HomeMy WebLinkAboutCity Council Minutes 01-22-1996 SpecialMINUTES
SPECIAL COUNCIL MEETING
JANUARY 22, 1996
A special meeting of the Plymouth City Council was called to order by Mayor Tierney at
7:00 p.m. in the City Center, 3400 Plymouth Blvd., on January 22, 1995.
PRESENT: Mayor Tierney; Councilmembers Anderson, Wold, Lymangood, Preus, and
Black.
ABSENT: Councilmember Granath.
STAFF PRESENT: City Manager Johnson, Assistant Manager Lueckert, Public Safety
Director Gerdes, Park Director Blank, Finance Director Hahn, and City Clerk Ahrens.
Mayor Tierney opened a public hearing on the proposed use of Community Improvement
Funds to design construct, and equip a facility which would include an indoor ice arena,
swimming pools, and related site improvements.
City Manager Johnson presented the ballot question to be voted at the February 6 special
election. He stated that the Community Improvement funds are existing monies and no
tax levy will be needed to raise funds for the proposed project. Under the project outline,
the City would build two indoor ice sheets, at an estimated cost of $4.8 million, with
800,000 coming from outside sources. The City would own and operate the arena. The
City would pay $1.5 million toward the construction of the indoor and outdoor leisure
pools, which are in addition to the normal fitness pool found in Life Time Fitness Clubs.
Manager Johnson explained that Life Time Fitness Club would be responsible for all other
club construction costs, all club operating and maintenance costs, marketing of the
facilities, construction management for the project, guaranteeing architectural services at 6
percent, and providing daily fee access to the entire club for Plymouth residents. The City
and Life Time will divide the site work costs, and School District 284 will provide an
additional $1.5 million for construction of an eight -lane competition pool with spectator
seating and a diving pool. He explained that the City's Sports Facility Task Force met
during 1995, interviewing 14 athletic associations, and identified the top needs of an ice
arena and swimming facilities.
Park Director Blank showed a concept plan of the buildings and noted that at some time in
the future, a community activity center could be added to the south end of the building.
The existing amphitheater will be moved southerly. He reported that Plymouth was
awarded a $250,000 Mighty Ducks ice arena grant to assist with the project. The City
was able to obtain an additional $550,000 toward the ice arena from the Wayzata Youth
Hockey Association and the City of Wayzata.
Special Council Meeting
January 22, 1996
Page 2
Manager Johnson stated that Life Time Fitness has submitted a letter of intent which the
City has accepted for the proposed facilities. There is no binding contract. He stated that
the following facilities are proposed to be included in the complex: two indoor ice sheets
with seating for 800, eight team rooms, indoor leisure pool with water slide and other play
features, eight -lane competition pool, diving pool, whirlpool, outdoor leisure pool with
deck and water slide, free locker rooms, two full gyms, four racquetball courts, large
health fitness area with several hundred machines, day care area, aerobics room, snack bar,
massage room, small meeting room, and walkway connecting the facilities. Plymouth
residents could enjoy daily fees currently proposed at $3 for child age 12 and under, $5 for
child 13-17 or second adult family member, $8 for adult, or $6 for adult pools only fee.
Manager Johnson stated that the City's investment is protected through a ground lease.
The City will lease land to Life Time for 30 years subject to: residential use covenant
allowing Plymouth residents to use all facilities on a specified daily fee basis, minimum
operating standards to be specified, and compliance with the first mortgage requirements.
If these conditions are not met, the City will have the opportunity to acquire the entire
club/pool facility subject to the first mortgage. He stated that Life Time cannot add
additional debt on the facility without the permission of the City Council, and a debt
service reserve of four to six months will be established to allow time for the City to
consider its options. The agreement provides for arbitration of disputes. He stated that
the City shall have the right of first refusal to buy the property upon its sale during the 30
year lease period. The City retains zoning authority over the premises, as well as the right
of condemnation for any public purpose. He explained the proposed City project budget
and source of funds:
2 Indoor Ice Sheets $4,800,000
Swimming Pool Facilities $1,500,000
Site Development Costs $U00,000
TOTAL $7,400,000
Community Improvement Fund $5,000,000
State Mighty Ducks Grant $ 250,000
Other Contributions $ 550,000
Other existing City Funds $1,600,000
TOTAL $7,400,000
Manager Johnson stated that advantages of cooperative efforts are access to $8 million of
facilities for about one-quarter of the cost to the City, no operating costs to the City or
School District, daily fee access for all residents, facility open every day/24 hours per day,
private club pays about $400,000 per year in property taxes, private marketing of facilities,
and reduced liability for the City from operations. The project also supports Downtown
Plymouth.
Special Council Meeting
January 22, 1996
Page 3
Councilmember Preus asked if a daily fee for use of the outdoor pool only will be offered.
Manager Johnson responded that the possibility is being investigated.
Phyllis Hammett, 85 Holly Lane, stated she was a physical education teacher for 12 years
and her family is active in sports. She voiced concerns with the impact of the recent
School District 284 bond issue and stated that some residents are in danger of being taxed
out of their homes. This project could have unanticipated expense during construction.
She favors user fees and club memberships so that those who use the facility pay for it.
Ms. Hammett encouraged the City Council to establish an absolute budget for the project.
Mayor Tierney stated that the City Council decided against bonding for this project.
Manager Johnson stated that Plymouth's record on taxes is very strong. The City's tax
rate has decreased from over 18 to 14.9 in the last few years. The actual City taxes paid
by the average home in Plymouth are less than a few years ago. He stated that this project
proposes to build an ice arena facility and swimming pool facilities from existing funds.
Councilmember Lymangood stated that the City expects the ice arena facility to generate
sufficient revenue to cover the operational costs. He added that the parcel of land is
currently tax exempt, but following the project, the parcel will generate about $400,000 in
taxes. He stated that other community centers generally experience an operating deficit,
and Plymouth taxpayers will receive use of a facility without this cost. The Community
Improvement Fund will still contain about $5 million after this expenditure.
Bruce A. Johnson, 3715 Mmines Lane, stated he is the athletic director at Armstrong
High School and there is a tremendous need for ice facilities. Plymouth is the largest city
in Minnesota without an indoor ice facility. Mr. Johnson said that 13 -year old hockey
players currently practice until 11 p.m. on school nights at Augsburg College in
Minneapolis, and there is a growing girls' hockey program for which ice time is not
available. He predicted that the new ice arena facilities would have maximum use, and
noted that $130 is being paid for ice time elsewhere.
Mark Brandt, 3440 Urbandale Lane, President of Wayzata Youth Hockey Association,
said that over 800 children are participating in the Wayzata Youth hockey program. About
50 youth were turned away from participation in the program last year because of lack of
ice facilities. He explained that the Wayzata Youth Hockey Association currently spends
significant money for ice time at the Blake, Delano, and Breck arenas. This money could
be spent within the community and youth would have reasonable hours to skate. An arena
would also allow tournaments to be held which would generate revenue for the
community. He believes that an ice arena and pools would provide positive youth and
family activities.
Tim Flugaur, 12023 23rd Avenue North, suggested that the Council consider the
possibility of a bond issue in order to construct a city -owned and operated facility. He
believes that if the City owns the facility, the fees will not be as high as the fees proposed
Special Council Meeting
January 22, 1996
Page 4
by Life Time Fitness. He also expressed concern about the loss of trees on the site due to
construction.
Manager Johnson responded that the City Council considered the possibility of a bond
issue but decided there were a lot of current tax demands being placed on taxpayers by the
school districts. He stated that a similar City -owned facility would cost in excess of $12
million to construct and less amenities would be included. The City would also face the
possibility of future operating losses. Architects will attempt to save trees on the site and
the project will include landscaping. Mayor Tierney stated that the City is trying to ensure
a fair daily fee rate, as well as the possibility of scholarships for children and/or families
who cannot afford the fees.
Ken Kirchgessner, 3525 Urbandale Lane, represented the Wayzata Youth Soccer
Association. He expressed full support this project and other projects that serve youth in
the community.
Jim Neuenfeldt, 17120 1 lth Avenue North, stated that he moved to Plymouth in 1973.
His taxes have increased about 500 percent since that time. However, he does not object
to paying taxes for things that improve quality of life. His children have been involved in
swimming for many years and he wants to ensure that the eight -lane competition pool will
be included in the project. He said that the election literature should indicate exactly what
facilities are proposed.
Park Director Blank stated that the eight -lane competition pool will be included in the
plans as long as there is confirmation from School District 284 that they want it.
Councilmember Lymangood stated that when the literature was printed, the City said a
competition pool "may be included because the School District had not yet made a
commitment. School District 284 voted earlier this evening to contribute $1.5 million for
the competition pool, so it will be included in the project.
Sue Aschenbech, 2011 Olive Lane, stated she has children involved in hockey and
swimming. She supports the overall project, and stated that the existing swimming
facilities are outdated and inadequate. Also, swimming facilities could be used by the
entire community.
Karen Parks, District 284 Board Member, reported that the School Board adopted a
resolution earlier this evening to contribute $1.5 million toward the project. She explained
that there was a School District Pool Committee who researched where the monies should
be spent from the school bond funds designated for a pool. She said that $1.5 million
alone could not build the facilities they desired; however, a joint project with the City will
ensure quality facilities. She viewed this as a continuation of a good working relationship
between School District 284 and the City of Plymouth.
Gigi Villamil, 16910 23rd Avenue North, appeared in favor of the ice arena.
Special Council Meeting
January 22, 1996
Page 5
Cheryl Knox, 16725 12th Avenue North, supported the facility. She believes there is a
need for a competition pool, and stated that swimming is a life-long sport. She believes
that the proposed $6 daily user fee for the pool is excessive for the resident who swims
more than four times a week. Manager Johnson responded that monthly family and
individual memberships are available.
Mark Bendell, 4420 Urbandale Court, supported the proposal. He commended the Sports
Facilities Task Force and said that his family will use this facility. He also believes that the
ice arena will provide positive opportunities for youth.
Wayzata Councilmember Barry Petit, 195 Lakeview Lane, Wayzata, stated that the City
of Wayzata has made a contribution to the facility. He commended Park Director Blank
for his work on the project. Park Director Blank confirmed that the City of Wayzata has
contributed $50,000 toward the project. Wayzata youth would receive the same benefits
as Plymouth youth for use of the ice arena facilities.
Brian Litch, 141 North Central, Wayzata, stated he is a six-year old hockey player. He
supported the ice arena facilities.
Neil Robinson, 13000 37th Avenue North, congratulated the City on obtaining the Mighty
Ducks grant funds. He supports this public/private endeavor, but encouraged the Council
to ensure that the fees are reasonable. He asked what happens at the end of the 30 year
lease period. He believes that the ice arena can be self-supporting, and asked if the cost
operations of the ice arena and pool/fitness facilities will be separate or whether one
function may have to pay higher rates to subsidize the other facilities.
Manager Johnson responded that the City will operate the ice arena and Life Time Fitness
will operate the pool and club facilities. All funds will be kept separate. He stated that
there is no automatic reversion of ownership at the end of 30 years - it would be
renegotiated at that time.
Judy Dyrud, 4745 Goldenrod Lane, stated she is a parent of five children who do not
participate in hockey or swimming. She stated that the proposed $6 pool fee is too high.
She also expressed concern that the fitness center will be geared toward adults and the
pools toward competitive swimming, and suggested that the City should perhaps operate
the facilities. Ms. Dyrud stated that children who do not participate in organized sports
need a place to recreate.
Manager Johnson stated that it is possible that if the City constructed and operated the
facilities, there would be an operating deficit. Other city -operated community centers
have experienced a deficit. The Plymouth community center proposed in 1989 projected a
150,000 annual operating loss.
Special Council Meeting
January 22, 1996
Page 6
Chris Arshambo and Jim Yungner, represented The Gym, 2855 Glacier Lane. They were
opposed to the project. Mr. Arshambo stated that the City may have to take over the
fitness facility and incur costs if the fitness club experiences financial problems in the
future. He feels that a fitness facility is not a place for kids. Mr. Yungner stated he is not
opposed to the ice arena or swimming facilities, but opposes the fitness facilities. He
asked why his franchised fitness facility did not receive a request from the City to submit a
letter of intent for a cooperative arrangement. Mr. Yungner stated that Life Time Fitness
requires an initiation fee in addition to their monthly membership fees. He does not
support the City having an arrangement with a private business that is in competition with
his business.
Manager Johnson explained that the City sent inquiries for letters of intent to known
franchished fitness facilities. He explained that the City will separately own and operate
the ice arena. If Life Time Fitness should have financial difficulties, the City would have
the opportunity to take over the facility for the amount of the first mortgage. The City
could then resell or operate the facility, or use the building for something other than a
fitness facility. Manager Johnson stated that the fitness equipment will be located in a
separate portion of the club where there is an age limit on use.
Councilmember Lymangood stated that this project has been discussed at many public
meetings of the City Council and the Sports Facility Task Force. He said the purpose of
this meeting is to get additional public input.
Mark Cree, 4345 Weston Lane, asked about the proposed monthly fees. He currently
pays $45 per month for a family membership at U.S. Swim and Fitness. He also asked
how many aerobics areas are included in the facility. Manager Johnson said that the
monthly fees are $69 for a family of 3 or larger and $29 for an individual membership.
Plymouth residents will receive a 15 percent discount on initiation fees. Two aerobic
studios are included in the facility.
Mike Blood, 4320 Harbor Lane, has been a resident of Plymouth for 16 years. He has
three children in organized sports, and his family currently pays $65 for a family
membership at the YMCA. They use the YMCA for birthday parties, swimming, aerobics,
volleyball, and daycare. He believes that many individuals who belong to health clubs
outside of Plymouth will become members of this facility. He discussed the inadequate
condition of existing soccer and hockey facilities. Mr. Blood has visited the recreation
facilities in Chaska and Shoreview and questioned why the City would not own and
operate a facility. He supported this project in order to do something for kids in the
community.
Kathy Kelly, 3310 Xanthus Lane, supported the project because Plymouth needs a facility
for teen activities. She has three daughters who are figure skaters, and she pays about
10,000 per year for ice time. She hopes that Plymouth will offer a figure skating
program.
Special Council Meeting
January 22, 1996
Page 7
Tom Nimmo, 4545 Quinwood Lane, has three boys who play hockey. He supports the
project and believes it will increase property values.
Bob Fallen, 11605 44th Avenue North, represented USA Hockey. He said that an ice
time cost of $120 per hour is a bargain compared to similar cities in the United States. He
said there are many organizations who can help to generate use of the ice arena facilities.
He stated that in-line hockey is the fastest growing participation sport, and perhaps the
second ice sheet could be converted for that use half of the year. Manager Johnson stated
that the ice arena design will be done to accommodate the widest possible uses.
Bill West, 984 Zanzibar Lane, stated that his school district taxes recently increased 30.4
percent. He is concerned that there be no additional taxes as a result of this facility;
however, he is not opposed to the project. He asked about the use on outdoor rinks.
Park Director Blank stated that the 11 outdoor sheets of ice in Plymouth are typically
opened on December 20 and closed by February 20. Weather severely limits the number
of days skating is available.
Mike Monson, 305 Harbor Lane, favored the entire project.
In response to questions by Tim Flugaur, Manager Johnson explained the funding sources
for the project. He said that everyone is doing what they know best in this joint project -
cities know how to operate ice arenas and private industry knows best how to market and
operate a fitness facility.
Dave Sorensen, 17710 30th Avenue North, stated there is a tremendous shortage of ice
time in Plymouth. He commended the City Council and staff for developing a plan that
provides ice facilities for the community.
Joan Wigginton, 5120 Larch Lane, stated she is a 17 -year Plymouth resident. She spoke
in favor of the complex on behalf of the Swim Club.
Manager Johnson explained the voting procedures for the February 6 Special Election.
Mayor Tierney closed the public hearing.
The meeting was adjourned at 9:25 p.m.
Laune Ahrens
City Clerk