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08-09-21 STMA Arena Board Packet city of A,lbertville T t. Michael Small 1,,r lhdna.Sia C{iw lits. TM STMA ARENA BOARD AGENDA MONDAY, AUGUST 9, 2021 ALBERTVILLE CITY HALL 6:00 PM 1) CALL TO ORDER—ROLL CALL 2) ADOPT AGENDA 3) APPROVAL OF THE MINUTES OF JUNE 149 2021 (pgs. 2 - 3) 4) FINANCE REPORTS a) Approve the June/July list of claims as presented in the amount of$50.883.80 and July report(pgs. 4 - 9) b) 2nd Quarter Budget to Actual projection (pgs. 10 - 11) 5) ARENA MANAGER a) Monthly report(pgs. 12 - 13) 6) OLD BUSINESS a) Review Draft Ice Allocation and Rental Policy (pgs.14 - 15) b) Repurposing/Retail Concept i) Review Concept Plan (pg. 16) ii) Review Draft Lease Agreement(pgs. 17 - 27) c) Concession Stand Lease Option - Discussion 7) NEW BUSINESS 8) YOUTH HOCKEY ASSOCIATION 9) ADJOURN ST. MICHAEL-ALBERTVILLE ICE ARENA BOARD MINUTES June 14,2021 6:00 p.m. Present: Chairman Larry Sorensen and members, Keith Wettschreck, Tim Lewis, Ryan Gleason and Kari Dwinnell. Absent Walter Hudson and Aaron Cocking. Also present: City Administrator Adam Nafstad, City Finance Director Tina Lannes, STMA Arena Manager Grant Fitch, School and Ground Director Jason Bichler, Karl Anderson, Garret Karels and John from STMA Youth Hockey Association and Steve Sachs and Adam Longberg from Hat Trick Hockey. The meeting was called to order at 6:00 p.m. by Chairman Sorensen. Set Agenda Members Gleason\Wettschreck moved to set the agenda as amended. All voted aye. Approval of Minutes Members Wettschreck\Lewis moved to approve the minutes of the May 10, 2021 Board Meeting as presented. All voted aye. Finance Reports Lannes presented the finance reports. Members Wettschreck\Gleason moved to approve the May list of claims totaling $22,615.49 and the May Financial Report as presented. All voted aye. Arena Manager's Report Fitch presented the Arena Managers report mentioning that the hours sold in June was 238 hours which was more than projected. In addition, Fitch stated the Olympia was picked up on June 3rd for maintenance and is expected to be returned in 2-3 weeks. Fitch reported that alarms are being triggered by water from the roof pooling tripping the GFCI breaker. Staff ordered an awning to prevent the runoff from the roof on the Gold rink from tripping the breaker. Fitch mentioned that Minnesota Hockey announced on May 12th that the COVID-19 rules will be officially retired on May 28th, 2021. Old Business There was continued discussion on the sale of additional ice time especially in the off(summer) season. Items mentioned were hours of operation, local groups booking, adjusting group schedules and setting booking deadlines. Staff has reached out to many additional rental groups regarding summer ice sales. Additional direction was to sell summer ice to local groups first, but have a deadline of each year for the next summer schedule, then after such date open it up to additional rental groups. The board directed staff to look into shifting the local group hours in the summer to open up additional salable blocks. In addition, there was discussion on a financial commitment on booked ice time for groups in the summer months. The Board directed staff to work on a summary policy for summer ice with deadlines and booking deposits. In addition, staff was directed to look back at A, B and C rates for ice rental and bring back items to the STMA Arena Board at a future meeting. New Business Nafstad brought forward a possible request for repurposing the old lobby for retail space at the arena with youth hockey and hat trick hockey. There was discussion on the concept with the arena board, leasing and capital improvements. Adam Longberg and Nafstad presented the concept to the Arena board for retail space and the dryland option with youth hockey if there is a possible way for both to coexist in the space. Longberg stated, if the concept were to move forward, would possibly look at a Agenda Page 2 of 27 STMA June 14,2021 Minutes Page 2 10-year lease with two 5-year extension options. Staff and Hat Trick Hockey were directed to continue working on plans/options and bring back to the board at a future meeting. Youth Hockey Association John with Youth Hockey requested approval for the arena board to revitalize the can collection and it being located behind the old arena in a 6x6 cage. Members Dwinnell\Gleason moved to allow the placement of youth hockey can collection cage to be located behind the old arena. All voted aye. Adiourn Members Gleason\Wettschreck moved to adjourn at 7:09 p.m. All voted aye. Attest: Tina L. Lannes,City Finance Director Agenda Page 3 of 27 CMyof A\1bertville Smol! -,o.r.Wn9.9i9"% UFs. M ••••�'�'.. � STMA Ice Arena Budget to Actual July 2021 (Cash Basis) July 2021 2021 Actual STMA Arena 2021 Budget Actual YTD 7/31/21 Income Ice Rental $672,585.00 $10,192.50 $324,841.60 Concessions $35,000.00 $12.00 $56.50 Room Rental $500.00 $0.00 $0.00 Other Revenues(Advertising/LMC/Ins Claims/ATM) $20,000.00 $0.00 $699.42 Vending $1,500.00 $0.00 $631.55 Open Skate/Hockey,etc. $6,000.00 $790.00 $6,978.73 Interest $1,000.00 $0.00 $0.00 reimbursement-Cities $0.00 $0.00 $0.00 Misc.Revenue $100.00 $0.00 $75.00 Total Income $736,685.00 $10,994.50 $333,282.80 Expenses Salaries,Wages,Taxes&Benefits $347,175.95 $29,787.92 $176,233.21 Supplies(Office,Misc.) $1,500.00 $0.00 $173.59 Supplies(Concession) $28,700.00 $0.00 $0.00 Fuel,Misc. $500.00 $0.00 $173.48 Professional Services $29,200.00 $1,124.69 $16,654.91 Sales Tax $3,448.00 $186.19 $566.02 Telephone $2,250.00 $175.12 $1,172.72 Electric $130,000.00 $14,542.00 $63,572.59 Gas $45,000.00 $1,353.69 $23,765.00 Water $15,000.00 $619.05 $3,891.09 Refuse $2,750.00 $0.00 $671.96 Insurance $22,000.00 $0.00 $13,589.00 Education/Training $1,500.00 $0.00 $198.00 Administration $13,812.66 $1,151.05 $8,057.38 Misc. $5,700.00 $90.66 $2,802.16 Repair Maintenance-Machinery $15,000.00 $13,715.52 $14,938.22 Repair Maintenance-Building $40,000.00 $5,908.17 $23,019.51 Total Operating Expenses $703,536.61 $68,654.06 $349,478.84 Net Income/Loss $33,148.39 ($57,659.56) ($16,196.04) Agenda Page 4 of 27 STMA ICE ARENA CASH BALANCES AND RECEIVABLES July 31 , 2021 Cash Balance Operations Est. Cash Balance Operations 1/1/21 (audited) $1,681 Add Acct Rec 2020 collected 2021 $153,276 Add Revenues $333,283 Less Expenses $(349,479) Est. Cash Balance Operations 07/31/21 $138,760 Accounts Receivable (invoiced) Operations July 31, 2021 - $20,322.50 Cash Balance Dedicated Capital Improvement Fund Arena Owner Dedicated Cap. Imp. Fund Beginning Balance 1/1/21 $100,664 Invoiced St. Michael $15,000 $15,000 Invoiced ISD 885 $15,000 $15,000 Invoiced City of Albertville $15,000 $15,000 Balance 07/31/21 $145,664 Agenda Page 5 of 27 STMA Ice Arena Vendor Check Detail Register June/July 2021 Check# Check Date Vendor Name Amount Invoice Comment 9714 a 06/07/21 ARAMARK E 810-00000-405 Repair/Maint -Buildings $26.60 25300000075 Arena-mats,mops 9732 a 06/07/21 MR CUTTING EDGE LLC E 810-00000-404 Repair/Maint- $130.00 3364 Ice Scraper Blade 84" E 810-00000-404 Repair/Maint- $90.00 3410 Ice Scraper Blade 84" 9738 a 06/07/21 RANDY'S ENVIRONMENTAL SVCS E 810-00000-384 Refuse/Garbage Disposal $112.00 JUNE 2021 Arena Trash Removal 9745 a 06/07/21 WRIGHT-HENNEPIN COOP ELECTRIC E 810-00000-381 Electric Utilities $10.74 JUNE 2021 Arena Elevator Monitoring 6/30/21 9749 a 06/20/21 RESOURCE TRAINING&SOLUTIONS/ E 810-00000-130 Employer Paid Ins $813.00 21060216320 Emp Health Ins E 810-00000-130 Employer Paid Ins $3,594.48 21060216320 Emp Health Ins 9754 a 06/09/21 CITY OF ALBERTVILLE E 810-00000-382 Water Utilities $216.78 MAY 2021 Wtr Bill 87-00000310-00-5 5/19/21 E 810-00000-382 Water Utilities $387.80 MAY 2021 Wtr Bill 87-00000315-00-0 5/19/21 9769 a 06/21/21 ARAMARK E 810-00000-405 Repair/Maint -Buildings $26.60 25300000603 Arena mops,mats 9772 a 06/21/21 COURI&RUPPE E 810-00000-304 Legal Fees $46.25 JUNE 2021 Ice Arena 9773 a 06/21/21 DAN DEHMER LANDSCAPING INC E 810-00000-300 Professional Srvs $336.00 9449 Delivered 8 yards of shredded natural hardwood mulch 9785 a 06/21/21 PREMIUM WATERS INC E 810-00000-405 Repair/Maint -Buildings $17.60 318132658 Arena water delivery 9786 a 06/21/21 SCR,INC E 810-00000-405 Repair/Maint -Buildings $492.00 W66063 compressor fault alarm,suction group-reset fault and check E 810-00000-405 Repair/Maint -Buildings $429.50 W66066 phase fail gold rink pump 3-VFD tripped 9794 a 06/18/21 MN DEPARTMENT OF REVENUE E 810-00000-315 Sales Tax $114.70 JUNE 2021 Arena Sales Tax 9796 a 06/17/21 CITY OF ALBERTVILLE E 810-00000-412 Building Rentals/Admin Fee $1,151.05 ana admin fee 06/21 9813 a 06/30/21 ARAMARK E 810-00000-405 Repair/Maint -Buildings $26.60 25300001165 Arena mats,mops 9816 a 06/30/21 MR CUTTING EDGE LLC E 810-00000-404 Repair/Maint- $40.00 3467 Ice scraper blade 84" Agenda Page 6 of 27 STMA Ice Arena Vendor Check Detail Register June/July 2021 Check# Check Date Vendor Name Amount Invoice Comment 9818 a 06/30/21 RANDY'S ENVIRONMENTAL SVCS E 810-00000-384 Refuse/Garbage Disposal $112.95 JULY 2021 Arena trash removal 9819 a 06/30/21 SCR,INC E 810-00000-405 Repair/Maint -Buildings $153.34 C006223 Arena Monthly CO2 Tank Charges 40926 06/07/21 AMERICAN SUPPLY GROUP INC. E 810-00000-405 Repair/Maint -Buildings $623.30 27905A Arena bath tissue,trash bags,roll towels,urinal screens 40932 06/07/21 CHARTER COMMUNICATIONS E 810-00000-321 Telephone $54.72 01315380530 Arena Cable 8352305160131538 40942 06/07/21 STEP SAVER,INC. E 810-00000-405 Repair/Maint -Buildings $64.80 145754 Arena Bulk Salt 40944 06/21/21 Ace of Albertville-Arena E 810-00000-405 Repair/Maint -Buildings $38.96 118465/1 weed&grass killer,plastic pail,plastic bucket E 810-00000-405 Repair/Maint -Buildings $50.96 118486/1 drill bit,maxfit sec bit set,mag 2"combo 40950 06/21/21 CENTERPOINT ENERGY E 810-00000-383 Gas Utilities $2,352.61 JUNE 2021 5898 Lachman Avenue NE 40952 06/21/21 CHARTER COMMUNICATIONS E 810-00000-321 Telephone $120.79 01317020610 Arena Voice 8352305160131702 40953 06/21/21 CJ'S LINEN SERVICE E 810-00000-399 Miscellaneous $36.50 37671 rags,dust mops 40956 06/21/21 HILLYARD,INC. E 810-00000-404 Repair/Maint- $432.70 604349371 tissue,soap foam blue,urinal screen 40967 06/21/21 OUTDOOR HOME SERVICES HOLDINGS E 810-00000-405 Repair/Maint -Buildings $129.00 139596313 Arena Lawn Service 40969 06/21/21 XCEL ENERGY E 810-00000-381 Electric Utilities $12,669.45 735045758 5898 Lachman Avenue NE 51-5873315-4 40977 06/30/21 MET LIFE LIFE INSURANCE E 810-00000-130 Employer Paid Ins $540.50 JULY 2021 Emp Life, Dental,Stdis,Vision 40982 06/30/21 STEP SAVER,INC. E 810-00000-405 Repair/Maint -Buildings $98.40 146421 Arena bulk salt 40983 06/30/21 OUTDOOR HOME SERVICES HOLDINGS E 810-00000-405 Repair/Maint -Buildings $214.75 140395598 Arena vegetation control Agenda Page 7 of 27 STMA Ice Arena Vendor Check Detail Register June/July 2021 Check# Check Date Vendor Name Amount Invoice Comment 9824 a 07/20/21 RESOURCE TRAINING&SOLUTIONS/ E 810-00000-130 Employer Paid Ins $813.00 2107024218 Emp Health Ins E 810-00000-130 Employer Paid Ins $3,594.50 2107024218 Emp Health Ins 9835 a 07/13/21 CITY OF ALBERTVILLE E 810-00000-412 Building Rentals/Admin $1,151.05 july2021 admin fee 9836 a 07/12/21 CITY OF ALBERTVILLE E 810-00000-382 Water Utilities $198.61 Arena Wtr Bill 6/17/21 87-00000310-00-5 E 810-00000-382 Water Utilities $420.44 Arena Wtr Bill 6/17/21 87-00000315-00-0 9838 a 07/19/21 ABDO, EICK&MEYERS LLP E 810-00000-301 Auditing and Acctg $450.00 445439 Arena Review&Prep OSA Financial Reporting 9840 a 07/19/21 ARAMARK E 810-00000-405 Repair/Maint -Buildings $26.60 2530000169 Arena mats,mops 9845 a 07/19/21 COURI&RUPPE E 810-00000-304 Legal Fees $138.75 JULY 2021 Ice Arena 9856 a 07/19/21 LVC COMPANIES,INC. E 810-00000-405 Repair/Maint -Buildings $210.00 64672 Ice Termination 9864 a 07/19/21 MR CUTTING EDGE LLC E 810-00000-404 Repair/Maint- $65.00 3520 Ice Scraper Blade 84" 9871 e 07/19/21 PREMIUM WATERS INC E 810-00000-405 Repair/Maint -Buildings $17.60 318191440 Arena water delivery 9875 a 07/19/21 SCR,INC E 810-00000-405 Repair/Maint -Buildings $281.00 W67181 compressor fault alarm E 810-00000-405 Repair/Maint -Buildings $335.00 W67191 3 out of 6 compressors are tripped E 810-00000-405 Repair/Maint -Buildings $764.68 W67318 additional CO2 pre request 9884 a 07/19/21 WRIGHT-HENNEPIN COOP ELECTRIC E 810-00000-381 Electric Utilities $10.74 Arena Elevator Monitoring 7/31/21 40986 07/19/21 Ace of Albertville-Arena E 810-00000-405 Repair/Maint -Buildings $17.99 118710/1 mr clean roller mop 40991 07/19/21 BANYON DATA SYSTEMS E 810-00000-300 Professional Srvs $174.90 161769 UB Meter,Fund ACH,Revtrak Module,UB 40992 07/19/21 CENTERPOINT ENERGY E 810-00000-383 Gas Utilities $1,353.69 JULY 2021 5898 Lachman Avenue NE 40995 07/19/21 CHARTER COMMUNICATIONS E 810-00000-321 Telephone $54.72 0131538063 Arena Cable 8352305160131538 E 810-00000-321 Telephone $120.40 0131702071 Arena Voice 8352305160131702 41013 07/19/21 DACOTAH PAPER E 810-00000-405 Repair/Maint -Buildings $123.44 11006 can liners,bag val Agenda Page 8 of 27 STMA Ice Arena Vendor Check Detail Register June/July 2021 Check# Check Date Vendor Name Amount Invoice Comment 41015 07/19/21 MECHANICAL ENERGY SYSTEMS E 810-00000-405 Repair/Maint -Buildings $275.00 J26962 Add spigot to wash condensors 41038 07/19/21 XCEL ENERGY E 810-00000-381 Electric Utilities $14,531.26 739014285 5898 Lachman Avenue NE 51-5873315-4 810 STMA ARENA $507883.80 Agenda Page 9 of 27 STMA Ice Arena 2nd Quarter Actual 2021 (Cash Basis) 2021 2nd Quarter Prelim Jan-June 2021 Jan-June 2020 STMA Arena Budget Actual Actual Income Ice Rental $311,021.00 $324,841.60 $321,663.74 Concessions $0.00 $56.50 $40,452.25 Room Rental $500.00 $0.00 $431.11 Other Revenues (Advertising/LMC/Ins Claims/ATM; $0.00 $699.42 $350.00 Vending $600.00 $631.55 $448.75 Open Skate/Hockey, etc. $3,650.00 $5,688.73 $1,645.00 Interest $480.00 $0.00 $798.31 reimbursement- Cities $0.00 $0.00 Misc. Revenue $100.00 $60.00 $172.00 Total Income $316,351.00 $331,977.80 $365,961.16 Expenses Salaries, Wages, Taxes & Benefits $174,430.00 $145,904.79 $150,622.46 Supplies (Office, Misc.) $9,000.00 $173.59 $81.45 Supplies (Concession) $0.00 $0.00 $12,409.28 Fuel, Misc. $300.00 $173.48 $469.63 Professional Services $12,000.00 $5,761.47 $4,974.35 Sales Tax $1,925.00 $379.83 $3,590.00 Telephone $1,122.00 $997.60 $957.97 Electric $45,000.00 $63,561.85 $37,006.62 Gas $28,500.00 $18,285.26 $17,581.34 Water $7,500.00 $3,272.04 $4,120.64 Refuse $1,670.00 $886.36 $1,727.21 Insurance $15,000.00 $13,589.00 $827.00 Education/Training $1,500.00 $198.00 $0.00 Administration $6,906.30 $6,906.30 $6,705.18 Misc. $4,200.00 $2,675.00 $1,735.00 Repair Maintenance-Machinery $6,500.00 $1,222.70 $5,035.65 Repair Maintenance-Building $18,200.00 $17,111.34 $18,027.30 Total Operating Expenses $333,753.30 $281,098.61 $265,871.08 Net Income/Loss ($17,402.30) $50,879.19 $100,090.08 Agenda Page 10 of 27 Jan-June 2019 Actual $284,028.45 $44,817.59 $0.00 $680.42 $652.30 $8,678.80 $0.00 $0.00 $229.00 $339,086.56 $150,628.65 $1,592.12 $16,385.24 $945.70 $12,034.32 $4,095.47 $856.54 $44,214.16 $22,309.08 $10,016.25 $1,363.23 $15,187.00 $165.00 $6,509.88 $2,545.13 $540.00 $11,933.49 $301,321.26 $37,765.30 Agenda Page 11 of 27 city of A�Ibcrtville SmaY Town Lhnna.Bic Qku Lits. TM MANAGER' GENERAL UPDATE Date: August 9th,2021 To: STMA Arena Board From: Grant Fitch, STMA Arena Manager ARENA MONTHLY RENTAL HOURS—JULY User Hour Sold STMAYHA 0 hours AAA 57 hours RYHA (Rogers) 0 hours Adult Hockey 8 hours High School Boys/Girls 5 hours Public Skating/OH 78 hours Private rentals 90 hours Total Hours Sold 235 Monthly Budget Projection 250 Olympia repair: Machine returned Friday July 23rd from CTM Services. All hydraulic hoses replaced and other services completed. I believe we will recoup some of these costs when we trade it in for a new machine someday. Arena Maintenance: Thanks to Albertville Public Works for providing a dumpster for Albertville Friendly City Days and helping clean up parking lot after the event. Also, thank you to Jason Bichler with the high school for letting us use their lift to change out some wall advertising Arena Staffing: Brian LeDuc's last day was July 6th.Good luck to Brian as he started his new job in Bemidji July 19th. We have the job posted with the League of Mn Cities and MIAMA (Mn Ice Arena Managers Association)posting will close on August 9th. Hoping to have someone hired by late September. Summer Hockey Camps: Last day was Thursday July 29th camps were well attended STMAYHA: Youth Hockey skills clinics start Monday September 13th Hours of Operation: October 1st through March 31st Monday—Friday Gam to 10:30pm Saturday & Sunday 6:30am to 10:30pm. April 1st through September 30th Monday—Friday 7:30am to lOpm Saturdays generally closed (June& July)unless hosting a Tournament and Sunday mornings 9am to 12pm and 3 to IOpm. These hours can fluctuate depending on morning Ice before school, HS games,YH games, non-school days and holidays. Agenda Page 12 of 27 STMA Ice Arena Board August 9th, 2021 Agenda Page 2 of 2 Ice Rate Discounts: I talked to 5 surrounding rinks and discounts are based on the amount of Ice time purchased.No special rates for local vs non-local or for profit vs non-profit groups. For- profit groups pay sales tax on ice time purchased and non-profit groups must provide a tax exemption certificate. $165 per hour is very competitive with surrounding rinks. Most rinks have gone away from A, B and C rates. They use a prime rate and a non-prime rate. Some rinks have last chance ice available the day of for a discounted rate of$135 to $150 per hour. Current STMA Arena Rates: Prime Rate (Oct 1 to March 15 2022) $220 -No increase for the 2021-22 season High School Game Rate $265 Summer Rate (0 to 200 hours) $165 Summer Rate (201 to 400 hours) $150 Summer Rate (401 plus hours) $135 ATM and Chevy Kiosk: Items have been removed from the Blue Rink main lobby for non- payment,2020 was a tough year and collecting money for a building not at full capacity was tough to sell. MHP-Tentative Tournaments Schedule Spring-Summer 2022: April 15-17th —Early Trailblazer April 22-24th —Early Trailblazer AA (Limited to B Level Players) May 13-15th — Spring Stampede May 20-22nd — Spring Stampede AA (Limited to B Level Players) August 19-21St —Summer Round Up AA (Limited to B Level Players) August 26-28th — Summer Round Up Agenda Page 13 of 27 STMA Ice Arena Ice Allocation and Sales Policy (DRAFT) rev. 8/52021 Introduction: This policy governs the allocation of ice hours and sales for the STMA Ice Arena and includes both the Gold (old) and Blue (new) sheets of ice. This policy has been adopted by the STMA Arena Board and may be revised from time to time. Policy objectives include: • Operate the facilities in an equitable, cost-effective and fiscally sustainable manner; • Balance and best meet the demands of the School District, local youth hockey community and private organizations and users; • And, to ensure all parties understand the how ice time is allocated. Policy: 1. Prioritization of User Groups The primary constituencies served by the STMA Arena include the STMA school district, the STMA Youth Hockey Association, general public skating and hockey recreation, and private groups and organizations. Priority of ice allocation shall be as follows: First- STMA/NWC High School Games Second - STMA/NWC High School Practices (prior to 6 p.m.) Third - STMA/NWC Hockey Boosters Fourth - STMAYHA Hockey Games, Practices and Tournaments Fifth - Public Skating and Community Recreational Programs Sixth - Civic, Community or Non-profit Organizations within the School District Seventh -Private For-Profit Organizations (local and non-local) Eight- Civic, Community or Non-profit Organizations outside the School District Notes: • For-profit priority will be based on usage with priority given to highest usage. • Allocated ice can only be used for intended user—i.e., ice allocated to youth hockey can only be used by youth hockey. Agenda Page 14 of 27 2. Processing of Ice Allocations Requests for ice shall be submitted to the Arena Manager as follows: Fall/Winter Session (Oct 1. to March 15) -Requests for fall/winter ice must be received by July 1st of the current year. Allocations will be confirmed by September 1st of the current year. Spring Session (March 16 to May 31) -Requests for spring ice must be received by December 1st of the previous year. Allocations will be confirmed by January 31st Summer Session (June 1 to September 31) -Requests for summer ice must be received by February 1st of the current year. Allocations will be confirmed by April lstth of the current year. Requests received after these deadlines will be processed on a first-come first served basis and based on the priority of the group. Users request for increased ice time will be considered only if ice is available. Ice hours may be allocated, returned or taken under this policy only in whole hour time slots shown on the Arena Mangers master schedule for the year. As a multi-sheet facility, the two sheets of ice will be generally reserved as follows: Blue Sheet—Games and Scrimmages Gold Sheet—Practice and private rentals 3. Payment, Fees and Contracts Hourly ice rates shall be as set annually by the STMA Arena Board. With the exception of the School District, all users reserving ice shall prepay or enter into an Ice Rental Contract. Refunds for cancellations will be subject to the Ice Rental Contract. 4. Cancellations The STMA Arena reserves the right to cancel ice time for emergency repairs, public safety, school/community events and building maintenance. When this occurs, the STMA Arena will attempt to provide alternate accommodations. Agenda Page 15 of 27 KRJ ASTTTES,LLC /V Long Lake,MN 55356 EXISTING RINKEE—Ow a TES WALL w NEW III I NEW DOORS NEW OFFICE T EXISTING 30-0" EX � a 30'0" ' ROOM�ICAL LOBBY ❑NEWIIII F, ❑ ❑ ❑ ❑ NEWnooO ❑ ❑ E] ,..e.. 15'0" 30-6" 63'6" 109'0" w FLOOR PLAN N� HAT TRICK HOCKEY 1/8"_'I-0" LEASE SPACE 2,770 0 Rochon EALEE AREA LEASE AREA=2,770 sf REELR". PRELIMINARY FLOOR PLAN 6.10.2021 P.1 a ST.MICHAEL-ALBERTVILLE ICE ARENA JOINT POWERS BOARD COUNTY OF WRIGHT STATE OF MINNESOTA LEASE BETWEEN THE ST.MICHAEL-ALBERTVILLE ICE ARENA JOINT POWERS BOARD AND HAT TRICK HOCKEY ALBERTVILLE LLC THIS AGREEMENT,made this day of , 2021,by and between the St.Michael—Albertville Ice Arena Joint Powers Board("Board" or"Lessor") a joint powers board under the laws of the State of Minnesota,and Hat Trick Hockey Albertville, Inc. a Minnesota corporation("Lessee" or"Tenant"), to rent a portion of the STMA Ice Arena located at 5898 Lachman Avenue NE, Albertville, Minnesota 55301 for commercial retail space. WHEREAS,The Lessor in consideration of the rents and covenants hereinafter mentioned, does hereby demise,lease, and let unto the Lessee, and the Lessee does hereby hire and take from the Lessor a portion of the following premises located at 5898 Lachman Avenue NE, Albertville, Minnesota 55301 as graphically depicted on attached Exhibit A ("Leased Premises"). NOW, THEREFORE, in consideration of the foregoing and mutual promises and covenants set forth, the parties hereby agree as follows: 1. LEASED PREMISES The Board leases to Lessee the Leased Premises. 2. TERM The Term of this Agreement shall be for 10 years commencing on the date that a temporary or permanent occupancy permit is issued to Lessee following the completion of the installation of the General Improvements as required in paragraph 5.A.1 below. Lessee shall have access to the Leased Premises upon the execution of this Lease by all parties for construction purposes consistent with the construction requirements of this Lease. If no temporary or permanent occupancy permit is issued to Lessee by June 30, 2022,this lease shall be void. 3. AUTHORIZED USE The Board grants to Lessee the exclusive use of the Leased Premises for use as commercial retail space only. The Leased Premises shall be used and occupied by Lessee only for the uses specified in this Agreement. Lessee is prohibited from any use of the Leased Premises not specifically permitted under this Agreement without the prior written approval of the Board, such approval to be given at the Board's sole discretion. 4. RENT,FEES AND CHARGES A. Rent shall be in the form of building improvements and monthly 1 Agenda Page 17 of 27 rent payments as follows: 1. Monthly rent on the Leased Premises shall be$ per month, subject to the building improvement credit set forth in paragraph 4.A.2 below,plus other rental expenses as set forth in this paragraph 4. Lessee's first monthly rent payment shall be due on the day following the day a temporary occupancy permit is issued as set forth in paragraph 2 above. 2. Lessee may apply a rental credit equal to the lesser of 1)the total cost of installing the General Improvements described on Exhibit B that are actually paid by Lessee(hereafter referred to as the "Reimbursed Construction Cost") or 2) $ in lieu of cash payments of rent. Such rental credit may be used in lieu of rent payments,with the amount of such credit being reduced by the cumulative amount of rental credit applied under this Lease. Once the rental credit is exhausted,the Lessee shall pay rent monthly in the amount required under this Lease. 3. The Lessee shall be responsible for paying all payments in lieu of real estate taxes required to be paid to Wright County. 4. Rent shall be paid to Lessor in advance on the first day of the term of this lease and on the same day of each succeeding month, provided that Lessee shall not be required to pay rent during the suspension period as set forth in paragraph 4.A.2. Payment shall be sent to the City of Albertville's Finance Director,or such other such person as Lessor may specify, and that said Lessee will keep and maintain the Leased Premises during the aforesaid term, and quit and deliver up the Leased Premises to the Lessor at the end of the aforesaid term or at any previous termination thereof for any cause,in as good order and condition and state of repair,reasonable use and wearing thereof excepted, as the same now is or may be put by the Lessor. 5. Upon expiration or termination of this Lease, all improvements made to the Leased Premises by Lessee,including all improvements described on Exhibit B, shall be deemed additions to the real estate and shall become the property of the Lessor, in which case Lessor shall have no obligation to reimburse Lessee for any unused rental credit. All such unused rental credit shall expire upon the expiration or termination of this Lease. B. Utilities The Lessor shall be responsible for paying all gas, garbage and electrical utilities consumed during the term of the lease. The Lessee shall be 2 Agenda Page 18 of 27 responsible for pay all other utilities including,but not limited to, cable and phone/intemet and for insuring its own belongings. The Lessor shall pay reasonable water and sewer bills. Payments under this subparagraph shall not be subject to the rent suspension contained in paragraph 4.A2. C. Interest and Late Fees Lessee shall pay a penalty for late or delinquent payments during the Term of this Agreement and any extensions of twelve percent per annum on the balance of the unpaid amount calculated from the date the amount is due until the close of the business day upon which the delinquent payment is received by the Board. D. Security Deposit Lessee shall provide the Board a security deposit of$ ("Lessee Security Deposit")before taking possession of the Leased Premises. The Lessee Security Deposit will be returned to Lessee when this Lease is terminated unless the Board chooses to apply it to unpaid rent or other damages attributable to Lessee. Tenant's Security Deposit will accrue no interest. If Lessee defaults with respect to any provision of this Agreement,the Board may use, apply, or retain all or any part of Lessee Security Deposit for the payment of any rent or other sum in default and any amounts the Board may spend by reason of Lessee's default to the full extent permitted by law. If any portion of Lessee Security Deposit is so used, Lessee shall, within ten (10) days after written demand therefore, deposit with the Board, in a form acceptable to the Board, an amount sufficient to restore Lessee Security Deposit to the aforementioned amounts, and Lessee's failure to do so shall be a material default and breach of this Agreement. The Board shall not be required to keep any security deposit separate from its general funds, and Lessee shall not be entitled to interest on any such deposit. 5. LEASEHOLD IMPROVEMENTS A. Installation/Construction of General Improvements. 1. Subject to the terms of this Paragraph 5, the Lessee shall construct at its sole cost and expense the general building improvements to the Leased Premises described on the attached Exhibit B ("General Improvements") and shall equip the Leased Premises with trade fixtures and all personal property necessary or proper for the operation of Lessor's business. The Lessee shall proceed with reasonable diligence to enter into a contract for work and shall use reasonable efforts to complete such work by , 2021. Such General Improvements shall become the property of 3 Agenda Page 19 of 27 the Board upon their installation and shall remain the property of the Board upon the termination of this lease. The Leased Premises shall be considered ready for occupancy by Lessee when the Lessor has obtained a temporary or permanent occupancy permit following the installation of the General Improvements. 2. The Lessee shall not be obligated to construct the General Improvements if the total cost of such General Improvements, including architectural fees, engineering fees and construction costs is estimated to exceed$ . In such event, the Lessee may either waive its right to terminate this lease and elect to construct said General Improvements or cancel this lease by serving written notice of cancellation on the Board within 14 days of presentation of such estimated costs to the Lessee. In the event the Lessee cancels this lease, both the Board and the Lessee shall be released from all obligations of this lease. 3. At the time of the execution of this lease, the parties estimate that total costs of the General Improvements will be approximately $ . Construction and installation of the General Improvement shall be at Lessee's sole expense. 4. The Lessee at its sole expense shall obtain all permits necessary to install the General Improvements. 5. The Board may have designated representatives present at the Leased Premises for inspection purposes at all times (or such times as the Board may deem necessary) during the construction and installation of the General Improvements. 6. Lessee shall provide the Board with a construction schedule for installation of the General Improvements. Further, Lessee shall notify the Board one week prior to initiation of construction of the General Improvements to coordinate review of the construction activities and to allow the Board time to initiate any safety precautions deemed necessary to protect the health and safety of patrons of the STMA Ice Arena. 7. Installation and construction of the General Improvements shall not interfere with (i) any construction work of the Board, (ii)the management and operation of the STMA Ice Arena, or(iii)the use of the STMA Ice Arena by other tenants or occupants. B. Liens Lessee shall: 1)keep the Leased Premises free and clear from all liens for 4 Agenda Page 20 of 27 labor performed and materials furnished on behalf of Lessee; and 2) defend, at Lessee's cost, each and every lien asserted or filed against the Leased Premises, or against this Agreement and any improvement on behalf of Lessee on the Leased Premises and pay each and every judgment resulting from such lien. Lessee's contractor shall, prior to commencing work on the Leased Premises, provide the Board with a payment bond in the amount of the estimated cost of the General Improvements. C. Title to Improvements and Structural Alterations All personal property shall be removed by Lessee upon termination of the lease term. Any improvements to the Leased Premises shall become the property of the Board. 6. MAINTENANCE OBLIGATIONS A. Board Obligations The Board shall maintain the building, landscaping and shall clear snow and ice from the sidewalks, entryways to the building, and parking lot, but the Board shall not be obligated to maintain the interior of the Leased Premises,nor any fixtures or equipment installed in the Leased Premises as part of the General Improvements. B. Lessee's Obligations Lessee shall be obligated, without cost to the Board,to maintain all portions of the Leased Premises not maintained by the Board per paragraph 6A above. Lessee shall keep the Leased Premises in good appearance,repair, and safe condition at all times. Lessee shall be responsible for all janitorial service and garbage removal within the Leased Premises. 7. DAMAGE TO OR DESTRUCTION OF LEASED PREMISES A. Repair All damage or injuries to the Leased Premises and to fixtures, appurtenances, and equipment by Lessee,moving property in or out of the Leased Premises or by installation,removal of furniture, fixtures, equipment, or other property by Lessee, or resulting from any other cause of any other kind or nature whatsoever due to carelessness, omission, neglect, improper conduct, or other causes of Lessee, or their subtenants, invitees, agents, or employees shall be repaired,restored, or replaced promptly by Lessee within fifteen (15) days at its sole cost and expense to the satisfaction of the Board. The Board will notify Lessee in writing if the Board determines repairs must be made. No rent shall abate if damage resulted from any act of Lessee or their subtenants,invitees, agents, or employees. If repairs are not made within fifteen (15) days of the notification of the damage, and the Board was not responsible for the damage, the Board will notify Lessee in writing that the Board will make 5 Agenda Page 21 of 27 the repairs and charge Lessee the current hourly rate for labor and materials at cost, unless otherwise agreed to. An administrative overhead charge of fifteen percent(15%) shall be added to the total cost(employee plus material cost) of the billing. Additional interest at the rate of eighteen percent(18%)per year shall accrue if the sum is not paid within five (5) days after rendition of a bill or statement, therefore. If the Board and its employees or agents damage the Leased Premises through their gross negligence or intentional act,the Board will be solely responsible for the repairs. If damage occurs that is not the fault of Lessee, or any of its subtenants, invitees, agents, or employees in any way making the Leased Premises unusable, rent and all other charges shall be abated on a per day pro-rated basis during the time the Leased Premises are unusable. B. Exceptions from Liability The Board shall not be liable or responsible to Lessee for any damage or destruction to Lessee's property from any cause other than the Board's own intentional or negligent acts. 8. INDEMNIFICATION AND INSURANCE A. Indemnification To the fullest extent permitted by law, Lessee does hereby covenant and agree to indemnify and hold harmless the Board and its members, officers, agents and employees (collectively"Indemnitees") from and against any and all liabilities, losses, damages, suits, actions, claims,judgments, settlements, fines or demands of any person arising by reason of injury or death of any person, financial loss, or damage to any property, including all reasonable costs for investigation and defense thereof(including,but not limited to, attorney's fees, court costs and expert fees) of any nature whatsoever arising out of or as a result of Lessee's operation at or about the Leased Premises including, but not limited to, construction of the General Improvements, or the acts or omissions of Lessee's officers, agents, employees, contractors, subcontractors, licensees or invitees, regardless of where the injury, death or damage may occur. The Board shall give Lessee reasonable notice of any such claim or action. In indemnifying or defending an Indemnitee, Lessee shall use legal counsel reasonably acceptable to the Board. The Board, at is option, shall have the right to select its own counsel or to approve joint counsel as appropriate (considering potential conflicts of interest) and any experts for the defense of claims. Lessee, at its expense, shall provide to the Board all information, records, statements, photographs, video, or other documents reasonably necessary to defend the parties on any claims. This provision shall survive expiration or earlier termination of the Agreement. The furnishing of the required insurance hereunder shall not 6 Agenda Page 22 of 27 be deemed to limit Lessee's obligations under this Agreement. As a distinct and separate indemnification obligation, Lessee shall defend, indemnify, and hold the Board harmless from any claims or liabilities as a result of Lessee's failure to procure and to keep in force the insurance required as part of this Agreement. Lessee shall not use or permit the Leased Premises to be used in any manner that would void Lessee or the Board's insurance or unreasonably increase the insurance risk. Lessee shall comply with all requirements imposed by the insurers for the Board and Lessee. B. Board Insurance During the term of this Lease, the Board shall insure the building and all fixtures belonging to the Board against fire and other casualty. The Board shall pay all premiums to obtain and keep in force such insurance coverage. The Board shall not be obligated to insure Lessee's contents. C. Lessee Insurance During the term of this Lease, Lessee shall maintain in force a liability insurance policy from an insurer licensed to do business in Minnesota naming the Board as an additional insured with the following minimum liability limits: $2,000,000 per person for personal injury or death and $2,000,000 per occurrence for personal injury or death or damage to property. Prior to occupancy of the Leased Premises and annually thereafter Lessee shall present the Board with certificates of insurance evidencing the required insurance. All policies of insurance shall contain a provision or endorsement that the coverage afforded will not be canceled or reduced in limits by endorsement, and that renewal will not be refused, until at least 30 days prior written notice has been given to the Lessee. Upon receipt of such notice, the Lessee shall promptly forward a copy of the notice to the Board. Lessee shall be responsible for providing its own contents and renter's insurance. 9. COMPLIANCE WITH LAWS A. Compliance with Laws Lessee, at its sole expense, shall promptly comply with and conform to all present and future laws, ordinances,regulations, and requirements of federal, state, county, and other government bodies of competent jurisdiction that apply to or affect, either directly or indirectly, Lessee's use and occupation of the Leased Premises, and with any lawful order or direction of any public officer relating thereto and operations and activities under this Agreement. The Board shall have the right to and shall adopt and enforce reasonable rules and regulations with respect to the use of the Leased Premises and related facilities, which Lessee must observe and 7 Agenda Page 23 of 27 obey,provided such rules do not conflict with the normal operating procedures for the intended use of the property by Lessee. B. Notices of Violation Lessee shall notify the Board within two (2) Business Days of any notices of violation of any laws, ordinance, rule, regulation, or order. 10. DEFAULT A. Events of Default Any of the following shall constitute a default of this Agreement by Lessee. 1. Lessee is in arrears in the payment of rent for a period of five (5) days after written notice of default from the Board. 2. Lessee fails to operate the Leased Premises as required, or Lessee fails or neglects to do or perform or observe any of the covenants contained herein on its part to be kept and performed and such failure or neglect shall continue for a period of not less than thirty (30) days after the Board has notified Lessee in writing of Lessee's default hereunder and Lessee has failed for reasons other than those beyond Lessee's control to correct such default within said thirty (30) days (such thirty (30) day notification period shall not be construed to apply to any default in payment of rent). 3. Lessee shall be declared to be bankrupt or insolvent according to law, or if any assignment of its property shall be made for the benefit of creditors. 4. Lessee fails to maintain the required insurance for any time period as required under this Lease. B. The Board's Rights Upon Default The Board, or those having an estate in the Leased Premises,may take any of the remedies set forth in the following subsections. 1. Immediately, or at any time thereafter, without further notice to Lessee, but in compliance with applicable law, re-enter into or upon the Leased Premises or any part thereof and take possession of the same fully and absolutely without such re- entry working a forfeiture of the rents or other charges to Lessee for the full Term of this Agreement, and in the event of such re-entry, The Board may proceed for the collection of the rents or other charges to be paid under this Agreement or for properly measured damages; or 8 Agenda Page 24 of 27 2. The Board may, at its election, terminate Lessee's rights under this Agreement upon written notice in the manner hereinafter provided and re-enter Leased Premises as of its former estate therein, and Lessee covenants in case of such termination to remain responsible to the Board for all loss of rents and expense including reasonable attorney's fees which the Board has suffered or paid by reason of termination, during the residue of the Term; or 3. The Board shall further have all other rights and remedies including injunctive relief, ejectment, or summary proceedings in unlawful detainer, and all such remedies shall be cumulative. 11. RIGHT OF ENTRY The Board, its officers, agents, and employees shall have the right, without limitation, throughout the Term of this Agreement to enter upon the Leased Premises for any lawful purpose, including the purpose of determining whether Lessee is complying with its obligations herein. Such entry by the Board shall not be deemed to excuse Lessee's performance of any promise, term, condition, or covenant required of it by this Agreement, and shall not be deemed to constitute waiver thereof by the Board. 12. QUIET ENJOYMENT So long as Lessee is not in default in its obligations hereunder,the Board covenants and agrees that Lessee shall have, hold, and enjoy peaceful and uninterrupted possession of all of the Leased Premises, subject to Lessor's right of entry set out herein. 13. GENERAL PROVISIONS A. Sublease or Assignment Lessee shall not sublease, transfer, assign or allow any other person or entity operating rights under this Agreement without the Board's prior written consent. This Agreement is binding on all legal representatives, successors or assigns. Consent is subject to payment of all rents and the performance of all covenants, conditions and terms contained in this Agreement by Lessee. In no case shall the Board be obligated to consent to any sublease, transfer, or assignment. A sublease of the premises by Lessee shall not release Lessee from the obligations of this Lease without the written consent of the Board. B. Minnesota Law and Jurisdiction The laws of the State of Minnesota shall govern this Agreement. Lessee 9 Agenda Page 25 of 27 further consents to the jurisdiction of the Minnesota state courts. C. Severability If any term, condition, or provision of the Agreement or the application thereof to any person or circumstance shall, to any extent, be held to be invalid or unenforceable, the remainder thereof and the application of such terms, provisions, and conditions to persons or circumstances other than those as to whom it shall be held invalid or unenforceable shall not be affected thereby, and the Agreement and all the terms,provisions, and conditions hereof shall, in all other respects, continue to be effective and to be complied with to the full extent permitted by law. D. Accord and Satisfaction No payment by Lessee of a lesser amount than the rent or other payments required in this Agreement shall be deemed an accord and satisfaction. The Board shall accept such payment without prejudice to the Board's rights to recover the balance of rent and/or payments due or to pursue any other remedy. E. Attorney's Fees and Costs In the event of any default of this Agreement, Lessee shall reimburse the Board for all reasonable and documented fees and costs incurred by the Board including reasonable attorney's fees, relating to such default and/or the enforcement of the Board's rights hereunder. F. Relationship of Parties It is understood and agreed that nothing in this Agreement is intended or shall be construed as in any way creating or establishing the relationship of co-partners hereto, or as constituting Lessee as the agent,representative or employee of the Board for any purpose or in any manner whatsoever. Lessee is to be and shall remain an independent Lessee with respect to all services performed under this Agreement. G. Headings The headings incorporated in the Agreement are for convenience in reference only and are not a part of the Agreement and do not in any way limit or add to the terms and provisions hereof. H. Waiver The waiver or breach by Lessee or the Board of any term of this Agreement shall not be deemed a waiver of any subsequent breach of the same term or any other term of this Agreement. L Entire Agreement This represents the entire agreement between the parties. This Agreement may only be modified if done in writing and executed by both parties. 10 Agenda Page 26 of 27 K. Return of Leased Premises Upon expiration or termination of this Lease, Lessee shall return the Leased Premises to the Lessor in substantially the same condition as when Lessee took possession (but with modifications to the Leased Premises as approved by the Lessor),normal wear and tear excepted. L. Notices Any notices to the parties herein shall be in writing, delivered by hand or registered mail addressed as follows: St. Michael—Albertville Ice City of Albertville Arena Joint Powers Board Attn: Finance Director 5959 Main Avenue NE P.O. Box 9 Albertville,MN 55301 Hat Trick Hockey Albertville Steve Sachs 41097 th Avenue North Anoka,MN 55303 IN WITNESS WHEREOF, the parties hereto signed and executed this instrument the day and year first above written, but effective as of the date set forth in Article 2. Date: , 2021 ST.MICHAEL—ALBERTVILLE ICE ARENA JOINT POWERS BOARD By: Its: Chairperson By: Its: Secretary Date: , 2021 HAT TRICK HOCKEY ALBERTVILLE,INC. By: Its: Chief Executive Officer 11 Agenda Page 27 of 27