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Request for Action <br />To <br />Item Number <br />Mayor and City Council <br />8.3 <br />Agenda Section <br />Meeting Date <br />Prepared by <br />General Business <br />July 17, 2023 <br />Joe Stremcha, Assistant City Administrator <br />Item Description <br />Reviewed by <br />Two Brothers Hockey Agreement <br />Tim Dalton, Facility Superintendent <br />Reviewed by <br />Cal Portner, City Administrator <br />Action Requested <br />Approve, by motion, an ice use agreement with Two Brothers Hockey as recommended by the Multipurpose <br />Facility Advisory Commission. <br />Background/Discussion <br />The Multipurpose Facility Advisory Commission recommended ice rental rates in 2022 with a provision that <br />users could request differing rates. Facility staff, seeking to ensure revenue assurances for budget purposes, <br />sought ice contracts for this purpose. The Commission and Council have recommended and respectfully <br />approved contracts with rates differing from the original ice rental rates for our tax exempt, community based <br />users. <br />The Commission recommends a reduced rate for bulk purchases as a business decision to maintain the strong <br />business partnership with Two Brothers Hockey, a for -profit organization. <br />The estimated aggregate discount provided to Two Brothers Hockey over the term of this agreement is $43,390. <br />Staff recommends the City Council consider providing a governmental fund transfer during the budget process to <br />offset reduced rental rates purchased in bulk by users in the interest of promoting local youth athletics and <br />maintaining affordability for its users within our community. <br />89% of our facility ice rentals are under contracted rates and this represents roughly 65% of gross revenues for <br />the FT Center. A survey of peer communities shows that our that premier facility provides ice rentals below the <br />market average of comparable complexes. The FT Center further provides a community benefit with maintaining <br />walking tracks, senior center maintenance/utilities, etc. without a dedicated funding source. <br />Staff also recommends reviewing the facility revenues closely during the budget process in the fall of 2023 to <br />account for these community benefits. <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires pi ospei ly. <br />M <br />TUREJ <br />Updated: Januay 2023 <br />