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JOINT MEETING OF CITY OF ALBERTVILLE,
CITY OF ST. MICHAEL, AND STMA SCHOOL BOARD
Monday, October 12, 2015
ALBERTVILLE COUNCIL CHAMBERS
7:00 P.M.
The cities of Albertville and St. Michael met in a joint session with the STMA School Board to
discuss the STMA Arena 2 "d Sheet Expansion Project.
City of Albertville present: Mayor Jillian Hendrickson, Council members Walter Hudson, Rob
Olson, Larry Sorenson, and John Vetsch, City Administrator Adam Nafstad, and City Clerk
Kimberly Olson
City of St. Michael present: Mayor Jerry Zachman, Council members Cody Gulick, Joe Marx,
Nadine Schoen, and Chris Schumm; and City Administrator Steve Bot
STMA School Board present: Chair Douglas Birk, Jeffrey Lindquist, Gayle Weber, Carol
Steffens and Drew Scherber, and District Superintendent Jim Behle
A. Welcome and Call to Order
Hendrickson called the meeting to order at 7:02 p.m.
B. STMA YHA $1,000,000 Pledge Proposal
STMA Youth Hockey Association (STMA YHA) President Josh Opiola thanked the school and
cities for taking the time to discuss a second sheet. He stated the STMA YHA is at critical mass
with an unprecedented need for another sheet of ice. He stated that they are looking to bring a
viable option/solution forward.
Hanson reviewed the last discussion of a second sheet of ice in 2011 and the increase in
participation since that time. He stated that STMA YHA has come up with the financing
requested of them in previous discussions and provided the details of their proposal. He stated
that up to $500,000 of their proposal would be provided by bank loan. He stated they were able
to secure the $500,000 due to STMA YHA's strong financials and program. Hanson explained
YHA expects fundraising will offset the loan amount actually needed and that fundraising will be
necessary to repay the loan. He stated YHA has $210,000 in cash to dedicate to the second
sheet. They would also use the $40,000 from Kraft Hockeyville USA and $250,000 from
Mighty Ducks funds (if awarded) to reach the $1,000,000.
Hanson addressed the timing of the Mighty Ducks Grant application and stated the grant was not
announced until end of August and that is also when they were able to secure funding.
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C. Mighty Ducks Grant Status Update
Nafstad reported the grant application was the only one the Minnesota Amateur Sports
Commission (MASC) received from congressional district 6. The application materials included
the feasibility study, demand study, construction estimate, and letters of support from elected
officials. However, MASC has deemed the resolution passed by the cities and school board as
"less than full" commitment. Nafstad explained the application's boiler plate resolution was
modified to most accurately explain the current status of the expansion project.
Steffens inquired why the estimated cost is so high. Hanson stated they could build a less
expensive rink, but it would not include bleachers, concessions, etc. There was discussion on the
estimate and it was stated that $8 million is strictly a planning figure based on a previous
expansion concept.
Hendrickson asked the group to transition to the funding discussion on the agenda. Nafstad
provided the history on how the arena was built and the additions made to it over the years. He
stated that historically each entity has generally shared costs equally in thirds. It was also noted
that the cities shared the cost of the locker room addition and the school purchased the vacant lot
adjacent to the arena.
Hudson stated he is interested in knowing if the school board can participate because the two
cities need to know if they will be funding 50% or 33% for a second sheet. Birk stated that
funding for a second sheet is not in their operating costs. He stated that the school board could
not commit to funding at this time, but may be able to look at a modest contribution in the future.
He stated that there may be an operations levy within three to seven years for the school district,
so it would be difficult to also have a referendum for a second sheet and the district must
consider future challenges it will face. Scherber stated the cities should assume they would need
to fund 50% each. Weber stated that the school is limited in what they can levy for. Schumm
inquired if the school could contribute in some other fashion, such as operations. Lindquist
provided explanation on the Arena's annual budget and questioned if that would actually help the
cities fund an expansion. Steffens expressed concern that an increased operations contribution
from the school would take away from funds needed to pay teachers. Schumm reiterated that the
operations contribution could be over a number of years.
Bot brought up G.O. bonding and Nafstad stated tax abatement bonding would likely be an
option for all groups. Behle stated the school board has not discussed bonding options or had a
chance to research such scenarios, so it would be unfair to the school to have that discuss now.
Behle stated he will research the options and discuss with the school board. Bot stated the
entities have worked very well together in the partnership and he would like to see that continue
in regards to funding the second sheet. Nafstad stated the groups need to determine if the second
sheet is a simple practice sheet (without bleacher and concessions) or if it will be built to include
bleachers and concessions and hold tournaments.
D. Funding Discussion/Planning Budget Next Steps to Move Project Forward
The groups discussed a tour of ice arenas within the vicinity. They discussed visiting a variety of
facilities in the $4 -8 million range. An ice arena tour was scheduled for Sunday, October 25, at
12:00 p.m. at the STMA Ice Arena.
Opiola stated they are very fortunate to even have these discussions as it is not the case for many
cities and youth associations.
Vetsch expressed concern with doing the project in phases and adding things like bleachers and
concessions after the fact becomes too costly. Vetsch also suggested that the Fire Marshal look at
capacity of the existing sheet as he was concerned it is not sufficient for some of the crowds.
Hudson stated that the Albertville council will need to determine if it is realistic and feasible for
the city to fund a $2 -4 million project.
Hendrickson asked if the school board would be willing to bond if there is a way. Birk stated
that question has not been posed to the board and they have not had the opportunity to deliberate
the issue. Hendrickson also questioned a referendum. Behle explained the referendum process
and also described how the school typically associates levy with learning needs and bonding with
building needs.
Both Hendrickson and Schumm suggested they would like to see it put to a vote. Behle talked
about the difficulties that can sometimes be had with referendums. Schumm said it comes down
to how the campaign is handled. There was some back and forth discussion at large regarding
referendums, voting, and campaigning limits.
Zachman questioned the timing of the Mighty Duck announcement. Nafstad explained that
Mighty Ducks would like more commitment and a revised resolution by October 26, 2015 and
said he was told the grants would be awarded on November 18. Lucy stated that if the resolution
is not firmed up, no grant will be issued for their application. Hanson was hoping that since
there are no other applications, there would still be potential to receive grant funds. He
suggested working back from the November 18 date that was set by the Mighty Ducks.
Behle inquired about discussion St. Michael may have had regarding the second sheet. Zachman
stated they need to know numbers and how much they would be funding. Schoen felt there is a
need in the community and wants to find a way to make it work.
E. Adjourn
Motioned by Hendrickson, seconded by Schoen, to adjourn the meeting. All voted aye. The
meeting was adjourned at 8:57 p.m.
Respectfully submitted,
Kimberly Olson, Albertville City Clerk