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I . .- . I . I . I .. I I I I I I I ~ I ARDEN HILLS CITY COUNCIL - SEPTEMBER 9.1996 6 Mr. Kreidler pointed out that there are other users of ice time such as figure skaters and it is possible to use the rink in the spring for dry floor events, such as indoor soccer, etc. It is also anticipated that the cities will want to use some of the hours for park and recreation activities as well. Acting Mayor Aplikowski questioned what would happen if the bonds fail. Mr. Fritsinger explained if the Hockey Associations do not meet the 2,080 hour requirement, the cities would be required to participate in the project and contribute the portion needed to equal to 2,080 hours. In that case, the hours not used would be split between the four participating cities on a per capita basis. Mr. Kreidler reiterated that an escrow account will be established and if a shortage occurs, the difference would be paid from the escrow fund. Acting Mayor Aplikowski asked what would happen if the bonds sold by County of Anoka defaulted. Mr. Fritsinger advised this is unlikely since they are GO Bonds and payment on the debt is guaranteed by each community guaranteeing the use of2,080 hours. Acting Mayor Aplikowski inquired regarding funding from charitable gambling. Mr. Kreidler advised that one-half ofthe $250,000 has been on-hand for the last eight years and was raised from fund raisers, such as selling pizzas. He reported the Hockey Associations have a cash flow from charitable gambling and about one-half of the money in the account is proceeds from charitable gambling but they intend to keep doing fund raisers. Mr. Kreidler commented on the difficulty in fund raising with the "promise" that a rink will be constructed "in the future". He stated if a rink is constructed, he believes the members of the Hockey Associations will continue to participate in fund raising. He pointed out that a project like this will benefit the local youth and high school and he believes the Light Brigade will also be interested in participating. Acting Mayor Aplikowski asked why hockey participants would be interested in traveling to Blaine and not prefer to construct a rink closer to Arden Hills. Mr. Kreidler explained they would not be able to construct a rink at this cost and for many participants, the location in Blaine is no greater than they are currently traveling. Acting Mayor Aplikowski asked why, if there is such a big need for additional ice hours, private money is not being used to construct the arena and why government entities should be involved. Mr. Kreidler asserted it may be for the same reason that private money is not used to build roads or sewers. Also, most arena projects are operated on a break-even basis and if it does not make a profit, it will not attract private money. He advised that the cost for ice time at arenas located on the east coast are much higher and private money is involved with those but, historically, all rinks in the metro area have been constructed via public funds.