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<br />I <br />I Underlying Revenue Assumptions <br />I- Revenues for the facility are expected to come from the rental of ice time. . Each of five parties <br /> to a Master Agreement are anticipated to guarantee a minimum usage of 2,080 hours annually <br /> at an initial rate of $125 per hour. At this rate, annual ice rental income or $1,300,000 is <br />I guaranteed. <br /> As consideration for the role MASC plays in operating the facilities and providing for certain <br />I operating guarantees, the Master Agreement calls for all concession income and expense to <br /> accrue to MASC. Reflecting this, the revenue assumptions (and expenses shown) do not <br /> inciude any amounts for concessions or merchandise sold. Clarification should be <br /> incorporated into the Master Agreement as to what the tenn "concessions" includes and does <br />I not include. The budget suggests that concessions includes food and vending sales, video <br /> game receipts, pro shop merchandise, advertising, admission receipts, skate sharpening and <br /> equipment rental. <br />I Ice Rental Hours <br />I Prime time rental hours generally cover a periOd of time from school dismissal in the afternoon <br /> until 10:00 p.m. Monday through Thursday, slightly later on Friday, and all day Saturday and <br /> Sunday. Approximately 67 hours are available weekly. Assuming a down time of two weeks <br />I per rink for maintenance, four rinks for fifty weeks per year would have 13,400 hours of prime <br /> time available. Of these hours, 10,400, or 78% are covered by the guarantee. <br />Ie Ice Rental Rates <br /> Appendix III contains a listing of ice arenas surveyed by M.I.A.M.A. and their 1995-1996 ice <br />I rental rates as reported. The average prime time rental rate for the metro rinks reporting is just <br /> over $108 per hour. For those ice arenas in the immediate service area of the proposed <br /> facility, the rates range from $50 to $115. Guarantors of the proposed facility have area ice <br />I rinks that report the following ice rental rates: <br /> Blaine - Fogerty $95.00 <br />I Coon Rapids - Cook 95.00 <br /> Anoka County - Columbia 95.00 <br /> Forest Lake - Maroon & Gold 100.00 <br />I Centennial Sports Arena 50.00 <br />I <br />I <br />I <br />Ie <br />I DRAFT REPORT 5/30/96 Page 2 <br />