Discussion:
The Shakopee Skate School has been renting locker room #9 at the Ice Arena as a storage and harness training space, and has been using the Ice Arena Lobby and Conference Room as school, warm-up, and lunch room spaces. It would be beneficial to have locker room #9 available to serve other customers, and the Skate School would like to change the agreement so that locker #9 activities can be moved into the vacant space at the end of the main hallway. It would also be helpful for the Skate School students and the Ice Arena Staff for the Skate School students to conduct their academic, lunch room, and warm up activities in a single space rather than distributed across the lobby and conference room. Go4Gold would like to add rental of the vacant upstairs room on the second floor in the back of the Ice Arena to their agreement for that purpose.
The present agreement with Go4 Gold Skating Academy LLC started December 15, 2020 and continues until January 1, 2026. The requested addendum modifies language in paragraph 5 of the agreement regarding "improvements", and paragraph c. from Attachment A of the agreement which spells out "monthly rental space rates". Addendum to Attachment A also confirms that fees increase by 2.5% annually. Changes are as follows:
5. Improvements. Go4 Gold may make improvements to their rental spaces (Upstairs Student Room, Storage/Spinning Harness Room and Coaches Room) at their expense. Prior to any improvements, Go4 Gold shall deliver to the City for review and approval a complete set of plans and specifications in form of drawings or construction drawings identifying the improvements to be made. Any alteration, addition or improvement made to the spaces (other than movable equipment, furniture and other trade fixtures owned by Go4Gold) will become property of the City upon expiration or termination of this agreement. The rights granted to Go4Gold under this section are exclusive and personal to Go4Gold and may not be assigned or transferred to any other party, without written consent of the City.
And:
ATTACHMENT A
c. Shakopee Skate School Monthly space rental rates:
i. Upstairs Student Room: $ 10,176/year ($848.00/month)
ii. Storage/Spinning Harness Room: $1,740/year ($145.00/month)
iii. Coaches Room: $2,000/year ($166.67/month)
d. Yearly fee adjustment
2.5% greater than the total annual amount for the previous year.
Staff recommends that the Mayor and Council approve the addendum to the agreement between the City of Shakopee and Go4Gold (Shakopee Skate School) as outlined above (per attachment agreement in full).