WORKSHOP ITEM - Robert Therres, Public Services Manager
Title
DECIDING NOT TO EXECUTE RIGHT OF RENEWAL IN NATIONAL SPORTS CENTER ICE ARENA MASTER AGREEMENT
Background
In 1997, the City entered into an Ice Arena Master Agreement with the National Sports Center, Ramsey County, and the City of Coon Rapids for the construction of the first four (4) rinks of the National Sports Center Super Rink. In the agreement, all the parties also guarantee the sale of a minimum amount of ice time and if the ice time were not sold, the parties would make up the difference. Since the start of this agreement, the minimum amount of ice time has always been sold.
The Master Agreement is set to expire January 1, 2024. In the agreement, a clause (pg. 13) allows the parties the ability to renew this agreement in five-year increments with no further financial obligations.
The original four sheets of ice at the Super Rink are over 20 years old and are in need of some substantial investments to upgrade the rinks. The National Sports Center is starting the planning process to raise funds for the improvements and get more groups/associations involved in new agreements. In order for them to develop a new plan, the National Sports Center needs to know that the original Master Agreement will not be renewed. It restricts their ability to bring other parties into agreements and restricts the amount of available ice time.
The National Sports Center is requesting that all the parties to the original master agreement pass resolutions indicating their intent not to execute the right of renewal in the Ice Arena Master Agreement.
Recommendation
Provide feedback on National Sports Center Ice Arena Master Agreement. If okay with not exercising right of renewal, staff will bring a resolution to that effect at a future City Council meeting for Council consideration.