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2. Request for Funding, Chaska Community Hockey Assn C ITYOF cllANHAssEN „,„, 0 , • , 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 MEMORANDUM • TO: Mayor and City Council FROM: Don Ashworth, City Manager hk IS4.,.. DATE: September 12, 1997 SUBJ: Request for Funding, Chaska Community Hockey Association (CCHA) The Hockey Association will be present on September 22 to make a visitor presentation as to why the City of Chanhassen should contribute to the new hockey facility being built in Chaska. Mayor Mancino and I told them that they should not expect any form of a decision on the 22nd but that the presentation should provide an opportunity for Council members to ask questions. O k .s --' "So you will have a hard decision," lion.) with city re nt rental provide $ the per hour Pokorny concluded. ( with ice r ar $sed ne I also was announced that the City than 3 percent rents increased no more than 3 percent per annum over the next $30 t� `o �e p o,��lly contribute d 10 years. - " In exchange, the association will raise $250,000, payable over a three - year period. It also agrees to annually rent aminimum of 1,000 hours of prime ice time and 100 hours of non -prime time for the next 10 years. The agree ment is for both ice sheets, not just the new one. Council members continue to ques- tion the risk to the city of such an agree- ment, with Councilor Florence Olson specifically asking what protection the city has against association default. "The agreement is not as solid an agreement as with the school district," % - Ice sheet update Pokomey . told them. He added he had An agreement between the city and told the association it must have a suc- youth hockey association has been au- cessful early push for funding if it wants thorized by the council. The agreement the ti t t o go he warned the council, i - now goes to the association for its sig would be "optimistic" for members to nature. believe the associati n would have 50 The ctandoper cans second di city rcent of the funds p g later this fall when the council must construct and operate a second ice sheet at an estimated from cost $2.25 1.8lmil- make its final decision. (That is up from the original :ET•`� WEN : EV►`�►`�N- `U I ti tiNORWeiiaI O A WN w1N WI N PARTNERSHIP FOR OUR COMMUNITIES tliljffe e on,s to t le communiti, ant as ong as ive, it is my privi ege to o or 1 S] s e -• :e :ernar. ,�... WIN.. . OUR CITIZENS WIN... OUR COMMUNITIES WIN... OUR SCHOOL DISTRICT ie new arena w e 3 Win. .. Win... Win... a partnership of vision, daring and rrsvanta;es o our commitment, without which no important program can succeed. u ren an- t le The idea of building an arena as an addition to the present Communit os„sissesns / ome o Center that is multi- purpose may prompt some to say, "I'm not active iranizZEZINM in sports. Why do we need to construct another arena ?" " We don't rom our perspe ive need another facility to serve the residents of the Chaska /Chanhassen, s u e more c ua ity Victoria area." sir oor ice or prac ices u, ; ames, ess trave But like the quotation on the cover suggests, rewards in life come • o ier ice arenas an when we work together as members of a community for the good of others. _ ie -u es. As caring citizens, we have the opportunity to join with the communities of Chaska /Chanhassen /Victoria and School District #11= tigiMZUMEEEM to work for the good of everyone in supporting the soon -to -be F ue er constructed Arena. This new facility, which is being designed to accommodate cultural, social and recreational activities, will be a place for family fun and a source of revenue for area businesses. Specifically, the Arena has plenty to offer. Would the Chaska/ Chanhassen /Victoria area benefit if more people patronized local businesses or if there was a place for youth activities in bad weather? The goal of the Arena is to be a facility with enough versatility to offer ' e su • sor to new something for most everyone. • ecause it 1 Mriffiffitiff= Chaska /Chanhassen /Victoria area is remarkable. We offer many ice •rograms in our amenities -- excellent schools, churches of every denomination, toiniunitiVIEWWW exceptional stores and services and many active organizations. These a• . e more •eop e, things are important to people considering life in this area or to a r • - • o to business looking for a new location. Think about what great impact •• zcipate an keep the multi - purpose Arena could have on their decision to come here. //farms • • . e i ve in ECONOMIC IMPACT FOR THE COMMUNITIES v 'to esome ac ivities. As is the case with any facility designed to appeal to users from a wide geographic area, the Arena will offer economic benefits to all of the o een an. oe Chaska /Chanhassen /Victoria area. Historically, ice hockey and figure a• ermac er skating have meant team members, parents, family and friends partaking in the competition, festivities /ice shows and general fun associated with the sport. Youth hockey tournaments and figure skating competitions, which routinely draw teams and participants from out of town, have meant increased business for local hotels /motels, restaurants, gas stations and retail merchants. Figure skating and hockey families, when they visit the area during a .ournament, patronize local businesses and spend money. The Arena will be the site of many tournaments in the years ahead for youth ice hockey participants of all ages. These will be organized for teams from the area and across the state. The Arena will serve as a viable entity which will generate direct and measurable economic benefits to the commercial and retail businesses of the area. s nri cooperative s nrit t this is a very significant contribution to the local economy, we exists e weep ter have not measured the economic benefit of in -town teams and their fre fans, or the fact that local youths, their parents and fans will not be wer leaving the general area for practice, games, or competitions as ffillEmarliwmp frequently. This will greatly increase the impact of tournaments and M.fee� regular activities in our communities. m amt i - ortentee • Remember in addition to hockey, the Arena will attract a host of other act tty to s et sWilfil•il' ' i[_r.an groups and individuals who will also support the hospitality, service fe and trade components of the area. Numerous ideas for uses have 3hrr.�e�rf� already surfaced and been discussed informally by many members of the communities. We believe that activities for the Arena are only C OINIMI fMmien- limited by our imagination and creativity. ARENA FACILITY The ambitious plans for the new Arena are within financial reach provided the communities accept the responsibility. When users enter the Arena they will be able to enjoy a facility designed for multi- purpose use by residents. The Arena will be available for a variety of n frilinifinterWaVriqg community purposes. It can be used by those who make and sell crafts, equipment shows, company and family events, flea markets, dances a out t is v� and the list goes on. i61:1ie� The city of Chaska will have ownership of the Arena and is committed or e e w full cooperation with all potential user groups. During the ct y over ani nmen November through March period the building will contain an ice sheet, locker rooms, spectator seating, restrooms and mechanical areas. The facility will be used for ice hockey, figure skating, open skating, o inn( re. s o>�r broomball and other ice events. During April through months of A ril throu h �si September the facility can be used for volleyball, soccer, in -line skating, a r in dry floor events, baseball /softball practice, a place to walk and any other use you can think of. Overall, the primary focus of this project will remain OUR YOUTH. The cost and effort will be extensive, but the goals are honorable. We must be proactive in our communities in providing our children with recreational facilities. We cannot rely on other areas to provide space for us to share, while we direct our efforts elsewhere. IN SUMMARY Aminim egacy in i e mriwmairtrdif icu t to We trust this brochure clearly defined the needs for the Arena. We an «rimes very proud of the efforts to date and the many hours put in by ra ear view individuals, committees, and supporters of the project. We are fully • w tat wi I be confident that this facility will prove to have a major impact on the sue an in t 2e overall quality of life for our communities. We strongly believe it uture. On a sma ler represents something very important...namely the on -going _ • e •er laps, to commitment to the welfare and development of the Chaska/ . • e sai oo Chanhassen / Victoria area. unaminnworsoirouggilaIM •t tie im•or ance o The time has come - the need is now. There is no future in standing e new arena still, no success in a "wait and see" attitude. From a practical point of ranscen• s t 1e mere view, delay guarantees increased expense. •ric an• mortar an sr ., o ism o t ie There is a momentum now, a sense of timeliness. To squander these, • ut 'in. itse . t even quite possibly, would mean losing the opportunity to expand our • • • •eyon t to communities facilities. This is a courageous moment ... a moment •rnik' I IN• not for a few, so all are invited to share in the effort to make it possible. 011 AS THE REQUEST - 1e essence o t ie The decision has been made to move forward with fundraising and 1irstemW 3R I WIW construction of a year round multipurpose facility designed to serve a um• • unity t at it variety of community programs. Our total goal is $2.3 million. The ••r• P s to us. lot on city of Chaska and the school district have made their commitment. 2e o or unity to The Minnesota legislature has provided a special fund to assist • ' cover an communities in their efforts to build arenas and we have received a i iscover t e $250,000 grant. We must raise $250,000 in private funding from nififiliMiZrM individuals, businesses and civic groups. . . , cam • ' ton, In order to meet the time table and ensure the eventual success of the • mwor an res ect Arena and its programs, your financial support is needed. On behalf of or se an• of iers, ut our communities, our children and all who will benefit, we 1e o portunity, or respectfully request your gift in any amount. • - • ege, as rare an • • s ts, or We seek your support, your commitment, your pledge. With these we ose o us esse will have the strength to succeed. Gifts are tax deductible as allowed by v t 1e prifirwmrm law. For convenience, pledges may be spread over a three year period. iffZEZZEMEMEM • rov%. e t iese HOW MUCH TO GIVE? I. n s to a w io enter i oors. This is a question each one of us must answer. A goal of this magnitude cannot be reached without generous gifts. Think of it this way: if your gift represents an amount you can be proud of, then you im eone have given enough. As you know, your pledge does not constitute a legal obligation. However, it is a declaration of your commitment to the communities. WHAT WILL THE AVERAGE GIFT BE TO THE CAMPAIGN? )nly after the campaign is completed can we review and state the verages. Each person must examine his or her personal situation. ;ome people will give more... others will give less, but hopefully ALL VILL GIVE ACCORDING TO THEIR MEANS. For gifts other than 'ash, such as stocks, bonds, or property, we may develop a personal ii1an which will allow substantial gifts to the campaign. HOW CAN I MAKE A GIFT? 'hree year pledge period �/_i�. iii lfink rry magstazisiwow three year pledge payment period has been established for the communtttes wt r Capital Campaign so that donors t , t sir 'haska/ Chanhassen /Victoria Arena Ca p oys an gir s o iftc an realize optimal tax savings by spreading their contributions over a 'eriod of time. Pledging also enables a contributor to make a more tan zassen/ r significant investment than might be possible with a single cash area at ew lonation. of ortunities participa e in s tor 1 .11 pledge payments qualify as a fully deductible contribution in the Writiliffiripallomrentr Tear paid. Two of the many possible ways that you might consider to i1►/X1I 11171 rg_ ulfill your pledge are: zan tassen/firtrs dash t zroug ? t to ct overnments sc zoo ;ome donors choose to make their investment in cash. Cash ?strict ant ri a ontributions qualify for a tax deduction that is limited to 50 percent of sector lave z • ,' he donor's adjusted gross income for one year. Any amount over this zar to at ress z • - 3ercentage is eligible for the five -year carry -over privilege. issues an t - - campat; n con 'HHrI 7,ifts of Appreciated Property i' .t x n general, most gifts of appreciated, long -term capital -gain property to 2 haska /Chanhassen /Victoria Arena Campaign offer substantial tax e :urzin E 'enefits. This is because such gifts are deductible at their full fair narket value and no capital gains tax is paid on the property's appreciation. xamples of these types of gifts would be stocks, bonds, real estate or - )ther capital assets which have been held for over one year. The -haritable deduction one can take for these types of gifts is generally ;ubject to 30% of the donor's adjusted gross income in the tax year a gift vas made. However, any excess amount not used can be deducted over he next five tax years, if needed. The following example illustrates how Chaska /Chanhassen /Victoria Arena Campaign and you could benefit from the gift of appreciated property: A donor chooses to give 20 shares of XYZ stock for which he or she originally paid $1,000. The stock now has a fair market value of $10,000. By donating this stock to the Arena Campaign several things are accomplished: 1. Gift made in support of Arena Campaign - $10,000 2. Donor's charitable deduction - $10,000 3. Avoidance of paying capital gains tax of - $2,520 ($9,000 gain times 28% capital gains tax rate) This information is for illustration purposes only. Before reaching a final decision, please consult with your financial advisor or C.P.A. regarding the tax implications of making any charitable gifts. THREE YEAR PLEDGE CHART Payment Examples Pledge Initial Balance Monthly Quarterly Semi Annually Amount Payment Annually $50,000 $5,000 $45,000 $1,250 $3,750 $7,500 $15,000 $30,000 $3,000 $27,000 $ 750 $2,250 $4,500 $ 9,000 $25,000 $2,500 $22,500 $ 625 $1,875 $3,750 $ 7,500 $20,000 $2,000 $18,000 $ 500 $1,500 $3,000 $ 6,000 $15,000 $1,500 $13,500 $ 375 $1,125 $2,250 $ 4,500 $10,000 $1,000 $ 9,000 $ 250 $ 750 $1,500 $ 3,000 $ 7,500 $ 750 $ 6,750 $ 187.50 $ 562.50 $1,125 $ 2,250 $ 5,000 $ 500 $ 4,500 $ 125 $ 375 $ 750 $ 1,500 $ 3,000 $ 300 $ 2,700 $ 75 $ 225 $ 450 $ 900 $ 2,000 $ 200 $ 1,800 $ 50 $ 150 $ 300 $ 600 $ 1,000 $ 100 $ 900 $ 25 $ 75 $ 150 $ 300 $ 500 $ 50 $ 450 $ 12.50 $ 37.50 $ 75 $ 150 If you have any questions please call: Randy Mueller at 443 -4004 LEVELS OF PARTICIPATION Yard of Ice $500 This miniature ice rink will be a lasting display to reflect the support of individuals and businesses who helped make this project possible. Bronze Medal Club $1,000 A bronze medal will hang on display as a reflection of the support by individuals and businesses who helped make this project possible. Silver Medal Club $3,000 A silver medal will hang on display as a reflection of the support by individuals and businesses who helped make this project possible. Gold Medal Club $5,000 The recognition of this group is especially important in signifying those people and companies willing to make commitments to the Chaska /Chanhassen /Victoria Arena as well as the youth of our communities. Youth Builders Club $10,000 Gifts of $10,000 will receive special recognition and naming opportunities will be available. Inner Circle Club $25.000 Gifts of $25,000 will also be listed on a special plaque permanently displayed for all to see the commitment you made to the youth of our communities and naming opportunities will be available. Trustees Society $50,000 Gifts of $50,000 will be listed on a special plaque and as appropriate, on or near the specific item selected by the donor with naming opportunities. Builders of the Future $100,000 These are gifts of such size and importance that they will in themselves sponsor a major area or item needed within the Arena. Naming opportunities or memorials with a special engraved plaque will designate the area's sponsor and also be displayed in the lobby. A minimum contribution of $100,000 is required.