along with the associated costs.
I was able to discuss the naming rights with Jerry Gumphrey, Elk River City Council
Member. He noted that the party that he has been discussing naming rights fox the Arena
with is still interested. He will be meeting with them over the next few weeks to discuss
:some .of the details zo ,scc if he can get .a fum cAmmitmeut. I'm sure it w.ouId help the
situation if we could give the party a diffident answer to the expansion of the lobby.
7. Skate Club representative to Arena Commission
It was brought to my attention that if we add another member to the Arena
commission that it would be the largest commission of the city. It was also noted to
me that typically commissions and boards do not have even numbers, due to the fact
that there could xr~any tied votes. It may be better to .ask city council what they fink
about adding a member before actually asking them that we would like to add a
_r~ember_
8. High School Coaches wall of fame
I have received some information about passed coach from Dave Halgren, attached is
the information that Dave provided. Kent Madsen and I will be reviewing this this
coming summer and will be looking at how we want to honor these individuals. If all
goes well we should have something together for the commissioners to review by the
August meeting.
9. Video Presentation System
I would like to thank all of you that were able to attend the presentation on the video
presentation system. I believe it was very educational for the company representative
as well as for me.
At the presentation, the projector that the video representative was recommending did
not have enough Iuminous to give off a bright enough picture, which did not project a
quality picture that we were anticipating. The representative is looking at
demonstrating an even higher end projector, however theses projectors are hard to get
for demonstrations so he was not able to give me any type of timeline for when he
would be ready for another demonstration.
10. Arena Advertising
A member of the EIk River Blueline Club (the Booster Club for the High School
Boy's Hockey Team) has asked Paul Motin, Elk River City Council Member, about
the possibility of getting a couple ofArena Advertising boards at a discount rate and
then selling them to company's to make a profit, basically a fund raiser for their
program.
I do have a couple of concerns moving forward with this policy;
A.
If we move forward with this policy, I feel we are then opening it up to other
customers, Elk River Youth Hockey, The Girls High School Booster Club, and the
EIk .River Figure Skating Club, this would eight (8) total advertising spaces.
B.
If we give them a discount rate, they aze then competing against the same
customer base that the Arena is trying to get to advertise, the owners of small
businesses that have children skating at the Arena. We roughly have fifteen (1 S)
advertisers on the boards, eight (8) of them have children skating at the Arena, that's
over 50°C of the Arena's advertising base. Once these advertising customers' kids are
no longer skating, these businesses typically drop their advertising in the Arena and
the next group of businesses that have kids skating at the .Arena replace them. If we
allow all our Ice Rental Customers two (2) advertising panels at a reduce rate, these
eight (8) signs may be placed by these groups, reducing the Arena's advertising
revenues.
My recommendation to the commission would be;
Each major Ice Rental customers would be allowed six advertising panels on the
boards, three paid at the full rate, and three at the reduce rate.
Each time a customer request a sign, the first one is sold at full price and may be
placed any where on the boards in the Olympic rink. The cost of the second
advertising space would be reduced by 30% off the set rate. The second sign would
only be allowed to be placed in the Barn or along the Westside of the Olympic rink
unless approved by the Arena Manager. The advertiser would purchase the
advertising space directly from the Arena. This would allow us to oversee who
advertises in the Arena and would allow us to monitor our revenues. Before the
advertising contract is signed, customers would have to indicate in writing what
association they are with so that we can keep tabs on the amount of advertising spaces
one association has as well as manage the amount of money is due back to that
association.
11) New Zamboni
On Monday January 7th I will be presenting the bid for the new Zamboni. With the
councils approval the machine will be ordered on Tuesday January 8~' and i_s
anticipated to be delivered sometime in October. The total cost of the machine was
$109,085.16, tax and freight included. This is about 4°lfl of what was budgeted far the
machine; however the trade in value of the machine is estimated at $7,000.00 -
$9,500.00 bringing the cost of the machine close to the budget.
CONSTRiSCTiON
5455 HW't. 16y
PLYMOUTH, MN 55A42
PhiONE 763°383-760G
FaX 763-383-7601
www. ej~xiconstruc tion.cnm
d
b
N~
W
[Sf
q~
~ O
M :,
M
M1
W ~,
o
o
d ~ - -
_
c a
n I. ~ 7 ~ _
O O
O - ~, u - I r
~ O
H U '
Q ~ _ _ ' - ~ ~ / I _ _
O
~ V
~U I
°-
d°
-
- I'
~
i~ =_ -
n -
_
ap N U
C
a r C
- ~ ~ - _ _ _
I
y
~ O ~
_
__
I
_ _
{ _
~
d - -
~ C
S ~ _
W ~ - ~.
U
tt
-
c
~ -
-
_
° _
e -
-