96-181Council File # � "' �
Green Sheet # .�
Presented By
Referred to
Committee: Date
1 WHEREAS, ihe Ciry applied for and was awarded a$250,000 "Mighty Ducks" grant from the
2 Minnesob Amateur Sports Commission (MASC) for construcrion of a two sheet ice arena on the campus
3 of the College of Saint Catherine, and
4 WHEREAS, the grant award was condirional upon meefing the following criteria as specified by
5 the MASC by February 26: 1) local government financial participafion in the form of a$250,000 grant
6 match and 2) an approved project financing and construcfion plan, and
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WHEREAS, the College of Saint Catherine has since withdrawn from participation in complefion
of this project, and
WHEREAS, given the withdrawal of the College of Saint Catherine from participation in this
project, the City will not be able to meet the condifions of the grant by the February 26 deadline, and
11 WHEREAS, if the February 26 deadtine passes without some acuon by the City, the conditional
12 MASC grant will be withdrawn and the opportunity to construct an ice arena with "Mighty Ducks" grant
13 funding will be lost.
14 NOW, 'I'fIEREFORE, BE IT RESOLVED, that the City Council authorizes proper city officials
15 to request an extension of sixty (60) days from the MASC for meeting the criteria of the condirional grant
16 award, and
17 BE IT FURTHER RESOLVED, that if the extension is granted, city officials are requested to
18 report to the Ciry Council on the opporhurities that are available to the City concerning construction of an
19 ice arena(s) within the context of the "Might Ducks" grant.
Yeas Nays Absent
BZakey_ f
Bostrom �
Guerin �
Harris y/
Megard
Rettman
Thune
Adopted by Council: Date �a�qq(,
Adoption Certified by Council Secretary
By
App
By:
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
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Requested by:
' ision o Parks and Recreation
By:
Form Approved by City Attorney
By:
Counc
By:
Mayor for Submission to
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DEPARTMENT/OFFICE/COUNCIL DATE INITIqTED O
Parks and Recreation 2/21/96 GREEN SHEE N_ 3 3 6 7 0
CAMAGf PERSON & PHONE INfT1AVDASE iNfiIAVDATE
�DEPAHTMENTDIRECTOR �CITYCAUNCIL
ROb2rt P7Pdm 266-6404 �IBFAFOP �CtTYATfOqNEY �CINCLERK
MUST 8E ON COUNCIL AGENDA BY (DATE) qOUTING � BUO(iEf DIRECTOP � FlN. & MGT. SERVICES DIR.
OPDEP MAVOR(ORASS15TANn � Parks an
TOTAL # OF SIGNATURE PAGES 1 (CLIP ALL LOCATIONS FOR SIGNATURE)
ACfION REQUESTED:
Approve Council Resolution authorizing City officials to request an extension
of the February 26 deadline for meeting conditions in the "Mighty Ducks" grant.
FiECOMMENDAt70NS: Appmve (A) m Rajact (R) pERSONAL SERVICE CONTRACTS MUST ANSWEFi THE FOLLOWINCa �UESTIONS:
_ PLANNING COMMISSION _ CIVIL SERVICE COMMISSION 1. Has tl�is perwNfirm ever wo�ked under a contrad for this department?
_CIHCOMMITTEE _ YES 'NO
� STAFP 2. Has this person�rm ever been a ciry employee?
— YES NO
_ DIS7FiICT CWiiT _ 3. Does Mis personHirm possess a skdl not nortnally possessetl �
by any current city employee.
SUPPoflTS WHICH CAUNCIL 0&IECTIVEI YES NO
Explain all yes answera on separate sheet and attaeh to green sheet
INRIATING PROBLEM, ISSUE, OPPOtiTUNITV (WM. What, When, Where, Why):
The College of St. Catherine's has discontinued pursuit of construction of an
ice arena.
ADVANTAGES IFAPPROVED:
7he City will have a time period to explore alternatives for the Mighty Ducks grant.
DISADVANTAGES IFAPPROVED.
None.
DISADVANTAGES IF NOTAPPROVED:
The opportunities related to the "Mighty Ducks" grant will be lost.
TOTAL AMOUNT OF TRANSACTIOti $ COST(pEVENUE Bl1DGETED (CIRCLE ONE) YES NO
FUNDING SOURCE ACTIVITY NUMBER
iINANCIAL INFORMATION: (EXPLAIN)
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Interdepartmental Memorandum
CTl']' OF SAINT PAUL
February 21, 1996
T0: Council President Dave Thune
Councilmember Jerry Blakey
Councilmember Mike Harris
Councilmember Roberta Megard
Councilmember Janice Rettman
Councilmember Daniel Bostrom
Councilmember Dino Guerin
FR: Robert P. P' a
Superintende o s and Recreation
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RE: Status of the Mighty Ducks Grant Proposal
The issues surrounding the conditional "Mighty Ducks" grant that was awarded
to the City by the Minnesota Amateur Sports Commission (MASC) have
changed. To help provide a framework for discussions pertaining to the current
situation, a review of the events that have transpired to this point is listed below.
If you have any questions, please don't hesitate to call me at 266-6404.
Backqround
Auqust, 1995 - The City was approached by two organizations regarding the
possibilities of participating in ice arena grant applications to the MASC. The
Highland Hockey Association proposed construction of an enclosed natural ice
sheet, to be located adjacent to the current Ramsey County Highland Arena.
The College of Saint Catherine proposed the construction of a two-sheet
artificial ice arena, to be located on their campus.
Seatember. 1995 - The City Council authorized submission of both grants to the
MASC, indicating the proposal of the College of Saint Catherine as their
preferred first priority for funding and the Highland Hockey Association proposal
as their second priority.
February 20,1996
Mighty Ducks Grant Proposal Status
Page 2
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December. 1995 - The MASC awarded the City a$250,000 grant for the College
of Saint Catherine proposal. The award was conditional upon meeting the
following criteria by February 26: 1) financial participation by the City at a
minimum levei of a$250,000 dollar-for-dollar match of MASC grant funds, 2) a
guaranteed construction schedule, and 3) an approved financing package for the
entire project, costs totaling approximately $5.2 million.
Januarv. 1996 - Discussions ensued at the City level pertaining to the possible
financial participation in the project, as was now being required by the MASC.
Januarv. 1996 - Discussions ensued at the College of St. Catherine College to
secure the project financing that would be necessary if the College would
continue to move forward with the project. The Coliege indicated that in addition
to $500,000 of governmental funding, the majority of the remaining financing was
being sought from "equity partners" interested in securing access to ice time for
their organizations in the proposed arena.
Februarv. 1996 - The College of St. Catherine Board of Trustees decided to
discontinue their current pursuits related to the construction of the proposed ice
arena and College participation in the City's MASC grant. It was indicated that a
major factor in this decision was insufficient financial commitments from
prospective "equity partners".
Current Situation
The City remains as the designated recipient the grant, however, the three
conditions as specified by MASC will not be met before February 26.
The withdrawal by the College of St. Catherine has changed the current
opportunity for the City related to the Mighty Ducks grant. Issues which impact
this opportunity and questions which now must be addressed are outiined below.
Issues
A. Should the City ask MASC for an extension to meet the specified
conditions for the grant award?
Staff from the MASC have indicated that they would consider a request
from the City for an extension. if the City were to request an reasonable
extension of 60 days, it then has a period of time in which to explore
alternatives. However, after 60 days it may be determined that no
economicalfy viable aiternatives are available and the grant will stiif be
withdrawn.
February 20,1996
Mighty Ducks Grant Proposal Status
Page 3
9 c. -1Y �,
If the City does not request an extension, the conditional grant to Saint
Paul will likeiy be withdrawn and awarded fo the City of South Saint Paul.
B. Could the City use the grant for the Highland Hockey Association
proposal?
If the proposal remains as it was originally submitted, the answer would
be no. Although the grant award was given to the City, it was designated
specifcally for the St. Catherine's proposal. The South Saint Paul
proposal for a artificial ice sheet adjacent to their current arena which will
eventually be enclosed is more competitive within the grant guidelines
than the original Highland proposal for a natural ice sheet.
C. What types of projects would be considered as possible
altematives?
In order to keep the grant award, the City would have to propose a projecl
that is at a minimum comparabie to the South Saint Paul proposai. This
will include two key components 1) construction resulting in two sheets of
ice at the same location, 2) a refrigerated/artificial ice surface.
Within St. Paul, the best opportunities for accomplishing this are by
adding an additional artificial ice sheet at one of the seven arenas
operated by Ramsey County.
D. What are the potential financial commitments that would by required
from the City?
At a minimum, MASC will require a$250,000 local government dollar-for-
dollar match. Dependant upon the financial commitment of any new
partners, the City's further commitment will vary. A"ballpark" cost
estimate for the type of project that would meet the conditions of the
MASC ranges from $1.75 - $2 million.
E. Who are potentiai financial partners?
Until staff are directed to proceed, this remains unknown. However,
Ramsey County is an obvious possibility given its current role in operating
ice arenas and the possibilities for expansion.
The Highland Hockey Association had indicated a previous interest in
discussing financial participation in the grant projects. Other local hockey
associations are also possible partners.
Approaching the School District for support is aiso an option.
February 20,1996
Mighty Ducks Grant Proposal Status
Page 4
F. Is there a need for additional ice sheets in St. Paul?
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Although the possible projects have changed, the need for additional
access to ice time in Saint Paul remains.
The existing hockey arenas in the City of Saint Paul are operating at
capacity. in fact, the current demand for access to ice time exceeds what
is available. The addition of girls' hockey at the high school level has
added considerably to the demand for ice time during the peak hours of
late afternoon and early evening.
The increase in use by high school age teams has caused a major
reshuffling of skating time available for youth hockey teams. Youth teams
have been backed into later hours during weekdays as well as earlier and
later hours on weekends. Giris' hockey is in the beginning stages and
there is no question that the sport will continue to be attractive and growth
can be expected, further exasperating an already criticai problem.
G. If the City does not request an extension and the grant is withdrawn,
what is the possibility that funding wouid be available in a"second
round" of grants?
If the February 26 deadline is missed, then the grant will be withdrawn
from the City and will be awarded to the City of South St. Paul. With
regard to the City receiving funds from the "second round" of grants, two
lhings would have to happen.
First, the legislature wouid have to fund the grant program for'96. The
Governor included 8.8 million dollars for the Mighty Ducks Program in his
legislative package and there is a"good chance" that some money will be
included in the final bill approved by the legislature.
Second, a City proposal would have to rate high enough to fall within the
funding range for the '96 money. There certainly will be no guarantee the
Citys proposal would be rated high enough for funding. Most likely, all of
the projects that didn't get funded will be resubmitted. In addition, there
will surely be other communities with new proposais that will also be
competing.
February 20,1996
Mighty Ducks Grant Proposal Status
Page 5
Action Reauired
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Given the current circumstances, the City has two options 1} request a time
extension from the current February 26 deadline to explore opportunities for
meeting the MASC conditions (estimate a reasonable timeframe for a time
extension is 60 days), or 2) notify the MASC that the City cannot meet the
conditions and withdraw from participation in the grant agreement.
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