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2. Chaska Community Hockey Association Donation CITY OF MEMORANDUM CH ANC S1NTO: Don Ashworth, City Manager i90City Center D,ive,PO Box l f' FROM: Todd Hoffman, Park and Recreation Director Chanhassen,Minnesota 55317 _ Phone 612.937.1900 DATE: June 11, 1998 General Fax 612.937.5739 Engineering Fax 612.937.9152 SUBJ: Chaska Community Hockey Association Donation Public Safer}Fax 612.934.25 24 Web u'u'inci.chanbasse».mn.ns During the summer/fall of 1997, the City of Chanhassen was approached by the Chaska Community Hockey Association(CCHA). Their request, at the time, was for a $120,000 contribution towards a second ice arena to be constructed in Chaska. On October 27, 1997, Mayor Mancino, on behalf of the City Council, replied to the association. As a part of her remarks, Mayor Mancino committed to a $30,000 contribution to be paid over 5 years. The verbatim minutes spell out the conditions of making that commitment. _ This investment is contingent upon the following conditions being agreed to. Preferential ice access to prime time, 3:00 to 10:00 p.m., weekdays, 8:00 a.m. to , 10:00 p.m. weekends, during hockey season. The first right to schedule prime - time hours will include the Minnetonka Youth Hockey Association, MYHA. ' . "'. They will have the right to purchase a minimum of 100 prime time hours. These �, hours will be charged at a rate equal to the rate being afforded the Chaska Community Hockey Association. This MYHA agreement shall be valid for a - minimum of 5 years. In addition, all Chanhassen residents will pay resident rates for all open skating hours in the new arena. In response to the City Council's reply, the CCHA opened discussions with the • ,, Minnetonka Youth Hockey Association(MYHA) on this specific issue. These discussions concluded with each association publishing a letter of understanding of their agreements. These agreements were confirmed in a personal meeting conducted on June 10, 1998. Those in attendance included Jim Leone, President CCHA; John Flood, President MYHA; Tom Redman, Director of Parks and Recreation in Chaska; and me. The following list specifies the conditions of the donations and whether or not 00_ they have been met. • Definition of"prime time ice"being 3:00 p.m. to 10:00 p.m. weekdays and 8:00 a.m. to 10:00 p.m. weekends. Y Agreed 4b •City of Chanhassen.A growing community with clean lakes,quality schools,a charming downtown,thriving businesses,and beautifid parks.A great place to live,work,and play Don Ashworth, City Manager June 11, 1998 Page 2 i • The first right to schedule prime time hours will include the MYHA. '- This condition has been met. • MYHA will have the right to purchase a minimum of 100 prime time hours 90 hours of prime time has been agreed upon 10 hours of non-prime time has been agreed upon • MYHA will be charged at a rate equal to the rate being afforded the CCHA. - MYHA will pay $125/hr for prime time $ 85/hr for non-prime time CCHA will pay $118/hr for prime time $ 80/hr for non-prime time - ., - s • - - _ Both organizations are satisfied with these rates. _ • The MYHA agreement shall be valid for a minimum of 5 years Agreed • All Chanhassen residents will pay resident rates for all open skating hours in r the new arena. Agreed • RECOMMENDATION ___ MYHA have succeeded in reachingagreement seeing that the CCHA and an to meet the City Council's conditions, it is recommended that the $30,000 donation be granted. As a sign of the City's good faith trust in this agreement, it is further recommended that the contribution be made in one payment. MANAGER'S COMMENTS: Re-establishment of the lifeguard program and authorizing acquisition of sirens has seriously depleted monies placed into contingency. In recognition that we are not yet at mid-year, this office would recommend that we stay with the original authorization which was for payment of the $30,000 over a five year period of time. Should the city council endorse this recommendation, first payment would occur as a part of the next accounts payable in the amount of$6,000. PV . _ , „_, g:\park\th\cchadonation.doc _ _, ,_ .... . __ _ _. .. Y,a Y ice€ i, ..4,,,:•_-_, ..3•2 - '� y -- v }i A �� 1, z Y r; x City Council Meeting - October 27, 1997 Resolution#97-87: Councilman Senn moved,Councilman Mason seconded to approve the Certification of Sewer and Water Bills to the County. All voted in favor and the motion carried. CONSIDER REQUEST FOR A DONATION,CHASKA COMMUNITY HOCKEY ASSOCIATION. Public Present: Name Address Dave,Cass& Abby Kreitlow 1702 Valley Ridge Trail North Eric Enger Vine Hill Road David M. 5233 Birch Road Kelly Montgomery 17833 Powderhorn Drive Eric&Kris linker 8163 Marsh Drive Robin& Derek O'Borsky 1027 Pontiac Lane Bryan& Mark Giordana 8120 Hidden Court John&Lezlie Vechart Berg 420 Santa Fe Circle Amy&Tyler Erickson 7090 Pimlico Lane Julie Fury 20 Fox Hollow Daniel Berg 20 Fox Hollow Jim&Kathryn Liddell 2550 Bridle Creek Trail Chase Carroll Randy Mueller Victoria Barbara&Aaron Larson 8470 Pelican Court Jason,Mike&Mary Ehrmantraut 8510 Spoonbill Court Carol&Bryan McGovern 900 Penamint Court Beverly Erickson 520 Pineview Court Susie,Patrick&Kerry Blake 8040 Hidden Circle Todd Porter 9261 Kiowa Diane,David&Adam Zamjahn 7506-77th Street Kathy Fisher 2236 Stone Creek Lane E. Elisabeth Vargas 2596 Southern Court Bryan Botz 8743 Flamingo Drive L., Shawn&Layton Zellman 2290 Timberwood Drive Dan Obermeyer 1540 Heron Drive B.A. 7280 Cactus Curve Greg& David Hromatka 7580 Canyon Curve Kevin P. McShane 180 South Shore Court Jim Leaman Mayor Mancino: Well we,as a City Council have,as you all know that are here tonight,have done a lot of considering of the request from the Chaska Community Hockey Association. We have searched our souls. We have done a lot of discussing. We have done a lot of listening. And I'd like to read a reply on behalf of the entire Chanhassen City Council on the request for a donation from the City of Chanhassen to assist in the creation of a new sheet of ice to be constructed as an addition to the Chaska Community Center. The situation. A relative shortage of ice sheets is making it increasingly difficult for children in organized hockey to have access to indoor ice time. Recent state legislation mandating equal access for 19 City Council Meeting-October 27, 1997 gender equity has put additional pressure on the ice facilities in our arena. Excuse me, in our area. Talk to any parent with a child in hockey and you'll hear the strange hours many of them have to get up to get their kids to practice and the distances they have to drive to get to indoor facilities. The proposal. The Chaska Community Hockey Association recently approached the City of Chanhassen with a request for a donation of$120,000.00 to be paid to the City of Chaska to help underwrite a portion of the construction costs for a second sheet of ice. When completed the entire facility is expected to cost approximately $2,250,000.00,exclusive of operating costs. This sheet will be built as an addition to the existing Chaska Community Center. This proposed donation would be spread over a 3 to 5 year time period and would help create one new sheet of ice,but it would not pay for any actual ice time. Our position. This is a worthy cause and the Chaska Community Hockey Association has come up with a creative approach to fund an expensive project. They should be commended for their efforts to make this kind of an amenity available to the hockey players and recreational skaters in our area. We value the time and energy the volunteers from our community give to all youth athletic programs. However,there are a number of worthy causes. As a community already spread thin to keep up with the demands of rapid growth, Chanhassen needs to prioritize where we will and where we won't spend taxpayers money. This is not an easy task. Our highest priority for funding is meeting the legal,contractual and mandated obligations we've already assumed. Just behind that is safeguarding the health and safety of our community, educating our children and building and maintaining the infrastructure we need to accommodate growth. The City of Chanhassen has a long standing tradition of supporting youth activities through our parks and athletic programs. We have already made a substantial commitment to youth hockey and ice facilities in our city. In the past two years alone Chanhassen has invested$500,000.00 on the construction of new hockey rinks and a warming house. These include two hockey/inline skating rinks at the Chanhassen Recreation Center,Bluff Creek Elementary School. One warming house,park building at the Recreation Center. One hockey inline skating rink,along with an expanded parking lot at North Lotus Lake Park. In total our City maintains 5 outdoor hockey rinks, 8 pleasure skating facilities, and 3 warming houses. As a City we invest approximately$45.00 per year to operate and maintain these ice facilities. It is the feeling of the City Council that Chanhassen has demonstrated strong support for hockey,as we have for many other athletic programs for our youth. Given the tight financial environment in which Chanhassen ust operate,we are not comfortable with the proposal to contribute$120,000.00 towards this project. However, in the spirit of collaboration for providing a regional indoor ice arena for the residents of our community,we will commit to a$30,000.00 contribution to be paid over 5 years. This investment is contingent upon the following conditions being agreed to. Preferential ice access to prime time,3:00 to 10:00 p.m. weekdays, 8:00 a.m.to 10:00 p.m. weekends,during hockey season. The first right to schedule prime time hours will include the Minnetonka Youth Hockey Association,MYNA. They will have the right to purchase a minimum of 100 prime time hours. These hours will be charged at a rate equal to the rate being afforded the Chaska Community Hockey Association. This MYHA agreement shall be valid for a minimum of 5 years. In addition,all Chanhassen residents will pay resident rates for all open skating hours in the new arena. And with that I conclude our answer to the request for the Chaska Hockey Association. So thank you all for coming and that is our commitment to you. Susie Blake: Do we have an opportunity to talk to you? Mayor Mancino: No. This is not a public hearing. We have already had one and we have had other times during the City Council meetings. Thank you. Susie Blake: ...were told that... Mayor Mancino: Excuse me. Pardon? 20 City Council Meeting - October 27, 1997 Susie Blake: ...decision would be made until...impression that we had an opportunity...from a comment that was made by Steve Berquist on the Board that he was very disappointed that more people didn't talk when we had people here the other night and out of courtesy for the...chose not to...by bringing up the same comments of everybody that was here so...We also have a petition of 150...in support... Mayor Mancino: Okay,number one. At the last Council meeting I did ask during the public hearing if there was anyone who wanted to come up in front of us. I didn't ask for someone,for people not to come up. We did take public hearing at that time. You're certainly welcome to come up with the 156 signatures and if,I'm fine if one or two of you do come up and make a few comments. That would be fine. Susie Blake: Thank you. My name is Susie Blake again,and I live at 8040 Hidden Circle. I'm a taxpayer in the City of Chanhassen. I happen to be a hockey parent and I'm also a member of the Association Board. And I do have a petition here of 156 signatures which includes approximately 10 people who couldn't read directions that it said Chan residents only and signed the petition as well. So you can take those out. The only point I want to make is I think from the response it seems to me that we're focusing this whole attention,that this is a hockey request. Sure,there happens to be 100 players or more, 100 families in Chanhassen that are current members of the Association and that makes up approximately 40%of the Association in Chaska. There are also, if I remember correctly from the other Board meeting,approximately 100 kids from the Minnetonka School District,but there happens to be, and I don't know if figures from the school district. Maybe this gentleman can help us,but there's a bigger issue here. This is also providing a phy ed opportunity for the school district of 112,which includes quite a few students that would benefit from this as well. And one of the things when people move to a community is they look for opportunities for their children and you know being able to provide a world class school includes some of those activities as well and being able to provide some activities. So the question I have for you is,you said in your response that you're currently spending$45,000.00 a year to maintain 5 hockey rinks and 8 pleasure skating rinks. There are 3 of those rinks that have warming houses. I would ask that the City Council reconsider how they are operating those rinks and maybe it would be in the best interest of those residents in the community to funnel or move some of that money from operating all of those outdoor rinks to be invested in an indoor rink because as most of you know with the weather here,it's great to say that we have 13 outdoor rinks,but how much time can we actually use those rinks so. Mayor Mancino: Too long I think. Susie Blake: So anyway,I have the petition to present to you and then I also ask that if you did look at this more from a hockey request,that you take a step back and look at the bigger picture. We are paying for the ice time that we do spend with the rink. It's not something that we're asking the City of Chan residents to pay for our time on the ice. We're all personally involved in the commitment of the ice and actually looking at my own commitment and I have three children of my own. To say that the City of Chan is going to invest$30,000.00 for however many residents we have,compared to what I've personally put in myself,is somewhat a slap in the face so I would just like to have you take a look at it and possibly redirect some funds if you can if funding is an issue and also ask that maybe you be prepared with this many people in these two associations to be prepared to have to foot a bigger bill when we come to you for the third rink. So thank you. Mayor Mancino: Thank you. Appreciate your comments in bringing that forward. Are there a couple more people that would like to come up? 21 • City Council Meeting - October 27, 1997 David Zamjahn: Thank you for giving us an opportunity to address you. My name is David Zamjahn and I'm a resident of Chanhassen and have lived in Chanhassen for 11 years. Prior to that I lived in Chaska and am a long standing family background from Chaska. Early on I was on the Board for the Chanhassen Athletic Association. I've coached in Chanhassen for 11 years in soccer. My son does play hockey. I'm also in the business area of Chanhassen and one thing that I think we're all proud of in the business in Chanhassen is that we support our youth athletes. We sponsor their teams. I look around our business community and I'm very proud of all the people that sponsor those teams. I think the money that's invested,as Nancy was saying, is good,but it sounds like it's directed just at Chaska. I think as a community,that 45,000 is for the residents of Chanhassen,available to Chaska. And I have concern about your decision,as a businessman in Chanhassen. As a resident in Chanhassen. I'm concerned about two other communities that come forward without hesitancy to support our youth. And we have one other community,Chanhassen in District 112 that has all these constituent agreements to a very mediocre$30,000.00. I'm embarrassed as a businessman about your decision,and a resident. And I think a lot of the residents in Chanhassen would probably feel as strong as I do about this. Thank you. Mayor Mancino: Thank you for your comments. Beverly Erickson: Hi. My name is Beverly Erickson and I live at 520 Pineview Court and I am also a resident of Chanhassen. Have been so for 5 years and I applaud Susie's comments and also David's comments about how we feel about the decision that's been made. I'm also a board member with the hockey association and I work specifically with the Mini Mite program and the Mini Mite program encompasses children who are the age of 5 and 6 year olds. And for those of you who aren't familiar with the 5 and 6 year old program, it's a very growing program in our community. One of the things that you had talked about in your letter is the,you're aware of the,you're building the infrastructure for the community to accommodate the growth,and as the School District has pointed out,the growth in our community is much more than I think that we've ever anticipated,just because of what we've done as a community and how we've attracted our residents here. But what bothers me is that how are we building that infrastructure if we are not looking towards doing things for the residents that are coming into the community. And when we have a community like Victoria who is only 8%of our hockey association giving$30,000.00,and we as Chanhassen have 40%of the member of the hockey association and we also are giving$30,000.00,I don't understand the decision there so again I'd like for you guys to reconsider the decision. And I guess the final question is,how did you come up with the$30,000.00? Did you just pull the number or what was the decision in that$30,000.00? Mayor Mancino: Actually it was given by our other councilmember who isn't here tonight who thought it was an appropriate number. I can tell you that one of the reasons that Victoria,having talked to the Mayor there,came up with the$30,000.00 is that they don't have a Park and Rec Department at all. They have one hockey rink in their whole city. Therefore,they are relying more on other cities and using their resources and that was why they did give$30,000.00. We as Chanhassen on the other hand are building our own and have our own park and rec programs, as you know,and we have,as I just stated, have the 13 rinks and therefore we're building a program in and of our city. Victoria isn't ready to do that yet. Beverly Erickson: Now,you're building,we're building an indoor arena as a City? Mayor Mancino: No. We have built outdoor ones. We have been funding for the last so many years outdoor rinks. 22 City Council Meeting - October 27, 1997 Beverly Erickson: Okay. When Minnetonka built their rinks, and a lot of this is focused on the fact that Chanhassen and Minnetonka,we have to look at both. Was there any support from Chanhassen with the Minnetonka arena? Mayor Mancino: I don't know. Beverly Erickson: Is that something we could fmd out as far as,I mean because that should be. Councilman Mason: The indoor facility? Beverly Erickson: Yes. Councilman Mason: Chanhassen didn't contribute. The City of Chanhassen didn't contribute any money to that. None whatsoever. Beverly Erickson: Didn't contribute,okay. Mayor Mancino: Nor do I know if they came. I have no idea. Do you know Mike if they came and asked. Councilman Mason: No. Beverly Erickson: So the$30,000.00 decision was based upon. Mayor Mancino: They did it as a school district or did they do it as a city? I mean was that an addition to the Minnetonka School District facility? Councilman Mason: I believe it was a joint,wasn't it a joint one. Councilman Senn: Minnetonka and Hopkins have done a lot of joint ones but that one I believe was not one of them. Hopkins did their own and so Minnetonka did their own. Councilman Mason: Minnetonka's was school and city as I recall and Todd's shaking his head yes. Mayor Mancino: So because of the constraints on our budget,that was what we felt we had to,available to give towards hockey. And additional. Beverly Erickson: And I hope that, and I'm sure that because Randy and Kevin have done a fantastic job with this,but I hope that they have outlined the implications that we will be facing as a community by not having this and how,as an association by not being able to,and again the focus is not strictly on the hockey association,even though I'm a strong supporter of it and I have two boys that are actively involved in it and I am actively involved in it. It's not just the hockey association. It's the community at large. And you know all the number of residents I've talked to support the program, support the issue, and I really would like to have you reconsider the amount of support that you're giving and some of the restrictions that you have put on to the support also. Thanks. Mayor Mancino: Thank you.Anyone else? Last person,please like to come in front of the council. Please state your views and make any comments you wish. 23 • City Council Meeting-October 27, 1997 Greg Hromatka: I'll just state quickly. My name is Greg Hromatka at 7580 Canyon Curve and just to take a note to all the people here on behalf of the ice arena. You've got 2 %2 sheets mostly directly towards the ice arena...I thought I'd point that out. Mayor Mancino: Thank you. Thank you all for coming and we'll move forward into the next agenda. SITE PLAN AMENDMENT FOR THE CHANHASSEN CINEMA,BOB COPELAND. Kate Aanenson: This item is before you tonight because the applicant had requested some changes from the original approved site plan. The originally approved site plan is on the easel there,showing the different colors. The articulation to the building. When this project was originally approved there were six theaters. There's now eight so there's different exiting doors going out onto the alley. One of the things that we're trying to do with the project along that profile that's on the screen is to warm up the alley way going up towards the Timber Lounge so it'd be an inviting place. We do share parking...buildings. As the project's come in, it's taken off some of the excitement of what we believe kind of made the building more interesting. We believe that the changes were substantial enough that we didn't feel comfortable signing off on them... We have made a recommendation that if you were to approve some of the material changes,that some of the design elements...and lighting are to be brought back in...applicant more specifically the changes with you. I'd be happy to... Mayor Mancino: Okay,thank you. Any questions for staff at this point? Councilman Senn: No. Councilman Mason: No. Mayor Mancino: Okay. Is the applicant here and would you like to address the City Council please? Please state your name and address. Bob Copeland: My name is Bob Copeland. I live at 14 Cooper Avenue in Edina. And before I actually get into the issues tonight, if you don't mind,I'd just like to take a minute or two and just bring you up to date on in general where we are on the project. I know that we have lived with it for a long time and you folks, maybe some of you even longer than I have. We have,the company that we have formed has purchased the property and that company is controlled by Ray Mithune,Jr.and myself,and Ray and I also own the Buffalo Cinema and contrary to some of the rumors around,we have absolutely nothing to do with the Chaska Cinema. Neither Ray nor I have anything to do with the Chaska Cinema. So we also have hired a new manager who's name is Liz Beard and Liz is starting to oversee our operation in Buffalo and when the Chanhassen Cinema comes on line she's going to oversee our personnel and our cleanliness for the new cinema. We applied for a building permit back in June of this year and we received limited permits to go ahead with some demolition work and some of the site work. And right now the issuance of the building permit is pending your approval tonight. We have commenced some of the construction work. We've done some demolition. We've done some of the site work. Some of the site utilities are in. Curb and gutter is in. We've done a little bit of the foundation work related to the new entry at the southeast of the cinema. We plan to open in March if we can get our building permit and one of the features that we've added since the plans were started,as we're putting in four of the auditoriums are going to be state-of-the-art stadium seating,which will be like bleachers or risers. This is the latest thing in cinema or movie theater seating. And have much better views and sight lines for the screens. We are investing close to$3 million in this project. $540,000.00 of it is going to be reimbursed through the tax increment financing over the next 21 years. So nobody's more interested in the 24 Chaska CommunityHockey Association Serving Chaska, Chanhassen, Carver, Victoria, and Surrounding Areas April 6, 1998 Mr. Matt Thcmpson President Minnetonka Youth Hockey Association 19695 Near Mountain Boulevard Shorewood, MN 55331 Dear Matt, Thank you for the opportunity to meet with you to discuss partnering opportunities between our two associations. I enjoyed our meeting and was grateful for the open attitude you displayed in listening to some of our problems and sharing your solutions to similar issues over your program's years of development. Your commitment and interest in kids and the sport of hockey is one that is widely known and your hockey program has a rich history and tradition that we would like to emulate. I am confident that partnering with each other will benefit both of our organizations over the years. As we'd discussed,please accept this letter as a response to accommodate the Chanhassen City Council's request, in relation to their conditions to meet our CCHA fund raising efforts for our upcoming second sheet of ice. I'm sorry that there has been some time delay in getting this to you,but I trust that you will understand the planning issues that we had first to go through. Your association may be happy to know that the project is on schedule for a fall of 1998 opening, which we are very much, looking forward to. We have been able to confirm that the City of Chaska will be able to sell a minimum of 100 ice hours to the Minnetonka Hockey Association each year for the next five- (5) consecutive years starting with the 1998/99 hockey season. In addition,no more than 10% of the total ice hours will be 'non-prime' time. Also,no less than 30 hours will be weekday ice, starting no earlier than 6:00 PM to allow for travel time from Minnetonka. The remaining hours would be weekend allocation. The ice rate is$125/hour for `prime time' and $85/hour for `non-prime time'. This rate would be subject to annual renewals based upon the average ice time cost in district 6. Chaska Community Hockey Association P.O.Box 184 James S.Leone,President 2890 Autumn Woods Drive Chaska,MN 55318 612/361-5500 Fax:612/361-5547 In lieu of this offer to the Minnetonka Hockey Association, it is agreed that your organization will: • Communicate to the City of Chanhassen regarding the spirit and intent of this letter. • Understand that the sale of ice time to the Minnetonka Hockey Association is contingent upon the CCHA receiving the pledge from the City of Chanhassen. • Partner with the CCHA, to the benefit of both associations, in the areas of girls' hockey,junior gold hockey, tryouts, and other areas that may apply. The City of Chaska has approves the intent of this letter and I'm delighted to start our new venture working with the Minnetonka Hockey Association. If you have any question, please feel free to contact me at 361-5500. I look forward to continuing to build on the foundation already established between our youth hockey associations. Thanks again for your interest. Sincerely, 5 . James S. Leone President, CCHA CC: Tom Redman, City of Chaska May 12, 1998 Mr. Todd Hoffman City of Chanhassen Dear Todd: The City of Chanhassen is strongly considering donating funds towards the new Chaska ice rink. As we understand it,Chanhassen wants to make sure their donation will provide ice availability to all their residents,not just those residing in the Chaska School District. This letter is to inform you that we are comfortable with the ice commitments the Chaska Youth Hockey Association (CCHA)is making to the Minnetonka Youth Hockey Association (MYNA). The attached letter from James Leone,President of the CCHA, makes commitments to ice availability that we find very suitable. Our only concern with the arrangement is the lack of a commitment by CCHA to give rights of first refusal to MYNA for any extra ice that might exist. We have stated to CCHA and the City of Chaska many times our belief that this right should go to MYNA first, before any other organization or it's city(s)of residence that is not participating in the financing of this arena. Towards this end, we have commited to abiding by any rules Chaska might want to require in grantign this right of first refusal; such as accepting or not accepting the ice times by a date well in advance of the hockey season or paying a "market"rate. While we believe the City of Chanhassen should proceed with their donation regardless of whether this right is granted, we do believe it would be a gesture of good faith for Chaska to grant this right. We look forward to the relationship the new arena will create between CCHA and MYNA and offer our sincere thanks to the City of Chanhassen for your favorable donation. Sincerely John Flood Matt hompson President- MYHA Past President-MYHA RECEIVED MAY 2 2 1998 CrTY OF CHANHASSEN