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City Council Minutes <br />July 1, 2024 <br />--------- <br />Page 7 of 8 <br />that top quartile. Councilmember Westgaard stated the facility is premier and not average, which would <br />affect the rate. He suggested reviewing the 12 comps yearly to determine where to set our rates, noting <br />it does not have to be a mathematical average of the 12. Mayor Dietz stated the local comps will bring <br />averages down unless we specifically provide statistical information to support it. Mr. Stremcha sought <br />to clarify the inclusion of the local comps if the statistical information is not of value. Councilmember <br />Westgaard stated the rates would be used to establish our rate, not for setting averages, and they would <br />be a market comparison for different reasons. Mr. Portner asked if there would be any consideration <br />that some of the other comps are subsidized by their city general fund. Councilmember Westgaard <br />stated yes, noting other factors need to be considered as well, such as user groups in other communities <br />who give annual contributions from pull tab proceeds. <br />There was a Council consensus on setting three rates for prime, non-prime, and school. The Council <br />stopped short of providing direction on the amount because they would like to discuss the role of the <br />Multipurpose Facility Advisory Commission. <br />Mr. Stremcha suggested at minimum setting a framework to guide the Commission. <br />Councilmember Wagner suggested a joint work session meeting for July 15, so everyone understands <br />the role of the Commission. <br />Turf Rates <br />Mr. Stremcha reviewed turf rates in his presentation. He noted there were about 24 different rates <br />based on the user groups. <br />Councilmember Westgaard stated he was surprised by the high rate for prime hours in other <br />communities. <br />It was noted this would be a substantial increase and a hard sell to users. <br />Councilmember Beyer noted there are some less positive things about our facility versus the other <br />facilities, such as the low roof. <br />The Council would like time to digest the information. <br />Room Rates <br />Mr. Stremcha reviewed room rates. <br />The Council noted the current rate is lower than the comps, but it would be difficult to raise them <br />when capacity is not being met. <br />Mr. Stremcha suggested reviewing affordable add-on amenities with higher revenue potential to market <br />the rooms more effectively. <br />Councilmember Wagner suggested keeping the rates the same until there is more demand for room <br />rental. She stated the rooms are a loss-leader to get people into the facility and hopefully gain other <br />potential revenue with the add-on amenities. <br />Page 11 of 389