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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