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IV70RK SESSION AGENDA ITEM NO. 4-D February 13, 1998 T : city Council FROM: Steve arkoz SUBJECT: OVALISKATING CENTER MARKETING PROPOSAL The OVAL Phase 2 addition has been essentially divided into two components. The northern portion, composed of locker rooms, community room, and other public spaces, is the primary component and subject of the State grant of$550,000 and partnerships with a number of community organizations. The second component is the development of a restaurant, skate rental and sharpening area, and pro shop which are all market components of the project. The underlying economics of each of these components are different; hence the need to review their elements separately. City staff has had the opportunity to meet with a number of potential operators for restaurant, banquet facilities, and pre shops. We have very strong indications that the market viability for each of these components is strong. The subject of the city council work session discussion is the need for a broker arrangement to solicit market proposals for a restaurant and pro shop. The broker arrangement would be complemented by a City issued Request For Proposal to satisfy public bidding requirements. All interested parties mould be referred to the broker with analysis of the various options provided to staff and council within a 60 day period. The decision whether to proceed on this phase of expansion would be dependent upon a pro forma analysis based on specific lease terms negotiated with private operators. Proposed is the attached agreement with Mike ike Scott, of United Properties Brokerage. Mike ike Scott has been very active in the Roseville market and is very interested in working closely with the city on this "pioneering concept". The proposed lease would be referred to the February 23 Council meeting for final approval. Respectfully su bm fitted. Attachment