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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — AUGUST 19, 2024 4 Jim O'Keefe spoke about the Blaine National Sports center that brings in 5 million people a year. He stated this is an opportunity for Arden Hills and the surrounding communities to have similar recognition and economic impact. He stated they are passionate about the programming. The building is the shell that allows them to do things for veterans, for the disabled, for seniors as well as youth athletes. Whatever the community can envision in terms of programming, can be created there. He shared when you have a venue like this, it becomes a place that communities gather. He stood for questions. Councilmember Fabel asked if the individuals would have memberships, similar to a health club. Jim O'Keefe confirmed. There would be a fitness center. He noted the membership pricing is more accessible than what most health clubs charge. Councilmember Fabel asked how many acres they are looking at. Jim O'Keefe replied that the MTWC building would be about 5-6 acres under a roof. They believe they can put parking under the facility so there won't be a large parking area around the building. The design includes an attached hotel and a small orthopedics medical facility. The building itself doesn't generate a large return on investment. In a public/private partnership like this, the hotel and leased medical facility allows them, on the private side, to operate after the bond from the public side is done. There needs to be a couple different revenue streams for them to continue to maintain the building. He believes those three core buildings would need 10-15 acres. Councilmember Fabel asked who would own the building. Jim O'Keefe said MTWC would own it. Councilmember Holden stated that in essence they put no money into the building, itself. Jim O'Keefe stated they pay half. Councilmember Holden understands they facilitate the operations. She asked if the operations at their other facilities are meeting expectation. Jim O'Keefe replied that Sports Facilities Company completed the pro forma feasibility study. They run over 60 of these facilities around the country. They have never missed their pro forma numbers. Councilmember Holden asked what they did during COVID. Jim O'Keefe said in 2020, when COVID hit, they lost 43% of attendance. The following year, they rebounded to nearly the same level they were at prior to COVID.