Item Coversheet

*5.B.4.


Shakopee City Council
September 6, 2022


FROM:Jay Tobin, Parks/Recreation Director
TO:Mayor and Council Members
Subject:
Advantage Sports Group: Agreement amendment
Policy/Action Requested:
Request that the Mayor and City Council approve the Advantage Sports Group Agreement amendment.
Recommendation:
Recommend that the Mayor and City Council approve the Advantage Sports Group Agreement amendment.
Discussion:

Advantage Sports Group has experienced tremendous success since it entered into agreement with the City of Shakopee on September 1, 2020 for a minimum of 800 hours of ice annually at $165 per hour, and the use of certain spaces. 

 

Consequently, they've requested to increase their hours from 800 to 1,000 and to continue to rent the upstairs meeting room and the hallway coaches room.  

 

The non-prime hourly rate for ice has increased from $170 to $175 since the original agreement was signed in September 2020.  Advantage Sports Group has agreed to adjusting the hourly rate from the previous agreement's $165 per hour to $170 per hour with no changes to the annual rent for the meeting room ($6,000 per year) and the hallway coaches room ($2,000 per year).  The amended agreement life begins September 6, 2022 and extends through August 31, 2027 with a total annual amount of $178,000.00 in year one (1) which increases by 2.5% greater than the total annual amount for the previous year in years two (2) through five (5).

 

There are no changes to the priority of ice allocation.

 

Staff recommend that the Mayor and City Council approve the Advantage Sports Group Agreement amendment.

Budget Impact:
Extends life of the agreement by 2 years, increasing the value from $140,000.00 (2020-2021) to $172,000.00 (2022-2023) and increasing until finishing the extended term at $196,479.00 (2026-2027)
ATTACHMENTS:
Description
Advantage Sports Group: Agreement amendment