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I I ARDEN HILLS CITY COUNCIL - SEPTEMBER 30. 1996 13 t' Tom Mulcahy, 3530 Siems Court, stated he is a member of the Arden Hills Finance Committee, which unanimously passed a resolution stating concerns with respect to this proposal and I recommend that no action be taken to obligate the City. He expressed several concerns about a liability on park funds for 25 years should a shortfall occur and his belief the long-term financial viability is questionable because bond holders insist on full-face credit of the cities and not to I rely on revenues to be generated by the project. Mr. Mulcahy stated he personally would prefer revenue bonds to be used and believes the I $500,000 contribution by Ramsey County is enough local support. He stated he thinks this project is out of line with the number of participants and is concerned about the ability of Arden Hills to get their "fair share" since it is the smallest player in the consortium. Mr. Mulcahy stated I he did not see the master agreement so he is unable to determine if the City's interests are properly protected or whether the arena would be efficiently managed out of the City's controL He stated he believes incentives to operate efficiently are lacking when the public guarantees I expenses will be met. With regard to the escrow, Mr. Mulcahy noted the hockey associations do not have the $500,000 I to place in an escrow fund at this time and pointed out that $500,000 would not cover two year's default of ice time commitment. He recommended the Council withhold approval or Ie commitment to the project. Mike Kreidler, Mounds View Youth Hockey Association President and resident of Arden Hills, I reviewed his ten year involvement with the hockey association and pointed out that youth hockey players are unique because they must rent the indoor facilities they use while local communities provide facilities for other sports such as baseball, basketball, football and soccer. He noted this I proposal does not ask for any money up front and hockey participants are willing to pay their way. I Mr. Kreidler advised that Ramsey County is willing to commit $500,000 for the initial payment and the hockey associations are willing to put $500,000 in escrow and have talked with the local bank to fulfil that obligation. He explained that if the hockey associations are unable to use the I entire 2,080 hours per year, the cities would be asked to make up the difference but the escrow fund would be used to cover any shortfall. Mr. Kreidler agreed with the statement by Mr. Mulcahy that if the hockey associations did not use a single hour of ice, the shortfall would I deplete the escrow account within two years, but that is not realistic. He explained if the hockey associations are 200 hours short, it would result in a shortfall of $25,000 which would be split I between the four municipalities. Mr. Kreidler stated since it is a condition of the resolution, the hockey associations will raise the I full $500,000 escrow fund. He reviewed the number of ice hours purchased and assured the Council that if more prime time hours were available, they would be purchased because hockey participants do not mind paying for that additional ice time. Mr. Kreidler then commented on the .- impact of girls hockey, expected growth, and demand for additional ice time since the Legislature has mandated that girls teams be given ice hours. He stated based upon his experience with the youth hockey associations, he is convinced they will be able to use the 2,080 I