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03-16-98 Special-2 CITY COUNCIL MINUTES Richfield, Minnesota Special City Council Study Session Meeting March 16, 1998 CALL TO ORDER The meeting was called to order by Mayor Kirsch at 7:02 p.m. ROLL CALL City Council Members Present:Martin Kirsch, Mayor; Russ Susag; Kristal Stokes, Michael Sandahl and Susan Rosenberg. Staff Present :James Prosser, City Manager; Steven Devich, Administrative Services Director; Thomas Ferber, City Clerk; Bruce Palmborg, Community Development Director; Gretchen Blank, Recreation Services Director, Al Payne, Community Services Manager; and John Dean, City Attorney. Item #1DISCUSSION OF FEASIBILITY REPORT REGARDING SECOND INDOOR ICE SHEET REQUEST. S.S. LETTER NO. 19 City Manager Prosser reviewed Study Session Letter No. 19 regarding presentation of information concerning the feasibility report for the second indoor ice sheet request. Del Erickson, Delano Erickson Architects, presented a report titled “City of Richfield Feasibility Study for Ice Arena Addition” which was prepared by Cluts, O’Brien, Strother Architects Inc. and Delano Erickson Architects. He stated the purpose of the feasibility study was to determine the cost and functionality of a second rink arena addition to the existing ice arena in Veterans Memorial Park. He reviewed the program space requirements and objectives for the addition. He discussed the following issues: Special Study Session Minutes-2-March 16, 1998 x building form and functional relationships x soil conditions x site access x parking x site development x building materials Mr. Erickson discussed a detailed quantity takeoff cost estimate which was prepared based on all desirable systems, soil correction, architectural/engineering fees and contingencies for a total budget of $3.4 million. He reviewed a second cost estimate which was prepared breaking down the overall cost to a Phase I basic bare bones arena with necessary soil correction but minimum site work and limited existing building remodeling without high school locker rooms with an estimated budget of $2.7 million. He then discussed various options and upgrade costs identified for additional features or other funding sources. Discussion followed regarding the following issues: x Possibility of Richfield High School and the Academy of Holy Angels contributing to the costs of a second sheet and/or high school locker rooms. x Ammonia indirect refrigeration system vs. freon refrigeration system. x Lobby functionality. x Concession stand configuration. x Parking demand/supply. x “Off season” events. x Scheduling: conventional bid vs. construction manager. Ice Arena Manager Al Payne presented and discussed a report titled “Ice Arena Usage Study”. He reviewed estimated revenues and operating costs of a second ice sheet. Mark Ruff, Ehlers & Associates, reviewed and answered questions regarding his memorandum to the City regarding the following financing options available for the construction of a second ice sheet: x Voted General Obligation Bonds x General Obligation Tax Increment Bonds x Lease Revenue Bonds x Gross Revenue Recreational Facility Bonds Mr. Ruff then reviewed and answered questions regarding the estimated revenues, operating costs, and debt service related to the second ice sheet. Discussion followed regarding the following issues: x Debt service, operating costs, and revenue base. x Subsidy of current ice arena operating deficit from the Golf Course profits. Special Study Session Minutes-3-March 16, 1998 x Financial concerns related to funding both a second ice sheet and a Community Center facility. x Concern that there is an opportunity for community input and meetings regarding the second ice sheet proposal from the Richfield Ice Group. ADJOURNMENT The City Council meeting was adjourned by unanimous consent at 7:58 p.m. Date Approved: Martin J. Kirsch Mayor Thomas P. FerberJames D. Prosser City ClerkCity Manager