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ELK RIVER ARENA 1000 SCHOOL STREET N.W. ELK RIVER, MN 55330 (763) 635 - 1141 Fax (7C3) 635 - 1144 rczech!~r?ci.elk-river.mn.us To: Dave Hansen, Elk River Youth Hockey President From: Rich Czech, Arena Manager Date: March 24, 2005 Subject: Arena Concession Stand In October of 2004, you had sent a memo to Pat Klaers, Elk River City Administrator, regarding several issues regarding the Arena and the referendum that was voted down this past fall. I would like to this time to address one of these items, the concession stand. As you are aware of, Elk River Youth Hockey and the City of Elk River has an unwritten agreement concerning the Arena Concession Stand. A Contract was never signed, however both parties have abided by the principals of the contract. The agreement was arranged during the negotiations when Elk River Youth Hockey approached the City to build another sheet of ice next to the Barn. Part of the agreement was that the City of Elk River would take over the operations of the Arena and Elk River Youth Hockey would lease the concession stand from the city. To off set the Arena's deficit each year, youth hockey agreed to a lease payment of $21,000 a year, which has now been capped at $21,500 for the last few seasons. You proposed in your memo that the lease payment should be reduced to $5,000.00 yearly to fall in line with other surrounding Arenas. The $21,500 is not just a lease for the concession stand; it was Elk River Youth Hockey's commitment to the city when the city added a second sheet of ice and took over the operations of the Arena. There are several Youth Hockey Associations that have made similarly arrangements with their city to either add another sheet of ice to an existing one or build their first sheet of ice. Some are contributing as much as $50,000 a year without any compensation, while others not only contribute a lump sum, they have a user fee attached to each player that is in their association. The Arena is in the red between $30,000 - $50,000 a year, which does not include capital improvement items such as the Barn's rink floor this year, which is close to $400,00.00.