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Home My WebLink About4. Shakopee Hockey Association Presentation #'1 CITY OF SHAKOPEE MEMORANDUM To: Mayor and City Council From: Mark Themig, Facilities and Recreation Director Meeting Date: March 11, 2003 Subject: Shakopee Hockey Association Second Sheet Committee INTRODUCTION Representatives from the Shakopee Hockey Association's Second Sheet Committee will be in attendance at the City Council work session to provide you with an overview of their efforts. DISCUSSION In 2002, the Hockey Association formed a committee to begin looking into the feasibility of funding and constructing a second sheet of ice (see Attachment A). Since that time, they have met approximately two times per month to examine a number of issues, including current and future ice needs, the operation of the current single sheet, what is occurring in the marketplace, how a second sheet would impact the current operation, and what potential funding sources exist for construction of a second sheet. The committee has presented updates to the Parks and Recreation Advisory Board three times over the past few months to keep them updated, and continues to move this discussion forward. One significant outcome of this discussion is that this effort needs to focus on the second sheet facility being "multi-use", and involve other potential users in the planning stage. By planning for multi-use, a number of different activities (such as indoor soccer) would ensure year-round use and maximize revenue potential. Finally, the Association plans on entering into an agreement with Greystone Construction and has committed funds to develop concept plans and preliminary cost estimates for this facility. At the presentation, the Committee hopes to share what they have learned with you, seek your support for continued research, and solicit any ideas, thoughts, or suggestions you may have. M~~~ Facilities and Recreation Director (}A.~Q\-\ ~t lCC)2. #/:L. ~~T\0l"t"( \)J\C~E\ CITY OF SHAKOPEE MEMORANDUM To: Mayor and City Council, via Activity Packet Mark McNeill, City Administrator ~cJ1- From: Mark Themig, Facilities and Recreation Director Date: 28 March, 2002 Subject: Shakopee Hockey Association Presentation I am writing to provide you with information that the Shakopee Hockey Association presented at the March 25th Parks and Recreation Advisory Board Meeting. In summary, their presentation included a discussion on the past, present, and future of hockey in Shakopee, and their long-term goal of a second sheet of ice in the city. Since this was an informational presentation, the Parks and Recreation Advisory Board took no position on this issue, but did indicate that it would likely require considerable work and creativity on the part of the Association to meet their long-term goal. I will keep you informed on this effort as it progresses. - Shakopee Hockey Past, Present and Future March 25, 2002 '. "-; Agenda . Introductions . Shakopee Hockey Today . History . Limiting Factor--Ice - . Future . Options . General Feedback -, 1 Mission As Players, Parents, Coaches, and Board Members, we are here to dedicate ourselves to the game of hockey on and off the ice. We will promote sportsmanship, parent involvement, valunteerism, and teamwork to enhance the overall growth of Shakapee Hacke . Partici pation . Youth Hockey, 255 in 2001-2002 . Mini-Mites under 7 years, boys and girls . Mites 7-8 year old boys and girls . Squirts 9-10 years old boys and girls . U12 Girls under 12 years old . Pee Wees 11-12 years old boys . Bantam 13-14 years old . U15 Girls under 15 years of age -, . 2 Youth Hockey Participants 300 . Total 250 ~ Bantam 200 II PeeWee 150 . U10&12 . Squirt 100 mMite 50 li1 Mini Mites 0 1997 1999 2001 2003? Participation, High School _Girls . Varsity . Junior Varsity _ Boys . Varsity . Junior Varsity . Junior Gold, next year? o' 3 Schedule, Youth Hockey . Fall league games . July to September . Season, September to March . Practice and Scrimmages . MAHA League Games . T oUfliaments Statewide . Spring league games . March to May . Summer camps History, Shakopee Hockey . Started 1969, at Huber park (river) . Organized Hockey started in 1970 . First High School team 1972 . Shakopee Bubble . 1977-1991, Prior Lake and Chaska included . Merged with Prior Lake in 1992--SPL . Competing for Blake, Met Center ice . With no local ice, we lost 150 kids of 300 . Community Center in 1995 0' . 1997 split with SPL 4 Shakopee High School Hockey Achievement BOYS Girls - 1972 First Season - 1996 First season - 1986 First District playoff _ 1997 Canf Champs - 1996 Section Playoffs _ 1998 Conf Champs - 1999 Section 6 runner-up _ 2000 Section Semi's - 2001 Section 6 runner-up _ 2001 Section Semi's - 2002 Section 6 runner-up _ 3 players in College - College players Play . pre 1998-3 individuals . post 1998-7 individuals Limiting Factor--Ice .3 PM to 10 PM weekdays--7 hours . Three shifts after HS . 1-1.5 hours . Zam to ice between teams . No ice time if HS games . Wednesday Religion .17 Youth teams in 2001-2 .Pee Wees (11-12 years old) from 8:45 -, to 10 PM 5 Future _ Larger population, more participants _Increasing popularity of the sport _ Local success attracts more participants _ Need to provide opportunity for a Junior Gold team _ Most communities get twice the ice time _ We frequently split the ice Ice Options Facility: Funding potential: . Community Center . City Addition . Part of (new) High . School School . Private Facility . Association -, 6 Facility Costs . $1.5--$6 million total . Locker rooms . Boys and Girls separate . Weight training . Other... Planning Phase . Committee Makeup . Choose option (and site) . City submission and approval process . Hockey Association fundraising - . Architectural Plans . Contractor selection . Lender commitment . Manage construction process -, . Operating agreements 7 Parks and Recreation Advisory Board (PRAB) role . What do you see as the role of PRAB? . What individual questions do you have? . What will it take to gain your support for the project? . What can we do for you? Next Steps . Follow-ups . Summary - . Thank youH -, 8 , i{. 4. P~t'S ~ N rlfrTIOfl{ J-fvtf\l D DOT Multi- use Arena ~ March: 11, 2003 Committee Update 1 Agenda . Introductions . Committee's initial impetus & findings . Hockey Review . Rink Best Practices . Shakopee Operations . Multi-use Options . General Feedback 2 1 ~ , Initial Committee Makeup . Cross functional Team . Initial Dive into: . Hockey Association;. . Is there a need? . Parks and Recreation! Gty . Learn each others issues . High School . Investigate perceived hurdles . Various professions . Look into coristruction options . Members . Review finan~ia1 operations . Steve Czech . Benchmark to other . Rob Hovde communities/;arenas . Ed Loiselle . Establish t:imetable . Tony Markgraf . JimMwphy . Mike Thelen . Mark Themig . Tun Williams 3 Growth . Head1i1les: Scott county 6000 12th in the nation 5000 . Student Enrollment 4000 3000 Average 6% annual growth 2000 . School projected to be 1000 moved to AA in two to 0 four yeatS 1997 1999 2001 2003 2005 2007 Students 4 2 . 4 Arena options 1. !Part of existing arena ~. Lowerconsnuccionco~ 2. Lower operating cost 3;. Community Solution 2. ; Association owns Arena ; ~, Destiny in our own hands i 2. Prioritize our needs 3. Part of New High School 1. Convenient for HS needs 5 Current Ice Utilization Off Season and Off Peak . Q)1nmunity Center's role to market the time . Hockey Groups have vested interest in assisting . New partnering to improve utilization while supporting community first . Shared understanding of each others challenges . Resulted in policy and timing changes, win-win 6 3 , '" History, Shakopee Hockey - Started 1969, at Huber park (river) - Organized Hockey started in 1970 - First High Schodl team 1972 - Shakopee Bubble . . 1977-1991, Prior Lake and (haska included ' - Merged with PriQr Lake in 1992--SPL . Competing for Blake, Met Center ice . With no local ice, we lost 150 kids of 300 - Community Center in 1995 - 1997 split with SPL 7 Hockey Participants . Youth Hockey, 238 Students _ High School · Mini-Mites under 7 years, Boys . Girls 30 students and girls , Mi 7 8 ld bo d · Junior Varsity . tes - years 0 ys an . girls . Varsrty . Squirts 9-10 years old . Boys, 40 students . U12 Girls under 12 . Junior Varsity . Pee Wees 11-12 years old boys . Varsity . Bantam 13-14 years old . Currendy no Junior Gold . U15 Girls under 15 years of . "All" play every game age 6" ........... ...... ..'.:'.......... . . ."' . .. . '. - -, s 4 . . Youth Hockey Participants . Total 200 o Bantam II PeeWee . U10&12 100 IIliIIl Squirt . Mite 50 III Mini Mites 0 1997 1999 2001 2003? 9 Hockey Schedule . Fall league games, :rvtIHL . July to September . Wmter Season, September to March . Practice and Scrimmages . MAlIA. League Games . Tournaments Statewide . Shakopee Hosted Tournaments . Spring league games . March to May . Summer camps/Southwest League 10 5 0- , Limiting Factor--Ice . 3 PM to 10 PM V{eekdays--7 hours . 17 Youth teams . 1hree shifts after HS . 1-1.5 hours ; . Zam to ice between teams . No ice time if HS games . Wednesday Religion . MAHA limits times by age group . Pee Wees (11-12 years old) from 8:45 to 10 PM 11 Future . Larger population, more participants . Increasing popularity of the sport . Local success attracts more participants . Need to provide opportunity for a Junior Gold team . ~os~ communities of similar size get twice the Ice tune . ~e frequently split the ice to get some practice tune 12 6 ,,- Participants, Youth Associations 500 450 400 II Wrestling 350 II Volleyball 300 II Football 250 o Softball 200 . Hockey IiliI Soccer 150 . Baseball 100 II Basketball 50 0 13 Committee Learning . Prime time usage . A few hours available last year . All prime time used t:hi$ year . Purchasing ice from Breck to get sufficient practice time (3 practices to 1 game) . Parents sacrificing time and money to drive elsewhere . Hockey expense covered by parents, not city . One of the few sports to actually cover all costs including administration over the past five years 14 7 ~ Hockey is self supporting . Association volunteers handle: . : Registration . : .Scheduling practices and games . Coaches . ,Refs . ;MaiIings . 'Accounting . ; Facili:ty/Pro~rtY. cost and ; ! tw.lintenance (mCludes ice i scheduling stiff) . i Kindergarten through 9th grade . The issue is facility operating costs. All other costs are covered direcdy; not administered, by the city. 15 Cash Flow from Operations ~ Ice Hours Utilization 1800 1685 Total Rewnues 177,564 154.276 185,558 186,414 197.485 ='27 Operating - Wages and Benefits 36.030 46,977 <<.- 46,730 51,207 97.063 Supplies and Services 9,463 27.273 11.360 15,823 37,190 31,833 Maintenance (Excklding Cap.X) 2,89. 195 51 518 2,212 1.847 Convnuniclltions 2,568 2,259 2.734 2.016 2,057 1,180 IMurence 127 1,412 1.136 1,455 4,602 3,538 Utilities 67,027 72.4n 75,149 84.509 106,430 92.397 Rentals. OUtside 0 0 0 0 0 273 Dues. Training, Travet 13. 259 40 0 785 8" ToIaI Operating E>q>enditu,.. "8 251 150 847 140 928 151 049 204 493 228 942 Operating Profit. Excess Cashtlow 69.313 3.429 44.632 3&.365 -7.008 4.815 "____e.--,.,,.....c:Ir"'__ '-- .-/ ---v l1l!atmC'A~1I1~~ri'~!F4m:alil1(lIt'4!Atlliiltlli__~%1~'I!l1t!VAiiiiliBl I Excess Cash Flow from operations has been sufficient to cover I the capital replacements totaling $60,000 during the last 6 years. 16 8 > . Best Practices Comparison Of the, Metro arenas included in a survey, 30 facilities, representing 6'7% of those , , ' surveyed, reported that revenues exceeded operatilf1g expenses. Over 5P% of the arenas ; also reported that the reve~ues exceeded debt service costs. ; It was these arenas that we analyzed to determine the practices that appear to make them successful financial operations. DaIa Source - Minnesota Ice Arena MMager's A$soclaUon 2002 Survey 17 Ice Utilization Analysis - Average 13 7 . 10 . . ,. .. Hgh 17 12 12 15 12 ,. 17 13 Low 9 3 5 6 5 3 11 2 Median 13 6 7 10 7 7 14 3 Shakopee 2001..02 12 11 7 3 7 5 12 10 Difference compared to the Average 1 -4 1 7 1 3 1 -5 Number of Days 40 12 161 .. .0 12 '0 12 U".A.~!!!!B!1~.JlHll!jamliIWWI;;I..Wll~q.iI!!~W~i!11iWIlBIl'Wlwil,lr.1Ii1.ir!~1 Increasing ice rental of the existing facility during summer months and non prime time hours could provide as much as $30,000 to $80,000 of additional revenue with very little additional variable costs. Dda Source - Minnesota Ice Arena Manager's Assoctation 2002 Surwy 18 9 . " Hourly Ice Rates Average 139 120' 119 108 High 175 140; 145 140 Low 105 105 75 60 Median 140 115 120 107 Shakopee 135 100 : 100 100 The Shakopee base ice rental rates, appear competitive in light of the competitionl DaD Scuce - Minnesota Ice Arena Mmager". AsscdIItion 2002 SUrvey 19 Major Capital Replacement Projects According to the Minnesota Arena Manager's Association 2002 Survey, the more commonly reported capital projects being funded were: 1.R oof repairs and replacement 2.D esiccant dehumidification 3.P arking Lot repairs 4.R efrigeration system work 5.D asher Boards Osta Source - Minnesota Ice Arena Manager's Assodatfon 2002 Survey 20 10 , Utilization Options One Arena Second Arena . Home School Physical . Hockeyusage, Wmter . Tournaments Education . Economic inwact . Adult "Leagues" or Open . Multiple use (w( 0 ice in off season) Hockey . Soccer games ~ practice . Figure Skating . Batting cages, SOftball & Baseball . Golf Range . Companyoutings: . Football drills ' . Summer Camps . Lacrosse . Hockey shooting stations . Oaft Shows . Roller Hockey 21 Arena construction . Practice Facility . Future addition of bleachers? . Same construction materials/ look as existing facility . End- to- End is the leading option . Immediate need is locker rooms for HS Boys and Girls . . . .:" .. ' -~, ' . Cost $2 million? 22 11 , - -- *"'" <i)-Jf"" " '- 23 - '" I -- -, I <D~tt. 24 12 .. ,> Part of Community Center Expansion? II We would be very supportive of a combinep " solution to communityneeds ' . Association would . Bring the rink expert;ise i . Playa very influential role in selling the CC expansion to the cO$D.unity . Work with other interests to maximize Arena benefit . Timing of the project is a concern as growth , . won t WaIt. 25 Financing . Options . Fundraising . Capital Campaign . Investigating Consulting services . Donated skills . Donated! reduced cost materials- Sweat Equity . Public Funding options . City participation . School District participation 26 13 , . , Other Communities In addition to earlier; slides: . . Many see the rink. as a service to the commuillty Qess than break even) . More two sheet facilities cover costs than one sheet facilities , . Various fonDS of financial and operating commitments 27 City involvement . Shakopee Youth Hockey Association will . Pay $4,850 to Greystone Construction . Floor Plans . Elevation . Sight Plans . Budget, construction and equipment . Available to SYHA or the Gty . Arena only or combined with Community center expansion . Lead Multi-use committee and invite other sport associations . Gty Council . Concept of a Multiuse Arena added to existing CC . Request Support to proceed with a fonnal first planning stage . Preparation and support to explore funding options 28 14 " . . Next Steps Qosing . E.n1ist Greystone, planning . Engage other . . asSOCIatIons . Revenue Projections . Funding options . Follow-ups . Summary . Thank you!! 29 15