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11-08-21 STMA Arena Board Packet City of A,lbertville � t. mIchael Small";:. Lining.@ig aby 11f4g. TM STMA ARENA BOARD AGENDA MONDAY, NOVEMBER 8, 2021 ALBERTVILLE CITY HALL 6:00 PM 1) CALL TO ORDER—ROLL CALL 2) ADOPT AGENDA 3) APPROVAL OF THE MINUTES OF OCTOBER 11, 2021 (pgs. 1-2) 4) FINANCE REPORTS a) Approve the October list of claims as presented in the amount of$26,088.21 and October report(pgs. 3-6) 5) ARENA MANAGER a) Monthly report(pgs. 7-12) 6) OLD BUSINESS a) STMA YHA Dryland Lease (pgs. 13-26) 7) NEW BUSINESS 8) YOUTH HOCKEY ASSOCIATION 9) ADJOURN ST. MICHAEL-ALBERTVILLE ICE ARENA BOARD MINUTES October 11,2021 6:00 p.m. Present: Chairman Larry Sorensen and members, Tom Hamilton, Ryan Gleason, Kari Dwinnell, Tim Lewis and Walter Hudson. Absent: Member Aaron Cocking. 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, and Karl Anderson STMA Youth Hockey Association. The meeting was called to order at 6:00 p.m. by Chairman Sorensen. Set Agenda Chairman Sorensen added Community Room Discussion under Old Business to the Agenda. Members Hudson/Dwinnell moved to set the agenda as amended. All voted aye. Approval of Minutes Members Gleason/Dwinnell moved to approve the minutes of the September 13, 2021 Board Meeting as presented. Ayes: Dwinnell, Lewis,Hudson, Gleason, and Sorensen. Nays: None. Abstain: Hamilton. Finance Reports Lannes presented the finance reports. Members Hudson/Gleason moved to approve the August list of claims totaling $27,341.99 and the September Financial Report as presented. All voted aye. Lannes submitted third quarters budget to actual projection accruals. Arena Manager's Report Fitch presented the Arena Managers report mentioning that the hours sold in September was 212 hours which was 3 hours less than projected. Member Dwinnell requested that hours sold/projected to be sold be split out by each sheet of ice. Fitch updated the Board on the potential upcoming 2022 Showcase AAA Tournaments series dates, staffing update and the maintenance items including the need to purchase a new AED. Old Business Nafstad provided an update on the status of Hat Trick Hockey lease that the board approved last meeting with minor changes including non-compete clause with exclusive rights for retail. The lease will be ready for signatures once the exhibits are in place hopefully in the next week. Chairman Sorensen started the discussion on the leasing out of the community room mentioning that the school board discussed it at their last meeting. There was discussion on the possibility of changing the joint powers agreement. There was discussion on bid laws, getting legal advice,the school district lease/manage the community room. Nafstad mentioned to the board that staff doesn't see an issue with amending the joint powers agreement so the school could control the lease/revenues and expenses for the community room. There was continued discussion of the past, current and future,use of the community room. The current arrangement is that if you rent the ice they get the use of the community room as the school has a rental agreement for the space with STMA Youth Hockey. Anderson from STMA Youth Hockey Association informed the board as the room may not have been seen as used in the last season, due to COVID-19, but the use of the room especially from STMA Youth Hockey Association much more in the coming year as things have opened up. In addition, Anderson STMA Arena Board Mtg 11/08/21 Page 1 STMA September 13,2021 Minutes Page 2 mentioned that they would like to see the community room used as previously agreed to as there is no other available space for hockey groups. Nafstad deferred this item back to the school board. New Business Nafstad presented two concepts for the STMA Youth Hockey Dryland Mezzanine Plan. Both concepts have a single set of stairs to the second level dryland facility with controlled access. There is the open option is about$255,000, and the enclosed space at a cost of$350,000 which requires HVAC and a second stairway. Nafstad provided the board with a draft lease for STMA Youth Hockey Association based on using the open option (Mezzanine). Member Dwinnell asked if the open concept was built could the enclosed concept be perused later. Anderson from STMA Youth Hockey mentioned that the Association has two weeks to decide which option and as far as changing it later the cost increases the longer you wait. Nafstad went over the draft terms for the lease addressing that cost will be incurred by STMA Youth Hockey Association to make the improvement and the terms of the lease they can use space for 10 years with two 5-year renewal options. In addition,Nafstad continued,there is a covid clause in case the arena is closed, intended use and the rent is minimum of 1,825 hours of ice time per year during October 1-March 15. There was continued discussion of how the space will be used by Youth Hockey and the draft lease. The board directed staff to address the recommended changes and bring back to the board at a future date. Members Dwinnell/Gleason moved to have the updated version of the lease sent out via email to the board,wait for comments and have Chairman Sorensen sign the lease agreement with STMA Youth Hockey Association. All voted aye. Youth Hockey Association Karl Anderson thanks the board and staff for all their hard work. They are going to host another state tournament this year. Adiourn There was a motion and second to adjourn at 7:31p.m. All voted aye. Attest: Tina L. Lannes,City Finance Director STMA Arena Board Mtg 11/08/21 Page 2 City of Ibcrtvf11c 5T t. Michie] Small Town Living.gig,Jtv UFO. ,M STMA Ice Arena Budget to Actual October 2021 (Cash Basis) October 2021 Actual 2021 2021 YTD YTD % of STMA Arena 2021 Budget Actual 10/31/21 Budget Income Ice Rental $672,585.00 $36,823.66 $418,265.29 62.19% Concessions $35,000.00 $411.00 $483.50 1.38% Room Rental $500.00 $0.00 $0.00 Other Revenues(Advertising/LMC/Ins Claims/ATM) $20,000.00 $0.00 $20,699.42 103.50% Vending $1,500.00 $243.00 $874.55 58.30% Open Skate/Hockey,etc. $6,000.00 $360.00 $10,752.15 179.20% Interest $1,000.00 $0.00 $0.00 0.00% reimbursement-Cities $0.00 $0.00 $0.00 0.00% Misc. Revenue $100.00 $0.00 $110.00 Total Income $736,685.00 $37,837.66 $451,184.91 61.25% Expenses Salaries,Wages,Taxes&Benefits $347,175.95 $17,532.20 $222,541.74 64.10% 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 $0.00 $335.64 67.13% Professional Services $29,200.00 $917.66 $19,163.81 65.63% Sales Tax $3,448.00 $22.99 $841.82 24.41% Telephone $2,250.00 $174.08 $1,697.04 75.42% Electric $130,000.00 $12,842.60 $107,038.96 82.34% Gas $45,000.00 $3,803.16 $32,106.09 71.35% Water $15,000.00 $761.53 $6,295.03 41.97% Refuse $2,750.00 $204.35 $989.73 35.99% 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 $11,510.55 83.33% Misc. $5,700.00 $0.00 $3,421.50 60.03% Repair Maintenance-Machinery $15,000.00 $1,267.43 $16,325.65 108.84% Repair Maintenance-Building $40,000.00 $2,238.14 $29,142.27 72.86% Total Operating Expenses $703,536.61 $40,915.20 $465,370.42 66.15% Net Income/Loss $33,148.39 ($3,077.54) ($14,185.51) STMA Arena Board Mtg 11/08/21 Page 3 STMA ICE ARENA CASH BALANCES AND RECEIVABLES October 31 , 2021 Cash Balance Operations Est. Cash Balance Operations 1/1/21 (audited) $1,681 Add Acct Rec 2020 collected 2021 $127,992 Add Revenues $451,185 Less Expenses $(465,370) Est. Cash Balance Operations 10/31/21 $115,487 Accounts Receivable (invoiced) Operations October 31, 2021 - $86,710.32 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 10/31/21 $145,664 STMA Arena Board Mtg 11/08/21 Page 4 STMA Ice Arena Vendor Check Detail Register October 2021 Check# Check Date Vendor Name Amount Invoice Comment 10115 a 10/04/21 ARAMARK E 810-00000-405 Repair/Maint -Buildings $26.60 2530000493 Arena mats,mops 10131 a 10/04/21 RANDY'S ENVIRONMENTAL SVCS E 810-00000-384 Refuse/Garbage Disposal $113.35 OCTOBER Arena trash removal 10133 a 10/04/21 SCR,INC E 810-00000-405 Repair/Maint -Buildings $389.00 W69310 rack down oil failure came in first E 810-00000-405 Repair/Maint -Buildings $471.50 W69524 Power outage-needs reset done 10134 a 10/04/21 TWIN PINES IMPRINTING LLC E 810-00000-300 Professional Srvs $328.00 3179 Vinyl Decals Arrows 10152 a 10/20/21 RESOURCE TRAINING&SOLUTIONS/ E 810-00000-130 Employer Paid Ins $3,594.50 2110011567 Emp Health Ins 10153 a 10/06/21 ASSURITY LIFE INSURANCE CO G 101-21710 Other Deductions $15.94 4003518340 emp opt ins Total $15.94 10154 a 10/07/21 BROTHERS FIRE&SECURITY,INC E 810-00000-405 Repair/Maint -Buildings $250.00 W14449 Arena 2021 Annual Alarm Inspection 10157 a 10/11/21 CITY OF ALBERTVILLE E 810-00000-382 Water Utilities $210.83 SEPTEMBE Arena Wtr Bill 9/21/21 87-00000310-00-5 E 810-00000-382 Water Utilities $550.70 SEPTEMBE Arena Wtr Bill 9/21/21 87-00000315-00-0 10159 a 10/18/21 ARAMARK E 810-00000-405 Repair/Maint -Buildings $26.60 2530000546 Arena mats,mops,mats 10161 a 10/18/21 BROTHERS FIRE&SECURITY,INC E 810-00000-405 Repair/Maint -Buildings $240.00 W14424 Arena-2021 Annual Fire Sprinkler Inspection 10162 a 10/18/21 COURI&RUPPE E 810-00000-304 Legal Fees $508.75 OCTOBER Arena 10163 a 10/18/21 CTM SERVICES,INC E 810-00000-404 Repair/Maint- $424.72 4948 Millennium E Ice Resurfacer minor repairs 10184 a 10/18/21 PREMIUM WATERS INC E 810-00000-405 Repair/Maint -Buildings $27.10 SEPTEMBE Arena water delivery 10186 a 10/18/21 SCR,INC E 810-00000-405 Repair/Maint -Buildings $153.34 C006647 Monthly CO2 Tank Charges 10193 a 10/18/21 WRIGHT-HENNEPIN COOP ELECTRIC E 810-00000-381 Electric Utilities $10.74 Arena Elevator Monitoring 10/31/21 10207 a 10/18/21 MN DEPARTMENT OF REVENUE E 810-00000-315 Sales Tax $22.99 OCTOBER Arena Sales Tax STMA Arena Board Mtg 11/08/21 Page 5 STMA Ice Arena Vendor Check Detail Register October 2021 Check# Check Date Vendor Name Amount Invoice Comment 41216 10/04/21 HILLYARD,INC. E 810-00000-404 Repair/Maint- $780.96 604465272 coreless tissue,urinal screen,towel roll,foam soap 41217 10/04/21 DACOTAH PAPER E 810-00000-405 Repair/Maint -Buildings $196.33 53204 air citrus freshner,air care system 41219 10/04/21 MET LIFE LIFE INSURANCE E 810-00000-130 Employer Paid Ins $433.68 OCTOBER Emp Life, Dental, Stdis,Vision 41231 10/07/21 CHARTER COMMUNICATIONS E 810-00000-321 Telephone $54.72 0131538093 Arena Cable 8352305160131538 41234 10/07/21 DACOTAH PAPER E 810-00000-405 Repair/Maint -Buildings $141.32 43982 Arena liner 29x44 1.5mil 41238 10/18/21 ACE OF ALBERTVILLE-ARENA E 810-00000-405 Repair/Maint -Buildings $57.96 119804/1 hand sanitizer solid shovel handle,squeege E 810-00000-405 Repair/Maint -Buildings $4.79 120140/1 grease 41243 10/18/21 CENTERPOINT ENERGY E 810-00000-383 Gas Utilities $3,803.16 OCTOBER 5898 Lachman Avenue NE 41244 10/18/21 CHARTER COMMUNICATIONS E 810-00000-321 Telephone $119.36 0131702101 Arena Voice 8352305160131702 41248 10/18/21 HILLYARD,INC. E 810-00000-404 Repair/Maint- $61.75 604474431 receptacle 41 1/4 qt blck 12cs 41249 10/18/21 KLEIN ELECTRIC,INC. E 810-00000-405 Repair/Maint -Buildings $167.80 6983 replace light fixture over ice 41255 10/18/21 STEP SAVER, INC. E 810-00000-405 Repair/Maint -Buildings $85.80 147853 Arena Bulk Salt 41260 10/18/21 XCEL ENERGY E 810-00000-381 Electric Utilities $12,831.86 751003199 5898 Lachman Avenue NE 51-5873315-4 810 STMA ARENA $26,088.21 STMA Arena Board Mtg 11/08/21 Page 6 City of A,lbertville Smal 7aam Uvkbw ft aby uk TM MANAGER' GENERAL UPDATE Date: November 8th,2021 To: STMA Arena Board From: Grant Fitch, STMA Arena Manager ARENA MONTHLY RENTAL HOURS—OCTOBER User Hours Sold STMAYHA 380 hours AAA 0 hours RYHA (Rogers) 0 hours Adult Hockey 8 hours High School Boys/Girls 27 hours Public Skating/OH 22 hours Private rentals 3 hours Total Hours Sold 440 Monthly Budget Projection 361 Arena Maintenance: Quote to replace the east end locker room furnace in the ceiling with a Lennox 93% 1 stage 110,000 BTU furnace, cost $9,367. Other quote $17,450 was much higher with relocating the furnace to a different location. B &D Plumbing and Heating can work around the supply and return glycol lines running down the corridor that connect the Gold Rink to the new compressor system. Construction (Hat Trick Hockey): Full demo to start next week and projected move in February 2022 STMAYHA: Tryouts complete and teams formed with scrimmages and games underway. Arena Staffing: Full time position is still open and we're short on part-time drivers. We are in the process of training new concession employees. Rink Usage: See pages 2 and 3 for Blue and Gold Rink hours from October Is'to October 31St 2021. Times broken down by customer type STMA Arena Board Mtg 11/08/21 Page 7 St. Michael / Albertville Arena - BLUE RINK Page 1 of Usage Statistics by Customer Type-Customer Detail Printed 04-Nov-21,07:42 AM 01-Oct-21 to 31-Oct-21/Sun,Mon,Tues,Wed,Thurs,Fri,Sat/12:00 AM to 12:00 AM/No Int Cost Facilities:Arena New Customer Tvne ---Hours Adjusted for Time Range--- ---------------Full Hours for Events in the Time Range Customer Hours %Total Facilitv Rev. %Total Hours %Total Facilitv Rev. Other Chgs Tax Tot Revenue %Total High School 24.5 10.25% $5,390.00 11.06% 24.5 10.25% $5,390.00 $0.00 $0.00 $5,390.00 11.04% HS Blue Line Club 24.5 10.25% $5,390.00 11.06% 24.5 10.25% $5,390.00 $0.00 $0.00 $5,390.00 11.04% Private Rental 11.5 4.81% $2,020.00 4.15% 11.5 4.81% $2,020.00 $0.00 $100.32 $2,120.32 4.34% D-5Officials S 1.5 0.63% $330.00 0.68% 1.5 0.63% $330.00 $0.00 $0.00 $330.00 0.68% Hockey Finder 8.0 3.35% $1,360.00 2.79% 8.0 3.35% $1,360.00 $0.00 $100.32 $1,460.32 2.99% Mn Sled Hockey Association 2.0 0.84% $330.00 0.68% 2.0 0.84% $330.00 $0.00 $0.00 $330.00 0.68% Public Sessions 14.25 5.96% $0.00 0.00% 14.25 5.96% $0.00 $0.00 $0.00 $0.00 0.00% Open Hockey 5.0 2.09% $0.00 0.00% 5.0 2.09% $0.00 $0.00 $0.00 $0.00 0.00% Open Skate 7.5 3.14% $0.00 0.00% 7.5 3.14% $0.00 $0.00 $0.00 $0.00 0.00% Stma Arena 1.75 0.73% $0.00 0.00% 1.75 0.73% $0.00 $0.00 $0.00 $0.00 0.00% Youth Hockey 188.75 78.97% $41,305.00 84.79% 188.75 78.97% $41,305.00 $0.00 $0.00 $41,305.00 84.61% STMAYHA 188.75 78.97% $41,305.00 84.79% 188.75 78.97% $41,305.00 $0.00 $0.00 $41,305.00 84.61% Grand Total: 239.0 $48,715.00 239.0 $48,715.00 $0.00 $100.32 $48,815.32 End of Listing Powered by MaxEnterpriseV,a product of Maximum Solutions,Inc.(2013 Al W.12) STMA Arena Board Mtg 11/08/21 Page 8 St. Michael / Albertville Arena - GOLD RINK Page 1 of Usage Statistics by Customer Type-Customer Detail Printed 04-Nov-21,07:43 AM 01-Oct-21 to 31-Oct-21/Sun,Mon,Tues,Wed,Thurs,Fri,Sat/12:00 AM to 12:00 AM/No Int Cost Facilities:Arena Old Customer Tvne ---Hours Adjusted for Time Range--- ---------------Full Hours for Events in the Time Range Customer Hours %Total Facility Rev. %Total Hours %Total Facilitv Rev. Other Chgs Tax Tot Revenue %Total High School 2.0 0.99% $440.00 1.02% 2.0 0.99% $440.00 $0.00 $0.00 $440.00 1.02% HS Blue Line Club 2.0 0.99% $440.00 1.02% 2.0 0.99% $440.00 $0.00 $0.00 $440.00 1.02% Public Sessions 8.0 3.98% $866.25 2.02% 8.0 3.98% $866.25 $0.00 $63.87 $930.12 2.16% Open Skate 3.75 1.86% $0.00 0.00% 3.75 1.86% $0.00 $0.00 $0.00 $0.00 0.00% Stma Arena 4.25 2.11% $866.25 2.02% 4.25 2.11% $866.25 $0.00 $63.87 $930.12 2.16% Youth Hockey 191.25 95.03% $41,635.00 96.96% 191.25 95.03% $41,635.00 $0.00 $0.00 $41,635.00 96.81% STMAYHA 191.25 95.03% $41,635.00 96.96% 191.25 95.03% $41,635.00 $0.00 $0.00 $41,635.00 96.81% Grand Total: 201.25 $42,941.25 201.25 $42,941.25 $0.00 $63.87 $43,005.12 End of Listing Powered by MaxEnterpriseV,a product of Maximum Solutions,Inc.(2013 Al W.12) STMA Arena Board Mtg 11/08/21 Page 9 763-497-2290 Pl umLei g 4145 MacKenzie Ct NE St.Michael,MN 55376 8L Heating& www.bdplumbers.com Air COl?d!t101?1Yly "Serving You Since 1982" BILL TO St.Michael-Albertville Arena PO Box 193 Albertville,MN 55301 USA ESTIMATE 195415394 • • JOB ADDRESS Job: 195181278 St.Michael-Albertville Arena 5898 Lachman Ave NE Albertville,MN 55301 USA ESTIMATE DETAILS Replace furnace: . TASK DESCRIPTION QTY 1645130 Replace locker room furnace in ceiling w/Lennox 93%ML193UH110XE60C 1Stage 1.00 110,OOOFurnace SUB-TOTAL $9,367.00 TAX $0.00 TOTAL $9,367.00 Payment Due Upon Completion.Please include the invoice number on your remittance. A service charge of 18%per annum,or the maximum amount allowed by law,whichever is less will be charged on past due invoices. Thank you for your prompt payment! CUSTOMER AUTHORIZATION I hereby authorize the work proposed on the estimate.I understand that by agreeing to proceed with this estimate B&D Plumbing,Heating&Air Conditioning will have time into the job and product/equipment purchased.If for any reason this estimate is cancelled there will be a 10%charge to cover any incurred cost(s). Sign here Date Estimate #195415394 STMAArena Board Mtg 11/08/21 Page 10 Terms and Conditions of B&D Plumbing, Heating& Air Conditioning Inc. NOTICE OF LIEN RIGHTS. A.ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE CONTRIBUTIONS. B. UNDER MINNESOTA LAW,YOU HAVE THE RIGHT TO PAY PERSONS WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE,OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY NOTICE. ADDITIONAL CONTRACT TERMS: WARRANTY for Service Repair. B&D PLUMBING, HEATING&AIR CONDITIONING'S WORKMANSHIP AND LABOR ARE WARRANTED FOR 30 DAYS FROM THE DATE OF SERVICE UNLESS OTEHRWISE SPECIFIED.ALL MATERIALS SUPPLIED BY B&D ARE COVERED BYTHE MANUFACTURER'S WRITTEN WARRANTY.THESE WARRANTIES APPLY ONLY TO THE SPECIFIC REPAIR OF THE UNITS AND/OR APPURTENANCES THAT WERE SERVICED IN TODAY'S CALL. B&D'S OBLIGATION FOR DEFECTIVE WORKMANSHIP OR ANY DAMAGE CAUSED THEREBY SHALL BE LIMITED TO THE REPLACEMENT OF ANY DEFECTIVE WORKMANSHIP OR THE REFUND OF AMOUNTS PAID BY THE CUSTOMER FOR THE SERVICE. B&D MUST RECEIVE ACTUAL WRITTEN NOTICE OF THE CLAIMED DEFECT WITHIN THE WARRANTY PERIOD STATED ABOVE. ANY ALTERATIONS,ADDITIONS,ADJUSTMENTS, OR REPAIRS MADE BY SOMEONE OTHER THAN B&D PLUMBING, HEATING&AIR CONDITIONING, UNLESS AUTHORIZED BY B&D,SHALL RENDER B&D'S WARRANTY VOID. WARRANTY for New Equipment/Product Installation. B&D PLUMBING, HEATING&AIR CONDITIONING'S WORKMANSHIP AND LABOR ARE WARRANTED FOR 365 DAYS FROM THE DATE OF SERVICE UNLESS OTEHRWISE SPECIFIED.ALL MATERIALS SUPPLIED BY B&D ARE COVERED BYTHE MANUFACTURER'S WRITTEN WARRANTY. THESE WARRANTIES APPLY ONLY TO THE SPECIFIC NEW EQUIPMENT/PRODUCT INSTALLED TODAY. B&D'S OBLIGATION FOR DEFECTIVE WORKMANSHIP OR ANY DAMAGE CAUSED THEREBY SHALL BE LIMITED TO THE REPLACEMENT OF ANY DEFECTIVE WORKMANSHIP OR THE REFUND OF AMOUNTS PAID BY THE CUSTOMER. B&D MUST RECEIVE ACTUAL WRITTEN NOTICE OF THE CLAIMED DEFECT WITHIN THE WARRANTY PERIOD STATED ABOVE. ANY ALTERATIONS,ADDITIONS,ADJUSTMENTS,OR REPAIRS MADE BY SOMEONE OTHER THAN B&D PLUMBING, HEATING&AIR CONDITIONING, UNLESS AUTHORIZED BY B&D,SHALL RENDER B&D'S WARRANTY VOID. EXCLUSIVE WARRANTIES.THE FOREGOING WARRANTIES ARE EXCLUSIVE,AND IS IN LIEU OF ALL OTHER EXPRESS OR IMPLIED WARRANTIES INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. B&D DISCLAIMS ANY RESPONSIBILITY FOR CONSEQUENTIAL, INCIDENTAL, OR CONTINGENT DAMAGES,OR ANY OBLIGATION ARISING FROM TORT CLAIMS INCLUDING NEGLIGENCE AND STRICT LIABILITY OF ARISING UNDER THEORIES OR LAW WITH RESPECT TO PRODUCTS SOLD OR SERVICES RENDERED. STMA Arena Board Mtg 11/08/21 Page 11 PAYMENT TERMS.THE ENTIRE INVOICE IS DUE UPON COMPLETION OF THE DESCRIBED WORK. B&D RES ERVESTHE RIGHT TO CHARGE INTEREST, AT THE HIGHTEST RATE LAWFULLY ALLOWED ON ALL AMOUNTS NOT PAID WITHIN TEN DAYS FROM THE COMPLETION OF THE WORK. IN THE EVENT B&D EMPLOYS THE SERVICES OF A COLLECTION AGENT OR ATTORNEY TO COLLECT DELINQUENT AMOUNTS,THE BUYER AGREES TO PAY THE REASONABLE COSTS INCLUDING BUT NOT LIMITED TO ATTORNEYS FEES INCURRED BY B&D IN SUCH EFFORTS. MINNESOTA LICENSE # PM059287 STMA Arena Board Mtg 11/08/21 Page 12 City of A�Ibertvi 1 l 5aaWV Town Oty Uf+s. TM STMA YHA Dryland Lease Date: November 4, 2021 To: STMA Arena Board From: Adam Nafstad Attached is an amended lease for the STMA YHA Dryland space. The lease has been revised to 1) clarify 1,825 hour of ice rental is required provided the ice time is available, 2) allow YHA to sublet to the ISD 885, and 3)include LMCIT recommendation pertaining to insurance and indemnification. Exhibit A, depicting the leased space, and Exhibit B, the constructions plans, will be attached to the executed lease. STMA Arena Board Mtg 11/08/21 Page 13 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. Said options may be terminated by the Lessor before their exercise in the event the Lessor 1 STMA Arena Board Mtg 11/08/21 Page 14 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 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, 2 STMA Arena Board Mtg 11/08/21 Page 15 no less than 1,825 hours of ice time in the STMA Ice Arena between October 1st of each year to March 15th of the following year at the prime rate established by the STMA Arena Board, provided 1,825 hours of ice time are available for Lessee to rent. 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 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 3 STMA Arena Board Mtg 11/08/21 Page 16 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, 2022. 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. 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 4 STMA Arena Board Mtg 11/08/21 Page 17 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 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 5 STMA Arena Board Mtg 11/08/21 Page 18 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. 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 constituent 6 STMA Arena Board Mtg 11/08/21 Page 19 members (the City of St. Michael,the City of Albertville and the St. Michael-Albertville School District) and their 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 commercial general 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 7 STMA Arena Board Mtg 11/08/21 Page 20 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. The Lessee's insurance shall be primary and noncontributory to any other insurance available to the Board. 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, or 10 days written notice for non-payment of premium. 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. The Lessee on behalf of itself and its insurer waives any right of subrogation it may have against the Board for damage to the Lessee's property. 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. 8 STMA Arena Board Mtg 11/08/21 Page 21 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. 9 STMA Arena Board Mtg 11/08/21 Page 22 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, except that the Lessee may sublease to Independent School District 885 without the consent of Lessor. 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. 10 STMA Arena Board Mtg 11/08/21 Page 23 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 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 11 STMA Arena Board Mtg 11/08/21 Page 24 Arena Joint Powers Board Attn: Finance Director 5959 Main Avenue NE 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: , 2021 ST.NHCHAEL—ALBERTVILLE ICE ARENA JOINT POWERS BOARD By: Larry Sorensen Its: Chairperson By: Adam Nafstad Its: Secretary Date: 52021 STMA YOUTH HOCKEY,INC. By: Its: Chief Executive Officer 12 STMA Arena Board Mtg 11/08/21 Page 25 EXHIBIT A EXHIBIT B 13 STMA Arena Board Mtg 11/08/21 Page 26