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<br />I <br />I Memorandum - National Sports Center Ice Arena Master Agreement <br />" Page Three - January 10, 1997 <br /> Section III, E, 1, (a) has been amended to define "high season" hours. This is <br /> critical as it provides clarifications to the required 2080 hours of ice usage cities <br />I must guarantee. <br /> 7. <br /> Obligations <br />I Section III, E, 1, (b) further addresses the obligations of participating cities: <br /> - (i) Allows cities to obtain revenue from the sale of dasher board <br /> slgnage. <br />I - (ii) Clarifies the 2,080 guaranteed hours and the percentage obligation <br /> for which Arden Hills would be responsible. (Arden Hills will be <br /> approximately 15.5%.) The percentage obligations will be <br />I reviewed annually. This section will under go additional revisions <br /> to be consistent with the Supplemental Agreement. <br /> (iii) Allows for the assignment of guaranteed hours to other political <br />I subdivisions <br /> 8. Budget <br />I Section III, E, 1, (c) clarifies the annual budget for the facility. The process put <br /> in place requires the budget to be presented to the Joint Board for review and <br />.. comment. This language was added to address the concern about the rate <br /> stmcture or other budgct items being changed without oversight or input from the <br /> participating communities. <br />I 9. Ice Usage <br /> Sections III, E, 2, 3, and 4 addresses the procedure for notification on Ice Usage. <br />I It's through this process that MASC is notified of the need to utilize their <br /> marketing skills to market available ice time. <br />I 10. Financin!! Overations <br /> Section III, G expands on the various financial operations of the facility. <br /> (1) broadens the application of revenues by creating a capital improvement <br />I reserve with a maintained level of $250,000; defines the operating cost <br /> reserve at $500,000; and allows for any "excess" profits to be allocated <br />I pro rata to each party based on their guaranteed hours. <br /> Section III, G, 1, (d) defines the schedule of debt service on the bonds. <br /> - <br />I While the Attorney General has prepared this language, it is very difficult <br /> to follow. The basic premise is that when you consider this paragraph <br /> along with other parts ofthe Agreement, the City agrees to levy a tax to <br />I pay for our share of the 2,080 hours if a shortage exists. (This does not <br /> exclude the use of escrow funds or other funding sources to cover the <br />ft obligations of the City.) <br />1 <br />-------- <br />