10-11-21 STMA Arena Board Packet City of
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STMA ARENA BOARD AGENDA
MONDAY, OCTOBER 11, 2021
ALBERTVILLE CITY HALL
6:00 PM
1) CALL TO ORDER—ROLL CALL
2) ADOPT AGENDA
3) APPROVAL OF THE MINUTES OF SEPTEMBER 13, 2021 (pgs. 1-2)
4) FINANCE REPORTS
a) Approve the September list of claims as presented in the amount of$27,341.99 and
September report(pgs. 3-6)
b) Third Quarter Budget to Actual Projection (pg. 7)
5) ARENA MANAGER
a) Monthly report(pgs. 8- 9)
6) OLD BUSINESS
a) Hat Trick Hockey Lease -Update
7) NEW BUSINESS
a) STMA YHA Dryland Mezzanine Plan (pgs. 10-11)
b) STMA YHA Dryland Lease (pgs. 12-24)
8) YOUTH HOCKEY ASSOCIATION
9) ADJOURN
ST. MICHAEL-ALBERTVILLE ICE ARENA BOARD MINUTES
September 13,2021
6:00 p.m.
Present: Chairman Larry Sorensen and members, Keith Wettschreck, Ryan Gleason, Kari Dwinnell,
and Aaron Cocking. Absent: Members Walter Hudson and Tim Lewis. Also present: City
Administrator Adam Nafstad, City Finance Director Tina Lannes, STMA Arena Manager Grant Fitch,
School and Ground Director Jason Bichler, Adam Longberg from Hat Trick Hockey, Steve Sachs from
Hat Trick Hockey, Karl Anderson and Garret Karels from STMA Youth Hockey Association. The
meeting was called to order at 6:00 p.m. by Chairman Sorensen.
Set Agenda
Members Dwinnell\Cocking moved to set the agenda as presented. All voted aye.
Approval of Minutes
Members Cocking\Gleason moved to approve the minutes of the August 9, 2021 Board Meeting as
presented. All voted aye.
Members Gleason\Cocking moved to approve the minutes of the August 30, 2021 Board Meeting as
presented. All voted aye.
Finance Reports
Lannes presented the finance reports.
Members Cocking\Dwinnell moved to approve the August list of claims totaling $40,689.79 and the
August Financial Report as presented. All voted aye.
Arena Manager's Report
Fitch presented the Arena Managers report mentioning that the hours sold in August was 214 hours
which was 14 hours more than projected. Fitch updated the Board on the Arena parking lot was
restriped and STMA Youth Hockey Season has started. There was discussion on ice time sold, STMA
Youth Hockey has committed to morning ice Monday- Friday, excluding holidays, from October 18th
to February 28th. Staff will be working on a contract with the association. Fitch reported staff is in the
process of replacing the full-time vacancy of the Arena Maintenance position.
Old Business
Nafstad provided an update on the status of Hat Trick Hockey lease along with the possibility of
STMA Youth Hockey to create a dryland space above the retail space. The retail space has an
estimated cost of$300,000 and the mezzanine of about$200,000; however, more information and
engineering is needed for the groups to determine if the improvements are feasible. There was
continued discussion on the proposed mezzanine build. Staff recommended the Board to approve the
lease with Hat Trick Hockey with the assumption that STMA Youth Hockey Association will not
move forward.
Members Dwinnell\Gleason moved to approve the lease with Hat Trick Hockey subject to the City
Attorney edits and directing staff to execute the lease by September 28, 2021, if STMA Youth Hockey
Association decides not to move forward. All voted aye.
Member Cocking excused himself from the meeting at 6:17 P.M.
STMA Arena Board Mtg 10/11/21 Page 1
Nafstad updated the Board on the ice allocation policy draft with priority of users and sets up timelines
for the user groups to book hours by a certain date. Nafstad stated that the change was to give priority
to local user groups as directed by last meeting direction. There was continued discussion on ice time
sales, rates and priority for user groups.
New Business
Member Dwinnell mentioned she has heard from others that there is a need for a workout area in the
arena with the suggestion on using the community room. Member Dwinnell reached out to Ashley
Darkenwald from InFit who was interested in the possibility. Currently, the room is booked through
Grant and currently the community room goes with the ice rental for STMA Youth Hockey during the
season. Nafstad stated that the use of the space needs to be determined by the school board. Nafstad
also noted potential access control issues should the space be leased. Darkenwald mentioned she
would work with STMA Youth Hockey Association if this use would be approved.
Member Dwinnell suggested that the STMA Arena Board should create future goals. Member
Wettschreck agreed goals would be good to discuss and asked staff what goals would be needed and
helpful. Nafstad stated that they should be tied to the budget such as selling ice and watching
expenses. There was additional discussion on possible goals, ideas, ice sales,private hockey rentals,
tournaments and changes to the ice rental schedules. The STMA Arena Board directed to staff to sell
as much ice as possible with some flexibility to our local users.
Nafstad informed the Board that we really have not had a good, full year, of concession sales and
currently staff doesn't have a solid number for a lease on the concession stand. There was discussion
on the future use of the concession stand and options. Staff was directed by the Board to stock, hire
and open the concession stand continue running it by STMA Arena staff.
Youth Hockey Association
Karl Anderson thanks the board and staff for all their hard work. The Youth Hockey Association will
be hosting a State Tournament,the Junior Gold, and Minnesota Hockey loves the facility.
Adiourn
Members Gleason\Wettschreck moved to adjourn at 7:16 p.m. All voted aye.
Attest:
Tina L. Lannes, City Finance Director
STMA Arena Board Mtg 10/11/21 Page 2
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STMA Ice Arena Budget to Actual September 2021 (Cash Basis)
September
2021 2021 Actual
STMA Arena 2021 Budget Actual YTD 9/30/21
Income
Ice Rental $672,585.00 $30,440.53 $381,441.63
Concessions $35,000.00 $8.00 $72.50
Room Rental $500.00 $0.00 $0.00
Other Revenues(Advertising/LMC/Ins
Claims/ATM) $20,000.00 $20,000.00 $20,699.42
Vending $1,500.00 $0.00 $631.55
Open Skate/Hockey,etc. $6,000.00 $1,199.00 $10,392.15
Interest $1,000.00 $0.00 $0.00
reimbursement-Cities $0.00 $0.00 $0.00
Misc.Revenue $100.00 $5.00 $110.00
Total Income $736,685.00 $51,652.53 $413,347.25
Expenses
Salaries,Wages,Taxes&Benefits $347,175.95 $22,427.55 $205,009.54
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 $335.64
Professional Services $29,200.00 $1,338.46 $18,246.15
Sales Tax $3,448.00 $145.79 $818.83
Telephone $2,250.00 $175.12 $1,522.96
Electric $130,000.00 $15,956.75 $94,19636
Gas $45,000.00 $2,237.12 $28,302.93
Water $15,000.00 $687.54 $5,533.50
Refuse $2,750.00 $113.42 $785.38
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 $10,359.49
Misc. $5,700.00 $0.00 $3,421.50
Repair Maintenance-Machinery $15,000.00 $120.00 $15,058.22
Repair Maintenance-Building $40,000.00 $3,038.80 $26,904.13
Total Operating Expenses $703,536.61 $47,391.60 $424,455.22
Net Income/Loss $33,148.39 $4,260.93 ($11,107.97)
STMA Arena Board Mtg 10/11/21 Page 3
STMA ICE ARENA CASH BALANCES AND RECEIVABLES
September 30, 2021
Cash Balance Operations
Est. Cash Balance Operations 1/1/21 (audited) $1,681
Add Acct Rec 2020 collected 2021 $153,276
Add Revenues $413,347
Less Expenses $(424,455
Est. Cash Balance Operations 09/30/21 $143,848
Accounts Receivable (invoiced)
Operations September 30, 2021 - $13,035
Cash Balance Dedicated Capital Improvement Fund
Arena Owner Dedicated Cap. Imp. Fund
Beginning Balance 1/1/21 $100,664
Invoiced St. Michael $15,000 paid $15,000
Invoiced ISD 885 $15,000 paid $15,000
Invoiced City of Albertville $15,000 paid $15,000
Balance 09/30/21 $145,664
STMA Arena Board Mtg 10/11/21 Page 4
STMA Ice Arena Vendor Check Detail Register
September 2021
Check# Check Date Vendor Name Amount Invoice Comment
10028 a 09/07/21 ARAMARK
E 810-00000-405 Repair/Maint -Buildings $26.60 2530000383 Arena mats,mops
10030 a 09/07/21 BECKER ARENA PRODUCTS,INC
E 810-00000-405 Repair/Maint -Buildings $68.19 601954 Flooding Hose 1"Black Solid
10034 a 09/07/21 COURI&RUPPE
E 810-00000-304 Legal Fees $1,202.50 SEPTEMBE Arena-August 2021 Services
10045 a 09/07/21 MR CUTTING EDGE LLC
E 810-00000-404 Repair/Maint- $80.00 3672 ice scraper blade 84"
10049 a 09/07/21 RANDY'S ENVIRONMENTAL SVCS
E 810-00000-384 Refuse/Garbage Disposal $113.42 SEPTEMBE Arena trash removal
10050 a 09/07/21 SCR,INC
E 810-00000-405 Repair/Maint -Buildings $917.00 W68179 chiller is down with several alarms going off
E 810-00000-405 Repair/Maint -Buildings $119.00 W68897 suction group ctrl 722F,outlet temperature too high
10056 a 09/02/21 RESOURCE TRAINING&SOLUTIONS/
E 810-00000-130 Employer Paid Ins $3,594.50 2109024260 Emp Health Ins
10057 a 09/05/21 SIGNAPAY
E 810-00000-300 Professional Srvs $135.96 SEPTEMBE Arena cc fees
10064 a 09/09/21 CITY OF ALBERTVILLE
E 810-00000-382 Water Utilities $488.42 Arena Wtr Bill 8/18/21 87-00000315-00-0
E 810-00000-382 Water Utilities $199.12 Arena Wtr Bill 8/18/21 87-00000310-00-5
10066 a 09/20/21 ARAMARK
E 810-00000-405 Repair/Maint -Buildings $26.60 2530000441 Arena mops,mats
10083 a 09/20/21 MR CUTTING EDGE LLC
E 810-00000-404 Repair/Maint- $40.00 3779 Ice Scraper Blade 84"
10086 a 09/20/21 PREMIUM WATERS INC
E 810-00000-405 Repair/Maint -Buildings $26.40 AUGUST Arena water delivery
10088 a 09/20/21 SCR,INC
E 810-00000-405 Repair/Maint -Buildings $153.34 C006535 monthly CO2 tank charges
E 810-00000-405 Repair/Maint -Buildings $431.00 W68944 after hours several alarms going off
E 810-00000-405 Repair/Maint -Buildings $194.37 W69209 filters
10095 a 09/20/21 WRIGHT-HENNEPIN COOP ELECTRIC
E 810-00000-381 Electric Utilities $10.74 Arena Elevator Monitoring 9/30/21
10108 a 09/20/21 MN DEPARTMENT OF REVENUE
E 810-00000-315 Sales Tax $145.79 SEPTEMBE Arena Sales Tax
41169 09/07/21 STEP SAVER,INC.
E 810-00000-405 Repair/Maint -Buildings $70.80 148031 bulk salt
STMA Arena Board Mtg 10/11/21 Page 5
STMA Ice Arena Vendor Check Detail Register
September 2021
Check# Check Date Vendor Name Amount Invoice Comment
41173 09/07/21 OUTDOOR HOME SERVICES HOLDINGS
E 810-00000-405 Repair/Maint -Buildings $119.49 142884770 Arena-Lawn Service 7/13/21
E 810-00000-405 Repair/Maint -Buildings $170.50 143012453 Arena-Vegetation Control 7/14/21
41193 09/20/21 CENTERPOINT ENERGY
E 810-00000-383 Gas Utilities $2,237.12 SEPTEMBE 5898 Lachman Avenue NE
41195 09/20/21 CHARTER COMMUNICATIONS
E 810-00000-321 Telephone $54.72 0131538083 5898 Lachman Avenue NE 8352305160131538
E 810-00000-321 Telephone $120.40 0131702091 5898 Lachman Avenue NE 8352305160131702
41207 09/20/21 XCEL ENERGY
E 810-00000-381 Electric Utilities $15,946.01 746971204 5898 Lachman Avenue NE 51-5873315-4
810 STMA ARENA $27,341.99
STMA Arena Board Mtg 10/11/21 Page 6
STMA Ice Arena 3rd Quarter Estimated Actual 2021 (Accrual Basis)
2021 3rd
Quarter Prelim July-Sept 2021 July-Sept 2020 July-Sept 2019
STMA Arena Budget Actual Actual Actual
Income
Ice Rental $311,021.00 $394,476.63 $395,426.61 $329,374.02
Concessions $0.00 $72.50 $40,521.25 $48,219.34
Room Rental $500.00 $0.00 $431.11 $0.00
Other Revenues(Advertising/LMC/Ins Claims/ATM) $0.00 $20,699.42 $12,350.00 $13,459.45
Vending $600.00 $631.55 $983.25 $862.05
Open Skate/Hockey,etc. $3,650.00 $10,392.15 $2,616.00 $12,358.80
Interest $480.00 $0.00 $798.31 $0.00
reimbursement-Cities $0.00 $0.00 $0.00
Misc. Revenue $100.00 $110.00 $177.00 $285.00
Total Income $316,351.00 $426,382.25 $453,303.53 $404,558.66
Expenses
Salaries,Wages,Taxes&Benefits $174,430.00 $208,659.54 $221,862.39 $210,313.84
Supplies(Office,Misc.) $9,000.00 $173.59 $81.45 $2,267.12
Supplies(Concession) $0.00 $0.00 $12,409.28 $18,213.52
Fuel,Misc. $300.00 $335.64 $469.63 $1,048.78
Professional Services $12,000.00 $18,246.15 $5,278.14 $15,407.91
Sales Tax $1,925.00 $818.83 $3,660.38 $5,094.46
Telephone $1,122.00 $1,624.13 $1,628.85 $1,303.13
Electric $45,000.00 $108,196.36 $79,032.13 $71,089.36
Gas $28,500.00 $29,802.93 $21,937.52 $26,444.21
Water $7,500.00 $6,783.50 $5,536.91 $13,093.50
Refuse $1,670.00 $986.36 $1,787.26 $1,655.80
Insurance $15,000.00 $13,589.00 $827.00 $15,187.00
Education/Training $1,500.00 $198.00 $0.00 $165.00
Administration $6,906.30 $10,359.45 $10,057.77 $9,764.82
Misc. $4,200.00 $3,421.50 $1,735.00 $2,648.53
Repair Maintenance-Machinery $6,500.00 $16,058.22 $5,700.72 $1,423.60
Repair Maintenance-Building $18,200.00 $29,104.13 $31,632.57 $14,456.68
Total Operating Expenses $333,753.30 $448,357.33 $403,637.00 $409,577.26
Net Income/Loss ($17,402.30) ($21,975.08) $49,666.53 ($5,018.60)
STMA Arena Board Mtg 10/11/21 Page 7
MANAGER' GENERAL UPDATE
Date: October 1 lth,2021
To: STMA Arena Board
From: Grant Fitch, STMA Arena Manager
ARENA MONTHLY RENTAL HOURS—SEPTEMBER
User Hour Sold
STMAYHA 114 hours
AAA 40 hours
RYHA (Rogers) 0 hours
Adult Hockey 6 hours
High School Boys/Girls 0 hours
Public Skating/OH 18 hours
Private rentals 34 hours
Total Hours Sold 212
Monthly Budget Projection 215
2022 Showcase AAA Tournament Series Dates:
• April 8-10, Trailblazer—Boys and Girls, Open Levels
• April 22-24,Meltdown—Boys and Girls, Open and Invite
• April 29-May 1, Shock Doctor—Boys Open
• May 6-8, Stampede—Boys and Girls, Open Levels
• May 20-22, Independent Classic—Boys and Girls, Open and Invite
• June 10-12, Summer Showdown—Boys and Girls, Open and Invite
• August 5-7, International Cup—Boys and Girls, Open and Invite
• August 12-14, Round Up—Boys and Girls, Open Levels
• August 19-21, Easton Cup—Boys and Girls, Open and Invite
• August 26-28, Summer Finale—Boys and Girls, Open and Invite
• September 9-11, Warrior Cup—Boys and Girls, Open Level
Tournaments have been going extremely well and Showcase hopes to continue working with
STMA Arena next year. Possible 440 hours in AAA tournament games not including practice
time for the Midwest Hockey program
Arena Maintenance: Thanks to STMAYHA and Rick O'Brien (Advertising & Sponsorship
Coordinator)who came in on his day off to help reposition and replace some advertising on the
Blue Rink North wall. Lift was provided by STMAYHA and was left on site for a week and we
used the lift to repair some lighting and hang some High School banners on the Blue Rink
AED (Automated external defibrillator: The Arena has 2 AED's and the one on the Gold Rink
is from 2004 and needs to be replaced. New is about$2500 and a used one is about$1,000. New
units are child ready and communicate through 2.4 WIFI and will send an e-mail when they need
service. Looking into rebates and other payment options
STMA Arena Board Mtg 10/11/21 Page 8
STMAYHA: In August/Sept STMAYHA held a 4 session Learn to Skate engaging 45 kids of all
elementary ages to participate in skating. It was a huge success and they had an additional 20
some kids on waiting lists. In September STMAYHA held its annual Try Hockey Free Day and
had great attendance with another 40 kids. Hat Trick Hockey donated free hockey sticks to
participants and STMAYHA won a Gear Up MN Grant to purchase $1500 worth of Hockey
Skates for participants. 23 pair of skates were given out to kids who attended the event! Thanks
to Danielle Castro (Mite/8U Coordinator) Dicks Sporting goods, Hat Trick Hockey for their
contributions and all the volunteers that made it a success
Arena Staffing: Full time position is still open
STMA Arena Board Mtg 10/11/21 Page 9
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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 STMA YOUTH HOCKEY,INC.
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 STMA Youth Hockey,Inc. a
Minnesota non-profit 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
A. 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.
B. Lessee shall have two successive five-year lease renewal options,the
first commencing upon the expiration of the initial term of this lease and
the second commencing upon the expiration of the first five-year
renewal option (provided the first renewal option is exercised). In order
to exercise such options,Lessee shall send written notice to the Lessor
of its intent to exercise such renewal option at least 90 days but not
more than 365 days prior to the expiration of the lease term. Said
renewal shall be on the same terms as this lease, except that there shall
be no rental credit that is applied during such option term and the rent
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STMA Arena Board Mtg 10/11/21 Page 12
shall be increased or decreased by the percentage change in the
Consumer Price Index for All Urban Consumers(CPIAUC) as published
by the United States Bureau of Labor Statistics (or a successor index if
the CPIAUC is discontinued and a successor index is maintained by the
Bureau of Labor Statistics)from the date of the execution of this lease to
the date of the commencement of the option in question. Said options
may be terminated by the Lessor before their exercise in the event the
Lessor permanently ceases using the Arena for hockey games and
hockey practices prior to the expiration of this lease or prior to the
commencement of the second option if the first option is properly
exercised.
C. In the event the Ice Arena is unable to conduct its normal operations for
a period of 30 days or more due to extraordinary circumstances beyond
its control (e.g. mandated government shutdown due to a pandemic,
etc.),the Lessee's obligation to pay rent under this lease shall be
suspended during such shutdown and the term of this lease shall be
extended for the same amount of time that the Ice Arena is unable to
conduct its normal operations.
3. AUTHORIZED USE
The Board grants to Lessee the exclusive use of the Leased Premises for use as
space for exercising,practicing hockey on a non-ice surface,hockey training, and
other activities designed to educate and train youth relating to the game of ice
hockey. 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.
Lessee shall only be allowed access to the premises during such times as the arena
building is manned and open by Lessor,which shall include all times that one or
more ice arenas are open for use by the public or any group which has rented ice
time from Lessor. Lessor may exclude Lessee from the Leased Premises during
high school hockey games and high school hockey tryouts.
4. RENT,FEES AND CHARGES
A. Rent shall be in the form of building improvements, rental of ice
time on an hourly basis, and monthly rent payments as follows:
1. Monthly rent on the Leased Premises shall be$1 per year,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. The Lessee shall be responsible for paying all payments in lieu of
real estate taxes required to be paid to Wright County. If the
2
STMA Arena Board Mtg 10/11/21 Page 13
Wright County billing for such amounts is in the name of Lessor,
Lessee shall pay such amounts to Lessor at least 14 days prior to
the date Lessor must make such payment to the County. If the
Wright County billing for such amounts is in the name of Lessee,
Lessee shall timely pay such amounts to Wright County.
3. Lessee shall rent, on an annual basis during the term of this lease,
no less than 1,825 hours of ice time in the STMA Ice Arena
between October I st of each year to March 15th of the following
year at the prime rate established by the STMA Arena Board.
All such ice time rental shall be consistent with the STMA Ice
Arena allocation policy.
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.
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. Lessee shall construct, at Lessee's expense,the improvements
described in paragraph 5 of this Agreement.
6. 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 reasonable electrical, gas,
garbage, sewer and water utilities consumed during the term of the lease.
The Lessee shall be responsible to pay all other utilities including,but not
limited to, cable and phone/internet. In the event the Lessee places so much
cardboard in the garbage that it hinders Lessors use of the garbage
dumpster, Lessee shall pay for a separate cardboard disposal service for the
cardboard boxes it generates. Lessee shall not waste utilities in the Leased
Premises. In the event Lessee utilizes specific equipment on the Leased
Premises that draw an excessive amount of electricity,Lessor may require
Lessee to pay the electrical cost attributed to such equipment. Lessor shall
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STMA Arena Board Mtg 10/11/21 Page 14
control the amount of heat provided to the Leased Premises such that the
Arena ice may be efficiently maintained.
C. Maintenance
Lessee shall be responsible at its expense for all maintenance to the inside
of the Leased Premises, the doors and windows, and the HVAC unit
Lessee shall install on the roof of the Leased Premises. Lessor shall
maintain the outside of the structure housing the Leased Premises
(including the roof) and the parking lot.
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 February 28, 2021.
Such General Improvements shall become the property of the
Board upon their installation and shall remain the property of the
Board upon the termination of this lease. Personal property added
by Lessee shall remain the property of Lessee. 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 by the
earlier of: 1) within 14 days of presentation of such estimated costs
to the Lessee; or 2)November 30, 2021. 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.
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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.
8. Upon the execution of this Lease, Lessee shall have access to the
premises for purposes of commencing construction of the General
Improvements.
B. Liens
Lessee shall: 1)keep the Leased Premises free and clear from all liens for
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
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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
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.
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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
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
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insurance policy from an insurer licensed to do business in Minnesota
naming the Board as an additional insured with the greater of the
following liability limits: 1) $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, or 2)the municipal tort liability amount as set forth in
Minn. Stat. 466.04 or its successor statute. 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.
D. Insurance
The Lessee shall be responsible for insuring its contents contained in the
Leased Premises.
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
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.
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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
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.
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It. 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
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
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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.
I. 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.
J. 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.
K. 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
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P.O. Box 9
Albertville, MN 55301
STMA Youth Hockey Association
L. Access to Leased Premises.
Lessee shall have access to the Leased Premises only during such times as
the building is open for normal operations by Lessor.
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: 52021 ST.MICHAEL—ALBERTVILLE ICE
ARENA JOINT POWERS BOARD
By: Larry Sorensen
Its: Chairperson
By: Adam Nafstad
Its: Secretary
Date: , 2021 STMA YOUTH HOCKEY,INC.
By:
Its: Chief Executive Officer
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EXHIBIT A
EXHIBIT B
EXHIBIT C
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