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I I ARDEN HILLS CITY COUNCIL - SEPTEMBER 30. 1996 14 , hours of ice time. With regard to the concern about paying $125 per hour of ice time, Mr. Kreidler reported that Breck Hockey Arena (an older arena) put its ice hours out for bid to the I highest bidder and it was purchased at $175 per hour. Mr. Claude Braxton, stated he is a CPA, lives in Shoreview, and is a volnnteer for the Mounds I View Youth Hockey Association. He reviewed that the Irondale and Mounds View Youth Hockey Associations have agreed to fund the escrow account which will be held by the City as part of the master agreement. These funds would be used to fund the annual deficit should ice I rentals be less than 2,080 hours. Also, the hockey associations will agree to rent 1,000 hours of ice time from the Ramsey County system. Mr. Braxton then reviewed a letter he had submitted to the Shoreview City Council explaining the economics of the agreement and protection the I City will have from the hockey associations' escrow fund. Mr. Braxton stated the hockey associations will guarantee 1,800 hours and believes the other I hours up to 2,080 will be used by NSC who expect to rent all ice hours. He reported they currently have $300,000 between the two hockey associations but cannot put all of it into the escrow fund immediately because of capital needs, such as purchasing ice. However, they can I put in $250,000 and fund the remaining $250,000. Mr. Braxton commented on various ways the money could be raised including $25,000 per year from fund raising, surcharge for winter ice Ie ($15,000 each year if $10 surcharge), additional fee to players from non-participating cities ($50/year or $5,000), corporate sponsors and Light Brigade, and charitable gambling donations. He stated he believes the escrow fund will be fully funded within three to five years. Mr. I Braxton stated he believes this proposal is a very good investment with little or no risk to the City. I Mr. Kreidler pointed out that Brooklyn Park could have participated in this program for $500,000 but chose to build its own rink for $3 million. I Councilmember Keirn asked if other cities have agreed to funding the escrow in three to five years. Mr. Fritsinger pointed out the master agreement indicates it is to be funded in full. Councilmember Keirn inquired regarding the rate of investment. Mr. Post responded that the I city is currently receiving an approximate 6% return on investments. Councilmember Keirn asked if the board of directors has been established with one member from I each city. Mr. Fritsinger explained the one member from each city is on a rotating basis so each year, one city would take a turn. However, the cities are trying to change the master agreement I to include two city representatives. Councilmember Aplikowski inquired regarding the City's use of ice hours. Cindy Walsh, Parks I & Recreation Director, explained the City does not currently purchase indoor ice hours, and only uses outdoor ice. She explained staff has not formally proposed programs, but it is certainly a possibility. Mr. Fritsinger explained the intention is that the City would have first opportunity to t' purchase a portion of the remaining ice time for use in community programming and if not used by the City, then the ice hours would be offered back to the youth association. I -------