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03/04/1997 - City Council Special 00065 MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota March 4, 1997 A special City Council meeting was held on Tuesday, March 4,1997, at 5;00 p.m. in the lunchroom of the Eagan Municipal Center Building. Present were Mayor Egan and City Councilmembers Blomquist and Wachter; City Councilmember Masin arrived at approximately 5:25 p.m. City Councilmember Awada was absent due to the birth of her second child on Monday, March 3. Also present were Director of Parks & Recreation Vraa, Director of Finance VanOverbeke and City Administrator Hedges. MIGHTY DUCKS GRANT CONSIDERA TION/SECOND SHEET OF ICE City Administrator Hedges provided a brief background summary on a request by the Eagan Hockey Association to pursue a Mighty Ducks grant in the amount of $250,000 to help finance the construction of a second sheet of ice. He stated that the Hockey Association provided a donation to the City in the amount of $7,500 to hire ACC Architects to prepare preliminary designs for a second ice sheet. In the fall of 1996, the City Council proceeded with a resolution to pursue the grant award. He stated that in November of 1996, the City was notified of a grant award in the amount of $125,000, which is half of the amount requested. He stated that the question before the City Council is whether the City should request the additional $125,000, if additional Mighty Ducks funding is approved in this legislative session. Mr. Bill Osburn, representing the Eagan Hockey Association, appeared and stated that there are over 600 kids in the hockey program at this time. He stated that with the growing interest and recent success in the girls' hockey program, the number of young girls entering the program is rapidly increasing. Mayor Egan asked various questions about the financial data that was presented in memos by the City Administrator and Director of Parks & Recreation. Director of Parks & Recreation Vraa explained that Springsted prepared the various scenarios that were presented as A, B, C and D. Director of Finance VanOverbeke explained each of the four options. He stated that Scenario B provides the most capital. He also stated that Scenarios A and B are funded internally and do not require a debt reserve. VanOverbeke further stated that the main difference between A and B is a $100,000 bond issuance cost and the term varies from 20 to 25 years. He further stated that the expected life for a capital project when considering a debt service schedule is generally 20 years. Mayor Egan further asked if the second sheet of ice will cash flow. Director of Parks & Recreation Vraa stated that the second facility will generate an estimated $126,000 in proceeds over the operating cost based on current ice usage projections from the Eagan Hockey Association and from discussions with Eagan High School. City Councilmember Wachter asked if the Eagan hockey program, with 600 youth as previously stated, appears to have reached capacity or the saturation point for interest in hockey. Mr. Osburn stated that indications are that the City of Eagan's program has not reached saturation and it is expected to continue growing in the next few years. Mary Pontrelli, also representing the Eagan Hockey Association, stated that currently the Eagan Hockey Association will not take the very young skaters because there is no ice availability. City Councilmember Wachter asked if these kids are going outside the community for ice. He further asked about the use of the buildings in the summer. Mrs. Pontrelli stated that there is considerable ice time purchased by the Hockey Association throughout the metro area, and as far as Faribault, Minnesota. She further stated that in Woodbury, the ice facility is rented on weekends for lock-ins, which has provided an additional use for the facility. City Council member Wachter asked about in-line skating and if that is a possible use for the civic arena. Director of Parks & Recreation Vraa stated that in-line skating could be a use in the second facility. Mayor Egan stated that it appears any dry court use in the winter will conflict with ice time. Director of Parks & Recreation Vraa stated that dry court will conflict with ice during the months of February and March. Mayor Egan further stated that initially the City Council discussed an eight week program for soccer in the spring. Director of Parks & Recreation Vraa stated that the Soccer Association has been approached; however, to date there has not been an interest to provide the furnishings necessary for conducting a program in the facility and the apparent desire for soccer to begin in February, conflicting with ice usage. City Councilmember Wachter stated that he would like well-rounded programs in the facility and on the condition that there are no public tax dollars required for construction or operation of the facility, he could support the second sheet of ice. 00066 Page 2/Eagan Special City Council Meeting Minutes March 4, 1997 Mayor Egan stated that it is important to discuss possible barriers. He asked if a second rink proposed at 85 feet instead of 100 feet would be a problem and further, are ice sheets becoming oversaturated in other communities? Director of Parks & Recreation Vraa stated that the second sheet of ice does not need to be Olympic size which is the dimension in the civic arena. He further stated that the department is reviewing the status of rink plans in neighboring communities and feels that the demand projected by the Eagan Hockey Association will provide numbers for prime time use of a second sheet of ice. Mr. Osburn stated that the girls' program is expanding and there should not be a problem with ice time. Mayor Egan expressed his excitement with the success of the Eagan High School Girls Hockey team and his recent conversations with Northwest Airlines and West Publishing for their financial support in making the civic arena possible. Director of Parks & Recreation Vraa stated that there is a softening of ice time in the .shoulder season," the time between seasons and off-season when groups are shopping around for ice time. City Councilmember Masin asked if there is much interest in men and women's adult leagues. Director of Parks & Recreation Vraa stated it is happening, but the arena is new enough that leagues are not as strong as they will be in the future. Mayor Egan asked specific questions about who would lease the equipment for the building as explained in the proposed financing plan. Bill Osburn stated that a vendor will lease the equipment. He further stated, it would be more fiscally prudent if the City financed without a vendor to save the cost of a third party which should be strongly considered by the City Council. City Council member Blomquist asked if there is legislation supporting a sales tax savings as proposed in the financing plan. Director of Parks & Recreation Vraa stated that this legislation did pass and the sales tax reduction will be a savings to the project. City Administrator Hedges summarized the policy issue, stating that the City is seeking direction on the issue of whether to seek additional funds from a proposed third round of Mighty Ducks grant money and subsequent construction of a second ice sheet. Mayor Egan asked the City Council for direction. After further deliberation and in a motion by City Council member Wachter, seconded by City Councilmember Masin, with Mayor Egan, City Councilmember Masin and City Council member Wachter voting aye, and City Council member Blomquist voting nay, direction was given to staff to proceed with the Mighty Ducks funding request for the additional $125,000, bringing the total grant award to $250,000 for the second ice sheet. Mr. Osburn, on behalf of several members of the Eagan Hockey Association who were present at the meeting, thanked the City Council for their support in proceeding ahead with the grant application. OTHER BUSINESS There being no further business, the meeting was adjourned into executive session at approximately 6:10 p.m. lVlarch 4, 1997 Date TLH