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HomeMy WebLinkAboutLAG98-002 - Other - Urban Landmark Corporation (ULC) - Commitment to Contract for Ice Arena Facilities - 08/06/1998 a Roger A.Lubovich,City Attorney 253/859-3340 253/859-3983(fax) August 6, 1998 Urban Landmark Corporation 19803 - 68'Avenue West Lynnwood WA 98036 MEMORANDUM OF AGREEMENT FOR COMMITMENT TO CONTRACT FOR ICE ARENA FACILITIES This Memorandum of Agreement between URBAN LANDMARK CORPORATION ("ULC") and the CITY OF KENT ("City") serves as the parties' intent to contract for the construction, maintenance, and operation of an ice arena by ULC on soccer fields situated on approximately 4.5 acres on City parklands commonly known as the Russell Road Soccer Fields. This commitment is based on ULC's proposal to build, operate, and maintain an ice arena facility as set forth in its June 12, 1998 proposal, attached as Exhibit A. A. The proposal consists of the following: 1. The City will lease to ULC the land upon which the facility would be situated for forty years at $1 per year. 2. Upon completion of the lease term, all facilities located on the premises will revert to the City. 3. ULC will pay a leasehold tax on the land in lieu of real estate taxes based on the fair- market value of the property. 4. An agreement will be negotiated regarding shared parking of the existing parking on the site for use with the ice arena and the existing softball fields. 5. ULC will obtain liability and fire insurance on the facilities which will name the City as an insured. 6. ULC will consult with the city's Director or Parks and Recreation during all phases of design and construction of the facility to ensure an aesthethicly pleasing and quality designed and constructed facility on its park land. August 6, 1998 Page 2 7. ULC will provide the City with use of the facility and its programs for organized city uses. City will have use of the facility September 1 through April 30,weekdays only and not holidays, of any given year from 9:30 am to 11:30 am . Use of the facility will be no charge including professional instruction„however equipment(ie skates) will be charged to the user. Any changes in these use times and dates must be agreed upon in writing by both parties. City use programs will not include public open skate. B. It is acknowledged that this commitment by the parties is subject to the following conditions: 1. Ground soils test and approval of results by ULC. City will provide access to the property at times mutually agreed upon to minimize disruption to the park. 2. ULC's ability to obtain a conditional use permit for the facility and approval of environmental review conditions. 3. ULC's approval of a surface drainage plan for the facility. 4. The City's review and approval of the financial statements and approval of the financial condition of ULC by the city's Finance Director and Director of Parks and Recreation to determine the ability of ULC to construct, manage, and maintain such a facility. 5. Successful negotiation, execution, and approval by the Mayor and City Attorney of the lease and related documents to implement the project as set forth in the proposal and this letter. CITY OF KENT: URBAN LANDMARK CORPORATION I By: By: _ JI ITE May r yam' Name: ex i Do ne r Date: " (/ Date: Akaus-E 8, 1998 P.ALA%WILESV0352\memo,.dum.doc EXHIBIT A KENT ICE ARENA KENT, WASHINGTON June 12, 1998 LYNNWOOD'S SNO-KING ICE ARENA, INC. 19803 68th Ave. W. W Lynnwood, WA 98036 1 = F • • f � KNMG N (206) 775-7512 Friday, June 12, 1998 s' Mr. John M. Hodgson, Director, Parks & Recreation City of Kent 220 0 Avenue South Kent,WA 98032-W95 RE: Kent Ice Arena. Enclosed please find a proposal to design, build and operate an ice arena on the Russel Road soccer fields in Kent. If you have any questions, plea feel free to call me at(425)355-8308. Si ely, Al Lexi Doner President JbAd PROPOSED KENT PARK ICE ARENA Lynnwood's SnoXing Ice Arena, Inc.is pleased to present the following for your consideration:We propose to design,build,and operate a full service ice arena on the land commonly known as the Russel Road soccer fields. (Approximately 5 acres of Kent parkland.) If acceptable,the ice arena would be constructed as a first-class,state-of-the- art facility,with all related amenities in-house. It would be our intent to design,construct and operate,a single sheet ice arena facility with total construction costs estimated between$3,500,000.00 and$4,000,000.00. ICE ARENA DESIGN The design of the ice arena will depend upon the natural surroundings of the site. However,every effort will be made to create a final design that will be in harmony with the parks other facilities. In addition, great care will be taken to add significant trees and landscaping to the site whenever possible. It will be our intent to construct a first-class facility with all related amenities in-house. We will utilize a steel frame building, exterior walls of tilWp concrete and split face masonry block, and a entrance featuring glass curtainwaii. The design will be based on a pair of ice rinks adjacent to a two-story amenity core. The project would be constructed in two phases, with the second phase contingent upon increased demand. Phase 1: The main arena will feature a National Hockey League (NHL) regulation sized (200 feet by 85 feet) skating rink with seating for at least 1200 spectators (appx 30,000 square feet). The arena will be adjacent to a two story amenity core containing skaters' lobby, restaurant/snack bar, pro shop, dressing rooms, referee rooms, offices, concessions, and miscellaneous ancillary space (appx 16,000 square feet). The facility will be made available to the general public for open skating sessions, hockey and figure skating. AA amenities and refrigeration will be designed so as to accommodate expansion should demand necessitate a second skating rink. We estimate the cost to complete phase 1 of the facility to be between$3,500,000.00 to$4,000,000.00. Phase 2: If demonstrated demand exceeds capacity for the single sheet arena, then a second skating rink will be added adjacent which will share the aforementioned amenity core and mechanical rooms. The second NHL ice sheet will be designed to supplement the main arena and will provide only minimal seating. If constructed, the 22,000 square foot addition would increase the total cost by approximately $2,500,000.00 bringing the overall cost to$6,000,000.00 to$6,500,000.00 for the two-sheet facility. BENEFITS TO KENT. 1.) FULL SERVICE ICE ARENA IN COMMUNITY. Due to high costs associated with developing public ice arenas,few communities can afford to provide ice skating for their citizens. Through this cooperative agreement, Kent would become only the third community to have a public ice arena in the greater Seattle area,and the first to get a new public ice arena in over 21 yews. 2.) NO COST. Other than providing the land according to the terms of the land lease below, Kent would incur no costs associated with building and operating the new arena. 3.) KENT SCHOOL PROGRAMS. As additional consideration we will make available a Kent School program whereby schools may elect to bring students to the ice arena on weekdays for ice-skating and Instruction. The ice arena will be available between 9:00 AM. and 11:00 A.M. during every school day for the use of Kent Schools. These times, if purchased independently,would cost approximately$100,000.00 for each school year. The only cost to Kent Schools would be for the rental of ice skates (if needed). No ice rental, admission fee or group instruction fee will be charged during these sessions. 4.) EXPERIENCED OPERATOR/ESTABLISHED PROGRAMS. Lynnwood's Sno-King Ice Arena has been serving the needs of the community for over 20 years. Current ownership has operated the facility since late 1989. As such, we are experienced in ice arena operations and have a multitude of diverse programs that can be immediately implemented in Kent. Loam to Skate School, Family rates, Cheapskate sessions, Christian Skate night, Skate for DAR.E., Teen night, youth hockey, adult hockey, team to play hockey clinics, figure skating, competitions, and birthday party packages represent a few of the programs which can be organized in the new arena. Further, as an experienced operator, we know the financial aspects of the ice arena business. When current ownership purchased Lynnwood's Sno-I(Ing Ice Arena, Inc. in 1989,the corporation was in chapter 11 reorganization. By 1990,we had successfully reorganized the business paying all creditors in full together with 10% interest from their original invoice due date. For our efforts we were awarded the Small Business Award in 1993 from the South Snohomish County Chamber of Commerce. 5.) IMMEDIATE DEVELOPMENT. Lynnwood's Sno-King Ice Arena,Inc.Is actively looking for property upon which to construct a new facility. We have already completed appraisals and preliminary financing Information. We are ready, willing and able to begin development immediately with a targeted opening date in the fall of 1999. 6.) 25-30 NEW JOBS IN COMMUNITY. The ice arena would bring 26 to 30 new Jobe to the community on a year around basis. 7.) CLEAN, HEALTHY FAMILY ACTIVITY. Ice-skating is a clean, healthy family activity that would fit nicely with the existing sports fields in the park. 8.) OPERATOR COMMITTED TO COMMUNITY INVOLVEMENT. As a community oriented business we recognize our responsibility to support other interest groups in the area. As such, it is our policy to accommodate donation requests whenever possible. At Lynnwood's Sno-King Ice Arena we receive and process hundreds of donation requests each year. Attached is a list of some of the organizations that have requested and received donations in the recent past Alderwood Boys&Girds Club Akderwood Cooperative Preschool Akderwood Rotary Club Arbor Heights Elementary School Raffle Arts Council of Snohomish County Bethany Christian Assembly Carenet Auction Cherry Valley Elementary Children's Hospital Guild Association Civic Light Opera Curiosity Comer Preschool Eastside Domestic Violence Program Eaton School Endeavor Elementary Friends of Youth Grace Academy Hazelwood Elementary School PTSA Heritage Christian School Holy Rosary Community Auction Lynnwood High School Lynnwood Meadowdale Cooperative Preschool Madrona School Maplewood K-8 School Meridian Park School Montlake School Auction North Seattle Christian School Northshore PTA Council Reorganized Church of Jesus Christ of latter Day Saints Rivers Council of Washington Seattle Men's Chorus Auction Serene lake Elementary Shoreline Rotary Club Auction Spruce Primary School St Catherine School St Luke Parish Center St Mary Magdalen School Temple De Hirsch Sinai The Jewish Day School The League for the Deaf and Hard of Hearing The Northwest School Valley View Middle School Virginia Mason-Sweet Charity Auction Washington DeMolay Foundation Washington Recreation&Park Association Westgate Chapel Woodside Elementary LAND LEASE TERMS In consideration of the aforementioned improvements we would request a 40 year land lease for the sum of One Dollar($1.00)per year. In the event a second Ice sheet Is constructed we would request that the term be re-egotiated to Insure adequate time to recoup our additional Investment. Because drainage and soil conditions are of critical Importance to an ice arena,we would request that the final Agreement be contingent upon a soil Inspection. We would request the right to share the parWs adjacent parking facilities (the Ice arena is a heavy winter use and would compliment the predominately summer demand In the park). Finally, as power costs are crucial to the ongoing operation, we would like the opportunity to purchase power from the City (assuming the City rates are significantly less than normal commercial rates.)through the lease document MOVE: ❖ To authorize the mayor to execute the proposed letter of agreement with Urban Trademark Corporation for development of an ice arena on park land. ❖ To authorize the mayor to negotiate and enter into a lease and related agreements upon terms and conditions similar to those set forth in the letter of agreement. ❖ To make the letter of agreement part of the record.