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HomeMy WebLinkAboutItem 05.bPage 20142014 Lakeville Ames Arena Lakeville Hasse Arena Prepared by: Shayne Ratcliff Lakeville Arenas 03/30/2015 Annual Review Page 2 Lisa Snyder .......................................................................... ISD 194, Superintendent Jim Skelly ............................................................................. ISD 194, Board Member Steve Mielke {1/14 - 7/14} .............................. City of Lakeville, City Administrator Brett Altergott {8/14 - 12/14} .......... City of Lakeville, Parks & Recreation Director Doug Anderson ........................................... City of Lakeville, City Council Member Robert Finke ................................................................ Community Member-at-Large MISSION STATEMENT “Lakeville Arenas is a customer service organization dedicated to creating and maintaining a fun, family- oriented atmosphere. Our staff is devoted to delivering unparalleled customer service and program opportuni- ties to all our guests. We strive to build a lifelong commitment in the community to individual and family en- tertainment through ice, turf, and dry floor events.” CONTENTS Facility Usage ............................................................................................................ 3 Learn To Skate/Dry Floor Events .............................................................................. 4 Dry Floor Events ........................................................................................................ 5 Arena Revenues ......................................................................................................... 6 Arena Expenditures .................................................................................................... 7 Arena Debt Service .................................................................................................... 8 Summary .................................................................................................................... 8 LAKEVILLE ARENAS BOARD OF DIRECTORS ARENA STAFF Shayne Ratcliff .................................................................................. Arenas Manager Dave Carroll ................................................................................... Assistant Manager Andrew Stoffel ............................................................................... Assistant Manager 32 seasonal operations and learn to skate staff Page 3 Facility usage has increased over the last 5 years due to additional and a wider variety of dry floor events, as well as additional ice rentals due to higher demand. FACILITY USAGE Hours Rented by User Group User Group % Change 2014 2013 2012 2011 2010 Lakeville Hockey Association -1.0%2277 2301 2334 2298 2209.5 Fall/Spring Clinics & Camps -21.0%714 904 988 800 334 ISD 194 -3.2%878 907 898 893 872.75 Summer Ice/ AAA Teams -54.3%308 674 457 355 405.5 Turf Users 16.3%292 251 270.5 294 201 Arena Events -6.3%295 315 245 240 285 Learn To Skate -20.3%165 207 212 180 177 Figure Skating 7.3%249 232 168.5 69 172.5 Public Skating -17.0%122 147 159 155 175.5 Captains Practice 40.9%93 66 75.5 77.5 75.5 Adult Hockey Group -13.6%51 59 69 99 118 Surrounding Youth Associations 64.6%79 48 48.5 74 318 Total -9.6%5523 6111 5925 5534.5 5344.25 Hours Rented Lakeville Hockey Association ice usage has remained consistent over the past five years. Cooperation be- tween the LHA, ISD 194 and the Arenas has helped to maximize ice rentals during the winter months. Summer ice rentals decreased as partnership with Total Hockey MN to keep ice installed at Hasse Arena dur- ing the summer months was not renewed as in 2012 & 2013. This caused a reduction of 540 hours between the summer (June/July) and fall (Aug-Sept) ice seasons. All other summer rentals remained consistent with previous years. Learn to Skate hours decreased as the Tuesday daytime classes were eliminated due to lack of enrollment. Figure Skating usage continues to increase as the Heritage Figure Skating Club grows in size and requires Facility Usage Details Page 4 The Lakeville Arenas Learn to Skate program had an increase in the number of participants in 2014 compared to 2013. The increase was consistent with a national trend which occurs on a four year cycle following each Olympics. The LTS program saw revenues of $40,003 and staffing expenses of $16,881 for 2014. Staff will continue to review and adjust this program while at the same time provide a quality program. Year Winter Spring Summer Fall Total 2014 196 137 65 175 573 2013 189 150 68 146 553 2012 237 160 73 130 600 2011 274 118 63 149 604 2010 264 160*42 205 671 2009 198 165 67 127 557 2008 300 179 56 155 690 2007 N/A N/A N/A 191 191 *Spring 2010 revenues are not recorded in total revenues listed on page 5. Session Learn to Skate Comparisons LEARN TO SKATE PROGRAM In 2011, the Lakeville Arenas Learn To Skate joined with the City of Farmington Learn To Skate to create a new figure skating club called Heritage Figure Skating Club. The Heritage Figure Skating club consists of skaters from Lakeville, Farmington and surrounding areas to offer additional skating opportunities beyond the Learn To Skate program. The Club started with 17 members in 2011 and has a current membership of 36 skaters. In 2012, the Heritage Figure Skating Club hosted the first Ice Skating Show at the Lakeville Arenas. The club continues to grow and expand their participa- tion while increasing their ice rentals. HERITAGE FIGURE SKATING CLUB Page 5 Kids Consignment Sale Home Design Expo DRY FLOOR EVENTS In an effort to maximize facility usage the Lakeville Arenas offers artificial turf and dry floor rental opportuni- ties during the Spring and Summer months. Over the past years the Arenas have generated additional revenue through many various events. Below is a portion of events hosted over the past year. The Arena hosts four kids consignment sales each year. Approximately 1,500 shoppers attend each. The Home Design Expo has over 100 exhibitors and generates nearly 3,000 people in attendance. The Family Fun Fest is held annually in the Spring and features numerous activities for families, vendor booths and a movie on the turf. The 2014 Fest had approximately 1,200 community members attend. Fun Fest Activities Movie on the Turf Kids Consignment Sale Home Design Expo Page 6 ARENA REVENUES Summary In 2014, Lakeville Arenas saw an overall revenue decrease of 7% over 2013 in the amount of $82,825. 2014 2013 2012 2011 2010 Revenues Charges for services Ice rental 909,925$ 994,215$ 959,541$ 859,959$ 856,687$ Dry-floor rental 31,294 36,835 39,106 34,011 42,284 Learn to skate 40,003 40,045 43,488 50,464 34,019 Admissions-public skating 13,053 11,999 14,740 13,848 15,068 Event admissions (net)44,012 41,278 45,047 37,494 34,337 Concession/Proshop sales (net)26,872 24,148 13,183 6,941 13,719 Concession stand rental - - 1,000 2,500 2,500 Skate sharpening 6,112 6,499 6,718 5,928 5,886 Skate rental 6,115 4,408 4,351 3,747 4,894 Vending machines 5,800 6,415 8,206 7,099 8,305 Other - advertising contract 20,663 20,832 21,183 19,200 26,189 Total charges for services 1,103,849 1,186,674 1,156,563 1,041,191 1,047,424 Other income Interest on investments 258 557 731 1,028 616 Miscellaneous 9,186 2,821 5,982 2,351 11,495 Total revenues 1,113,293 1,190,052 1,163,276 1,044,570 1,059,535 Revenue Details  Ice Rental revenues in 2014 decreased as partnership with Total Hockey MN to keep ice installed at Hasse Arena during the summer months was not renewed as in 2012 & 2013.  Dry Floor Rental revenues decreased slightly due to fewer kids consignment sales as the vendor was working to sell the company.  Public Skating revenues increased in 2014 due to additional sessions during the winter months as a result of fewer Saturday high school games during the season.  Event Admissions increased in 2014 due to the success of the high school hockey teams.  Concession sales increased due to the increased high school game attendance.  Skate Rental revenues remained steady as non traditional skating families continue to visit the arenas.  Additional Miscellaneous revenue was generated as a result of renting our extra ice resurfacer to the For- est Lake Arena on short notice when their resurfacer broke down for an extended period.  Skate Sharpening and Advertising revenues were consistent with prior years. Page 7 ARENA EXPENDITURES Expenditure Comparisons (Includes Capital Outlay expenses and Transfers to Capital Improvement Fund) Capital Outlay Expenses  2014 - $800, Bleacher Heaters, $1,769, Fire Alarm Panel, $4,110, Cash Register Computers  2013 - $484, Lobby Monitor, $717, String Trimmer, $2,039 Concession Equipment, $2,322, Fire Alarm Panel, $4,475, Freon Detection System, $9,298, Hasse Ice Resurfacer Batteries  2012 - $966 - Popcorn Maker, $2,293 - Cash Register, $2,610 - Rental Skates, $3,000 - Ames Arena Skate Sharpener, $5,587 - HVAC Controls, $6,537 - Ames Arena Floor Scrubber, $8,000 - Pickup Truck, $9,900 - Parking Lot Fencing, $19,609 - Hasse Meeting/Locker Room Renovation  2011 - $1,957 - Lobby Monitors, $2,035 Desktop Computer, $9,838 Air Quality/Building Management Controls Ames Arena, $15,039 Compressor Replacement, $20,762 Desiccant Wheel Replacment  2010 - $6,096 for Rink 2 locker room flooring, $3,747 for Kaivac cleaning machine, $19,142 for Rink 2 lighting upgrade, $2,950 for water softener replacement at Ames and $11,012 for lawn tractor.  2009 - $11,558 for POS cash management, $1,562 for rental skates, $1,769 for desktop computer, and $2,367 for lobby countertops and $3,364 for network upgrades.  2008 - $4,741 for rental skates, $11,955 for hot water heaters and $7,949 for condenser tank replacement. Operating Capital Outlay Total 2014* $ 1,084,100 $ 6,679 $ 1,090,779 2013* $ 1,127,519 $ 19,332 $ 1,146,851 2012* $ 1,104,326 $ 61,319 $ 1,165,645 2011* $ 975,773 $ 49,631 $ 1,025,404 2010* $ 1,000,335 $ 42,947 $ 1,043,282 2009* $ 903,605 $ 20,620 $ 924,225 2008* $ 849,236 $ 24,645 $ 873,881 Capital Improvement Comparisons 2014 2009 Ames Arena Lighting Retrofit - $58,265 Energy Recovery Dehumidification Unit - 2013 Ames Arena Rink #2 - $223,557 Ames Arena Ice Resurfacer - $136,328 2008 Ames Arena Roof Top Units - $35,692 Evaporative Condenser Replacement – 2012 Ames Arena - $49,500 Dehumidification Loan Payoff 2007 Ames Arena Rink #1 - $100,220 Air Quality Controls Ames Arena - $18,621 2011 2006 Lobby & Rink Rubber Flooring Ames Arena - $75,008 Compressor Replacement Ames Arena - $11,898 Lobby benches Ames Arena - $1,848 Expansion Joint Replacement Ames - $8,300 2010 Low Emissivity Ceiling Ames Arena Rink #2 - $58,265 Page 8 ARENA DEBT SERVICE The Lakeville community has arena facilities due to the collaborative efforts of the City of Lakeville, Inde- pendent School District 194, and the Lakeville Hockey Association (LHA). Ames Arena - The issuance of $1.375 million of Ice Arena Lease Revenue Bonds by the Lakeville Housing and Redevelopment Authority along with community contributions solicited by the Lakeville Community Cor- poration and Lakeville Hockey Association provided the financing for construction of the first phase of the Ames Arena in 1994. Independent School District 194 was also a partner with the land contribution. The City of Lakeville financed the concrete floor and the temporary seating. An additional sheet of ice was constructed to Ames Arena in 1997 with financing from $1.305 million of Gen- eral Arena Bonds issued by the City of Lakeville. A Mighty Ducks grant ($250,000) was provided by the State of Minnesota. The City of Lakeville and Lakeville Hockey Association each contributed $250,000 to the project. Independent School District 194 financed the construction of changing rooms. The permanent seating was financed in 2002 with a short term loan combined with contributions from the LHA and Independent School District 194. The short-term loan has been paid in full from LHA contributions. Hasse Arena - Hasse Arena construction was financed in 2007 with a General Obligation Lease Revenue Bond issued by the Lakeville Housing and Redevelopment Authority. The land was contributed by the City of Lakeville and Independent School District 194. The Hasse family paid $125,000 for the naming rights. Ames Arena has $667,000 of debt which is paid with an annual $95,000 contribution from the Lake- ville Hockey Association and an annual $88,636 payment from Arena operations. The final payment on the debt is August 1, 2019. The City of Lakeville and Independent School Dis- trict 194 each contribute $289,300 annually to the retirement of the payment of the $7.737 million of outstanding debt. City of Lakeville $289,300 Independent School District 194 $289,300 Hasse Arena Annual Debt Payment Arena Operations $88,636 Lakeville Hockey Assn $95,000 Ames Arena Annual Debt Page 9 Summary Overall, the Lakeville Arenas continued to be very successful in 2014. Ice rental revenues dropped slightly as expected as a summer partnership to keep Hasse Arena open was not renewed. As a result of successful sea- sons by the HS hockey teams both event admissions and concessions revenue saw nominal increase. Attend- ance at public skating sessions increased due in part to poor outdoor skating conditions, however, skate rentals continued to increase as non traditional skating families continue to participate in events at the arenas. Opera- tional expenditures decreased slightly from 2013 due to a shorter operating season however investment in new energy efficient equipment such as new LED lighting in Ames #1 will help to control utility expenses for many years to come. As we continue to focus on additional revenue sources and attracting new customers and users to our pro- grams, we are still very focused on retaining our current users as well as reducing our operating expenses through energy saving ideas, staff training and overall operational efficiency.