HomeMy WebLinkAboutX-E-03 Hastings Civic Arena RatesCity Council Memorandum
To:Mayor Fasbender & City Councilmembers
From:City Administrator Dan Wietecha
Date:July 7, 2025
Item:Financial Options for Civic Arena
Council Actions Requested:
•Consider increase “prime” ice rental rates from $260 to $270 per hour.Formal action will
be by ordinance at a future meeting.
•Consider adding premium of $55 per hour for the School District’s rental rates. Formal
action will be in the rental agreement at a future meeting.
Background:
The City has recently completed necessary improvements to the Hastings Civic Arena to convert
the refrigeration system from R-22 freon to an ammonia based system. This project also included
replacement of the west rink roof, including the addition of a 160 kW solar array. Overall, the
project was about $5.2M and came in about $300K under budget (largely due to receipt of a
$208K Mighty Ducks grant).
Around 2016, this was preliminarily discussed as an upcoming project by the City/School Joint
Powers Committee. With changes in leadership by both the City and School, everyone was new
in July 2024, when the City requested the School Board to consider a 30% cost-share (amount
typically negotiated under the JPA) toward the project. The School Board voted against
participating in the project in August 2024.
Separate from the JPA, we have an annual lease that lays out the terms of the School’s rental of
the Arena for boys and girls hockey from October to March. Under the 2024-2025 lease, the
School paid approximately $86K for ice time at “prime” rates of $230 per hour, exclusive locker
room usage, and custodial staff.
Raising Rates:
Prime rates just increased from $230 to $260 per hour on July 1; estimating 1660 hours (1280
hours by Hockey Association/Boosters and 380 hours by High School) this new rate will raise
$50K.The City Council approved the ordinance for this fee schedule change in December 2024.
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At $260, this is at the high end of average rates in the area. For comparison, the Minnesota Ice
Arena Manager Association reports the 2024/25 season with rates ranging from $150 in Marshall
to $300 in Fargo. Lakeville and Farmington are both at $260. Current rates (expected to increase)
at United Heroes League are $250 for squirts, peewees, and bantams (60 minutes) and $500 per
for junior varsity and varsity games (75 minutes).
The Parks & Recreation Committee met June 20 and recommended raising prime rates an
additional $10 to $270. Based on 1660 hours, this would raise an additional $16,600 from all
prime users.This would require an ordinance to change the fee schedule; first reading will be on
the July 21 agenda.
The Committee further recommended an additional premium of $55 per hour for the School’s ice
time due to their having first choice when scheduling practices and games and all other users
having to schedule around them. Based on 380 hours, this would raise an additional $21K from
the School District. This premium would be written into the annual lease (October 2025 –March
2026).
A Note on the Math:
The City’s annual debt service (adjusted for being under budget) is $577K for 10 years. If the
School had agreed to the 30/70 cost share historically negotiated under our Joint Powers
Agreement, they could have contributed $173K per year for 10 years (we offered that it could be
extended over a 20 year timeframe).
Instead under this recommendation, the Hockey Boosters/Association will be charged an
additional $51K (1280 hours at $40 increase) and the School District will be charged an
additional $36K (380 hours at $40 increase plus $55 premium). These totals $87K to partially
offset the debt service on this project; these rates may be adjusted in future years.
Financial Impact:
Increase revenue approximately $38K
Committee Discussion:
Recommended by Parks & Recreation Committee (Beck*, Lawrence, Vihrachoff) 6/20/2025
Attachments:
N/A
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