09-13-21 STMA Arena Board Packet ip
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STMA ARENA BOARD AGENDA
MONDAY, SEPTEMBER 13, 2021
ALBERTVILLE CITY HALL
6:00 PM
1) CALL TO ORDER—ROLL CALL
2) ADOPT AGENDA
3) APPROVAL OF THE MINUTES OF AUGUST 9, 2021 (pgs. 2-3)
4) APPROVAL OF THE MINUTES OF AUGUST 30, 2021 — Special Meeting (pg. 4)
5) FINANCE REPORTS
a) Approve the August list of claims as presented in the amount of$40,689.78 and
August report(pgs. 5-8)
6) ARENA MANAGER
a) Monthly report(pg. 9)
7) OLD BUSINESS
a) Hat Trick Hockey Lease (pgs. 10-24)
b) Ice Allocation Policy(pgs. 25-27)
8) NEW BUSINESS
a) Arena Board Goal Setting - Discussion
b) Community Room Use - Discussion
9) YOUTH HOCKEY ASSOCIATION
10)ADJOURN
ST. MICHAEL-ALBERTVILLE ICE ARENA BOARD MINUTES
August 9,2021
6:00 p.m.
Present: Chairman Larry Sorensen and members, Keith Wettschreck, Tim Lewis, Ryan Gleason, Kari
Dwinnell, 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, and Adam Longberg from Hat Trick Hockey. The meeting was called to order at 6:00 p.m. by
Chairman Sorensen.
Set Agenda
Member Dwinnell requested adding goal setting to the agenda under new business.
Members Dwinnell\Cocking moved to set the agenda as amended. All voted aye.
Approval of Minutes
Members Hudson\Gleason moved to approve the minutes of the June 14, 2021 Board Meeting as
presented. All voted aye.
Finance Reports
Lannes presented the finance reports.
Members Cocking\Lewis moved to approve the June/July list of claims totaling $50,883.80 and the
July Financial Report as presented. All voted aye.
Lannes provided the board with the 2nd Quarter Budget to Actual projection.
Arena Manager's Report
Fitch presented the Arena Managers report mentioning that the hours sold in July was 235 hours which
was 15 hours less than projected. Fitch updated the Board that all the hydraulic hoses were replaced
and service was complete on the Olympia. Fitch reported staff is in the process of replacing the full-
time vacancy of the Arena Maintenance position.
Old Business
There was continued discussion on the sale of additional ice time especially in the off(summer)
season, hours of operation and Ice Rental Rates.
Members Dwinnell\Hudson moved to include a daytime rate of$135 per hour. All voted aye.
Nafstad brought forward an updated concept for repurposing the old lobby for retail space at the arena
with Hat Trick Hockey. There was discussion on the concept with the arena board, leasing agreement
and capital improvements. Member Lewis suggested to investigate different funding/leasing options.
There was continued discussion on funding/leasing options.
Member Dwinnell excused herself from the meeting at 7:01 P.M.
There was a discussion on risks for both the STMA Arena Board and Hat Trick Hockey. Staff was
directed to investigate funding/leasing options and bring back information along with the updated
concept to the September Meeting.
Agenda Page 2
STMA August 9,2021 Minutes
Page 2
Member Lewis mentioned if there was a way to separate the retail business from being seen as an
extension of STMA School District. Nafstad stated there will be a physical separation between the
retail space and the old sheet of ice.
Nafstad updated the Board on the possibility of leasing out the concession stand. There was continued
discussion on that option and staff was directed to continue looking into it if there is interest.
New Business
Chairman Sorensen stated to add goal setting to the next agenda due to the absence of member
Dwinnell. Chairman Sorensen mentioned possible topics under goal setting for the STMA Arena
Board might include budgets, operation profits, ice time and other goals that would serve the
community.
Adiourn
Members Cocking\Lewis moved to adjourn at 7:30 p.m. All voted aye.
Attest:
Tina L. Lannes, City Finance Director
Agenda Page 3
ST. MICHAEL-ALBERTVILLE ICE ARENA BOARD MINUTES
August 30,2021 —Special Meeting
(7:00 pm following Joint Governance Meeting)
Present: Chairman Larry Sorensen and members, Keith Wettschreck, Ryan Gleason, Kari Dwinnell,
Walter Hudson and Aaron Cocking. Also present: City Administrator Adam Nafstad, Albertville City
Attorney Mike Couri, St. Michael Councilmember Joe Hagerty, and Steve Sachs and Adam Longberg
from Hat Trick Hockey.
The meeting was called to order at 7:08 p.m. by Chairman Sorensen.
Set Agenda
The agenda was adopted as proposed. It was noted the meeting was in addition to the Board's regular
monthly meeting and necessary to keep the Hat Trick Hockey Lease moving forward.
Hat Trick Hockey Lease
The Board reviewed the layout of the proposed 2,800 square foot retail buildout and discussed the
quoted costs associated with the proposed leasehold improvements, which are estimated to be
$300,000.
Nafstad explained the mezzanine buildout option for use as dryland space and noted the quoted cost to
include the improvements was estimated at$200,000.
Nafstad informed the Board the Youth Hockey Association was not able to attend the meeting, but is
evaluating the project.
Couri and Nafstad presented the lease agreement and addressed questions from the Board.
Longberg and Sacks explained their timeline and their need to have a better understanding if the lease
was something the Board was open to with or without the dryland space. Longburg also explained the
risk Hat Trick was assuming with the proposed buildout and lease.
The Board had lengthy discussions on leasing the space, rent and rent payment options, rent rates if
Hat Trick exercises its renewal options; as well as,what type of agreement with Youth Hockey would
be needed if Youth Hockey decided to move forward with the dryland option.
The unofficial general consensus of the Board was endorsement of the lease agreement with Hat Trick
Hockey and direction to staff to develop a similar agreement with Youth Hockey should they build the
dryland mezzanine.
Adiourn
Meeting adjourned at approximately 8:00 p.m.
Attest:
Adam Nafstad, City Administrator
Agenda Page 4
City of
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STMA Ice Arena Budget to Actual August 2021 (Cash Basis)
August 2021
2021 2021 Actual YTD % of
STMA Arena 2021 Budget Actual YTD 8/31/21 Budget
Income
Ice Rental $672,585.00 $26,159.50 $351,001.10 52.19%
Concessions $35,000.00 $8.00 $64.50 0.18%
Room Rental $500.00 $0.00 $0.00
Other Revenues(Advertising/LMC/Ins
Claims/ATM) $20,000.00 $0.00 $699.42 3.50%
Vending $1,500.00 $0.00 $631.55 42.10%
Open Skate/Hockey,etc. $6,000.00 $2,214.42 $9,193.15 153.22%
Interest $1,000.00 $0.00 $0.00 0.00%
reimbursement-Cities $0.00 $0.00 $0.00 0.00%
Misc.Revenue $100.00 $30.00 $105.00
Total Income $736,685.00 $28,411.92 $361,694.72 49.10%
Expenses
Salaries,Wages,Taxes&Benefits $347,175.95 $6,348.78 $182,581.99 52.59%
Supplies(Office,Misc) $1,500.00 $0.00 $173.59 11.57%
Supplies(Concession) $28,700.00 $0.00 $0.00 0.00%
Fuel,Misc. $500.00 $162.16 $335.64 67.13%
Professional Services $29,200.00 $252.78 $16,907.69 57.90%
Sales Tax $3,448.00 $107.02 $673.04 19.52%
Telephone $2,250.00 $175.12 $1,347.84 59.90%
Electric $130,000.00 $14,667.02 $78,239.61 60.18%
Gas $45,000.00 $2,300.81 $26,065.81 57.92%
Water $15,000.00 $954.87 $4,845.96 32.31%
Refuse $2,750.00 $0.00 $671.96 24.43%
Insurance $22,000.00 $0.00 $13,589.00 61.77%
Education/Training $1,500.00 $0.00 $198.00 13.20%
Administration $13,812.66 $1,151.06 $9,208.44 66.67%
Misc. $5,700.00 $619.34 $3,421.50 60.03%
Repair Maintenance-Machinery $15,000.00 $0.00 $14,938.22 99.59%
Repair Maintenance-Building $40,000.00 $845.82 $23,865.33 59.66%
Total Operating Expenses $703,536.61 $27,584.78 $377,063.62 53.60%
Net Income/Loss $33,148.39 $827.14 ($15,368.90)
Agenda Page 5
STMA ICE ARENA CASH BALANCES AND RECEIVABLES
August 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 $361,695
Less Expenses $(377,064
Est. Cash Balance Operations 08/31/21 $139,588
Accounts Receivable (invoiced)
Operations August 31 , 2021 - $29,973.75
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 08/31/21 $145,664
Agenda Page 6
STMA Ice Arena Vendor Check Detail Register
August 2021
Check# Check Date Vendor Name Amount Invoice Comment
9894 a 08/02/21 ARAMARK
E 810-00000-405 Repair/Maint -Buildings $26.60 2530000223 Arena mats,mops
9898 a 08/02/21 CTM SERVICES,INC
E 810-00000-404 Repair/Maint- $643.84 4809 service/repair to 2002 Olympia Millennium Ice
Resurfacer
E 810-00000-404 Repair/Maint- $12,891.09 4834 service/repair to 2002 Olympia Millennium Ice
Resurfacer
9899 a 08/02/21 ECM PUBLISHERS,INC.
E 810-00000-433 Dues and Subscriptions $90.66 846278 Arena Maintenance&Shift Supervisor
9909 a 08/02/21 MR CUTTING EDGE LLC
E 810-00000-404 Repair/Maint- $40.00 3576 Ice Scraper Blade 84"
Total $40.00
9910 a 08/02/21 MSDSONLINE,INC
E 101-41000-300 Professional Srvs $2,599.00 239932 MSDSonline HQ Renewal 8/9/21-8/8/22
9912 a 08/02/21 RUSSELL SECURITY RESOURCE INC.
E 810-00000-405 Repair/Maint -Buildings $345.00 A40067 Arena Electronic Access fobs not working
9914 a 08/02/21 SCR,INC
E 810-00000-405 Repair/Maint -Buildings $153.34 C006340 Monthly CO2 Tank Charges
E 810-00000-405 Repair/Maint -Buildings $650.00 W67381 Cooling 1 Maintenance on Gold Rink
E 810-00000-405 Repair/Maint -Buildings $173.00 W67446 Assisted Mech Energy Systems w/installing water
tap
E 810-00000-405 Repair/Maint -Buildings $1,813.00 W67610 Refrig 2 Maintenance on Gold&Blue Rink
E 810-00000-405 Repair/Maint -Buildings $626.97 W67746 leak check&repaired a couple small leaks on rack
9916 a 08/02/21 ZEE MEDICAL SERVICE
E 810-00000-405 Repair/Maint -Buildings $42.35 54104913 Arena medical supply replenish
9930 a 08/20/21 RESOURCE TRAINING&SOLUTIONS/
E 810-00000-130 Employer Paid Ins ($813.00) 2108021558 Emp Health Ins
E 810-00000-130 Employer Paid Ins $3,594.50 2108021558 Emp Health Ins
9949 a 08/09/21 CITY OF ALBERTVILLE
E 810-00000-382 Water Utilities $754.23 JULY 2021 Arena Wtr Bill 7/20/21 87-00000315-00-0
E 810-00000-382 Water Utilities $200.64 JULY 2021 Arena Wtr Bill 7/20/21 87-00000310-00-5
9952 a 08/16/21 AEM FINANCIAL SOLUTIONS, LLC
E 810-00000-301 Auditing and Acctg $155.63 446683 FS Accounting-2021 Reporting
9953 a 08/16/21 ARAMARK
E 810-00000-405 Repair/Maint -Buildings $26.60 2530000330 Arena mats,mops
9958 a 08/16/21 ECM PUBLISHERS,INC.
E 810-00000-433 Dues and Subscriptions $358.82 847228 Ice Arena Maintenance&Shift Sup
E 810-00000-433 Dues and Subscriptions $260.52 848529 Ice Arena Maintenance&Shift Sup
Agenda Page 7
STMA Ice Arena Vendor Check Detail Register
August 2021
Check# Check Date Vendor Name Amount Invoice Comment
9963 a 08/16/21 FERRELLGAS LP
E 810-00000-212 Motor Fuels $162.16 2014330206 Propane Delivery
9977 a 08/16/21 SCR,INC
E 810-00000-405 Repair/Maint -Buildings $153.34 C006439 Monthly CO2 Tank Charges
9984 a 08/16/21 WRIGHT-HENNEPIN COOP ELECTRIC
E 810-00000-381 Electric Utilities $10.74 Arena Elevator Monitoring 8/31/21
10004 a 08/19/21 MN DEPARTMENT OF REVENUE
E 810-00000-315 Sales Tax $107.02 AUGUST Arena Sales Tax
41049 08/02/21 HILLYARD,INC.
E 810-00000-404 Repair/Maint- $75.59 700470797 Wired hose w/cup
41050 08/02/21 MET LIFE LIFE INSURANCE
E 810-00000-130 Employer Paid Ins $433.68 AUGUST Emp Life, Dental,Stdis,Vision
41060 08/10/21 CHARTER COMMUNICATIONS
E 810-00000-321 Telephone $54.72 0131538073 Arena Cable 8352305160131538
41062 08/16/21 Ace of Albertville-Arena
E 810-00000-405 Repair/Maint -Buildings $19.97 119014/1 plastic pail,multi purpose cleaner
E 810-00000-405 Repair/Maint -Buildings ($4.00) 119043/1 ice melt bucket,multi purpose pail return
41066 08/16/21 CENTERPOINT ENERGY
E 810-00000-383 Gas Utilities $2,300.81 AUGUST 5898 Lachman Avenue NE
41087 08/16/21 STEP SAVER,INC.
E 810-00000-405 Repair/Maint -Buildings $105.00 146744 bulk salt
41089 08/16/21 XCEL ENERGY
E 810-00000-381 Electric Utilities $14,656.28 743007631 5898 Lachman Avenue NE 51-5873315-4
41090 08/18/21 CHARTER COMMUNICATIONS
E 810-00000-321 Telephone $120.40 0131702081 Arena Voice 8352305160131702
41098 08/31/21 MET LIFE LIFE INSURANCE
E 810-00000-130 Employer Paid Ins $433.68 SEPTEMBE Emp Life, Dental, Stdis,Vision
810 STMA ARENA $40,689.78
Agenda Page 8
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MANAGER' GENERAL UPDATE
Date: September 13th,2021
To: STMA Arena Board
From: Grant Fitch, STMA Arena Manager
ARENA MONTHLY RENTAL HOURS—AUGUST
User Hour Sold
STMAYHA 6 hours
AAA 73 hours
RYHA (Rogers) 0 hours
Adult Hockey 6 hours
High School Boys/Girls 0 hours
Public Skating/OH 71 hours
Private rentals 58 hours
Total Hours Sold 214
Monthly Budget Projection 200
OPERATIONS: 8-21-21 St Cloud Refrigeration was called to respond to a power outage. Glycol
pumps, VFD's tripped and needed to be reset. System down for about 2 hours.
Maintenance: Albertville Public Works had the Arena parking lot restriped when they
contracted to do other city facilities. All stalls, handicapped symbols, and fire lanes repainted.
Work completed Tuesday September 1st 2021
Staffing: Conducted interviews on Wednesday September 8. The hiring recommendation will be
presented the Albertville City Council at their Sept 201h meeting. We anticipate an early October
start date.
STMAYHA:
• Season starts September 13t'(skills and drills)
• Try Hockey for free Saturday September 18th 10 to 11:30am
• YH Try-outs Bantam&Peewee September 26th,27th and October 2nd 31d
• YH Try-outs Squirts October 7th, 8h'9th and 10th
• YH Try-outs Girls 12U October 1"d 2"d and 31d
• YH Try-outs Girls IOU October 8t", 9th and 10th
Showcase AAA Hockey: The final Tournament(Warrior Cup) scheduled for September 10th 11th
and 12th for a total of 40 rental hours. Total of about 400 hours sold to summer AAA programs
from April 1 st through September 12th 2021
Agenda Page 9
City of
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Hat Trick Hockey Lease
Date: September 9, 2021
To: STMA Arena Board
From: Adam Nafstad
Attached is the Hat Trick Hockey Lease Agreement as presented at the Special Arena Board
Meeting held on August 30, 202.
In general, the terms of the lease are $3,000 per month for 10 years with two successive 5 year
renewal options. The lease requires Hat Trick to construct the lease hold improvements and
establishes a rent credit in the amount of the improvements. In lieu of monthly rent payments,
the rental credit will be decreased by$3,000 per month. Once the credit is exhausted, Hat Trick
will make monthly cash payments. Legal edits by both parties are still in the works.
At this time it is not known if the STMA Youth Hockey Association will be participating in the
project and constructing finished space above the retail space. Once STMA YHA has a better
understanding of project budget and timing, the Association will determine if they desire to
move forward with the project. It is assumed, the Association will be able to finalize a decision
by the end of the month.
Motion to Consider: Motion approving the lease subject to City Attorney edits and directing
staff to execute the lease by September 28th, 2021, if STAM YHA decides not to move forward
with a project.
The intention of the above motion is to approve the Hat Trick lease yet allow the Association
time to decide whether they will be moving forward with their project. If prior to Sept. 28 1 the
Association decides they want to go forward with their project, the lease will not be executed and
will be revised to include STMA YHA portion of the project.
Agenda Page 10
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
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
1
Agenda Page 11
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
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
rent payments as follows:
1. Monthly rent on the Leased Premises shall be $3,000 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) $336,000.00 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.
2
Agenda Page 12
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. If the
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.
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, sewer and water
utilities consumed during the term of the lease. The Lessee shall be
responsible for pay all other utilities including,but not limited to, cable and
phone/internet and electrical. 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. Payments under this subparagraph shall not be subject to the rent
suspension contained in paragraph 4.A.2.
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
3
Agenda Page 13
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. 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 December 31, 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. The trade fixtures and
personal property added by Lessee shall remain the property of
Lessee. The trade fixtures and personal property added by Lessee
shall remain the property o 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$336,00.00. 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) October 31, 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
4
Agenda Page 14
$290,000.00. 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.
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
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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
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.
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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
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
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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 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
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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
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
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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. DESIGNATED PARKING SPACES
Lessee shall have the right to post signs on four parking spaces in front of the
leased premises as identified on the attached Exhibit C reserving such parking
spaces for Lessee's business use. Such signs and their method of installation shall
meet the approval of Lessor.
14. 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.
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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.
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
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Agenda Page 21
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
P.O. Box 9
Albertville,MN 55301
Hat Trick Hockey Albertville Steve Sachs
4109 7t'Avenue North
Anoka,MN 55303
L. Access to Leased Premises.
Lessee shall have access directly to the Leased Premises from the exterior
of the building and from the interior of the building. Such interior access
shall have two locks on it, one controlled by the Lessee and one controlled
by the Lessor. The Lessor shall allow access to the Ice Arena directly from
the Leased Premises during such times as the Ice Arena is open to the public
for events.
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
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Agenda Page 22
Date: , 2021 HAT TRICK HOCKEY ALBERTVILLE,INC.
By:
Its: Chief Executive Officer
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Agenda Page 23
EXHIBIT A
EXHIBIT B
EXHIBIT C
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Agenda Page 24
City of
A,lbertville 0 t. Michael
Smog Town Lirieq.Bio Cau Ills.
TM
Ice Allocation Policy - Draft
Date: September 9, 2021
To: STMA Arena Board
From: Adam Nafstad
Attached is an updated draft of an Ice Allocation Policy for the Board's consideration.
This policy sets prioritizes user groups, sets deadlines for ice requests, and requires users to
prepay or enter into a rental agreement.
Agenda Page 25
STMA Ice Arena
Ice Allocation and Sales Policy (DRAFT)
rev. 9/9/2021
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; and
• Balance and best meet the demands of the School District, local youth hockey
community, and private organizations; and
• To ensure all parties understand the ice time allocation process
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/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 pm)
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 - Local Private For-Profit Organizations
Eighth—Non-local Private For-Profit Organizations
Ninth - 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 26
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 August 1st of the current year.
Spring Session (March 16 to May 31) -Requests for Spring ice must be
received by December Ist of the previous year. Allocations will be
confirmed by January 31st of current year.
Summer Session (June 1 to September 31) -Requests for Summer ice
must be received by February Ist of the current year. Allocations will be
confirmed by March Ist 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.
User requests for increased ice time will be considered only if ice time 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:
Gold Sheet—Practice and Private Rentals
Blue Sheet—Games and Scrimmages
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 27