#5 Authorize use agreement and funding for Ice Center (File Res. #2009-569)
CITY MANAGER DEPARTMENT MEMORANDUM
March 16, 2009
MEMO TO: City Council
MEMO FROM: Eric Levitt, City Manager
SUBJECT: Action on approving design contract for ice rink building
modifications.
Introduction
File Resolution 2009-569 authorizes the City Manager to execute a Use
Agreement with the Wisconsin Hockey Partners, LLC (WHP) to utilize the
Janesville Ice Center as their team home rink. This agenda item requests City
Council action on the City of Janesville making modifications to the Ice Center
and to potentially sign an agreement to accommodate a new Junior A Hockey
Team. The next section represents an update since the January meeting.
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Update for March 23 City Council meeting
The City Council brought forward several areas to be further reviewed.
1. Concerns with involvement from the user groups.
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The City conducted an initial needs analysis meeting with the
architect and the user groups.
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Angus Young will be bringing back potential design options based
on the need analysis at a user group meeting at the end of March.
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City Council can adopt a motion to approve the contract with a
capital cost limitation.
2. Financial component
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The City anticipates making approximately $15,000 + per year in
increased net income.
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Areas that were looked for additional income included having ticket
add-on fee or collecting a percentage of beer sales revenues.
However, neither of those options were added to the contract.
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Security costs remain shifted to the WHP. This is a cost the City
initially shared in.
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The needs analysis has brought forward some necessary capital
items (i.e. restroom improvements and heating elements) that were
not included in the initial estimates. This may increase construction
costs and total project. We do not have an updated cost as of this
date.
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Future Capital cost sheet is attached.
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The Youth Hockey Advertising and Concessions contract has
ended and the City is in the process of renegotiating the contract.
3. Concerns with alcohol sales at the ice rink.
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The Contract now states that alcohol will be sold in separate area.
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Having designated sections will be further investigated as the
design moves forward but can’t be committed to at this time
Background Information
The City Administration was contacted in the late Spring of 2008 by a group of
local investors interested in bringing a North American Hockey League (NAHL)
franchise team to Janesville. After fiscal analysis and discussions with the City
Administration, the investors decided to review use of the existing ice facility.
July 18,
The City Administration met with the City Council in closed session on
2008 and again on October 13, 2008
in closed session. The City Council
directed the City Administration to proceed with negotiations and identify cost
estimates for building modifications. The City Administration has negotiated a
Use Agreement with the WHP (copy attached). The Engineering Division has
identified a cost estimate of approximately $200,000 for necessary building
modifications and architectural fees. This cost estimate could change after an
architect prepares plans and specifications and the City goes through the public
bidding process.
City staff met with many of the current user groups at the Ice Center on
September 2, 2008. There could be impacts with schedule changes if this new
Junior A Hockey Team comes to Janesville. The team anticipates practicing
during weekday afternoons and have games on Friday and Saturday nights. All
of the user groups were receptive to any schedule changes. They felt the
advantages of having a Junior A Hockey Team in Janesville outweighed some
slight inconveniences of schedule changes.
Further Analysis provided at the February 23rd Council meeting
The City Manager reviewed several aspects of this proposed project since the
last meeting based on comments and concerns raised. The areas reviewed are
the financing of the construction, the operational costs, impacts to programming,
potential for the team to end the lease, and user input.
Capital Financing
1.
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The estimated cost is a total estimated cost of not to exceed
$229,000.
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The City Manager has communicated his intent to try to maintain
the total cost at approximately $200,000 if possible.
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The construction can be financed via borrowing new funds or
reallocating in May from existing borrowed funds.
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The financing would equal approximately $1 per year for an
assessed house of $113,000.
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Annual Operations
2.
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2008
The year resulted in a subsidy of approximately $85,000.
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reduce the property
If the Junior team came to the City it would
tax subsidy
by approximately $15,000 to $20,000 (all other factors
remaining stable.)
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The ice rink currently subsidizes other recreation programming
such recreation night and camps by approximately $20,000. This is
due to a contract with the school using the rink for free and then
allowing use of their facilities for free.
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Other recreation programs operated by the City range in subsidy
from $109,000 to $228,000 (The number does not include the
100% subsidy of parks capital program and parks programming)
This shows that the rink is the lowest subsidized recreation
program and that an element of all recreation programs is that they
are subsidized by property taxes.
Impacts to programming
3.
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The major programming that will be impacted is Friday night skates on
game nights. There may also be some programming that has to be
moved around due to the camps and practice schedule, but should
have more minimal impact.
Wisconsin Hockey Partners, LLC
The WHP is a Limited Liability Company that is licensed to operate in the State of
Wisconsin.
NAHL League Information
oldest Junior A Hockey
The NAHL was founded in 1975 which makes it the
League in the U.S.
The NAHL consists of 17 teams in three divisions (West,
Central and East). The Janesville team would be part of the Central Division with
six other teams from Minnesota, Iowa, South Dakota and Illinois. Janesville
would be the site of the first Wisconsin team. The league prepares 16-20 year
old hockey players who wish to play collegiate hockey. The team consists of 23
players plus support staff, of a head coach, two assistant team managers and an
equipment manager. The staff is paid a salary. The hockey players are not paid
because of their amateur status, but receive a stipend for living expenses. The
hockey players would room and board with local families and receive monthly
compensation for expenses.
The team would use practice ice on Monday-Thursday afternoons and play
games on Friday and Saturday nights. The team would play 30 home games
and have a similar number of away games. Their hockey season is September
to April. They would also rent summer ice for camps and team try-outs.
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The NAHL has a minimum seating capacity limitation of 1,500 spectators. The
Janesville Ice Center has bleacher seating for 1,000 spectators. The NAHL is
willing to make an exception for Janesville until they see how the league
develops. The NAHL has made this same accommodation for other ice rinks
with similar seating limitations. Although the Ice Center only has seating for
1,000 spectators, the building capacity is 2,266 people.
Community Survey
The WHP conducted a market study in November 2008 by interviewing 358
Janesville residents to identify community reaction to this new Junior A Hockey
Team coming to Janesville. The survey results concluded the following:
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53% somewhat agreed or strongly agreed that the City should promote
more sports and recreational activities.
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48% stated that they or someone from their household had attended at
least one sporting event in Janesville during the past year.
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65% stated that they or someone from their household had attended at
least one City sponsored event during the past year.
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94% stated it was important to have the ability to watch local and
Wisconsin athletes play sports.
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51% stated they consider themselves fans of hockey.
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49% stated they were interested in seeing an amateur sports franchise in
Janesville.
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54% stated they liked the idea of a NAHL Junior A Hockey Team in
Janesville.
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48% stated they would likely attend a Junior A hockey game in Janesville.
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21% stated they were more likely and 67% stated they were less likely to
attend a Junior A hockey game if beer was served.
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68% stated a Junior A hockey team would have a positive impact on the
community.
The community survey added insights to information gathered from other teams
for the WHP.
Use Agreement Highlights
The Use Agreement provides for a five year term which is renewable. The WHP
will pay the City for ice rental time and rental fees for dedicated team locker
rooms and office space. The Use Agreement allows the WHP to apply for an
alcohol license which would be served only during games. They would stop
selling alcohol at the end of the second period. The WHP will also sell team
merchandise. The WHP will assume the advertising rights inside the Ice Center
which are currently allotted to the Janesville Youth Hockey Association (JYHA).
The JYHA had a contract that ended prior to 2008 that provided that they pay the
City $10,000/year and receive the ability for these advertising rights. JYHA has
not renewed the contract due to the net loss of funds to the club.
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The WHP has agreed to allow JYHA to continue operating the concession stand
which provides food and non-alcoholic beverages. The WHP would have the
right to sell other food products which are not provided by the JYHA concession
stand as long as they are not directly competing with JYHA.
Building Modifications
Any building modifications to the Ice Center would occur within the limits of the
existing building footprint. Current program space would be modified or
combined to make the existing space more functional for the NAHL and the City.
The Administration is proposing to hire an architect to prepare building plans for
future City Council review.
The NAHL requires dedicated space for a locker room, showers, office space
and equipment storage. Preliminary review of the building would suggest we
convert the warming room and concession stand area to locker rooms and office
space for the new team. The existing entrance lobby and community room would
be converted to the new concession area with public space to serve as a
warming room. Beer would be served in this area as well. The main entrance
would be shifted to the old entrance on the west side of the building. Some
vehicle circulation and parking changes would be needed outside the building.
The Engineering Division has estimated a cost of $200,000 for building, parking
and architectural services. The cost for these building modifications and site
improvements would be funded by the City.
Ice Scheduling Impacts
The WHP will use the Ice Center approximately 420 hours per year. This usage
level will have some impacts on our current master schedule for user groups.
City staff has met with all the user groups in the early Fall and they are receptive
to any schedule changes. Most of the impact will be with Friday night public
skating sessions, Saturday night Youth Hockey games and weekday figure
skating practices. There will be no impacts on Friday and Saturday when the
team has away games. The new team will begin playing in September 2009
which would be the earliest impact on our master schedule.
NAHL Expenses and Revenue
WHP plans to sell adult admission tickets at approximately $9 a game. WHP will
provide discounted ticket prices of $6 to $7 for youth, seniors and group outings.
It has been indicated that an average of 700 spectators at each home game and
hopefully more spectators for league playoffs and tournaments is necessary for
this to be successful long-term.
City Manager Recommendation
The City Manager has continued negotiations with WHP representation since the
last meeting. The proposed contract attempts to balance the interests of WHP
and the City of Janesville.
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Proposed Motion
I move to approve File Resolution 2009- 569 and to move forward with
renovations at the rink at a cost not to exceed $______________.
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Proposed 5 Year Capital Expense Plan
Janesville Ice Skating Center
FundingLastSource of
ItemImportance20092010201120122013Approved
ReasonRecommended Action
SourceService Estimate or Quote
Replace Upper RoofHigh$125,00009' NoteXPast DueFull Replacement with EPDM and 1-1/2" of Insulation1984Christiansen Roofing
Replace Fire Exit DoorsHigh$30,00008' NoteXPast DueFull Replacement including Alarmed Panic Hardware and ClosersCongress Glass
Repair Water damage to all Cement Block WallsHigh$18,000Past DueRemove moisture after Roof work and repair damaged blockBallou Masonry
Ice Making SystemHigh$700,000Past DueTotal Replacement of Compressor & Under floor Piping SystemsEPA & JDM
Repair Leaking Cooling TowerHigh$8,000Past DueHave the drain pan lined with a liquid applied rubber productFrom Staff
Prevent Ice Damage to NE corner of Bldg.High$5,000Past DueRedirect drainage away from building & install storm drain
Replace Heating units for Party Rm. & Admin areaHigh$1,500Past DueInstall (2) "above ceiling" heating units
Add pump for Snow Melt PitHigh$2,500Energy SavingsInstall a temperature controlled 5th Circulation PumpConsultant
Replace heat in Team Locker RoomsMed$3,500Energy SavingsInstall Hot Water Heating Units in 4 Locker Rooms
Repair Cast Iron BoilerMed$10,00008' NoteXPreventativeReplace Cast Iron BoilerConsultant
Replace Lower RoofMed$35,00009' NoteXPreventativeFull Replacement with EPDM and 1-1/2" of Insulation1994Christiansen Roofing
Repair Sprinkler SystemMed$1,000Maint.Repair deficiencies recommended by service contractor
Replace burner in Dehumidifier SystemMed$3,000Energy SavingsReplace Burner Assy.Cullen Slapak & ERA
Replace Public Address SystemMed$1,500RevenueStaff recommends replacement
Clean exchanger in Hot Water TankMed$3,500Energy SavingsHave heat exchanger portion cleaned or replace if necessary2003
Scrape & Paint Rain GuttersMed$2,000AestheticsRe-Paint all gutters and replace damaged downspouts
Paint and Repair BleachersMed$2,000AestheticsStaff recommends painting all bleachers one color
Replace Outdoor Temp ControlMed$500Energy SavingsRepair or Replacement of Outdoor Temperature Controller for BoilerConsultant
Service Water SoftenerMed$500Maint.Needs Head repair or replacement
Caulk and Paint WindowsMed$500Energy SavingsNeed to be caulked and painted
Replace Marquee SignMed$2,500RevenueReplace Plexiglas Faces or entire Sign
Add Phase Monitors to Pump MotorsMed$1,500Past DueAdd Phase Monitoring to both Pump MotorsConsultant
Service Compressor MotorsMed$3,000PreventativeMajor Service on Compressor Motors every 10 yearsConsultant
Paint Interior of South WallMed$4,000AestheticsClean, Waterseal and Re-Paint
Paint Interior of North WallMed$1,000AestheticsClean, Water seal and Re-Paint
Add Sprinkler System over IceMedCode compliance?Find out if required by code over the ice sheet?
Upgrade Hi Bay Lights over IceLow$12,000Energy SavingsReplace (40) HID fixtures with T8 Fluorescents
Replace Main Entry DoorsLow$5,200AestheticsReplace wooden doors w/ Aluminum Doors in existing metal framesCongress Glass
Repaint Main Entry FramesLow$300AestheticsPaint existing frames to match new doors
Replace Rubber Floor CoveringLowTypical WearGood Condition now, but may need to be replaced in 4-5 years1994
Replace Galvanized Plumbing SystemLowPreventativeReplace rusted galvanized piping with copper
Replace Cast Iron BoilerLow$30,000Energy SavingsReplace with Energy Efficient Unit
Install Energy Management SystemLow$12,000Energy SavingsSystem would monitor conditions, trends and serve as an alarm
$173,000$733,500$49,000$22,000$47,000
5 Year Total$1,024,500
Average Expense per Year$204,900
Approx. Replacement Value of Property$2,000,000
% Recommended per year of Repl. Value10.25%
LIMITED AND NON-EXCLUSIVE LEASE
AND
USE AGREEMENT BETWEEN THE
CITY OF JANESVILLE
AND
WISCONSIN HOCKEY PARTNERS, LLC
2009 – 2014
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Table of Contents
SUBJECT PAGE
PREAMBLE 1
1.DEFINITIONS 1
2. TERM 2
3.USE OF PREMISES 3
4.WHP RIGHTS 3
5.CITY RIGHTS 5
6.RENTAL RATES 6
7.ICE CENTER IMPROVEMENTS 7
8.STAFFING AND SERVICES 7
9.PARKING 7
10.SCHEDULING 7
11.ADVERTISING 8
12.BROADCASTING RIGHTS 8
13.INSURANCE 8
14.INDEMNIFICATION 9
15.CONTINGENCY 9
16.TERMINATION AND DEFAULT 10
17.ASSIGNMENT 10
18.ENTIRE AGREEMENT 10
19.BINDING EFFECT; CHOICE OF LAW 10
20.SEVERABILITY 11
21.AUTHORITY 11
22.NOTICE 11
23.NO THIRD PARTY RIGHT 12
24.ADDITIONAL OBLIGATIONS 12
EXHIBITS
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A.MAP OF LEASED FACILITIES
15
B.MAP OF NON-LEASED FACILITIES
16
C.MAP OF PREMISES
17
D.ICE CENTER CAPITAL IMPROVEMENTS
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LIMITED AND NON-EXCLUSIVE LEASE AND USE AGREEMENT
BETWEEN THE CITY OF JANESVILLE
AND WISCONSIN HOCKEY PARTNERS, LLC
This Agreement is made by and between the City of Janesville, a Wisconsin Municipal
Corporation, hereinafter referred to as the “City” and Wisconsin Hockey Partners LLC, a
Wisconsin Limited Liability Company, hereinafter referred to as the “WHP.”
Whereas, the City conducts its principal business at 18 North Jackson Street, City of Janesville,
County of Rock, State of Wisconsin; and
Whereas, the City is the owner of certain real property and improvements herein known as the
Janesville Indoor Ice Center, located at 821 Beloit Avenue, Janesville, Wisconsin (Ice Center);
and
Whereas, the WHP intends to own and operate a Junior A Hockey Team and desires to use the
Janesville Ice Center as the team home rink, and lease and use portions of the Ice Center, from
time to time, for exclusive team activities, and
Whereas, the City and WHP desire that this Agreement shall set forth their full and complete
understanding to the terms and conditions under which WHP uses the Ice Center for the
purposes of playing home games, practice ice time, advertising, team operations, and conduct
of other related business and ice activities as set forth in this Agreement, and occupy
designated areas of the Ice Center for team operations on a year-round basis.
Now, Therefore, For And In Consideration of the use of the premises, the payments, the
mutual promises, and covenants herein contained, and other good and valuable consideration,
the receipt, sufficiency, and adequacy of which are expressly acknowledged, the City and WHP,
each intending to be legally bound, do hereby mutually agree and promise to each other as
follows:
1. DEFINITIONS
A. Ice Center: the term “Ice Center” shall mean the public building commonly referred
to as the Janesville Ice Center, located at 821 Beloit Avenue, Janesville, Wisconsin,
53545.
B.Hockey Game: the term “Hockey Game” shall mean all pre-season, regular season,
and post season games which are scheduled by the League or WHP.
C.Hockey Season: the term “Hockey Season” shall mean and include approximately
thirty (30) regular season home games as scheduled by the League and any
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additional all-star, pre-season, play-off, or post season games. The Hockey Season
will begin in September of each year and conclude in April of the following year. The
exact dates being flexible and dependent upon the League schedule and whether
WHP participates in any pre-season, postseason, or play-off games.
D.League: the term “League” shall mean and include the North American Hockey
League (NAHL), or any successor or substitute organization of hockey teams to
which WHP may hereafter belong or become affiliated.
E.Leased Facilities: the term “Leased Facilities” shall mean and include the following
areas of the Ice Center that are leased and provided to WHP for its exclusive use for
the purpose of operating their business and conducting activities related to the
operations of their team, as depicted in the attached Exhibit A to this Agreement.
1)WHP offices
2)WHP locker room, showers and restrooms
3)WHP equipment storage area
F. Non-Leased Facilities: the term “Non-Leased Facilities” shall mean those areas of
the premises which WHP may use and occupy for the conduct of WHP team
activities during practices, games, camps, and clinics but must be shared with the
City and other user groups. The following areas can hereby be used by WHP and are
depicted in the attached Exhibit B to this Agreement.
1)Ice Sheet
2)Visitor Locker Rooms
3)Game Officials Room
4)Space to sell beer and team merchandise, novelties, souvenirs, programs and
publications
5)Lobby and ticket area
6)Public Restrooms
7)Bleachers
8)Parking Lot
9)All other Premises areas and improvements of the Ice Center not specifically
enumerated in Section 1. E., above.
G.Team Merchandise and Novelties: the term “Team Merchandise and Novelties”
shall mean any and all articles of clothing as well as items such as pennants, posters,
buttons, pens, mugs, etc. which bear the name, logos and/or colors of the team
owned by WHP and/or the name of the NAHL.
H.Premises: the term “Premises” shall include the Ice Center, parking lot, and grounds
as depicted in Exhibit C to this Agreement.
2. TERM
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A.The initial term of the Agreement shall be for five (5) years commencing on April 1,
2009 and concluding on May 31, 2014.
B.This Agreement may be extended for an additional and renewable five (5) year
terms beyond the initial term, upon the mutual agreement of the City and WHP.
C.If WHP decides to extend this Agreement beyond the initial and/or subsequent
renewable term, WHP shall submit in writing to the City Clerk such request at least
ninety (90) days prior to the expiration of the initial term and any subsequent
renewable term. The term of this Agreement shall be the initial term, together with
any renewable terms as exercised by WHP.
3.USE OF THE PREMISES
A.The City hereby leases and grants to WHP the exclusive areas of the “leased
facilities” as enumerated in Section 1. E. and depicted in Exhibit A of this Agreement
for the purpose of conducting scheduled practice ice, games, camps, and clinics on a
year-round basis during the term of this Agreement and any renewals hereof.
B.The City hereby agrees to allow WHP to use the “non-leased facilities” as
enumerated in Section 1. F. and depicted in Exhibit B of this Agreement during the
conduct of scheduled practice ice, games, camps, and clinics on a year-round basis
during the term of this Agreement, such use by WHP is non-exclusive.
C.The City will provide WHP with a building key to the Ice Center.
4.WHP RIGHTS
A.The City grants WHP the right to be the exclusive Junior A hockey team at the Ice
Center that uses the Ice Center as its home rink. The City agrees that WHP shall
have first right to schedule and purchase from the City ice time for practice, games,
camps, clinics, and tournaments at the Ice Center provided that the dates and times
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are selected by April 1 for the months of June through September and are selected
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by July 1 for the months of October through May with the exception of playoffs.
The WHP will meet with other user groups at the rink to identify any conflict dates
prior to finalizing schedule.
B.The City grants WHP the exclusive right to sell and keep all revenue from the sales of
admission tickets, team merchandise, and novelties as defined in Section 1. G.
C.The City grants WHP the exclusive right to sell and keep all revenue from the sale of
advertising space on designated areas inside the Ice Center as set forth in Section 11
of this Agreement. The City and WHP shall mutually agree on the location(s), size,
colors, materials and content for said advertising. WHP shall also have the right to
sell and retain revenue from any advertising sales on WHP printed material such as
programs, yearbooks, publications and scorebooks.
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D.The City grants WHP the privilege to sell and keep all revenue from the sales of
alcoholic beverages allowed in a Class B license during scheduled hockey games (pre-
season, regular season, and post season), play-offs, tournaments and tryout camps.
Alcohol sales may begin one (1) hour before game time and shall conclude five
minutes after the beginning of the third period of said game. Alcohol may only be
dispensed, served and consumed inside the Ice Center. The sales and consumption
of alcohol outside the Ice Center upon public property is prohibited at all times, and
shall only occur if approved by the Alcohol Licensing and Advisory Committee and
the Janesville Common Council in the manner authorized by law for special event
temporary beer and wine only permits.
1)WHP shall apply to the City for an annual Class B alcohol license to sell beer at
the Janesville Ice Center. Such entity shall apply for such alcohol license in a
normal and customary manner required of all alcohol license applicants. WHP
agrees to apply for an alcohol license within thirty (30) days of the Janesville
Common Council approving this use agreement. WHP must comply with all
applicant qualifications and other alcohol law requirements.
2)No alcohol license or permit issued by the City to WHP shall be transferable.
3)WHP shall, at all times, comply with all Federal, State, and local laws governing
alcohol beverages and their sale and consumption. WHP’s appointment of an
alcohol license agent shall be a resident of the City of Janesville.
4)Since the issuance of such alcohol beverage license is discretionary, by entering
into this Agreement, the City in no manner guarantees, warrants, or represents
that WHP or anyone on WHP’s behalf shall be granted or issued any alcohol
beverage license or permit by the City.
5)Upon expiration or termination of this Agreement, or the expiration of the
alcohol beverage license year, whichever occurs first, in the event that WHP is no
longer operating at the Ice Center, WHP’s alcohol beverage license shall
forthwith terminate, be relinquished, and surrendered back to the City, and
cease to be of any further force or effect.
6)The City acknowledges the right of WHP to apply for two (2) outdoor special
event alcohol activities that include food and alcoholic beverages each Hockey
Season that would occur at the Ice Center facility or in the parking area in a
designated area. If the event impacts the rink use, ice time would be paid for.
WHP shall be responsible for obtaining all permits, licenses, and insurance
related to such events, and to comply with all applicable laws and regulations.
7)Recognizing that the grant of any alcohol license or permit is discretionary,
notwithstanding any other provision of this Agreement to the contrary, the
failure or refusal of the City, the governing body, or any of its elected or
appointed boards or committees to recommend or grant any fermented malt
beverage or intoxicating liquor alcohol beverage license or permit to WHP or any
other person on WHP’s behalf shall this Agreement null, void, or unenforceable.
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8)The Janesville Youth Hockey Association (JYHA) will be responsible for general
food and beverage operations (non-alcoholic beverages) during WHP games
consistent with current food and non-alcoholic beverage operations. JYHA
concession contract provides for exclusivity for food and non-alcoholic beverage
sales. WHP will have the right to negotiate with JYHA on any joint or separate
concession sales. WHP shall have the right to sell food and non-alcoholic
beverage product lines not in competition with JYHA. JYHA must provide
reasonable and consistent customer service to the satisfaction of WHP and the
City. If the WHP or the City receives customer complaints about inadequate
concession services, the WHP, the City and the JYHA agree to meet in a timely
fashion to address customer concerns. The WHP, the City and the JYHA further
agree to renegotiate, if necessary, the terms and conditions of the concession
contract between the City and JYHA.
9)Alcoholic beverages may not be co-located in the general concession.
E.WHP has the right to install a team logo under the ice as is currently the practice
with other Ice Center user groups. WHP shall provide the City with said decal logo in
a size consistent with other Ice Center team/club logos and the City will install at no
cost to WHP.
F.WHP shall pay the City for all home ice time used by WHP at the Ice Center for any
reason.
G.The City agrees to list home game dates and times on the Ice Center marquis.
Portable or temporary signs/banners to promote WHP events on the Ice Center
grounds must be in compliance with the City sign ordinance. WHP will be
responsible for the application of temporary signs and banners and pay all
associated fees.
5.CITY RIGHTS
A.The City has the right to undertake repairs, maintenance projects, and capital
projects from time to time and at any time, at such times, places and duration that
the City or City Manager decide is/are in the best interest of the City. Before making
any such improvements, the City will meet with a representative from WHP to
discuss the effect of such undertaking upon WHP’s use of the Ice Center, and shall
consider any reasonable input and requests by WHP. WHP will make itself
reasonably available for such discussions. In the event the City Manager determines
that the City’s improvement undertaking might substantially affect WHP’s operation
at the Ice Center or performance under this Agreement, the City and WHP shall
negotiate what, if any modifications of the Agreement, premises, rent, or operations
may be necessary as a result of such capital improvement(s). The exception to the
above is when the City must undertake emergency repairs to the Ice Center or any
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components of its infrastructure. If no prior agreement is reached, the City may
undertake the actions without notice.
B.The parties expressly understand and hereby acknowledge that WHP shall not be
relieved of any of its obligations under this Agreement, nor shall the City be liable to
WHP for any interruptions of any part, portion, or whole of WHP’s operation under
this Agreement that may directly or indirectly arise or result from the City’s
undertaking of any capital improvement(s) to the Ice Center or premises or
undertaking emergency repairs. The City shall not be liable to WHP or any other
person for any lost revenues, costs, or any other direct or consequential damage(s).
C.The City has the right and responsibility to make emergency repairs to the Ice Center
mechanical systems to preclude any unnecessary closures of this facility. The City
will notify WHP as soon as reasonably possible of any potential mechanical problems
which could require cancelling WHP games. If WHP home hockey games need to be
cancelled due to mechanical failures, WHP will be responsible for cancelling,
rescheduling or finding a different venue for their game(s). WHP will pay for all
costs associated with relocating any cancelled home games to a different venue.
The City will have no financial obligations to WHP for WHP costs associated with
relocating home hockey games. WHP will have no financial obligations to the City
for cancelled game ice time.
D.The City has the unobstructed right to access the “leased facilities” of WHP at any
time, without advance notice, for the purpose of conducting custodial services,
6.RENTAL RATES
A.WHP hereby agrees to and shall pay to the City the following off-peak rental rates
for ice time and facility use beginning in 2009. The City will invoice WHP in a
customary manner on a monthly basis.
1)Four Hundred Forty Dollars ($440) for each exhibition, pre-season, regular
season, play-off, or tournament hockey game at the Ice Center for up to 3 ½
hours. The WHP agrees to provide not-for-profit charities a minimum of 10
tickets per game.
2)Sixty Dollars ($60) per hour for WHP practice ice time.
3)One Hundred Dollars ($100) per hour for ice time designated for WHP camps,
clinics, and try-outs events.
4)WHP agrees to pay a monthly rental fee of Three Hundred Fifty Dollars ($350)
for the exclusive use of non-ice facilities, to include the office, locker room area
(to include restroom and showers), and storage space. If the average attendance
(total games played divided by total attendance) falls below six hundred (600)
fans per game, the City agrees to waive the office rental fees.
5)If the average attendance (total games played divided by total attendance) falls
below five hundred (500) fans per game, the contract may be cancelled.
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B.The City and WHP mutually agree to review the ice time rental rates and make
adjustments, as necessary, on an annual basis. Any rental rate adjustments will
become effective for a twelve (12) month period from September 1 to August 31.
The rental rates enumerated in Section 6. A. are effective from the date this
Agreement is executed until August 31, 2010. The City and WHP mutually agree
that any change to the rental rates shall not increase more than the All Urban
Consumer Price Index (AUCPI).
C.The rental rates may also be reviewed and adjusted on an annual basis during any
subsequent renewal term.
7.ICE CENTER IMPROVEMENTS
A.The City shall, at its expense, perform or cause to be performed the work identified
on the attached Exhibit D, “Ice Center Capital Improvements.”
8.STAFFING AND SERVICES
A.The City shall furnish uniformed security staff at each hockey game. WHP agrees to
pay 100% of said costs for uniformed security staff up to a minimum of two (2)
security personnel per event.
B.The City shall provide the following services in connection with the Ice Center and
WHP’s use of the premises:
1)Ice surface in good and suitable condition for the conduct of ice hockey.
2)Boards in good and suitable condition for the conduct of ice hockey.
3)Proper ice markings for lines and face-off circles.
4)Utility services, including but not limited to, electricity, heat, water, sewer and
air conditioning.
5)Custodial and maintenance services for the Ice Center and premises.
6)Zamboni services for the Ice Center.
7)General maintenance to the building, grounds, and appurtenances.
8)Snow and ice removal for sidewalks around the building and parking lot.
9.PARKING
A.All parking spaces available at the Ice Center will be dedicated for the use of WHP
for any hockey game two (2) hours prior to game time and one (1) hour after a
hockey game.
B.WHP may designate a maximum of four (4) reserved parking stalls for WHP use
during the term of this Agreement. The City and WHP shall mutually agree on the
location of said WHP reserved parking stalls.
10. SCHEDULING
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A. WHP is the primary tenant of the Ice Center and shall have first right to schedule ice
time and dates in the Ice Center.
B.Ice time for each hockey game shall not exceed four (4) hours and shall be
approximately from 6:00 pm to 10:00 pm.
C.Practice ice time shall be made available to WHP Monday through Friday for two (2)
hours per day and shall be approximately 1:30 pm to 3:30 pm.
D.WHP shall submit their season schedule of practice hours and home game dates and
times in writing to the City by July 1 of each year.
E.WHP’s Head Coach or his designee shall be authorized to schedule or reschedule ice
time for the team.
F.Ice time shall be made available during the months of June, July, and August for
WHP camps, clinics, and other WHP sponsored hockey events. WHP will submit in
writing to the City their summer schedule of ice usage by April 1 of each year. The
dates and times for these events shall be mutually agreed upon by the City and
WHP.
11.ADVERTISING
A.The City authorizes WHP to sell and display advertising in selected areas of the Ice
Center. WHP shall retain all revenues derived from advertising sales. WHP is
responsible for all costs of advertising installation, display, repair, and removal.
WHP shall remove all WHP sold advertising with forty-eight (48) hours of the
Agreement termination or expiration. Approved areas for advertising include:
1)Dasher boards (both sides)
2)Under-ice logos
3)Zamboni
4)Interior walls of rink
5)Restroom walls
6)Back-lit signs
B.Additional areas for advertising may be negotiated by the City and WHP on a case by
case basis.
C.WHP shall assume all costs associated with the production, implementation,
maintenance, and removal of all advertising signage.
D.The City agrees to advertise each WHP event in and on any selected advertising
medium controlled by the Ice Center, when space and funding permits, including a
calendar of events, marquee, etc.
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12.BROADCASTING RIGHTS
A.WHP shall have the exclusive rights to broadcast, televise, and cablecast all events
which may be scheduled, promoted, and held by the WHP at the Ice Center during
the term of this Agreement and shall retain all revenues which may be generated
thereby.
B.The City shall not impose any fees on WHP for radio or television broadcasts
originating from the Ice Center.
13.INSURANCE
A.WHP shall secure at its own expense, and at all times maintain, and provide to the
City a certificate of insurance naming the City and each and every of the City’s
elected and appointed officials, officers, employees, and appointees, as an
additional insured and obtaining comprehensive public liability insurance policy for
bodily injury or death in the minimum amount of Two Million Dollars ($2,000,000)
for one (1) person, one (1) occurrence, and Five Million Dollars ($5,000,000) for two
(2) or more persons on any one occurrence, and property damage in the amount of
Two Million Dollars ($2,000,000) per occurrence.
B.WHP shall secure, at its own expense and at all times maintain, Worker’s
Compensation Insurance covering the statutory liability of WHP and its employees in
the operation of a Junior A Hockey Team at the Janesville Ice Center as required by
the State of Wisconsin.
C.WHP agrees to provide liability and health insurance coverage for all team players
through the NAHL.
D.WHP shall also secure at its own expense and at all times maintain an umbrella
liability policy, with provisions insuring all property maintained at the Ice Center and
in the care, custody, and control of WHP including, but not limited to, any and all
WHP, and separately, any and all City materials, uniforms, equipment, supplies,
merchandise, and products. Said policy shall name the City as co-insured.
E.WHP shall endorse coverage providing the City with a thirty (30) day prior notice of
policy change, termination, cancellation.
14.INDEMNIFICATION
A.WHP hereby agrees to and shall fully and forever indemnify, save, and hold harmless
the City and each and every of the City’s elected and appointed officials, officers,
employees, representatives, agents, and related others and their heirs and assigns
(indemnified parties) from any and all liability, damages, payments, awards, suits,
forfeitures, claims, demands, actions, causes of action, and other amounts of
whatsoever kind or nature arising from and/or pertaining to WHP’s intentional or
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negligent use of the Ice Center or premises by anyone authorized by WHP directly or
indirectly upon and/or affecting the premises.
B.The City hereby agrees to and shall fully and forever indemnify, save and hold
harmless WHP and each and every of WHP’s partners, employees, agents, and other
affiliates (indemnified parties), from any and all liability, damages, payments,
awards, suits, forfeitures, claims, demands, actions, causes of action, and other
amounts of whatsoever kind or nature arising from and/or pertaining to the City’s
use of the Ice Center or premises.
15.CONTINGENCY
A.This Agreement is contingent upon WHP receiving approval from the League for its
hockey franchise and maintaining its hockey franchise. If WHP does not receive
approval from the League for its franchise or the League terminates the franchise in
the future, then at any time prior to or during the term of this Agreement, WHP may
terminate this Agreement and this Agreement shall no longer have any force or
effect.
B.This Agreement is contingent upon approval by the Janesville Common Council.
16.TERMINATION AND DEFAULT
A.Either party shall be entitled to unilaterally terminate this Agreement if the other
party is in default under this Agreement and fails to cure such default within thirty
(30) days after written notice of default has been given to the defaulting party,
provided that this remedy of termination shall be in addition to any and other
remedies provided by law or under this Agreement. All rights and remedies are
cumulative and not exclusive.
B.WHP may terminate this Agreement at any time in the event of any damage or
destruction of any portion of the Ice Center entirely that prohibits WHP’s use of the
Ice Center.
C.If the average attendance (total games played divided by total attendance) falls
below five hundred (500) fans per game, the WHP may terminate this Agreement
upon giving sixty (60) days written notice to the City at the conclusion of the hockey
season.
17.ASSIGNMENT
A.This Agreement, the rights, privileges, duties, and obligations of the parties
hereunder may not be assigned, delegated, or pledged to another party without the
prior written consent of the City.
B.WHP may not sublet or sublease the “leased facilities”, Ice Center, or premises in
whole or in part.
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18.ENTIRE AGREEMENT
A.This Agreement constitutes the entire Agreement between the parties hereto with
respect to the subject matter herein contained. Except with regards to the future
scheduling provided in Section 10, there are no agreements or understandings
between the parties hereto, whether oral or written, regarding the subject matter
hereof, which have not been embodied or incorporated herein by reference.
19.BINDING EFFECT; CHOICE OF LAW
A.This Agreement shall bind the parties, their heirs, personal representatives,
successors, and assigns. This Agreement shall be governed by, construed, and
interpreted in accordance with the laws of the State of Wisconsin.
B.WHP shall, at all times, comply with any and all applicable rules, regulations, laws,
codes, ordinances, statutes, orders of each and every governmental authority,
Federal, State, and local, lawfully exercising authority over the Ice Center, premises,
or over the operations carried out thereon by WHP.
C.Each provision of this Agreement shall extend to and shall, as the case might
require, bind and inure to the benefit of the parties hereto. This Agreement shall
not inure to the benefit of any assignee, transferee, or successor of WHP, or to any
third party, except upon the express duly authorized, written, and signed consent of
the City, which consent may be withheld for any reason and without cause or notice.
20.SEVERABILITY
A.It is the intent of the parties hereto that each section, part, portion, provision,
covenant, term, and obligation of this Agreement is severable. If any part is held
unlawful, unenforceable, or unconstitutional for any reason, such decision shall not
affect or waive the remainder of this Agreement nor any of the remaining
obligations of the parties hereto.
21.AUTHORITY
A.Each person executing this Agreement on behalf of the parties represents and
warrants that he or she is duly authorized to execute and deliver this Agreement on
behalf of such party, and that this Agreement is binding upon that party in
accordance with its terms.
22.NOTICE
A.Any and all notices required or permitted to be given hereunder shall be deemed
delivered when actually received, if delivered personally, or when mailed, if
deposited with the U.S. Postal Service, first class prepaid, certified or registered mail,
return receipt requested, and addressed as follows:
If to WHP: William J. McCoshen
22 North Carroll Street
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Suite 200
Madison, WI 53703
If to the Ice Center: Cullen Slapak
Ice Center Manager
820 Beloit Avenue
Janesville, WI 53545
If to the City: Eric Levitt
City Manager
P. O. Box 5005
18 No. Jackson Street
Janesville, WI 53547-5005
23.NO THIRD PARTY RIGHT
A.This Agreement creates no duty, obligation, or responsibility on the City and extends
no rights, privileges, causes of action, or claims to or in any third persons not a party
to this Agreement.
24.ADDITIONAL OBLIGATIONS
A.WHP shall pay all sales, use, and other taxes, license fees, and permit fees necessary
or required or arising from, by law, for the conduct of its operation in the Ice Center
or upon the premises.
B.WHP shall apply for, pay, and at all times maintain in good standing a current
Wisconsin Retail Sales and Use Tax Number, as required, now and from time to time,
by State Law and/or the Wisconsin Department of Revenue.
C.WHP and its officers, directors, owners, employees, agents, representatives, and
team members shall, at all times, treat the general public, City staff, governmental
officials, and contractors with the upmost of courtesy, respect, and consideration.
D.The performance of each and every of a party’s obligations set forth in this
Agreement shall be solely at such parties cost and expense, and at no cost, fee, or
expense whatsoever to the other party, unless a particular section or provision of
this Agreement specifically provides otherwise, in which event the other party’s
cost, fee or expense, shall not exceed that provided in such specific section or
provision.
E.WHP shall remain in good standing with the State of Wisconsin at all times.
F.In the event that WHP fails to pay any ice time fee(s) to the City within sixty (60)
days of when originally due, the City may sell to others and/or use that ice time at its
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discretion, and no longer reserve or hold that ice time for WHP or anyone on WHP’s
behalf.
G.Time is of the essence in the performance of every obligation set forth in this
Agreement.
H.This Agreement may be modified or amended by the parties hereto at any time by
mutual agreement in a writing signed by both parties. No modification,
amendment, waiver or release of any provisions of this Agreement or of any right,
obligation, claim, or cause of action arising hereunder shall be valid or binding for
any purpose unless in writing, duly authorized and executed by both parties.
I.No part, portion, provision, promise, paragraph, obligation, section, or term set forth
in this Agreement shall be deemed waived by reason of one party failing to enforce
such breach at any time or from time to time. Any such waiver must be in writing.
Dated and executed this ___ day of ___________, 2009.
City of Janesville: Wisconsin Hockey Partners, LLC:
___________________________ ___________________________
By: Eric Levitt By: William J. McCoshen
City Manager Managing Partner
City of Janesville WHP
___________________________ ______________________________
By: Jean A. Wulf By: Mark A. Cullen
City Clerk/Treasurer Member
City of Janesville WHP
Approved as to form:
___________________________
Waldemar Klimczyk
City Attorney
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EXHIBIT A
Map of Leased Facilities
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EXHIBIT B
Map of Non-Leased Facilities
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EXHIBIT C
Map of Premises
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EXHIBIT D
Ice Center Capital Improvements
The City agrees to make capital renovation improvements to the existing footprint of the Ice
Center to accommodate the WHP. The City agrees to make these improvements at the City’s
cost. A summary of these improvements include:
1.Build a ___ square foot locker room to include showers and restrooms
2.Build a ___ square foot office
3.Build a ___ square foot storage area for equipment and supplies
4.Provide ___ square feet of common space to sell beer and team merchandise
5.Provide ___ square feet of common space to sell admission tickets
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