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.