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HomeMy WebLinkAbout03/01/1993 TENTATIVE AGENDA SHAKOPEE, MINNESOTA COMMITTEE OF THE WHOLE (MONDAY) MARCH 1, 1993 Mayor Laurent presiding 1] Roll Call at 7: 00 P.M. 2] Approval of the Minutes of January 12, 1993 3] Valley Ice Arena Analysis 4] Second Fire Station Site 5] Property South of the Senior High 6] 1993 Goals and Objectives 7] Open House for New City Hall - set date 8) Joint Meeting With Shakopee Public Utilities - set agenda 9] Other Business 10] Adjourn • NEXT SCHEDULED MEETING: March 23rd at 8:30 P.M. OFFICIAL PROCEEDINGS OF THE CITY COUNCIL COMMITTEE OF THE WHOLE SHAKOPEE, MINNESOTA JANUARY 12, 1993 Mayor Laurent called the meeting to order at 8:34 P.M. with Councilmembers Vierling, Sweeney and Beard present. Councilor Lynch arrived at 8 :37 P.M. Also present were: Dennis R. Kraft, City Administrator; Karen Marty, City Attorney; Barry Stock, Asst. City Attorney; Judith S. Cox, City Clerk; Tom Steininger, Chief of Police; Pete Ries, Fire Chief; and Dave Judd, Fireman. Sweeney/Beard moved to approve the minutes of November 19, 1992 . Motion carried unanimously. Cncl.Sweeney explained that the Shakopee Public Utilities Commission is identifying sites for a sub-station to service the southeast quadrant and cost is a very important factor. He went on to explain that the distribution line voltage from the NSP Line to the sub-station is the same as the NSP line voltage. The voltage from the sub-station to smaller transmission lines is smaller and distribution from the smaller transmission lines to subdivisions is smaller yet. The City Code requires transmission lines to be installed underground. If the Shakopee Public Utilities Commission could get a variance from the City Code so they could put the transmission lines overhead, the cost of acquisition of sites is less because sites can then be located further south in undeveloped, agricultural areas. As the Council liaison from City Council to the Shakopee Public Utilities Commission, Cncl. Sweeney asked City Council if they would be favorable to granting a variance to the City Code to allow the Shakopee Public Utilities Commission to acquire a site for the sub-station further south on undeveloped, agricultural land and construct the transmission lines overhead. Discussion followed. Consensus of Councilmembers was that SPUC should follow the procedure and apply to the Planning Commission for a variance. Consensus of Coucilmembers was that there may be justification for a variance and that they would be open in considering a variance request. Discussion ensued on the need for additional legal services. The City Attorney updated her memo on the increased workload in the Legal Department and the alternatives for additional help. Cncl. Sweeney favored contracting out the gross misdemeanor cases for 1993 and considering adding staff in 1994 at the time the 1994 budget is prepared. Ms. Marty was asked to find out what Scott County would charge to do Shakopee's prosecutions. Discussion ensued on the amount of training done in the Police and Fire Departments. Council had no problem with the amount of money budgeted for training. Concern centered around the fact that the number of police hours spent in training equated to a 3/4's time officer. Chief Steininger explained that some training is mandated 12, 1993 Official Proceedings of the JanuaryJae -2- Committee of the Whole by law, and that other training is necessary so that officers will be better prepared to make correct decisions which will not create litigation against the city. He also explained that Shakopee spends just three hours per police officer over the average as compared to other cities and that our cost is less than one-half of may want to the average. Consensus of Council was amount of time allocated for the aPol Pt olice discuss theDepartment at a later date. Mayor Laurent thanked Chief Steininger, Fire Chief Ries, and Mr. Judd for coming to the meeting and for the information provided. He also stated that he was impressed with the amount of training done by the Fire Department. Discussion ensued on the 1993 pay plan for non-union employees. Mr. Kraft explained the increase in health insurance premiums beginning the first of the year. He also pointed out that recent arbitrator awards continue to create a lack of internal equity among City employees. Mr. Stock stated that the City needs to shorten the gap between the unions and other employees. He also pointed out the internal strife because of the difference in salaries between SPUC and the City. Mr. Stock recommended a percentage increase across the board plus comparable worth adjustments. Discussion followed. Sweeney/Vierling moved to recommend to City Council a three percent salary increase for non-union employees for 1993 . Motion carried unanimously. It was pointed out that employees receive differing amounts of contributions from the City toward their health insurance premium because of the different union contracts. Consensus among Councilmembers was to work towards all employees receiving the same contribution toward health insurance. Sweeney/Vierling moved to temporarily raise the health insurance contribution for non-union employees by $10.00 per pay period. Motion carried unanimously. Sweeney/Vierling moved that when the contract negotiations have been completed, that adjustments be made so that all employees receive the same health insurance contribution, retroactive to January 1, 1993 . Motion carried unanimously. Councilmembers instructed Mr. Stock on which logo they preferred from those he presented. Official Proceedings of the January 12, 1993 Committee of the Whole Page -3- Mr. Kraft explained that when the move is made to the new City Hall, that the phone system could be down up to four hours. He suggested closing City Hall all day on Friday, February 5th so that employees can prepare for the move, since the phones will probably be not working anyway. It was suggested that maybe the phone could be answered at another site, at Public Works or the Park and Recreation office. Consensus of Councilmembers was to allow City Hall to be closed on Friday, February 5th for the move to the new City Hall site. Sweeney/Beard moved to adjourn. Motion carried unanimously. Meeting adjourned at 11: 18 P.M. Jud'th S. Cox Cy Clerk Recording Secretary 3 MEMO TO: Dennis R. Kraft, City Administrator FROM: Barry A. Stock, Assistant City Administrator RE: Valley Ice Arena Analysis DATE: February 26, 1993 INTRODUCTION: Orr Schelen Mayeron & Associates, Inc. (OSM) has completed the Market and Operational Analysis for the Valley Ice Arena as requested by City Council . A copy of their report has been enclosed with this memorandum. BACKGROUND: On October 6, 1992 , Council directed staff to prepare requests for proposal specifications for a market and operational analysis for the Valley Ice Arena in Shakopee. In November of 1992 , City Council directed the appropriate City officials to enter into a consultant services agreement with O.S.M. to provide consulting services for a market and operational analysis of the Valley Ice Arena. The analysis focused on the following issues: 1 . Mechanical System Analysis 2 . Market Analysis 3 . Construction Cost Projections 4 . Operational Analysis/Proforma In completing the analysis, OSM utilized the consulting services of two other consulting firms; Springsted Public Finance Advisors and Independent Consulting Engineers, Inc. (I.C.E. ) Representatives from OSM and the other two sub-consultants will be in attendance at the March 1, 1993 meeting to present their findings. Following the presentation, it would be appropriate for City Council to ask questions regarding the report and subsequent findings. If questions are answered in a satisfactory manner, it would be appropriate for City Council to discuss possible courses of action to take in regard to the Valley Ice Arena facility and site. ACTION REQUESTED: Discuss the findings of the report and direct staff accordingly. SHAKOPEE FIRE DEPARTMENT 129 East First Avenue, Shakopee, Minnesota 55379 To: Dennis Kraft, City Administrator established 1876 From: Shakopee Fire Department Re: Location for Second Fire Station Copy: Shakopee City Council Members Date: 03/01/93 Introduction: It is recognized that in order to keep up with this city's growth and expansion a second fire station will be required soon. A large factor in possessing a good ISO (Insurance Services Office) rating as applied to the fire service is the ability to respond from within 1. 5 miles of any possible incident. The expansion of The City of Shakopee to the East makes a second station a necessity. Proposal: In order to combine adequate coverage of the Eastern portion of Shakopee with minimum distances to be travelled by responding fire fighters from home and work, a number of sites have been considered. The location which best fits these requirements is the area immediately East of the County Road 17 and Vierling Drive intersection. This location provides a number of benefits: -- There is adequate but not excessive territory overlap with the present stations 1. 5 mile coverage radius (For ISO considerations) . This location would greatly reduce our response time to the Eastern portion of the Shakopee Fire District. -- Future growth of this city appears to be in this direction thus this location covers our most immediate needs. -- This location is easily accessible from a number of residential areas for firefighter response from home and it is also well connected to the industrial and business section of town for firefighter response from work. -- It would be advantageous to have the station on the North side of Vierling Drive as most firefighters would be responding from this direction. They would not have to cross Vierling Drive while responding with their private vehicles. -- With an access to County Road 17 . Access from this location to the Highway 169 bypass would be easy and safe. -- Racetrack, Valley Fair, or Renaissance Festival traffic will not block access to this location. -- This site provides ample space for a station, training area, and off street parking facilities. �- Imo.. 50AKO•FF Fire station —334 West Second Avenue -- This could be a corner lot, providing access from two sides of the building which allows drive through truck bays for safety in handling the fire apparatus. A larger non-corner lot could be acquired allowing for similar apparatus maneuverability. -- If used as a voting location, this site would be easy to access because it allows minimal crossing of Vierling Drive and it is located on County Road 17. Alternatives: 1. To acquire property for a second fire station at the location proposed above, on the East Side of County Road 17 preferably just North of Vierling Drive. 2 . To acquire property for a second fire station at another location which meets similar criteria to the proposed location. Recommendations: The Shakopee Fire Department recommends alternative number one. This property allows the best possible coverage of the Eastern portion of the fire district (ISO) with good connection to both residential and industrial/business areas for firefighter availability and response. This area would have a minimal residential neighborhood impact, and would be relatively unaffected by peak traffic flows. The Shakopee Fire Department prides itself with the quality of fire protection it provides to this community. In considering the location for this second fire station we have spent a large amount of time evaluating data regarding several locations in order to provide the best possible increase in our service to the City of Shakopee. Respectfully Submitted, Frank Ries Chief, Shakopee Fire Department c: \wp50\sta2_2 " r —I-- • .• (---''' - j'•,?••N I \ 4.•J'..' 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R /,/• • 111WII / ! pi • If!'','4, , ,, ,A.:31, - . ). , I / ' • ., -vet i 'f-iall , ./ ,._. i _I / I • . . • rail 1 i 1''' h., i ii ,flk 1_ • ; . --,tqc c.... (11 allite 11: - iirSi:-; f / ..... oil F , Amin '111"di_ ; i —,,... A i ' ,./ c• v4.6 v17.,"1 1 iggMt 111Mr—'''AIP k _____[h 0 _r,,,-, , blis \ -4114MairdipEr IV. r -1 -..,..,...---.. .._-_. . ._..... .........., Market and Operational Analysis for i Valley Ice Arena N I _ s '� CITY OF SHAKOPEE LA,i' + . INCORPORATED 1870 I w •- 129 EAST FIRST AVENUE,SHAKOPEE,MINNESOTA 55379-1376 (612)445-3650 1V5S-• , srFebruary 25, 1993 Orr Schelen Mayeron& Associates, Inc. I Engineers • Architects Planners Surveyors 1 Orr Schelen Mayeron& Associates,Inc. 300 Park Place Center 5775 Wayzata Boulevard Minneapolis,MN 55416-1228 612-595-5775 1-800-753-5775 FAX 595-5773 Engineers February 25, 1993 Architects Planners Surveyors Mr. Barry Stock Assistant City Administrator City of Shakopee 129 East First Avenue Shakopee, MN 55379 RE: Market & Operational Analysis OSM Project No. 5029.00 Dear Barry, Contained in this report are the results of the findings of the OSM team regarding the feasibility of constructing a permanent ice arena facility in the City of Shakopee. As a team, we have applied our extensive professional experience to the best statistical data available in order to arrive at a conclusion that is formed on facts to the maximum degree possible. We have gathered information from many sources and from many people in order to do this study. To those who helped we are grateful. We also thank you and others from the city who provided assistance and gave the firms of OSM, I.C.E. and Springsted the opportunity to be involved in this very interesting assignment. If there is anything else we can do to make this report more useful for your purposes please don't hesitate to ask. Yours very truly, ORR-SCHELEN-MAYERON jat444,440.ffi& ASSOCIATES Gunnar F. Unger, Jr., AIA Director of Architecture l3:\ARCI I\su\502900\I:rR.GFL' Equal Opportunity Employer TABLE OF CONTENTS MARKET AND OPERATIONAL ANALYSIS FOR VALLEY ICE ARENA PAGE NO. PART 1 - STUDY OBJECTIVE A) INTRODUCTION 1 1) Study Purpose 2) Study Parameters -- B) STUDY ANALYSIS 1 1) Mechanical Systems Evaluation 2) Market Analysis 3) Construction Estimate/Facility Plans 2 4) Operational Analysis 5) Financing Alternatives PART 2 - INTRODUCTION A) BACKGROUND TO LOCAL HOCKEY 3 B) ALTERNATIVE ACTIONS PART 3 - EXISTING EQUIPMENT EVALUATIONS A) EXISTING EQUIPMENT INVENTORY 4 B) EQUIPMENT EVALUATION 5 PART 4 - FACILITY DESIGN RATIONALE A) INTRODUCTION 6 _. B) DESCRIPTION OF PROPOSED FACILITIES 6-8 C) PLANS OF PROPOSED FACILITIES 9 Fold-Out Plans A-3 Ground Floor & Mezzanine Level Plans 10-11 B-1 Ground Floor & Mezzanine Level Plans 12-13 B-2 Ground Floor & Mezzanine Level Plans 14-15 B-3 Ground Floor & Mezzanine Level Plans 16-17 OSM Project No. 5029.00 - City o S a•opec: Va ey Ice Arena Mar et an• Operation. Ana ysis - TABLE OF CONTENTS PART 5 - ARENA COSTS A) INTRODUCTION 18 B) SUMMARY OF COSTS FOR VARIOUS OPTIONS A-1 Replacement Facility 18 A-2 Olympic Sized Replacement Facility 19 A-3 Enhanced Replacement Facility 20 B-1 Multi-Use Facility 21 B-2 Enhanced Multi-Use Facility 22 -- B-3 Olympic Multi-Use Facility 23 C) EXPLANATION OF INCLUDED ITEMS 23-24 D) ITEMS NOT INCLUDED PART 6 - MARKET ANALYSIS A) INTRODUCTION 26 B) SURVEY OF PAST/POTENTIAL USERS 26-30 C) SURVEY OF NEIGHBORING ICE ARENAS 30 Exhibit A 31 Exhibit B 32-34 Exhibit C 35 D) GROWTH PROJECTIONS - LOCAL POPULATIONS 36 E) GROWTH PROJECTIONS - LOCAL SCHOOL DISTRICT 36 F) MARKET ANALYSIS SUMMARY 37-38 Exhibit D 39 PART 7 - PROJECTED REVENUES A) INTRODUCTION 40 B) SEASONAL OPERATION 40 C) FULL TIME OPERATION 40 D) PROJECTED EXPENDITURES 41 USM Project No. 5029.00 - City o S a opee: Va cy Ice Arena Mar et an. Operationa Ana ysis - TABLE OF CONTENTS E) REVENUE PROJECTIONS 41 Exhibit E 42 PART 8 - FINANCING ALTERNATIVES A) INTRODUCTION 43 B) BOND FINANCING 43 C) ALTERNATIVE FINANCING OPTIONS 43 D) OPERATIONAL ALTERNATIVES 44 Exhibit F 45 Exhibit G 46 Exhibit H 47 Exhibit I 48 Exhibit J 49 Exhibit K 50 Exhibit L 51 Exhibit M 52 OSM Project No. 5029.00opec: Va ley Ice Arena Market and Operational Analysis - PART 1 - STUDY OBJECTIVE A) INTRODUCTION: The City of Shakopee is considering the possibilities of sponsoring development of a new ice arena in the community as a replacement for the "bubble" known as the Valley Ice Arena. Before that decision can be made and agreed to by the City and others involved there are some major areas that need to be examined with an eye toward responsible decision making since the construction and operation of the new facilities are an investment whose burden of risk falls on every citizen of Shakopee, user and non-user alike. 1) Study Purpose In late 1992 the OSM team was commissioned by the City for the purpose of determining the financial feasibility for constructing/refurbishing and operating the Valley Ice Arena in Shakopee. This study is intended to serve a perspective that is more broadly defined than what might normally be expected of the local Shakopee Youth Hockey Associations (SYHA) 2) Study Parameters This study has taken into consideration a number of factors that affect facility cost, size, make-up, financial feasibility, etc. By way of background the existing facility — consists of the following: • 120 feet wide by 250 feet long deflated bubble type arena and associated equipment. • Coil type refrigeration system and accompanying equipment. • 50 feet x 50 feet concrete block building consisting of mechanical room, office area, storage and restrooms. The site occupied by Valley Ice Arena is owned by the City of Shakopee. The ,., deflated bubble, block building and associated equipment is owned by Valley Ice Arena, Inc. B) STUDY ANALYSIS: -- The following analysis addresses each of the main components of this study. 1) Mechanical Systems Evaluation An analysis of the operating condition of existing equipment. It identifies the equipment by make and model and states the approximate age, condition, projected life expectancy and replacement cost of each piece of equipment. OSM Project No.5029.00- City o S a opee: Va cy Ice Arena Mar et an. Operationa Ana ysis- Page No. 1 PART 1 - STUDY OBJECTIVE 2. Market analysis A two tiered analysis to determine market potential for a permanent ice facility in Shakopee in order to determine feasibility under the following two scenarios: .,. • Assuming construction of the Mdwakanton Dakota Community Ice Facility in 1993/94. • Assuming no other ice facilities are constructed within the immediate Scott County vicinity. 3) Construction Estimate/Facility Plans Based upon reuse/refurbishing of existing structures and the mechanical systems -- analysis, a construction estimate for a pre-fabricated wall system and Behlen type convex roof system ice facility is included. This system includes the investigation of facilities construction under 2 basic scenarios (A and B) as follows in this report. 4) Operational analysis A two tiered analysis to determine potential operating costs of an ice facility. This analysis addresses potential revenue sources and alternative facility uses and analyses operational feasibility under the following two management scenarios: • Non-profit organization. • Municipal ownership The operational analysis also addresses potential revenue and expenditures associated with the different levels of construction as shown in schematic plans attached to this report. 5) Financing Alternatives: The study concludes with a number of approaches to financing the construction of a new facility demonstrating how the various approaches have a different affect on the taxpayers of the City of Shakopee and/or the financial reserves of the City. USM Project No. 5029.00- City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.2 PART 2 - INTRODUCTION A) BACKGROUND TO LOCAL HOCKEY Organized hockey for youngsters in Shakopee began about 25 years ago with the formation of the Shakopee Youth Hockey Association (SYHA). The program has grown steadily from 25 kids in 1968 to a high of 256 boys and girls in 1991, the last year of the "bubble". The numbers fell back to about 150 kids in 1992 when in-town indoor facilities were no longer available. The significant growth in the program spawned the first Shakopee High School Hockey Team in 1972. The first two years the team played their games outdoors and from 1975 - 1980 they played their games in the Minnetonka bubble, then in the new LeSueur Ice Arena when that was constructed. In 1980 the Shakopee Hockey Association was successful in erecting the City's first indoor hockey facility. It consisted of a small permanent concrete -- block structure to house equipment, toilets and the Zamboni, and a temporary inflatable vinyl "bubble" over the ice rink. Used equipment was utilized, and the bubble too was.2nd hand. For almost 12 years they have provided indoor ice for the community enabling local hockey programs to grow to the present level. Due to the fact that the majority of the arena operation is supported by volunteers, the program has always managed to end the season in the black. B) ALTERNATIVE ACTIONS: Currently the useful life of the "Bubble" is over, and the local hockey programs are dependent on adjacent communities for ice time to keep their programs alive. The City now is faced with the decision as to what to do to facilitate youth hockey and other skating groups in the Shakopee Community. Three obvious choices exist, with possible variations to those choices. 1. Construct a new arena to replace the defunct Valley Ice Arena to provide indoor ice for local hockey programs and for other uses compatible with a building of this type. 2. Return the current site to an outdoor facility and let the high school and other teams find the best available indoor ice in surrounding communities in order to continue their programs. 3. Allow others to build an indoor facility in or near Shakopee, so local programs can survive or thrive because ice times at reasonable hours would then be available locally. This study attempts to examine in a thorough manner the pros and cons of each approach and the associated effects on both the City itself and the hockey programs within the City and surrounding communities. OSM Project No.5029.00 - City o S a opee: Va ey Ice Arena Mar et an Operations Analysis- Page No. 3 PART 3 - EXISTING EQUIPMENT EVALUATION A) EXISTING EQUIPMENT INVENTORY The following is a listing of equipment presently available for reuse in the proposed new arena as prepared by I.C.E., Inc., Independent Consulting Engineers, Inc. 80 West county Road C, Suite 801, St. Paul, Minnesota 55117. The existing used equipment, purchased in chicago in 1978, has been in use since that time to provide an ice skating facility in conjunction with an air supplied bubble. It consists of the following: 1) Two 100 HP motors on existing compressors One Trane compressor, Model 3E5R8OLN, Serial No. 7269J81-3. One Vilter compressor, Size M171048, Serial No. 11648. (Both are 1770 RPM, 270/460 volt, water cooled units without solenoids. These units ran continuously and use R-22 refrigerant). 2) Two 5 HP pumps for secondary refrigerant (50/50 ethylene glycol) circulation. Present pipes are full of glycol but not pressurized. 3) Receiver tank for primary refrigerant is full of R-22 (18" dia. x 8'). 4) Two Trane air-cooled condensers on roof. Model CA7508, Serial No. L2L167043 and L2L167045. Each unit has two working fans, powered by 5 HP motors. NOTE: Rink operations is controlled by differential temperature measurement between supply and return lines of glycol. 5) Ice resurfacer - Zamboni. Model HDB, Serial No. 1498 propane operated Volkswagen engine. 6) Gas engine powered ice edger. 7) Two 100 gallon water heaters, gas fired. One Lochinvar, one Bradford White. 8) Working Scoreboard. 9) Wood frame dasherboards that have been somewhat renovated. Boards are strapped to pipe supports that are driven into ground around rink - no concrete curb around rink. Boards have 5 foot high recently installed plexiglass spectator protection. 10) Existing rink is an 85 foot x 200 foot sand floor. Refrigeration piping is 1" schedule 80 crown line plastic pipe. 11) One Dupliskate sharpener. 12) One standby power generator - 6 cylinder Ford engine, natural gas. 0 M Project No. 5029.00- City o S a-opce: Ia cy Ice Arena Mar et an. Operationa Ana ysis- Page No.4 PART 3 - EXISTING EQUIPMENT EVALUATION B) EQUIPMENT EVALUATION The equipment is all aging. As previously mentioned the equipment was all purchased from a rink in Chicago in 1978. It has, therefore, been in use at Valley Ice Arena for approximately 15 years. It is unknown at this time as to the actual age of the equipment. It is known that the Zamboni was built in 1973 and is, therefore, 20 years old and it is assumed that the other equipment is approximately the same age. The normal life of equipment in ice rinks is approximately 25 years. It is, therefore, concluded that, while this system is still operative, steps should be taken to provide funding in the near future for replacement of these items. The existing building that houses this equipment is of sufficient size to contain power -- systems in the future. OSM Project No. 5029.00- City o S a opee: Va ey Ice Arena Mar et an. Operationa Ana ysis- Page No. PART 4 - FACILITY DESIGN RATIONALE A) INTRODUCTION The OSM design team in conjunction with representatives of the City of Shakopee and the local youth hockey association sought various approaches to the problem of providing a replacement for the now defunct "Bubble" (Valley Ice Arena). The two directions established were the following scenarios. ► Scenario #1 (Schemes A-1, A-2 and A-3) Build a minimum replacement facility at the lowest possible first cost for the primary -- purpose of providing about 1200 plus hours of rentable ice time to Shakopee/Prior Lake Youth Hockey Association, Shakopee High School, etc. and have it be operated by the volunteers from the hockey association, much the same as the former arena had been operated in the past. Competition from the closest adjacent rinks should not be an issue as enough prime ice time is needed from within Shakopee and surrounding communities to fill the necessary hours. It should also not be adversely affected if the Mdwakanton -' Dakota Community construct an ice arena/community center as the local loyalties should keep the rink full for the necessary prime time hours. The facility would be operated as a seasonal facility only. ► Scenario #2 (Schemes B-1, B-2 and B-3) Construct a year around facility with all the necessary amenities to attract other renters for ice time beyond the 1200 plus prime time hours and also attract other off-season events. This type facility would require a paid management/maintenance staff to optimize facility use and insure that the facility quality remains high. This type facility would not only provide the City with a fine ice arena, but would provide facilities for many other community functions and activities as well. A brief description of the proposed facilities follows. B) DESCRIPTION OF PROPOSED FACILITIES ► Scheme A-1 - Replacement Facility This scheme is not illustrated but, is a very basic facility which would replace the "Bubble" with a permanent facility, and re-utilize the existing refrigeration equipment, etc. The existing toilet facilities would be revised to meet the new ADA requirements as illustrated in Scheme A-3, and new hockey dasher boards would be provided. The current dashers are essentially worn out and would not convert for use on a poured concrete floor. All new refrigeration piping would be provided in the new floor, and a freeze protection system would also be provided to prevent permafrost from heaving this new floor. The facility would operate approximately six months of the year, and be intended for hockey use primarily and possibly some recreational skating too. The facility would likely be run by members of the Hockey Association, essentially on a OSM Project No.5029.00-City o S a•opec: a cy Ice Arena Mar et an. Operationa Ana ysis- Page No.6 PART 4 - FACILITY DESIGN RATIONALE break even basis, much as the Valley Ice Arena has been in the recent past. The primary activities that would take place in this type of facility are: • Public Skating • Figure Skating • Ice Hockey • Broomball --- • Hockey Tournaments • Ringettes • Shakopee Skate Races • Hockey Clinics • Skating Lessons • Broomball Tournaments — ► Scheme A-2 - Olympic Sized Replacement Facility — This facility, although not illustrated, would be identical to Scheme A-1 except the building would be 15 ft wider to accommodate a 100 feet x 200 feet olympic sized hockey rink. This would expand the use possibilities to include short track speed skating — which in turn would potentially increase ice rental revenues. Currently there are only three operational olympic rinks in the State of Minnesota. They are in Circle Pines, Eden Prairie and at St. Cloud State University. Three more are coming soon at Bloomington, the University of Minnesota and in Mankato They will likely be in higher demand than the standard rinks for special events, particularly olympic events, and they can also accommodate more teams for practice, where as an example, four teams of Mites could practice with cross rink games simultaneously. ► Scheme A-3 - Enhanced Replacement Facility This facility as shown on the attached plans would be a slightly enhanced replacement facility adding four team rooms, a ticket office/skate sharpening room, storage, and a room where concessions could be sold. It would also have a concrete mezzanine which would serve also as a ceiling for the lower level rooms that could be used in the future for numerous functions once stairs and an elevator would be provided. The primary use of this facility would remain however skating, as without an arena manager, very little off-season use would likely occur without some one to "sell" and schedule these events. ► Scheme B-1 Hockey - Multiuse Facility This facility as shown on the attached plans would be an enhanced ice arena facility that would provide the City of Shakopee with opportunity to satisfy many local recreational — activities beyond skating related functions. Team rooms would have permanent benches as would the open skating area. Rental lockers for open skating would be provided. A pro-shop for sales of skating related items would be added. A video game room OSM Project No. 5029.00 -City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.7 PART 4 - FACILITY DESIGN RATIONALE would be added and a full size concession prep and selling area, plus storage, would be provided. The preparation equipment itself would not be included. The mezzanine level would be constructed to provide large meeting rooms for community activities as well as other recreational activities. Also, the mezzanine would be glassed off to provide a limited amount of heated spectator seating, and also to minimize heating costs for the meeting rooms. Maximum utilization of this facility would necessitate full-time management as it would ideally be scheduled for use 12 months of the year. In addition, an assistant manager and a full-time maintenance person would be essential. The ice would be maintained approximately six months of the year, and dry floor type events would be scheduled over the warmer months. The exception to this would be a few weeks during the summer when hockey camps could be held to generate additional revenues. Normal rental rates for prime time ice would be $100/hr with off-time being about $80/hr. During the summer, registration fees for hockey camps would pay for ice time. Some of the activities and events that could happen in this type facility in addition to those mentioned for Scheme A-1 would be: • Archery . City Wrestling Program • Antique Car Shows • Farm Equipment Sales • Manufacturing Equipment Shows • Scouting Events • 4-H Activities • Dog Shows • Poultry Shows • Concerts • Craft Shows and Classes • Antique Shows • Horse Shows • Soccer • Baseball/batting Practice • Rollerblade Hockey League • Volleyball • Boy/Girl Scout Activities • Golf Practice • Farm and Home Shows • Furniture Sales • Tennis • Flea Markets • Appliance Sales • Talent Shows • Derby Days Activities • Auctions • Car Sales • Boat Shows • Remote Control Car Races • Public Rollerblading • Meeting Room Rental • City Gymnastics Program ► Scheme B-2 - Enhanced Multiuse Facility This facility as shown would have in addition to the features of Scheme B-1, a 7 foot wide running track, an entrance vestibule, and a new Zamboni room. Because the volume of space for a upper level running track is inherent in a 24 foot high building, this scheme seeks to put a use to that space. A building of this type by virtue of its size would yield a 1/8 mile running/walking track available for year around use. It would OSM Project No. 5029.00- City o S a-opce: Va ey Ice Arena Mar et an. Operationa Ana ysis- Page No.8 PART 4 - FACILITY DESIGN RATIONALE be particularly useful for senior citizens walking in colder weather and for use by jogging enthusiasts. The running track could also serve as a viewing gallery for overflow spectators for hockey tournaments, etc. The new Zamboni room with its ice melt pit would enable ice resurfacing without the necessity of outside on-grade dumping of ice shavings which inherently downgrades the quality of the ice by virtue of tracking abrasive contaminants from the outside onto the ice sheet. The entrance vestibule would provide a weather lock to the front entrance, and provide a highly visible waiting area for kids waiting for a ride. It would also give the front entrance its visual "Identity". ► Scheme B-3 - Olympic Multiuse Facility In addition to those features in schemes B-1 and B-2, this scheme as shown provides an olympic size ice rink plus such additional amenities as a shower/toilet facility that would be shared by two of the team rooms, an additional meeting room on the mezzanine level as well as an arena manager's office, and a small snack serving area to be used by persons utilizing the second floor facilities for parties, meetings, etc. — C) PLANS OF PROPOSED FACILITIES _ Attached hereto and following are reduced plans of the options that have been considered. They represent feasible solutions to the requirements of a permanent ice arena facility. However, the charge of this report was not the final design of the facility. Therefore if a facility is ultimately constructed, the plans could vary somewhat from those shown. OSM Project No.5029.00opee: Valley Ice Arena Market and Operational Analysis- Page No.9 __ I .J 1 , 1 _ I. I, i 1 " . , i 1 C I \ •• •MONS STORM* 1 ELEYATOg L N I,I i i 14.1_ II------71 1-;nni14 j III Ij ur1 Fi F!+I+'+ II r-J Iu�IW I— (..........--11 to i 1I FOYER • I 1 TICFETS/ ''S / I OFFICE SNARPEMIRO — CaE i I o . — — — — I YEW. IITEAM ROOM M ' i I HI= o EAT ROOT RS • I I I, I H I TEAM ROOM.x I 0 — / / mTITITIT 1 ( Ott I-t-H- l t- 1 TEAM ROM al If.) J.IJ li;'I� II 1 /1111.*_ , v ARR. • .....�..� I.���� jV(' R I R EOiJIPIErr Roots 1 ...T---iII 1 CRO N YM rag i ��{{i r� a[ — 41• i -JAM.RTpb -� ....,1 I EXISTIMII/YILDIMO 1 I , � 1 , .Ii (-It F =il 4= !_%�=--1_1: rrlLTl!Ti rin1liTn1JrL_ il i-IL 'I\ li 11 I i 1111 ( • • 11 i ii ii I STEEL i RAIL ING II FUTURE PtZZANI NE ID1 ,,i II il ,! i„ . 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I.iy i!iiiiiiii 0 -< FOYER VEST!OLE o — • / TIpETS/ / — tit , GEFId4 - gRo _ TERN RODY:mom I — .� ft lE ��— 1 ) 1 MA� TEAK BOON la1 I ° F—tI- - ;II . • ; TERN ROOK 4IiliC.a — 1 r I `I *****,-... ) ) 0 If ' lr ) [1.1 TERN ROOK An ° MRRICADE 1 CATE MnEM — i g '1 g ii @ COelR. I a. _ail B '.i 9 I iia E �11 NEN it 1 of; — r S • € 1 __,, AM./STOP. at p WILDING•W •– f ._ ,L____. I IiT.\ tx,Re,,E, iccT,M6 ROOF I I I \ STORAGE a,1111111' I 1 II II El,. III II I I I r EGE t• vEEOF STIOLLE ROY H SCATS I ----7/) F CrrER I Q I / r-CAASS I STORAGE rALL / r f i I HICHRISE BLEAO ,$4 SEATS ',FETING II 1 1 I 1 I I I' H i i t OM 1 ��i 1s��l ) immmlimmommlim WITINO AWN i '—Wil11q 11 I li 'F 11 iI it =t TING ROOF ii Ti €i il 14 ii ii PART 5 - ARENA COSTS A) INTRODUCTION A number of different plan options were developed to provide different levels of construction for the proposed arena. The cost of each of the options is different which responds to the different features provided with each scheme. Attached herewith are cost estimates based upon the preliminary plans developed. In each case a 10% contingency is provided to cover the possible variables that a preliminary cost estimate may have that a detailed cost estimate would tend to minimize. Also, a slight variance is shown for the design fee. A simpler building with few finishes and little detail would normally carry a slightly lower design cost than one that is more detailed. The fee used would be considered an average for the industry,but circumstances may be such for the ultimate project designed that a minor adjustment either upward or downward may be appropriate. B) SUMMARY OF COSTS FOR VARIOUS OPTIONS SCHEME A-1 - REPLACEMENT FACILITY Division 2 - Sitework $ 41,000.00 Division 3 - Concrete $ 314,000.00 Division 4 - Masonry $ 3,200.00 Division 5 - Metals $ 226,000.00 Division 6 - Wood and Plastic $ 1,000.00 Division 7 - Thermal and Moisture Protection $ 1,500.00 Division 8 - Doors and Windows $ 6,500.00 Division 9 - Finishes $ 66,500.00 Division 10 - Specialties $ 4,500.00 Division 11 - Special Construction $ /co, Division 15 - Mechanical $ 124,500.00 Division 16 - Electrical $ 68,000.00 SUBTOTAL OF ARENA COSTS $ 956,700.00 10% CONTINGENCY, ADD $ 95,700.00 10% DIV. 1 - GEN. REQUIREMENTS, ADD $ 105,200.00 DESIGN FEE (ci 6.5 PERCENT, ADD $ 75,300.00 TOTAL PROJECT COST $ 1,232,900.00 OSM Project No.5029.00-City o S a opec: a cy Ice Arena Mar et an. Operationa Ana ysis- Page No. 18 PART 5 - ARENA COSTS SCHEME A-2 - OLYMPIC SIZED REPLACEMENT FACILITY Division 2 - Sitework $ 42,500.00 Division 3 - Concrete $ 315,700.00 Division 4 - Masonry $ 3,200.00 Division 5 - Metals $ 231,000.00 Division 6 - Wood and Plastic $ 1,000.00 Division 7 - Thermal and Moisture Protection $ 1,500.00 Division 8 - Doors and Windows $ 6,500.00 Division 9 - Finishes $ 73,500.00 _ Division 10 - Specialties $ 4,500.00 Division 11 - Special Construction $ 100,000.00 — Division 15 - Mechanical $ 134,300.00 Division 16 - Electrical $ 78,000.00 SUBTOTAL ARENA COSTS $ 991,700.00 10% CONTINGENCY, ADD $ 99,200.00 10% DIV. 1 - GEN. REQUIREMENTS, ADD $ 109,100.00 DESIGN FEE @ 6.5 PERCENT, ADD $ 78,000.00 TOTAL PROJECT COST $1,278,000.00 SM Project No.5029.00- City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No. 19 PART 5 - ARENA COSTS SCHEME A-3 - ENHANCED REPLACEMENT FACILITY Division 2 - Sitework $ 42,700.00 Division 3 - Concrete $ 342,000.00 Division 4 - Masonry $ 20,300.00 Division 5 - Metals $ 234,000.00 Division 6 - Wood and Plastic $ 1,000.00 Division 7 - Thermal and Moisture Protection $ 1,500.00 Division 8 - Doors and Windows $ 14,000.00 Division 9 - Finishes $ 70,200.00 Division 10 - Specialties $ 4,500.00 Division 11 - Special Construction $ 100,000.00 Division 15 - Mechanical $ 57,900.00 Division 16 - Electrical $ 84,000.00 SUBTOTAL ARENA COSTS $1,072,100.00 10% CONTINGENCY, ADD $ 107,200.00 10% DIV. 1 - GEN. REQUIREMENTS, ADD $ 117,900.00 DESIGN FEE @ 7 PERCENT, ADD $ 90,800.00 TOTAL PROJECT COST $1,388,000.00 USM Project No.5029.00-City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.20 PART 5 - ARENA COSTS SCHEME B-1 - MULTI-USE FACILITY Division 2 - Sitework $ 43,000.00 Division 3 - Concrete 351,000.00 Division 4 - Masonry $ 35 100.00 Division 5 - Metals $ 240,000.00 Division 6 - Wood and Plastic $ 5,000.00 Division 7 - Thermal and Moisture Protection $ 3,000.00 Division 8 - Doors and Windows $ 51,000.00 Division 9 - Finishes $ 87,500.00 Division 10 - Specialties $ 9,700.00 Division 11 - Special Construction $ 100,000.00 Division 14 - Elevator $ 36,000.00 Division 15 - Mechanical $ 173,000.00 Division 16 - Electrical $ 89,000.00 SUBTOTAL ARENA COSTS $1,223,300.00 10% CONTINGENCY, ADD $ 122,300.00 10% DIV. 1 - GEN. REQUIREMENTS, ADD $ 134,600.00 DESIGN FEE @ 7 PERCENT, ADD $ 103,600.00 TOTAL PROJECT COST $1,583,800.00 OSM Project No.5029.00- ity o S a opec: a cy cc Arena Mar et an. Operationa Ana ysis- Page No.21 PART 5 - ARENA COSTS SCHEME B-2 - ENHANCED MULTIUSE FACILITY Division 2 - Sitework $ 46,500.00 Division 3 - Concrete $ 380,000.00 Division 4 - Masonry $ 46,000.00 Division 5 - Metals $ 298,000.00 Division 6 - Wood and Plastic $ 5,000.00 Division 7 - Thermal and Moisture Protection $ 13,700.00 Division 8 - Doors and Windows $ 70,000.00 Division 9 - Finishes $ 87,500.00 _ Division 10 - Specialties $ 9,700.00 Division 11 - Special Construction $ 100,000.00 — Division 14 - Elevator $ 36,000.00 Division 15 - Mechanical $ 176,000.00 Division 16 - Electrical $ 95,000.00 SUBTOTAL OF ARENA COSTS $ 1,363,400.00 10% CONTINGENCY, ADD $ 136,300.00 10% DIV. 1 - GEN. REQUIREMENTS, ADD $ 150,000.00 DESIGN FEE @ 7 PERCENT,ADD $ 115,500.00 TOTAL PROJECT COST $1,765,200.00 OSM Project No.5029.00-City o S a opee: Va ley Ice Arena Market and Operational Analysis- Page No.22 PART 5 - ARENA COSTS SCHEME A-0 - BASIC FACILITY Division 2 - Sitework $ 41,000.00 Division 3 - Concrete $ 168,000.00 Division 4 - Masonry $ 3,200.00 Division 5 - Metals $ 226,000.00 Division 6 - Wood and Plastic $ 1,000.00 Division 7 - Thermal and Moisture Protection $ 1,500.00 Division 8 - Doors and Windows $ 6,500.00 Division 9 - Finishes $ 10,000.00 Division 10 - Specialties $ 4,500.00 Division 11 - Special Construction (Dasher Boards) $ 4,000.00 Division 15 - Mechanical $ 85,500.00 Division 16 - Electrical $ 68,000.00 SUBTOTAL ARENA COSTS $ 615,200.00 10% CONTINGENCY, ADD $ 61,500.00 10% DIV. 1 - GEN. REQUIREMENTS, ADD $ 67,600.00 DESIGN FEE @ 6.5 PERCENT, ADD $ 48,400.00 TOTAL PROJECT COST $ 792,700.00 OSM Project No. 5029.00 - City of Shakopee: Valley Ice Arena Market and Operational Analysis - Page 18-A PART 5 - ARENA COSTS SCHEME B-3 - OLYMPIC MULTIUSE FACILITY Division 2 - Sitework $ 47,000.00 Division 3 - Concrete $ 395,000.00 Division 4 - Masonry $ 51,000.00 Division 5 - Metals $ 313,000.00 Division 6 - Wood and Plastic $ 5,000.00 Division 7 - Thermal and Moisture Protection $ 13,700.00 _ Division 8 - Doors and Windows $ 70,000.00 Division 9 - Finishes $ 87,500.00 Division 10 - Specialties $ 9,700.00 Division 11 - Special Construction $ 100,000.00 Division 14 - Elevator $ 36,000.00 Division 15 - Mechanical $ 176,000.00 Division 16 - Electrical $ 95,000.00 SUBTOTAL ARENA COSTS $1,398,900.00 10% CONTINGENCY, ADD $ 139,900.00 10% DIV. 1 - GEN. REQUIREMENTS, ADD $ 153,900.00 DESIGN FEE @ 7 PERCENT, ADD $ 118,500.00 TOTAL PROJECT COST $1,811,200.00 C) EXPLANATION OF INCLUDED ITEMS: -- The cost estimates shown are broken down by specification divisions. A brief explanation of the major items included in each of those divisions is as follows: 1) DIVISION 2 - SITEWORK: Demolition and removal of existing structure, excavation, backfill and compaction '- and 4" underslab sand cushion. OSM Project No.5029.00-City o S a opee: Va ley Ice Arena Market and Operational Analysis- Page No.23 PART 5 - ARENA COSTS 2) DIVISION 3 - CONCRETE: — Footings, slab on grade ice rink floor with refrigeration piping, 10" insulated precast wall panels, 8" precast floor plant with 2" concrete topping at mezzanine - and 3" concrete on metal deck at running track as indicated in the various schemes. 3) DIVISION 4 - MASONRY: All interior and exterior (Zamboni Room addition) masonry walls. 4) DIVISION 5 - METALS: Structural steel building frame with insulated standing seam roof. Structural sub- - framing for mezzanine and running track level, steel stairs, handrails and guard rails, grating for zamboni room. — 5) DIVISION 6 - WOOD AND PLASTIC: Wood benches in team rooms, misc., blocking at roof and as required. — 6) DIVISION 7 - THERMAL AND MOISTURE PROTECTION: 4 ply built-up roof at Zamboni room and standing seam insulated metal roof at vestibule, underslab insulation and caulking. 7) DIVISION 8 - DOORS AND WINDOWS _ All hollow metal doors and frames. Door hardware, aluminum doors, frames and glazing (glass wall and vestibule). 8) DIVISION 9 - FINISHES Exterior wall latex paint, interior wall 1/2 epoxy and 1/2 latex paint, rubber skate mats, vinyl tile and carpet in meeting rooms, acoustical ceiling tile and _ drywall at mezzanine level. 9) DIVISION 10 - SPECIALTIES — Toilet and urinal partitions, toilet accessories (towel dispenser, toilet paper holder stainless steel mirrors, etc.), lockers and benches. 10) DIVISION 11 - SPECIAL CONSTRUCTION Dasher boards with plexiglass tops furnished and installed complete. — 11) DIVISION 14 - CONVEYING SYSTEMS Elevator equipment furnished and installed, (does not include maintenance contract), masonry shaft included in Division 4. 12) DIVISION 15 - MECHANICAL Plumbing, heating, ventilation and dehumidification. 13) DIVISION 16 - ELECTRICAL Interior and exterior lighting, including rink lighting, power, motors, and wiring OSM Project No.5029.00-City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.24 PART 5 - ARENA COSTS 13) DIVISION 16 - ELECTRICAL Interior and exterior lighting, including rink lighting, power, motors, and wiring as required for existing scoreboard, ice making machine and fire alarms. 4) ITEMS NOT INCLUDED The following items and cost are not included in the cost estimate and should be added to the total as required: 1) Refrigeration System $250,000.00 2) Bituminous Parking for 300 cars $100,000.00 3) Fire Protection $ 65,000.00 - $74,000.00 4) Bleachers, Scoreboard,Zamboni Kitchen Equipment and furnishings NOTES: • It is not known at this time whether or not a fire protection system will be required in this facility. Therefore it is shown as a potential add item above. • A paved parking lot is also not included in the cost estimate shown. Should that be required, the cost is also shown above. _ • For the purpose of all six estimates, the existing refrigeration equipment has been reused. OSM Project No.5029.00-City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.25 PART 6 - MARKET ANALYSIS A) INTRODUCTION In order to produce an accurate analysis of the potential market for a permanent ice arena in the City of Shakopee, a number of questions needed to be answered. Such things as location, size and type, cost, operations, potential users, etc. need to be carefully considered. One of the easier issues to address was that of location. Since reusable portions of the existing Valley Ice Arena still exists on land currently owned by the city, construction of any new arena on that site seems the prudent approach to take. The site is very accessible, centrally located, familiar to all past users, has adequate parking and also has all needed services on site. It is therefore recommended that the present site be given first consideration for construction of a new facility. The actual need for a permanent arena facility in Shakopee was the next issue considered. In some respects the need aspect of a facility has basically been settled by virtue of the fact that an indoor rink facility has existed in the City for the past 12 years, and has been serving the needs of many skating groups most notably the Shakopee/Prior Lake Youth Hockey Association and the Shakopee High School Hockey Team. These groups, plus others from the surrounding communities have filled over 1000 hours of skating time in the "Bubble" over the past many years until it went down for the last time in 1991. The Shakopee High School team has now therefore been both practicing and playing their games at the Eden Prairie Ice Arena. Neighboring Chaska's arena has no desirable ice time to rent, and therefore the team had no choice but to select the more distant alternative. The local Shakopee/Prior Lake Youth Hockey teams now practice mainly outdoors and play their "home" games at rinks in Chaska, Farmington, Cottage Grove, Bremar, Hudson, Wisconsin, etc. Due to that fact, the number of participants in the association has fallen significantly. Other youth hockey associations such as Lakeville, Eagan, New Prague, Montgomery, etc. who formerly used the "Bubble" have now been forced to find ice time elsewhere too. None of the above groups appear satisfied with their current situation, and would -- welcome the opportunity to return to a facility that is more convenient, and which has decent rentable hours to sell. B) SURVEY OF PAST/POTENTIAL USERS A telephone poll was conducted with key people in all of the local youth hockey associations who have been in the past, or may become in the future viable users of an indoor ice arena in Shakopee. One of the primary purposes of this poll was to OSM Project No.5029.00-City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.26 PART 6 - MARKET ANALYSIS determine what affect construction of a new facility in Shakopee would have on their respective organizations plans regarding ice time rental. Another was to determine if construction of a rink by the Mdwakanton Dakota Community approximately five miles from the Valley Ice Arena site would affect where they rent ice? Another goal was to determine how much ice time their organization would be willing to rent should a new facility be constructed. The Shakopee High School Activities Director was also contacted for answers on the above questions. ► Shakopee/Prior Lake In recent years the association has rented approximately 500 prime time hours in the Valley Ice Arena. The group was at 275 kids in 1991, the last year of the "Bubble", but is now at 175 kids due to long travel distances to ice arenas and undesirable ice times available at these remote rinks. They would again take a minimum of 500 hours at a new facility if constructed. The president of the association felt that if a new arena were built by the Mdwakanton Dakota Community, the association may buy some additional practice time there, but would maintain a 500 hour minimum in Shakopee. ► New Prague This association has approximately 115 kids and rented 254 hours of ice time for the 1992/1993 hockey season. The president of the association said they would rent approximately 75 - 100 more hours for the 1993 - 1994 season if a good times were available. Most of their practice and game time is presently at the LeSeur arena, but the available times for many of the practices was not that good. He felt that the association would rent 75 - 100 hours in Shakopee at a new facility as the 1/2 hours average drive for their kinds would be quite acceptable. Shakopee would remain their alternate rink of choice even if the Mdwakanton Dakota Community were to build their rink as the Shakopee area would be easier to drive to. He also stated that they could promote considerable tournament business in a new facility to supplement regular rented times. They would also be willing to donate a certain amount of funding on an annual basis to help finance a new arena. ► Montgomery This association has approximately 75 kinds in their hockey program and currently play their home games at LeSeur. They practice at Chaska and Fairbault plus outdoors. They have rented very few hours in the past from Valley Ice Arena, but wold rent 25-50 hours in upcoming seasons if they could improve on the practice times and be able to move them indoors. OSM Project No.5029.00-City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.21 PART 6 - MARKET ANALYSIS ► Lakeville The association has approximately 350 kids in their program and has rented approximately 100 hours of ice time from Valley Ice Arena in recent years. Their kids currently play their "home" games in Farmington, and practice at St. Paul Academy, Minnehaha Academy, Parade Stadium, Eden Prairie, etc. Besides driving to these many locations, they have not been able to rent very desirable times. They have budgeted 500 hours of ice time for the 1992 - 1993 season but could only rent 460 hours from all the above rinks, as no more acceptable times were available. The president of the association stated they would rent about 200 hours of time in Shakopee if a new facility was constructed. ► Eagan This association currently has 350 kids in their hockey program and purchased 550 hours of ice time during the 1992 - 1993 season. They rent times at a variety of locations from Breck, Wacouta, Augusburg, Minnehaha Academy, St. Paul Academy, Inver Grove Heights arena, etc. The president of the association said they will purchase 600 hours for the 1993-1994 season. He said they would purchase about 120 hours in Shakopee if a new arena was constructed. He said they many even sign a five year lease for 120 hours a year if this would help stimulate a new arena. He also felt they would rent additional hours to do tournaments if reasonable times were available. ► Eden Prairie This association has 700 kids in the program and are fine on ice time now that a second rink has been added at Eden Prairie. — ► Minnetonka — This association has 475 kids in the hockey program. They are pretty well able to meet their current ice time needs at the Minnetonka rink plus Breck, Blake and Chaska. They might be interested in buying a few hours from Shakopee if prime hours were available. — ► Shakopee High School According to the high school activities director, they would definitely return to Valley Ice Arena for a minimum of 100 hours per year, the amount they have used in the past. They now have two hockey teams and would therefore need more time than that, but could not qualify that extra amount. OSM Project No.5029.00-City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.28 PART 6 - MARKET ANALYSIS ► Miscellaneous Organizations Other past renters of ice time at Valley have been the Shakopee Lions for open skating, Shakopee Parks and Recreation Department for their "Learn to Skate" — program and the Shakopee Mens Hockey League. Together they have rented about 100 hours per year. It is anticipated that these organizations would at least maintain, or likely increase rental hours, if a new rink was constructed. Other potential sources of ice rental would be figure skating clubs, broomball league for springtime ice, and speed skating clubs in the case of an olympic rink. The amount of time to be rented by these groups however is difficult to quantify at this time. Summary of Potential Annual Ice Rentals - Prime Time Shakopee/Prior Lake Youth Hockey 500 Hours Eagan 120 Hours Lakeville 200 Hours — New Prague 75 Hours Montgomery 25 Hours Shakopee High School 100 Hours Shakopee Parks and Recreation 20 Hours Shakopee Lions Open Skating 30 Hours _ Shakopee Mens League 50 Hours Eden Prairie/Minnetonka 00 Hours Miscellaneous (broomball, figure skating) 40 Hours — Tournaments 100 Hours Total Hours 1,260 Hours — The figures used above represent the conservative end of the range given by the various people contacted. In nearly every case, the probability of more rental time exists. — The above summary would seem to substantiate the likelihood that renting sufficient ice time to fill all available prime time hours is there. Therefore, for a 6 months plus ice season, the facility would likely operate in the black with surplus funds available to -- develop an equipment replacement fund or to pay down debt service. In the recent past the SYHA has run the facility in the black with only about 1000 hours of prime time being sold. See Exhibit A attached to this report. If the expanded rink facility such as shown in the various "B" schemes was constructed, the City would logically operate the facility 12 months of the year. This would enable them to provide facilities for many other community and city functions as enumerated in Part 4 of this study. Some of the more notable activities would be the City of Shakopee sponsored gymnastics and wrestling programs. The current gymnastics program has a — ( SM Project No.5029.00-City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.29 PART 6 - MARKET ANALYSIS total of 105 kids participating, 2 boys and 7 girls teams. The age of kids is 4-16 years and the numbers in the program are growing each year. They currently practice 12 hours per week total, and meet in the Jr. High School. They will be evicted from that space after the 1993 season and will need therefore, another place to meet. The local youth wrestling program has 134 kids from Kindergarten through 6th grade participating. They meet one day per week plus Saturdays, not ideal times, but no space in Shakopee exists that can accommodate better circumstances. The local cub scout troop has 80 to 90 boys plus their parents at their monthly meetings. They currently are unable to find a room in town large enough to accommodate this entire group. C) SURVEY OF NEIGHBORING ICE ARENAS Exhibit B attached and following lists all the arenas within a twenty to twenty-five mile radius of the Valley Ice Arena Site. Exhibit C spots all the arenas within this twenty to twenty-five mile radius. It should be noted that very few rinks exist in close proximity to Valley Ice Arena. Those that are close by are used to capacity, particularly during prime time. Those arenas shown to be potential competitors to the Valley Ice Arena are full, and therefore cannot offer times to ice time buyers who would then not buy available time from Valley Ice Arena. Therefore, it appears that competition for prime time ice from nearby facilities is minimal at most. OSM Project No.5029.00-City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.30 PART 6 - MARKET ANALYSIS EXHIBIT A ANNUAL OPERATIONAL EXPENSE PERFORMANCE VALLEY ICE ARENA 1990/1991 HOCKEY SEASON YEAR OCT. NOV. DEC. JAN. FEB. MAR APRIL MAY JUNE JULY AUG. SEPT. TOTAL Income 11,935 10,950 13,660 3,497 25,201 5,210 5,000 15,000 0 0 0 0 90,453 Labor 1,351 2,294 2,929 2,085 2,029 1,165 111 0 0 715 480 100 13,259 Expense 4,330 3,065 18,490 4,434 16,191 8,376 5,679 6,715 1,626 1,411 1,275 1,720 73,312 Total Expense 5,681 5,359 21,419 6,519 18,220 9,541 5,790 6,715 1,626 2,126 1,755 1,820 86,571 Yearly Profit/Loss 3,882 1991/1992 HOCKEY SEASON YEAR OCT. NOV. DEC. JAN. FEB. MAR APRIL MAY JUNE JULY AUG. SEPT. TOTAL Income 13,032 10,841 2,202 23,258 9,178 9,153 6,578 9,780 57 58 55 55 84,247 Labor 1,399 742 1,574 1,997 1,450 1,631 0 103 124 170 150 150 9,490 Expense 8,937 9,020 5,683 12,539 3,540 6,860 5,371 2,442 1,373 1,064 9,850 1,350 68,029 Total Expense 10,336 9,762 7,257 14,536 4,990 8,491 5,371 2,545 1,497 1,234 10,000 1,500 77,519 Yearly 6,728 Profit/Loss KEY Income is primarily from ice rental, but does include also a minor amount of income generated by skate sharpening. Labor Zamboni drivers, repairs, maintenance (temporary part-time). Expense is cost of insurance, utilities, taxes and payroll and maintenance. NOTE: Above information supplied by Shakopee/Prior Lake Hockey Association. OSM Project No.5029.00-City o S a-opec: Va cy Ice Arena Mar et an' Operationa An. ysis- Page No.31 PART 6 - MARKET ANALYSIS EXHIBIT B ICE ARENAS WITHIN 20/25 MILE RADIUS OF VALLEY ICE ARENA Facility Name/Location No.Sheets 92/93 Rate 1 Bloomington Ice Garden 3 $95/Hour 3600 West 98th Street Bloomington, Mn 55431 2 Braemer Arena 2 $95/Hour 7501 Highway 169 Edina, MN 55439 3 Burnsville Ice Center** 2 $95/Hour 251 Civic Center Parkway Burnsville, MN 55337 4 Chaska Community Center** 1 $100/Hour 1661 Parkridge Drive Chaska, MN 55318 5 Eden Prairie Community Center** 3 $100/Hour 26700 Valley View Road Eden Prairie, MN 55346 6 Met Center 1 $95/Hour 7901 Cedar Ave South Bloomington, MN 55425 7 Minnetonka Ice Arena 1 $85/Hour 3401 Willinston Road Minnetonka, MN 55345 8 Mariucci Arena 1 $95/Hour 1925 University Ave. Minneapolis, MN 55455 9 Richfield Ice Arena 1 $95/Hour 636 East 66th Street Richfield, MN 55423 10 Roseville Ice Arena 1 $95/Hour 1200 Woodhill Drive Roseville, MN 55113 11 New Hope Ice Arena 1 $95/Hour 4949 Louisiana Ave. New Hope, MN 55428 OSM Project No.5029.00-City o S a opee: Va ey Ice Arena Mar et an Operations Analysis- Page No.3 PART 6 - MARKET ANALYSIS Facility Name/Location No.Sheets 92/93 Rate 12 Apple Valley Sports Arena** 1 $95/Hour 14452 Hays Road Apple Valley, MN 55124 13 Cottage Grove Ice Arena 2 $95/Hour 8020 80th Street South Cottage Grove, MN 14 Hastings Civic Center 1 $95/Hour Hwy 61 and 316 Hastings, MN 55033 15 Augsburg College Ice Arena 1 $95/Hour 2323 Riverside Ave. Minneapolis, MN 55454 16 Hopkins Pavilion 1 $95/Hour 1515 Second Street South Hopkins, MN 55343 17 Parade Ice Garden 1 $95/Hour 600 Kenwood Parkway Minneapolis, MN 55403 18 Farmington Civic Arena 1 $90/Hour 114 West Spruce Street Farmington, MN 55024 19 Wakota Civic Arena 1 $95/Hour 141 East 6th Street South St. Paul, MN 55075 20 West St. Paul Arena 1 $95/Hour 60 West Emerson West St. Paul, MN 55118 21 Rosemount 1 $85/Hour 22 Breck Arenas 1 $130/Hour Golden Valley, MN ** Would Compete for business with Valley Ice Arena * Breck Arena. Waiting to sell arena, trying to build new which would be on Breck Campus and pretty much private, therefore not a competitor for ice rental. OSM Project No.5029.00-City o S a•opec: Va cy Ice Arena Mar et an. Operationa Ana ysis- Page No.33 PART 6 - MARKET ANALYSIS New Rinks Pending: • Lakeville in 2 years, 94/95 season • Apple Valley, new rink 93/94 season (2nd location) • Prior Lake Mdwakanton Dakota Community NOTE: In many cases the rental time for ice is shown at $95.00 per hour for prime time which is based on what appears to be an average for local arenas OSM Project No.5029.00-City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.34 I 1 good I , �Na,ron 1� -7"-'*" `STM ST. N. S:. '"-‘1!.)1 ‘ - 1 PART 6 — MARKET ANALYSIS uW�kmie • , F IS"'�a'et _-0':.I i 1- I P'ine'SDrings s ?. 7 Tj:�" -N _� • -1 1 .�'y•rte L_ � - ` 1 :[. —0 1 .. fir• Oak Park _ 1 j -- - I - --I, s_Neighls�• k EXHIBIT Ce. 7.4_ ['' :. .. _ T ,'�'; u N- 1 i.: 4•:J ;P,..,;.''..1-711 - 1 }.Cale, - 0's / .• I l - ` }m�l:.1.�y='�,: Ywli • ♦r •-!_• Wm St.r ' t • !�I , d -'.7` i . • ��' STr:iYiTr* + ah 1 . •XYd50 I •a, _^l 1 1 . re- LakO .N ,, \ .. t�� Like :0 X ST. _ t <.i I -- rati`o. Long Lake, - �--.' `I © I — etrist '1 uiDi" ��' i !' / I •.►Xuds6 Mlno a '�._.'°':� Orono r'� i wapiti,. '-_ W 4 •5 H 1 4 G T i N ••TN. Sr. - , 1• y `'. rn • I • foal Arl: 8ar'J Baa •_• g,r.-.:. �:: $r,�.w�r?•,!.e! t !� i" _. �- t .c .. (c< 'rrx:anon�en•Lr I _A.. r'� C• ...� Lata •.Woodland,MfaB -14 `°� 1. =c 2 .. _ La�anO j�� ) laie!.•ed t\ 1 - W A +`y Lc.Lt MinMlonks_J—— _-� :.3 -..0d--- .::• i 1 $hOfti�` • \ �� ��' Minnetonka f i s:9. • , Mound ry_' _ 1.-.7.-.. B Beach I Deephhaaeen - . i.:..'.' L y• t, L Lake l i r '_ J�� Ai Pa��� Tonka: `, ✓ r '� •ft woodhury �.-.° I S.Croi �Q`' .'� --J--- G:`-Pwp caw �i Bay Grc�edn 1, �`�. act.,7,, - • rSt r Baa fit. Lae. ) .\__-J wi// 1 r, 'l MarY's/:i Gide.*Be. S/A:6cv♦ s'- a �!'.. Akal ,I Point f L Excelsior_ Baa I '`J y - °, 's I ro • <��x. sr. s.mss .„. t ((((/�// •1 %'' , T'Ja NII.'—.;3• - ,. •, it .Ei Lire,6 J o 'm \ I • tfKtorh 1 ww` ' Ill/ J:.:h ji J' �':• -O x .. 1 CARKE R- :a` ora. n. a I ! 1 VAS°t `a' i-. It i I \` - ° Cottage �/ r . _- •• I , ;•:, Ctiioki I�`.— yyP.:a�\_' VrOre �- .-. -.. /! / • 'f =i r♦� i u _ L. - Ismt % ,'\\& - /,c { � \ I� .t:—d I Prescott I! I Teak /�'� J 1 tM I.:a- i __ 1 /L dD°'a �4 1 O ^.ti• raeblN I --= �1 „ A—r/ •- \\_S J! r ,-/ s..../ .1.\ /iS, — , y --j Y , ,r-'--) _�, / 1.--.4.1, PART 6 - MARKET ANALYSIS D) GROWTH PROJECTIONS - LOCAL POPULATION The Metropolitan Council Forecast (Exhibit D attached) revised August 27, 1992 indicates substantial local growth in the coming years. The City of Shakopee is projected to grow to 16,800 people by the year 2000 and Prior Lake should grow to 14,600. The combined growth of the two communities from the 1990 census is 8,179 persons, or 35%. This growth will increase the tax base of the city and put added demands on local schools, churches, hospitals, clinics, clubs, recreational facilities and the lake. To meet these demands, new construction providing needed services and programs will be necessary. If they are not provided locally, growth will be discouraged and services will be sought in surrounding communities. E) GROWTH PROJECTIONS - LOCAL SCHOOL DISTRICTS ► Shakopee Public Schools The district has done an enrollment projection covering the next ten years showing school enrollment is likely to grow 28.2% over that period. Current K-12 enrollment in the school district for the 1992/1993 school year is 2,767 students. By the year 2002/3 the enrollment is expected to be 3,696, an increase of 1,119 students or 40%. Statistical data seems to support the fact that approximately 15% of the students of hockey age generally get involved with hockey. The youth hockey association will be the major source of added hockey participants who will need ice for playing time. The age range for these kids starts at pre-school with "Mites" and ends at age 14 with "Bantams". Kids 15 and older play either Varsity,Junior Varsity, or intramural hockey. The projected ten year growth in that 4 to 14 age group is 666 kids. Applying the factor that 15% of the kids ages 4-14 would get involved with a hockey program, 100 more kids will likely be playing hockey. If an average team has 15 players, that would translate into 7 new teams who would need rink facilities. ► Prior Lake Public Schools The district currently has enrolled for the 1992/1993 school year in grades K-12 3,545 students. They have done enrollment projections for the next seven years through the year 2000. The projected growth for that period shows an increase of 1,051 students to 4,596 or 30% in that seven year period. Using again the figures for the primary hockey playing ages of K through 8th grade, the projected growth over the next seven years would be 635 students. Applying the factor of 15% to that age student who will be involved in a hockey program,would result in 95 more kinds playing hockey. Allowing for 15 kids per team, this would produce 6 plus new teams needing ice time. USM Project No.5029.00-City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.36 PART 6 - MARKET ANALYSIS ► Jordan Public Schools The Superintendent of Schools for Jordan has estimated only minor growth for the near future. His projections go out only 4 years during which time he estimates that the K-12 -- growth will be about 10 students per year. The 92/93 enrollment is 1,040 so the 97/98 enrollment would be approximately 1,080 students, an increase of just under 4% total. This growth factor will have little or no affect on the demand for ice time in the local area. ► Conclusion: The growth in the local hockey programs resulting from the growth in the student population will increase pressure on local ice arena facilities. The 13 new teams that will likely form will need a minimum of 30 hours of annual playing time each for both practices and games. Tournaments would be over and above that. The total amount of time needed in the next seven to ten years to support these new teams will thus ultimately grow to 390 hours. At an average of $120.00 per hour for ice rental, the increased total revenue from team growth would grow to about $46,800.00 annually. F) MARKET ANALYSIS SUMMARY The feasibility of constructing a permanent ice arena facility in the City of Shakopee was examined under two different scenarios as follows: 1) Assuming construction of an ice facility by the Mdwakanton Dakota Community in 1993/94. The survey data gathered indicates that all of the ice rinks in the surrounding communities are booked for prime time ice, with a pent-up demand for putting more pressure on these facilities. The demographics therefore indicate there is sufficient demand for prime time ice in the Metropolitan area to support more rinks. How many more is difficult to determine. How a new facility constructed approximately 5 miles .- from the current Valley Ice Arena site would affect its viability is difficult to determine also. The type of facility to be built, its rental rate for ice and other factors would vary its impact. It does not appear, however, that a new facility in Shakopee would be greatly affected by such a rink. Local loyalties, plus geographical convenience to surrounding communities appear to be sufficient, based on data gathered, to immediately fill sufficient ice time to enable the facility to operate with an operating cash surplus. For other aspects of the facility, other than ice time, it is more difficult to determine the affect of a competing facility. It would depend on many factors such as type and quality of the Shakopee facility as compared to the competition. It would also depend on the abilities of the facility manager to successfully market dry floor events and activities in to the facility in the off season. It would also be affected by the comparative rental rates of the facilities. It would appear, however, that sufficient needs OSM Project No.5029.00-City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.37 PART 6 - MARKET ANALYSIS currently exist within Shakopee to make an expanded facility prudent from the standpoint of being able to provide the residents with space for needed and/or desired programs. As the community grows, more needs for a multi-purpose facility arise, further justifying need for a facility with broad all around use potential. 2) Assuming no other facilities are constructed within the immediately Scott County vicinity. The survey data gathered would substantiate the viability of constructing a permanent ice arena within the City of Shakopee. A minimum facility primarily for skating would appear to easily operate in the black. The ability of an expanded facility to operate profitably for 12 months of the year depends to a large degree again on how aggressively it is marketed. Therefore, selecting the proper manager and providing a quality facility for him/her to market must go hand in hand to make this work. Certainly, the facilities provided in an expanded year round type structure would benefit a much broader cross- section of the community. The added value of this aspect of the facility can only be determined by the priority the City may have to provide a broader base of activities, and its abilities to finance the facility that can provide such activities. It is an established fact that providing facilities within a community that draw in people from outside that community boosts the local economy. It impacts retail, restaurants, lodging, fuel and entertainment facilities, etc. A new facility for hockey and other skating activities would draw in outsiders 6 months of the year. A 12 month facility would have a far greater impact, as it would tend to draw larger crowds to bigger events at a time of the year when people are more prone to travel for leisure reasons. The added economic benefits of this are difficult to quantify, but should definitely have a positive economic impact on the City of Shakopee. OSM Project No.5029.00-City o S a opee: Va cy Ice Arena Mar et an Operations Analysis- Pagc No.38 PART 6 - MARKET ANALYSIS EXHIBIT D ..- O a O a 0 0 0 a 0 0 0 a 0 f�0 0 0 - 0 0 O 0. 0. W N N P A O N W N N M1 M ti N V N N O M Or MM N rN M JMr 4,44, 41444 44/ .f= O r M N 000000000000000000 O �+ N f0 tO .O'0.-0 f0 MINNKN MW M~'AO Y r O N r.O r O r r r ..K1 r" M ^ $.. N 2 W 44, 0000000000000000000 o 0. O W 1 n W 0 0 N O✓..r'r N pP f V N f O f.. H M WO r r r 4.P1 M r N N -"- • r00M000y .. ... MMMV 0.4M0 PNNN NN1 Vye0 � M PP rOOrrnN O rMM•Q • N r 0000000000000000000 O N W •O O O N N r N W P 0p.. O O 1r M O O N P O K N r f 0 V r V N M M P M 1 O r Y N f..fy l M N N r r r r W MINA, 4r IA O ... N 00000000000000000000 0 O V. .O _ O r r O.N M O•. ti l n I n W P O u A O O M N r 1 S N r K V N M f 0 r O r K r.p N O r r r r . 0113... in M H N O O S W 0000000000000 - 00000 O NO M N N N P fD N r W 1n 00 - J V N Sr. m 00 O O MO NNrW O HV rM lir SO r r r .0.0, 1,7N N Nr0 Mry�NO.NO NA 0 NNMM O. 1- P r J N 1� NN.r ti ONI- - ^— N.O A •0 O O N r N M V O N '0 '0 ' V N O M 0Q00000ao 0000, M•Q J N {n O N M M O O O O O O N M 0 P K O 1.M r N M N N M O M M N M J N 0 M NM .•.-MNM 0♦♦i444 rN O.M � N Ni MN r I 0000000000000000000 O N uO. O N N m 0 0 0 O M N y.O A 0 0 0 N O 0 W J P V N r M M P N M P M J N N r N W O M r M r r M N f V m r N N M P .-- uN x N I, ry -I 0 0o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O M M P ti NON O N O H O O a •O O O O O N 0. 0 K '0 V W NNrMr NN •O•OKM OaD= 0. o O y'•• 0 , A. 0 Mr M r—M N N S r^V,M VD VD O. E. N. 4, Q N ap 0. W K M ti P 0.0 1� O.0 N 'r .O P M Wr C .C .D. N M N O N pO N O M W r �+7 U P H W V 60 IN MPPN 0 MJ V N Pf. O r N r r NN N r r P r..... V f.. w .- r r N cC Y 0 > I.. 0 0 J_ UC 2 0 0. 0 ..411.1 2 U f- 1- < f- t P 1- 2 )- W W 1.- 84 f— I.• ... W ... • - = = W U W - � = 2 ... W > W f- 1- W Z Y P. /. t < .' f- J W W � IL W W < _� N J J Y < tY f- J ac Id 0 .0W W J O U 0. 0. ta ..d cC CI < J . OC W C. N .. J .~ 32 > .KfY < U W 0. 0 0 — an a. W W W CC .. 2 N < 1/12X0. CC J 0 0 2 J O C > > J ac < 0 0 W I o 0 0 < W .- < .. co 0 0 J JJ < o W YJu cc 33 — • 2 > •< ac '— W CY J U W W .J W a J W < 0 . W W W W w. .c .0S a O X v.0 N WW m U U W S 7 -) J Y 2 Z a N N N N N ... OSM Project No.X029.00- City of Shakopee: Valley Ice Arena Markel and Operational Analysis- Page Nu.31 PART 6 - MARKET ANALYSIS EXHIBIT D CD a o 0 0 0 0 0 0 0 0 0 0 0'a Co 0 oro 0 O O. P .O 'r N Q A O let NO N V\N n A O cu N co s O M O.• n M N —N P1 A n.- N.-V N N O .- .-.- .—V. V V' .- N I .- n 0 0 00 0 0 a n O O O C;7 O O'O O O a O O u9 C C .O O M C in u1 .I. .r v 0 0 N A M O' �O O N O.-. M fV N NnN n•- 2- •O'V o - 2.w vP7 0 0. 0.1 — n CCW S Y O 00 oao00ooCD.- 0p. aa 0000 0 J OC 40N n00 C a un .— O. O O p.. v, V1 O..O n CL O .O•- N O� .-NP:N.- C P..n M S O W O r �.- ,M, M,. .0 N .- N • O O N O O O V% M M n n.I 0,.p V% O Ors. N Op� pn P h N N K N N P P t/� .O ^ .r CD CO r. co °I P- M 0 P CD e 'in ra O �Mi MO: O N O O 0 0 0 0 0 0 0 0 0 0 0 CD.CD O O O O O N .O •O O O N to •O co. QQ.. O O!A n o CD:UI O V N 2. C vv.V N Al n 0.n0 2.V1 A n:n N N O •- .. - SOI M IV.. N N .- V O O O O O O O O O O O O O O'O O O 0 O Co O un •O — O...- C. inn C. A V\V1 .O C. O N.O f►_� O M CV.- A N.-V .r N n O ..O..V ...OI N O .. .. .- —'C O C .- N N N 1 M a J 0 S W O O O O O p O O O O O O O O O O O'O O N O n u1 N top C. C u% .- CO O C>,,..., •O O V1.Ian0 O C O NNr- O n .rr- n HOV u,�O O x 0 .— .- .- .-6r1 .0.p' A Cu I If N N .- O n ii uym1N O.NC NA O—N N M M:O. PS O. e- v N P. N r v A C N A O V7 ^:A. d pap. O N .- N n V O N •p O P V N C n O n nVr P . O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Oj O O u+ ..Op .rtn — ou,un nooaaaao.u' M O C. .0 V OPsn— Nr NunnCbin lnlntnr* N N N M N M p-.- n N n 0 .- M O.�M yr N n N. O O O O O O O O O a 0 0 0 0 0 0 0 OI O O ✓1 R7 .O to 1n C O O O C Pt V1 V. O A 0 0 OI M O O .O .O v P v N n n P N n P n V N N SIN C O n .. n •-.. n N N C' v.A melon V1 2 N .- N N P O { N J O ap O O O O O O O Oo O O O O O O O O O O O ZD un 0. A V+ O N O N O •O n 0 0 0 .O O O OI O N ¢. O V .O V C Cu N .- n— O. N N .p.O,V V1 O a .. P O O yl O CL O M .- M .-' M NN.'. .• Cl..OM .O E. N. v. A • v. 1.4 .a P •O ap v M A O. P O f. a: .0 N!C .- .O C.:en •O p- 0Y v 0• V. to N O N 0 •- N O u1 C .- — O i an N C CD P. .O V .O C N .— n O. P N O n.t v N C. �'CO W ` O M .- N .-.- N N N2 .- O. ...IN A CC V �I IA O > t� O U U O _ 2 U • O U P .+ N Ce I L.) L r. 1... ~ 2 ... Y LU W H v ~ . < — r 2 2 W ►� H 'W r s ^ Z W A t. W = W Lu � W W 2 X Y N t Y .. Q UW K CIC J Y Y LI .0 FC W W J C. N Cis CI. _ .. CC CC < J 3 CC W C. — V.. W 2 CC .0 W W CL 0 �- W W CIC 2 V1 < CM X X CI, iSt0 J U O Z J CCY > M O J .a Y V ¢I .0 O W Y J U CC 7 3 3 3 • 2 ' =I CC p. 0 W v LI W W ...r W CC J W { O W W W C[i p. .c .0 =IT. O _ .0 N m CO CC W 4J W S -2 -i J 2 2 2 hr N N N N'N r- OSM Project No.5029.(X) City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.39 PART 7 - PROJECTED REVENUES A) INTRODUCTION Revenue, management costs and operations costs for an ice arena facility can vary widely depending upon the mode of operation, ice rental rates, efficiency of management and the total actual operation dates of the facility. — B) SEASONAL OPERATION The key to a successful facility is management, and efficient use of both personnel and the facility. Experience has shown that an ice skating facility that operates six (6) months per year can be self-sustaining if the management takes advantage of all avenues of income. In general, ice arena income is not sufficient to pay operating and maintenance expenses as well as debt service for a new facility. As shown on Exhibit E, it can usually pay for operations and maintenance with a small portion to be contributed to debt service. Income for the arena is governed by the hours of operation and the ability to rent ice time. For arenas open only six months of the year, there are approximately 1,400 prime time hours available and allowing for schedule conflicts and potential game hours, 1,260 hours should be available for prime time rental. In addition to prime time hours available, off-time ice rentals are also available. Other minor items can also contribute to the revenue stream which can improve the profit potential. Expenditures in a 6 months facility run primarily by volunteers are minimal being mainly utilities and insurance costs. For purposes of forecasting operating revenue, 1,260 hours of prime-time ice rentals at _ $100.00 per hour, and approximately 960 hours of other rentals at $75.00 per hour have been assumed as realistic projections. These projections do not take into consideration any special event or off-season revenue. Some revenues from concessions and skate sharpening were estimated based on experience at other rinks. It should be emphasized that revenue projections shown are purposefully conservative, and do not include some minor miscellaneous income sources such as open skating fees, wall billboard rental, vending machine revenues, locker rentals, etc. In all of the scenarios shown, the facility would produce surplus revenues available for debt service, etc. C) FULL TIME OPERATION For a year around facility, revenues will increase some, but expenditures increase even more, primarily due to the addition of management staff. Again, Exhibit E shows the projected financial results from the 6 various schemes developed for this report. The operating expenses of the arena will be relatively fixed with the exception of staff. The more paid staff, the more the cost of operation. However, if an arena is to maximize its operating revenue potential on a year around basis full-time personnel will be required. While we have summarized the costs of operating the ice rink we will not opine on the ability to generate net revenues from any special or off-season events. Therefore no OSM Project No.5029.00-City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.40 PART 7 - PROJECTED REVENUES revenues for"dry floor events"for off-season use have been built into the revenue forecasts. — With successful management however, the income stream from warm season events and activities could approximate prime time ice rental income. D) PROJEC;1'ED EXPENDITURES Also shown is a $70,000 per year equipment replacement cost. This fund would accumulate over a five year period in sufficient quantity to allow replacement of both the refrigeration equipment and the Zamboni machine, both of which have approximately five years of useable life remaining. E) REVENUE PROJECTIONS Based on the data noted above, Exhibit E sets forth the projection of net revenue available to pay debt service. You will note that if the City builds only a replacement facility pursuant to Schemes B, a full-time staff would not necessarily be required as most of the staffing would continue to be volunteers. While Exhibit E shows the same level of ice rental income for all A Schemes, it is uncertain whether or not the same level of ice rental income can be achieved as those with the A Schemes, particularly the A-1 and A-2 schemes where locker rooms and other basic necessities are not provided. OSM Project No.5029.00-City o S a opec: a cy Ice Arena Mar et an. Operation. Ana ysis- Page No.41 EXHIBIT E cf) U co ci I .a 0000001 O 0000000 0 0 jr°3 0 0 0 0 0 000 0 0 0 0 0 0 p °i m E oor� 000l 0000000 0 0in a W r C c0 N N O In N n (� to tf) O 0 Lf l r O I H W Q CC N N co COCO V •-VI Of 6 NCO = L 69 M M CD Z VCO 3 2 al a_ a U) CO N = : I ca as 0 0 0 0 0 0; 0 0 0 0 0 0 0 0 0 0(� = LL 000000 000000001Wei oor� 000; 0000000 0 0c N N r- N N to N ^ N. In ui O O lA O u l N O :1? W = N. d CO c 4 1 < a 4, 49 44 CO X T (/1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O 0 0 0 0 0 0 0 00 m1E .2 O O N- 0 0 0 ts 0 0 0 0 0 0 0 0 0 N N N N CO to M V O In O pv 0 C N •- N. Via C) CO c o ca 13 o) 0 o 0000001 0 0000000! 0 0 I ay 0 0 0 0 oor- o 0 0000000 0 tri o 0 rL. N O W,0 Nr*.--, O EA 40 CNQ21 V _EA N )U R! LLI d! (A C O 2 y LL c c c 0 m :. a) V. L. O E d a) u c Y 8 coo a �, a N ; c as 000000' 0 0 0000000! 0 0 01aci � 0 0 0 0 v I >. 001,- 0 p 0 0 0 0 0 0 0 0 o .c WO .aCC Nom `" "' o c � "' � � `' o ti EA �� ;491 0._ a, W W �, >.= le p 61 � m D VI� O •� Oyca'�� F- U) LL d x I .�' Z-,D U a fn t c Q? Z y RS j U W .- - TS:ti p W�Z. a I 11 >.� c 0 0 0 0 001 0 0 0 0 0 0 00' 0 0 0 Q X < p 0 0 0 0 p p 0 0 0 0 0 0 0 0 0 o y a Wc g ooN. o N. 000000 0. 0 0 0 X a5 c4 N c� N to O ? O `n CO .zr ON. N. an C 0 ea Q a LU d f/) to N ,O to 46 > .O co 0) 3. 49 0 M9 t U U H u � E , a 0 fn Z v o 0w < Z 11.1 � � Qo —. w w W ` c H O Ws C W O o T. 0 W c C 1-- Z (5 > in > LU m 1 wX E E ' — U c d a c — cf) .0 .._ W< J aci m > a HZ > U o � o W Q a t x Z W Q > R N., CU d Ect To • CL � F- aci m • 2 � u) W o v c YOU 0 E I c c _ E N wec n � 0 E a = O ? a_ O _ c .- Q c c o O > Q Zm G> co p .... VJF_ 2 T1 cu o E mw c .° a� wOQ W W > c a) w Ta Ta CD E c a > owa o c cU) iLU O U � � � � —° L O Qom } � � � 112 Zs� � CC .2 C m •4', a a� cn w ct W t \ O } 0 m e a) 1... p c . a c N • z 0 >_ O F� ~ O A 0 0 a� a� co o o a p ca 5 - as o 0 -.-. UaW a. � woo_ 5 F- a. 2CODJU2a. I- QUA z " 2 �.�.� PART 8 - FINANCING ALTERNATIVES A) INTRODUCTION The City has been requested to analyze the potential of financing a new ice arena. Since the City may not have adequate funds to pay cash for such an endeavor, bonds would be -- issued to provide the construction funds. When bonds are issued, a defined source of revenue must be pledged to the repayment of those bonds. Exhibit F is a projection of costs of construction and of borrowing for the new facility based on all six Scheme alternatives. The necessary bonding ranges from $1,270,000 for the minimum replacement facility (Scheme A-1) to $1,865,000 for the Olympic sized facility (Scheme B-3). Since adequate net revenue will not be available to pay debt service through February 1, 1995, the City may wish to capitalize interest at an amount equal to projected net revenues. This would require a slightly higher bond issue. B) BOND FINANCING The City has been requested to finance the project through the issuance of debt. The lowest cost debt would be the issuance of general obligation bonds authorized pursuant to a referendum. Upon the successful sale of bonds, a tax levy for the entire amount of debt service would be certified to the County. While this levy is irrevocable, it may be reduced by funds available from the operation of the arena. Exhibits G through L demonstrate the potential maturity schedules required for each Scheme noted in Exhibit F. The net tax levies delineates the expected level of adjusted requirements after taking into consideration anticipated net revenues. It should be noted that funds must be on hand in the debt service account in order to reduce a certified levy. The tax levies noted herein will be spread against the Estimated Market Value of property located in the City. In 1991 the Legislature changed the method of spreading tax levies for bonds issued, pursuant to a referendum, from the traditional tax capacity method to market value. Thus, for any property having the same market value, the tax levy for this type of debt would be the same. Exhibit M has been prepared which sets forth the net tax levy required for each issue and the resultant tax impact on various levels of market value. Please note that to the extent the market value of property increases, the rate would decrease. Note further that the taxes spread for this project would include all property value in tax increment districts and would not be adjusted for captured value or fiscal disparities. C) ALTERNATIVE FINANCING OPTIONS As noted earlier in this section, the City may not have adequate funds to pay cash for new construction. An examination of available funds should be reviewed by staff with potential funds including, but not limited to the General Fund, Capital Improvement Fund and/or the Tax Increment Fund. OSM Project No.5029.00-City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.43 PART 8 - FINANCING ALTERNATIVES Another alternative source of funding may be through tax increment bonds. The project must be within a project area and funded from a financing district generating surplus increment. Amendments to existing tax increment financing plans would be required. The City could issue revenue bonds based on the stream of anticipated revenue. In this case, net revenues of the arena may be able to support a revenue bond issue of about $400,000.00. To the extent net revenues of the arena are required to fund an equipment -- replacement fund, a revenue bond issue may not be feasible. Keep in mind, the costs of revenue bonds are higher than general obligation bonds as to interest costs, issuance costs, and debt service reserve requirements. The full examination of funding and financing scenarios is beyond the scope of this report and, should the City decide to proceed with the project, further analysis would be completed. D) OPERATIONAL ALTERNATIVES Two possible management/ownership arrangements were examined for the purpose of this report, they were: • Non Profit Organization • Municipal Ownership The answer as to which alternative is more feasible and advantageous depends on what the objectives of the project are. Because the investment to construct even the basic replacement type facility is substantial, it would need to be funded by the City. Once completed, it could be run by the SYHA similar to the former"Bubble" operation. It would be run not-for-profit with excess revenues reverting to maintenance and equipment replacement. However, the prospect of generating a replacement fund of $250,000 to $300,000 in the next five years from excess revenues is somewhat uncertain due to the fact that a fairly high pace of prime time and off-time ice rental would need to be maintained to accomplish that. Without dedicated aggressive management, that may not happen. Off- time ice is usually rented to other than hockey groups and some marketing efforts are generally required to sell that time. It is unlikely that volunteers would have either the necessary time or skills to accomplish that on an on going basis. -- It seems most feasible therefore, that the City who would own the facility, would also be primarily responsible for management. Whether it be a 6 months or a 12 months operation, it will be important to operate the facility with a cash surplus annually. Paid management skilled in the area of rink and/or facilities management and marketing is the best way long term to make that happen. In the case of a 12 month facility, it would be mandatory to have professional management hired by the City in order to insure particularly maximizing -- off-season use. OSM Project No.5029.00-City of Shakopee: Valley Ice Arena Market and Operational Analysis- Page No.44 EXHIBIT F co U a) C CO Lc) aO0 000 O L1JE „ R to Si >CV CP . E _ " lil O 2Occ -0ZWcr � (D _ _ O 11 § mm as N = Ifn 8 O �n8L"' O m ; a) u_ NcD '1-1p w LL 13N N-y•-] O ill/ d d co N c0 N r. 0 Qo .- X 40 w 1 ld0 08 0 g CD E 0, 00 co c') Q)i 0'! N � Q, C � NN �c SII, +a CD co -Q — al E co O 0Sgv 0 O 0. CO 0LO � N 0 Q. Q j 0of tri 0k. W cn _ co T C\I O O 2 V Cr) v ca LL 40 C= i ,O • Q Z c G m E R Z t�j p , co c) O N 3 C RS 0 0 0 O O Q >. 0, $ � � 0 0, -@ -s. C ._ - m N `-' a 3 -� >. N r ( j CD W � >.: �e $ .cn 0 U � O t c7� M CIS Cti I LL U00 Z to O N co O l Lu I >,m 0in3ui 0 cO O < Q) Nmrn 8 t4 13 I H. W 0 N m N 0 O H. 2 - co - N r- r -Q w t N N as O Qm QQ)al oQ � a cn w wU_ acio Z Eoo J CD w Z w 0O c0j OD Q w O w d U 0 y I aQ y Z to C O 00�Zy V o � c m vii y cc• C 3 iiiti (j Q a < o FQ- Z Q. ULT EXHIBIT G CITY OF SHAKOPEE, MINNESOTA Prepared February 24, 1993 G.O. Bonds for Municipal Ice Arena By SPRINGSTED Incorporated SCHEME A-1 Dated: 8- 1 -1993 Mature: 2- 1 First Interest: 8- 1 -1994 Total Net Revenue Total Year of Year of Principal 105% Available Net Levy Mat. Principal Rates Interest & Interest of Total for D/S Requirement (1 ) (2) (3) (4) (5) (6) (7) (8) (9) 1993 1995 0 3.50% 111 ,288 111 ,288 116,852 0 116,852 1994 1996 25,000 3.90% 74,192 99,192 104,152 0 104,152 1995 1997 25,000 4.20% 73,217 98,217 103,128 0 103,128 1996 1998 25,000 4.50% 72,167 97,167 102,025 0 102,025 1997 1999 25,000 4.70% 71 ,042 96,042 100,844 0 100,844 1998 2000 25,000 4.90% 69,867 94,867 99,610 0 99,610 1999 2001 55,000 5.05% 68,642 123,642 129,824 88,700 41 ,124 2000 2002 60,000 5.35% 65,864 125,864 132,157 88,700 43,457 2001 2003 60,000 5.50% 62,654 122,654 128,787 88,700 40,087 2002 2004 65,000 5.65% 59,354 124,354 130,572 88,700 41 ,872 2003 2005 70,000 5.80% 55,681 125,681 131 ,965 88,700 43,265 2004 2006 70,000 5.90% 51 ,621 121 ,621 127,702 88,700 39,002 2005 2007 75,000 6.00% 47,491 122,491 128,616 88,700 39,916 2006 2008 80,000 6.10% 42,991 122,991 129,141 88,700 40,441 2007 2009 85,000 6.15% 38,111 123,111 129,267 88,700 40,567 - 2008 2010 90,000 6.20% 32,883 122,883 129,027 88,700 40,327 2009 2011 100,000 6.25% 27,303 127,303 133,668 88,700 44,968 2010 2012 105,000 6.25% 21 ,053 126,053 132,356 88,700 43,656 2011 2013 110,000 6.30% 14,490 124,490 130,715 88,700 42,015 2012 2014 120,000 6.30% 7,560 127,560 133,938 88,700 45,238 TOTALS: 1 ,270,000 1 ,067,471 2,337,471 2,454,346 1 ,241 ,800 1 ,212,546 Bond Years: 17,690.00 Annual Interest: 1 ,067,471 Avg. Maturity: 13.93 Plus Discount: 22,860 Avg. Annual Rate: 6.034% Net Interest: 1 ,090,331 T.I.C. Rate: 6.183% N.I.C. Rate: 6.164% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. NOTE: For purposes of this schedule it is assumed there will be almost no appreciable net revenues available in levy year 1993. It is also assumed that any net revenues available in levy years 1994 through 1998 will be used to finance an equipment replacement fund. EXHIBIT H CITY OF SHAKOPEE, MINNESOTA Prepared February 24, 1993 G.O. Bonds for Municipal Ice Arena By SPRINGSTED Incorporated SCHEME A-2 Dated: 8- 1 -1993 Mature: 2- 1 First Interest: 8- 1 -1994 Total Net Revenue Total Year of Year of Principal 105% Available Net Levy Mat. Principal Rates Interest & Interest of Total for D/S Requirement (1 ) (2) (3) (4) (5) (6) (7) (8) (9) 1993 1995 0 3.50% 115,718 115,718 121 ,504 0 121 ,504 1994 1996 25,000 3.90% 77,145 102,145 107,252 0 107,252 1995 1997 25,000 4.20% 76,170 101 ,170 106,229 0 106,229 1996 1998 25,000 4.50% 75,120 100,120 105,126 0 105,126 1997 1999 25,000 4.70% 73,995 98,995 103,945 0 103,945 1998 2000 25,000 4.90% 72,820 97,820 102,711 0 102,711 1999 2001 60,000 5.05% 71 ,595 131 ,595 138,175 88,700 49,475 2000 2002 60,000 5.35% 68,565 128,565 134,993 88,700 46,293 2001 2003 65,000 5.50% 65,355 130,355 136,873 88,700 48,173 2002 2004 70,000 5.65% 61 ,780 131 ,780 138,369 88,700 49,669 2003 2005 70,000 5.80% 57,825 127,825 134,216 88,700 45,516 2004 2006 75,000 5.90% 53,765 128,765 135,203 88,700 46,503 2005 2007 80,000 6.00% 49,340 129,340 135,807 88,700 47,107 2006 2008 85,000 6.10% 44,540 129,540 136,017 88,700 47,317 2007 2009 90,000 6.15% 39,355 129,355 135,823 88,700 47,123 2008 2010 95,000 6.20% 33,820 128,820 135,261 88,700 46,561 2009 2011 100,000 6.25% 27,930 127,930 134,327 88,700 45,627 2010 2012 110,000 6.25% 21 ,680 131 ,680 138,264 88,700 49,564 2011 2013 115,000 6.30% 14,805 129,805 136,295 88,700 47,595 2012 2014 120,000 6.30% 7,560 127,560 133,938 88,700 45,238 TOTALS: 1 ,320,000 1 ,108,883 2,428,883 2,550,328 1 ,241 ,800 1 ,308,528 Bond Years: 18,380.00 Annual Interest: 1 ,108,883 Avg. Maturity: 13.92 Plus Discount: 23,760 Avg. Annual Rate: 6.033% Net Interest: 1 ,132,643 T.I.C. Rate: 6.183% N.I.C. Rate: 6.162% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. NOTE: For purposes of this schedule it is assumed there will be almost no appreciable net revenues available in levy year 1993. It is also assumed that any net revenues available in levy years 1994 through 1998 will be used to finance an equipment replacement fund. EXHIBIT I CITY OF SHAKOPEE, MINNESOTA Prepared February 24, 1993 G.O. Bonds for Municipal Ice Arena By SPRINGSTED Incorporated SCHEME A-3 Dated: 8- 1 -1993 Mature: 2- 1 First Interest: 8- 1 -1994 Total Net Revenue Total Year of Year of Principal 105% Available Net Levy Mat. Principal Rates Interest & Interest of Total for D/S Requirement (1) (2) (3) (4) (5) (6) (7) (8) (9) 1993 1995 0 3.50% 125,636 125,636 131 ,918 0 131 ,918 1994 1996 25,000 3.90% 83,757 108,757 114,195 0 114,195 1995 1997 25,000 4.20% 82,782 107,782 113,171 0 113,171 1996 1998 25,000 4.50% 81 ,732 106,732 112,069 0 112,069 1997 1999 25,000 4.70% 80,607 105,607 110,887 0 110,887 1998 2000 25,000 4.90% 79,432 104,432 109,654 0 109,654 1999 2001 65,000 5.05% 78,207 143,207 150,367 88,700 61 ,667 2000 2002 65,000 5.35% 74,924 139,924 146,920 88,700 58,220 2001 2003 70,000 5.50% 71 ,446 141 ,446 148,518 88,700 59,818 2002 2004 75,000 5.65% 67,596 142,596 149,726 88,700 61 ,026 2003 2005 80,000 5.80% 63,358 143,358 150,526 88,700 61 ,826 2004 2006 80,000 5.90% 58,718 138,718 145,654 88,700 56,954 2005 2007 85,000 6.00% 53,998 138,998 145,948 88,700 57,248 2006 2008 95,000 6.10% 48,898 143,898 151 ,093 88,700 62,393 2007 2009 100,000 6.15% 43,103 143,103 150,258 88,700 61 ,558 2008 2010 105,000 6.20% 36,953 141 ,953 149,051 88,700 60,351 2009 2011 110,000 6.25% 30,443 140,443 147,465 88,700 58,765 2010 2012 115,000 6.25% 23,568 138,568 145,496 88,700 56,796 2011 2013 125,000 6.30% 16,380 141 ,380 148,449 88,700 59,749 2012 2014 135,000 6.30% 8,505 143,505 150,680 88,700 61 ,980 TOTALS: 1 ,430,000 1 ,210,043 2,640,043 2,772,045 1 ,241 ,800 1 ,530,245 Bond Years: 20,040.00 Annual Interest: 1 ,210,043 Avg. Maturity: 14.01 Plus Discount: 25,740 Avg. Annual Rate: 6.038% Net Interest: 1 ,235,783 T.I.C. Rate: 6.188% N.I.C. Rate: 6.167% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. NOTE: For purposes of this schedule it is assumed there will be almost no appreciable net revenues available in levy year 1993. It is also assumed that any net revenues available in levy years 1994 through 1998 will be used to finance an equipment replacement fund. EXHIBIT J CITY OF SHAKOPEE, MINNESOTA Prepared February 25, 1993 G.O. Bonds for Municipal Ice Arena By SPRINGSTED Incorporated SCHEME B-1 Dated: 8- 1 -1993 Mature: 2- 1 First Interest: 8- 1 -1994 Total Net Revenue Total Year of Year of Principal 105% Available Net Levy Mat. Principal Rates Interest & Interest of Total for D/S Requirement (1 ) (2) (3) (4) (5) (6) (7) (8) (9) 1993 1995 0 3.50% 139,881 139,881 146,875 40,700 106,175 1994 1996 55,000 3.90% 93,254 148,254 155,667 40,700 114,967 1995 1997 55,000 4.20% 91 ,109 146,109 153,414 40,700 112,714 1996 1998 55,000 4.50% 88,799 143,799 150,989 40,700 110,289 1997 1999 60,000 4.70% 86,324 146,324 153,640 40,700 112,940 1998 2000 65,000 4.90% 83,504 148,504 155,929 40,700 115,229 1999 2001 65,000 5.05% 80,319 145,319 152,585 40,700 111 ,885 2000 2002 70,000 5.35% 77,036 147,036 154,388 40,700 113,688 2001 2003 70,000 5.50% 73,291 143,291 150,456 40,700 109,756 2002 2004 75,000 5.65% 69,441 144,441 151 ,663 40,700 110,963 2003 2005 80,000 5.80% 65,203 145,203 152,463 40,700 111 ,763 2004 2006 85,000 5.90% 60,563 145,563 152,841 40,700 112,141 2005 2007 90,000 6.00% 55,548 145,548 152,825 40,700 112,125 2006 2008 95,000 6.10% 50,148 145,148 152,405 40,700 111 ,705 2007 2009 100,000 6.15% 44,353 144,353 151 ,571 40,700 110,871 2008 2010 110,000 6.20% 38,203 148,203 155,613 40,700 114,913 2009 2011 115,000 6.25% 31 ,383 146,383 153,702 40,700 113,002 2010 2012 120,000 6.25% 24,195 144,195 151 ,405 40,700 110,705 2011 2013 130,000 6.30% 16,695 146,695 154,030 40,700 113,330 2012 2014 135,000 6.30% 8,505 143,505 150,680 40,700 109,980 TOTALS: 1 ,630,000 1 ,277,754 2,907,754 3,053,141 814,000 2,239,141 Bond Years: 21 ,340.00 Annual Interest: 1 ,277,754 Avg. Maturity: 13.09 Plus Discount: 29,340 Avg. Annual Rate: 5.988% Net Interest: 1 ,307,094 T.I.C. Rate: 6.134% N.I.C. Rate: 6.125% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. NOTE: For purposes of this schedule it is assumed there will be almost no appreciable net revenues available in levy year 1993. The net revenues shown in levy year 1993 represent capitalized interest. It is assumed for purposes of this schedule that equipment replacement costs will be paid from dry floor and off-season events of the expanded facility. EXHIBIT K CITY OF SHAKOPEE, MINNESOTA Prepared February 25, 1993 G.O. Bonds for Municipal Ice Arena By SPRINGSTED Incorporated SCHEME B-2 Dated: 8- 1 -1993 Mature: 2- 1 First Interest: 8- 1 -1994 Total Net Revenue Total Year of Year of Principal 105% Available Net Levy Mat. Principal Rates Interest & Interest of Total for D/S Requirement (1 ) (2) (3) (4) (5) (6) (7) (8) (9) 1993 1995 0 3.50% 156,252 156,252 164,065 40,700 123,365 1994 1996 60,000 3.90% 104,168 164,168 172,376 40,700 131 ,676 1995 1997 60,000 4.20% 101 ,828 161 ,828 169,919 40,700 129,219 1996 1998 65,000 4.50% 99,308 164,308 172,523 40,700 131 ,823 1997 1999 65,000 4.70% 96,383 161 ,383 169,452 40,700 128,752 1998 2000 70,000 4.90% 93,328 163,328 171 ,494 40,700 130,794 1999 2001 75,000 5.05% 89,898 164,898 173,143 40,700 132,443 2000 2002 75,000 5.35% 86,110 161 ,110 169,166 40,700 128,466 2001 2003 80,000 5.50% 82,097 162,097 170,202 40,700 129,502 2002 2004 85,000 5.65% 77,697 162,697 170,832 40,700 130,132 2003 2005 90,000 5.80% 72,894 162,894 171 ,039 40,700 130,339 2004 2006 95,000 5.90% 67,674 162,674 170,808 40,700 130,108 2005 2007 100,000 6.00% 62,069 162,069 170,172 40,700 129,472 2006 2008 105,000 6.10% 56,069 161 ,069 169,122 40,700 128,422 2007 2009 115,000 6.15% 49,664 164,664 172,897 40,700 132,197 2008 2010 120,000 6.20% 42,591 162,591 170,721 40,700 130,021 2009 2011 125,000 6.25% 35,151 160,151 168,159 40,700 127,459 2010 2012 135,000 6.25% 27,338 162,338 170,455 40,700 129,755 2011 2013 145,000 6.30% 18,900 163,900 172,095 40,700 131 ,395 2012 2014 155,000 6.30% 9,765 164,765 173,003 40,700 132,303 TOTALS: 1 ,820,000 1 ,429,184 3,249,184 3,411 ,643 814,000 2,597,643 Bond Years: 23,865.00 Annual Interest: 1 ,429,184 Avg. Maturity: 13.11 Plus Discount: 32,760 Avg. Annual Rate: 5.989% Net Interest: 1 ,461 ,944 T.I.C. Rate: 6.135% N.I .C. Rate: 6.126% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. NOTE: For purposes of this schedule it is assumed there will be almost no appreciable net revenues available in levy year 1993. The net revenues shown in levy year 1993 represent capitalized interest. It is assumed for purposes of this schedule that equipment replacement costs will be paid from dry floor and off-season events of the expanded facility. EXHIBIT L CITY OF SHAKOPEE, MINNESOTA Prepared February 25, 1993 G.O. Bonds for Municipal Ice Arena By SPRINGSTED Incorporated SCHEME B-3 Dated: 8- 1 -1993 Mature: 2- 1 First Interest: 8- 1 -1994 Total Net Revenue Total Year of Year of Principal 105% Available Net Levy Mat. Principal Rates Interest & Interest of Total for D/S Requirement (1 ) (2) (3) (4) (5) (6) (7) (8) (9) 1993 1995 0 3.50% 160,199 160,199 168,209 40,700 127,509 1994 1996 60,000 3.90% 106,799 166,799 175,139 40,700 134,439 1995 1997 60,000 4.20% 104,459 164,459 172,682 40,700 131 ,982 1996 1998 65,000 4.50% 101 ,939 166,939 175,286 40,700 134,586 1997 1999 70,000 4.70% 99,014 169,014 177,465 40,700 136,765 1998 2000 70,000 4.90% 95,724 165,724 174,010 40,700 133,310 1999 2001 75,000 5.05% 92,294 167,294 175,659 40,700 134,959 2000 2002 80,000 5.35% 88,506 168,506 176,931 40,700 136,231 2001 2003 85,000 5.50% 84,226 169,226 177,687 40,700 136,987 2002 2004 85,000 5.65% 79,551 164,551 172,779 40,700 132,079 2003 2005 90,000 5.80% 74,748 164,748 172,985 40,700 132,285 2004 2006 95,000 5.90% 69,528 164,528 172,754 40,700 132,054 2005 2007 105,000 6.00% 63,923 168,923 177,369 40,700 136,669 2006 2008 110,000 6.10% 57,623 167,623 176,004 40,700 135,304 2007 2009 115,000 6.15% 50,913 165,913 174,209 40,700 133,509 2008 2010 125,000 6.20% 43,840 168,840 177,282 40,700 136,582 2009 2011 130,000 6.25% 36,090 166,090 174,395 40,700 133,695 2010 2012 140,000 6.25% 27,965 167,965 176,363 40,700 135,663 2011 2013 150,000 6.30% 19,215 169,215 177,676 40,700 136,976 2012 2014 155,000 6.30% 9,765 164,765 173,003 40,700 132,303 TOTALS: 1 ,865,000 1 ,466,321 3,331 ,321 3,497,887 814,000 2,683,887 Bond Years: 24,482.50 Annual Interest: 1 ,466,321 Avg. Maturity: 13.13 Plus Discount: 33,570 Avg. Annual Rate: 5.989% Net Interest: 1 ,499,891 T.I.C. Rate: 6.136% N.I .C. Rate: 6.126% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. NOTE: For purposes of this schedule it is assumed there will be almost no appreciable net revenues available in levy year 1993. The net revenues shown in levy year 1993 represent capitalized interest. It is assumed for purposes of this schedule that equipment replacement costs will be paid from dry floor and off-season events of the expanded facility. - EXHIBIT M CITY OF SHAKOPEE MINNESOTA G.O. Bonds for Municipal Ice Arena Prepared 2-25-93 Estimated Impact on Local Taxpayers By SPRINGSED Inc. SCHEME A-1 SCHEME A-2 SCHEME A-3 Estimated Tax Dollars Tax Dollars Tax Dollars Market Rate of Tax Rate of Tax Rate of Tax Value Applied Increase Applied Increase Applied Increase (a) (b) (c) $60,000 0.022% $13 0.022% $13 0.024% $14 70,000 0.022% $15 0.022% $15 0.024% $17 80,000 0.022% $18 0.022% $18 0.024% $19 90,000 0.022% $20 0.022% $20 0.024% $22 100,000 0.022% $22 0.022% $22 0.024% $24 125,000 0.022% $28 0.022% $28 0.024% $30 150,000 0.022% $33 0.022% $33 0.024% $36 200,000 0.022% $44 0.022% $44 0.024% $48 250,000 0.022% $55 0.022% $55 0.024% $60 300,000 0.022% $66 0.022% $66 0.024% $72 SCHEME B-1 SCHEME B-2 SCHEME B-3 Estimated Tax Dollars Tax Dollars Tax Dollars Market Rate of Tax Rate of Tax Rate of Tax Value Applied Increase Applied Increase Applied Increase (d) (e) (1) $60,000 0.020% $12 0.023% $14 0.024% $14 70,000 0.020% $14 0.023% $16 0.024% $17 80,000 0.020% $16 0.023% $18 0.024% $19 90,000 0.020% $18 0.023% $21 0.024% $22 100,000 0.020% $20 0.023% $23 0.024% $24 125,000 0.020% $25 0.023% $29 0.024% $30 150,000 0.020% $30 0.023% $35 0.024% $36 200,000 0.020% $40 0.023% $46 0.024% $48 250,000 0.020% $50 0.023% $58 0.024% $60 300,000 0.020% $60 i 0.023% $69 I 0.024% $72 NOTES: Calculation of tax rate per$1,000 of Estimated Market Value (EMV): (a) 1993 net local levy of$116,852 divided by the City's 1992/93 EMV of$540,374,852=$0.22 per$1,000 of EMV. After funding of an equipment replacement account, the net levy requirement would be reduced beginning in 1999. (b) 1993 net local levy of$121,504 divided by the City's 1992/93 EMV of$540,374,852=$0.22 per$1,000 of EMV. After funding of an equipment replacement account, the net levy requirement would be reduced beginning in 1999. (c) 1993 net local levy of$131,918 divided by the City's 1992/93 EMV of$540,374,852=$0.24 per$1,000 of EMV. After funding of an equipment replacement account, the net levy requirement would be reduced beginning in 1999. (d) 1993 net local levy of$106,175 divided by the City's 1992/93 EMV of$540,374,852=$0.20 per$1,000 of EMV. Assumes revenues from expanded facility operations would be suffcient to fund equipment replacement fund. (e) 1993 net local levy of$123,365 divided by the City's 1992/93 EMV of$540,374,852=$0.23 per$1,000 of EMV. Assumes revenues from expanded facility operations would be suffcient to fund equipment replacement fund. (f) 1993 net local levy of$127,509 divided by the City's 1992/93 EMV of$540,374,852=$0.24 per$1,000 of EMV. Assumes revenues from expanded facility operations would be suffcient to fund equipment replacement fund. 1 FEB_24FEB 26'93 12:57 CLA�REY41;1 S SAFETY EQMT. 507-289100NO, 18 P.272 01/02 477-N : ki /14 ` 4/4 ADVER2`ISFMENT 'OR BIDS A9 y SPECIFICATION NO. 93-02BT The City of Beatrice, Nebraska, intends t"o purchase and invites you to submit a sealed bid for: ONE (1 ) MINIMUM 75 ' USED AERIAL PLATFORM FIRETRUCK Sealed bids will be received until 4 : 30 p.m. , Central Standard Time, March 8, 1993 by the Beatrice City Clerk., Beatrice City Auditorium, 205 North 4th Street, Beatrice, Nebraska, 68310 . At this date and time, bids will be publicly opened and read in the City Council Chambers, Beatrice City Auditorium, 205 North 4th Street, Beatrice, Nebraska. It is the bidder' s responsibility to ensure that bids are received prior to 4 : 30 p.m. on March 8, 1993 regardless of the method of delivery. Bidding procedures and specifications are on file in the office ' ' of the Beatrice Fire Chief, 310 Ella Street, Beatrice, Nebraska. Bids exceeding $200, 000 will be rejected. No bid shall be withdrawn after the opening of bids without the consent of the City of Beatrice for a period of thirty (30) days after the scheduled kid closing. The City of Beatrice reserves the right to reject any or all bids or parts of bids, to waive irregulaLities' and technicalities, and to request rebids on the equipment described in the specifications documents . Dated this,,.2 day of re-L-ver , 1993 . CITY OF BEATRICE, NEBRASKA f"1 DARRELL W. EASTIN, FIRE CHIEF (402) 228-3306 a i E r__, S I< E `I-2 I • E-. I ROTH HI III Al (/) I1 MII 1 II ----' , Z _ I SENIOR HIGH F - , ----"-NDi 1 - ST. 17 A C . J V E. .. .,...... 61 A C . I --I 'E. i I \ r . DRIVE ,,,--------- ,/_-.--- I9 A ci 1 . , ,4,::,, / N, i-- </-/• C . H i 1 . - ) -. ...÷ ' t.. - ts. I ------------4_,-- : \----." .... / '. '..---------iTh9..r' ' <Z--/ 1/ . -- \- 73:711 r---- , ---------H- 18 AC . k/,./ .1 I 0 L_) . N... , , :1---_ \...., i ,.... ' . 28 AC . ci U , ' _.----- z < 0— i i 1 , \ r---------------mouND 1 ',:_ T. . ( ) NAT 1 JRAIL_____Lf1-- - ------17T----====____14,--3 ! : I I p—..1......G••••—.•ofte OCO.,-.0,, in obro . • Legislative association of _ Ctmetro olitankaiOU � �`�- a municipalities „._.417:1_ prt Feb. 26, 1993 To: Mayors,Legislative Contacts and Managers/Administrators FROM: Vern Peterson,Executive Director RE: SF449 (Sen.John Marty,DFL-Roseville),changes to Metropolitan Land Planning Act. ALERT! ALERT! ALERT! ALERT! Attached is a copy of SF449 which greatly increases the authority of the Metropolitan Council vis a vis local planning and zoning.The bill has several sections which would have a very negative impact on metro cities. 1.Sections 1 and 8 revise state law to state that comprehensive plans supersede zoning ordinances and that the Metropolitan Development Guide supersedes any local plan. 2.Section 3 directs the Metropolitan Council to adopt a long-range policy plan to protect agricultural land in the metropolitan area as part of the Council's Metropolitan Development Guide. Until such time as the policy plan is adopted by the Metropolitan Council,it would preclude a local government unit from expanding its urban service area if such expansion includes agricultural land. 3.Section 4 grants the Metropolitan Council the authority to require a local government unit to modify its local comprehensive plan if it is inconsistent with any chapter in the Metropolitan Development Guide. Under existing law,the Council can require modification of a local plan only if it is in conflict with a metropolitan system plan,of which there are four.There are at least eight or nine other chapters in the Development Guide,including such chapters as Housing,Solid Waste,Water Resources,Health.,etc., which would be given system status under SF449. It also mandates that the Metropolitan Council require a local government unit to modify a comprehensive plan that requires the expansion of a local government unit's urban service area if a local and a regional need for the expansion cannot be demonstrated. Granting "system status" to all chapters of the Metropolitan Development Guide would in reality give the Metropolitan Council almost complete authority over all aspects of local government ! 4.Section 7 states that local plans would have to be updated within nine months of any amendment to a metropolitan system plan "or any other addition to or amendment of the Metropolitan Development Guide." If the local government refuses or is slow,the Metropolitan Council could sue. 3490 Ittingtim ea _ .., . :` . . t. p:., .. . 5.If that is not bad enough,Section 11 gives any resident of the metropolitan area the right to civil action • in district court in Ramsey County for relief for any alleged violation of sections of this bill.The court could award costs of litigation to any party that prevails. ACTION NEEDED: SF449 is scheduled to be heard on Thursday,March 4 at 2 p.m.in Room 107 of the Capitol before the Subcommittee on Metropolitan Affairs of the Senate Metropolitan and Local Government Committee.This subcommittee is chaired by Sen.Ted Mondale(DFL-St.Louis Park),who is a co- author of SF449.The subcommittee roster is: Betty Adkins,DFL-St,Michael Sandy Pappas,DFL-St.Paul Don Betzold,DFL-Fridley Martha Robertson,IR-Minnetonka Carol Flynn,DFL-Mpls Deanna Wiener,DFL-Eagan Ed Oliver,IR-Deephaven The AMM is asking action on two fronts: 1.Please sign up to testify against this bill.The person to contact is Robynn Bruce,297-8065.She is the subcommittee secretary. 2.Contact your senator and let him or her know about the tremendous burdens and intrusions for local governments that would develop because of this bill.If your senator is a member of the subcommittee or the full Senate Committee on Metropolitan and Local Government,please make every effort to contact him or her.I cannot stress enough the tremendous usurpation of local authority and sovereignty that is contained within this bill.If you have a special rapport with a member of either the subcommittee or full committee(and who may or may not serve as your city's senator),contact that person and let him or her know of your concerns.I cannot emphasize the importance of your contacting your senator on this matter,whether your senator is a member of the subcommittee or full committee.(A roster of the full committee members and their telephone numbers,as well as the rosters of the three subcommittees are attached.) Thank you very much for your prompt attention to this matter.As always,if you have any questions, please don't hesitate to call me at 490-3301.