10-17-1996 CC MIN - SPECIALSPECIAL MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
THURSDAY, OCTOBER 17, 1996
Members Present:
Members Absent:
Staff Present:
Mayor Duitsman, Councilmembers Dietz, Farber and Scheel
Councilmember Holmgren
Pat Klaers, City Administrator; Phil Hals, Street/Park
Superintendent; Jeff Asfahl, Community Education Director.
Also Present:
Pat Pelstring, Perry Coonce, Barb Northway and Al Mundt
representing The Minnesota Sports Federation.
Lana Huberty, Park & Recreation Commissioner arrived at 7 p.m.
o
Call Meetinq To Order
Pursuant to due call and notice thereof, the special meeting of the Elk River City
Council was called to order at 6 p.m. by Mayor Duitsman.
Consider Agenda
COIJNCILMEMBER SCHEEL MOVED APPROVAL OF THE OCTOBER 10, 1996, SPECIAL
CITY COUNCIL MEETING AGENDA. COUNCILMEMBER DIETZ SECONDED THE
MOTION. THE MOTION CARRIED 4-0.
Minnesota Sports Federation Worksession
Pat Pelstring explained that the Minnesota Sports Federation (MSF) began
negotiations with Elk River for a sports facility approximately 60 days ago. Staff
has been reviewing both the site plan and financial pro-forma. The MSF has
presented the city with a draft Letter of Intent which commits both MSF and the
city to cedain obligations. Mr. Pelstring explained he and the City Administrator
felt this worksession would be helpful to discuss issues related to the Letter of
Intent before the Council takes action on the matter, Mr. Pelstring explained
MSF is a private non-profit organization, with excess capital being reinvested in
their programs. The MSF is seeking assistance from the city in obtaining
financing, and MSF would be responsible for all operation costs and repayment
of the debt service. Mr. Pe!string indicated the facility would benefit the local
residents, and some h,,'pe of direct access ,would be negotiated for the park and
recreation programming. Mr. Pelstring indicated he was hopeful the Council
may consider the Letter of Intent at the Monday, Oclober 28, 1996, City Council
meeting.
Mr. Pelstring indicated the capital fundraising campaign would take some time
after the site is selected. Mr. Pelstring noted that MSF would not expect the city
to providing financing until all of the questions in terms of equity investment and
the proposed operation have been answered.
City Council Meeting Minutes
October 17, 1996
Page 2
Mr. Perry Coonce provided information on the background and history of the
Minnesota Sports Federation. The MSF home office currently operates on Dodge
Avenue with a full-time staff of eight people. MSF is the largest amateur sports
organization in Minnesota (200,000 members) and currently administer youth
and adult basketball, broom ball, volleyball, softball, touch football and
baseball programs. Mr. Coonce explained the Minnesota Sports Federation's
mission is to serve Minnesota through sports, with a main emphasis on
sportsmanship. Mr. Coonce noted MSF's involvement in the following:
- Softball Night at the Dome (benefit for Minnesota Special Olympics and
Minnesota Softball Hall of Fame)
- Minnesota High School Girls Ali-Star Series
- National tournaments such as the Major in Minnesota Women's "A" Slow Pitch
National in Bloomington, and Girls' "A Team" Fast Pitch National in Eden Prairie
- National Youth Basketball Association
- Junior Olympic Softball Festival
- National Youth Volleyball Association
- USA Softball (national governing body for softball - administer statewide)
- Youth Basketball of America
- Basketball Congress International
Mr. Coonce explained the reason the sports facility is being proposed in the lack
of available facilities and a growing demand for programs.
Mr. Al Mundt reviewed sketches of the proposed facility which would house 8
indoor vollellyball courts that could be converted to 4 basketball courts. Mr.
Mundt indicated the facility would be mainly used for tournaments, and felt the
facility would be large enough to house a national basketball tournament. In
addition, the facility would be used for indoor soccer, touch football, wrestling,
aerobics, batting cages, sport-specific training such as basketball or junior
olympic softball, offices for the MSF, pro-shop, locker rooms with showers for both
men and women, food service in both the youth and adult lounges with a
viewing area, meeting rooms and the Minnesota Amateur Sports Hall of Fame &
Minnesota Softball Hall of Fame. The upper level mezzanine will include an
indoor walking/running track. Cost of the proposed facility is between $2.1
million and $2.3 million, depending on whether they built an engineered metal
building with concrete block or a tilt-up panel (estimates from Tri-Con out of
Rogers, and Am-Con of Burnsville). MSF will finance $300,000 for fixtures and
equipment for basketball backboards, volleyball standards and netting, batting
cages, kitchen facilities, Hall of Fame displays, pro-shop and entry area. Mr.
Mundt explained once the Letter of Intent is approved by the City, the MSF
would proceed with the capital campaign through Fundraising Management
Council, and would do nothing until the necessary funds were raised to execute
the Letter of Intent. He estimated it would take approximately 6 - 9 months to
complete the capital campaign. At that point, the City of Elk River would
finance the facility through Certificates of Participation and lease the facility to
MSF with the understanding the City would sell the facility to MSF for one dollar,
after MSF retires the debt.
City Council Meeting Minutes Page 3
October 17, 1996
Mr. Munclt notecl the facility could host 40 volleyball and basketball tournaments
per year. He distributed copies of an economic impact statement for one junior
olympic softball tournament to a host city, as well as a sports tourism and
economic impact statement for the MSF's proposed facility hosting indoor youth
and adult basketball/volleyball tournaments Jn Elk River (attached to these
official minutes). Mr. Mundt outlined benefits to the community as follows:
1)
2)
3)
4)
5)
Elk River would have a first class spods facility
Sports tourism impact on local businesses
The MSF would manage the facility
Good mix of qualify programs
State and National recognition
Discussion followed regarding the impact of the proposed facility on current
athletic activities and concession sates. The Councilmembers, MSF
representatives and staff also discussed the proposed fitness center generating
$182,000. Pat Klaers explained the city's concern that if another fitness center
were to come to Elk River, this amount could be cut in half. MSF representatives
indicated a discount rate for the fitness center would be offered to local
residents.
The Council and MSF discussed benefits and possible negative impacts on the
local community.
Councilmember Scheel expressed concern that local youth would not be able
to utilize the Cass property on weekends. Mr. Mundt indicated he has been told
the area recreation only needs the site for 2 weekends a month during the
summer. They are proposing to use the Cass fields 7 - 9 weekends a year.
Mr. Mundt indicated MSF would like to break ground for the project next
summer. He also explained that a bubble could be added as a second phase
for soccer, softball and touch football.
Phil Hals questioned the number of acres the sports facility would require. Mr.
Mundt explained their needs as follows:
Phase 1 (indoor sports facility)
Parking area required
Sand volleyball area
59,500 sq. ft.
150,000 sq. ft.
16,000 sq. ft.
Total area required 220,000 sq. ft. (Approx. 5.2 acres)
Phase II (indoor bubble)
Additional parking area
52,000 sq. ft.
130,000 sq. ft.
Total area required 182,000 sq. ft. (Approx. 2.35 acres)
Mayor Duitsman expressed his concern that another meeting be scheduled so
that Councilmember Holmgren and Lori Johnson could attend. He also noted
Dave Anderson, Park & Recreation Commissioner, was not able to attend
tonight's meeting and was aware Dave had concerns that the concession sales
City Council Meeting Minutes
October 17, 1996
of the proposed operation could
club, boy scouts, etc.
Page4
impact the local concession sales by the ski
5. Adjournment
There being no further business, COUNCILMEMBER DIETZ MOVED TO ADJOUIJN THE
MEETING. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
The October 10, 1996, Special Meeting of the Elk River City Council adjourned at
7:21 p.m.
Respectfully submitted,
Debbie Kleckner
Recording Secretary