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HomeMy WebLinkAboutIndoor Centers for Education in Sports 5 -1 CI �''"•" ••'' City of Palm Desert ��:; Office of the City Manager rod •:�b� °• Memorandum TO: Honorable Mayor and Members of the City Council FROM: Carlos L. Ortega, City Manager SUBJECT: Request from Incloor Centers for Education in Sports DATE: July 18, 2001 I have reviewed the attached request from Mr. Peter Flax. The request is that the City provide a 10-year loan of $500,000 with provisions that if $250,000 is repaid over a three year period, that the rest of the loan be forgiven as a contribution to the facility. The proposal is to locate the facility at the Empire Polo Club in Indio. Both the City Attorney and Redevelopment Agency's Legal Counsel have advised that neither the City nor the Agency can make a contribution to a facility in the manner the group proposes and if it is outside the City of Palm Desert. I have communicated this to Mr. Peter Flax, however, he is still pursuing alternatives to obtain funding for the facility. CITY COUNCIL ACTION: DPPRCVED. DENIED RECEIVED OTHER Carlos L. Ortega t.;ErEINCj DATE AYES: )PAA ivy • � t�.t f �BSENTT�:� ABSTAIN: AA/41.10 Ir VERIFIED BY: l D' �r..,. .'. 'r. i r..r - �n 1.,3.th C'. .y ,erk' s Office P.S. I understand from the news media that Mr. Flax has provided them with a copy of his proposal. G:\CityMgr\Linda Russell\WPDATA\MEMOS\indoorcenters.wpd Indoor Center, 1 ar Education in sports ICE A Public Benefit Corporation filed for 501.C.3'not for profit'status PLEASE REPLY TO:71-760 San Jacinto Drive,Rancho Mirage,CA 92270 Tel: 760 333 6916 Fax: 760 328 0659 E-Mail:theiceoasis@aol.com Mr. Carlos Ortega 10th July 2001 The City Manager Palm Desert RECEIVED CA 92260 J U L 1 1 2001 Dear Carlos, CITY CIITYPMANA DESERT The new Ice skating and indoor sports facility. Following the meeting with Gary Stevens and myself last week, we have made substantial progress in the determination of the exact building specification and equipment requirements. We have assessed major skating equipment manufacturers products and Ralph Goddard, of Commercial Refrigeration of Alberta, Canada flew in to discuss our position last weekend and John Burley,of Burleys Rink equipment supplies is flying in on Tuesday with their latest proposals and recommendations. Our prime concern relates to economy of operation in the first instance and purchase price as a secondary consideration, as it is the revenue outlay on energy cost,that dictates the commercial success of the project in many ways. With this consideration in mind, we have made emphasis on energy saving, a major factor in our construction and design. One concern with the Palm Desert recreation park proposal, is the electricity and water charges levied by SCE and CV Water. With this in mind, do you have any indication from either of these two utility suppliers, that any concessions may be on offer and has the City made any approach on this basis? If not, would you object to our approaching both these companies,to see if there is some arrangement that would be forthcoming,to reduce the potential cost of both installation and daily operation. Our second and prime concern relates to the time before the site could be handed to us. At present, on the basis of our present knowledge and inquires, one year seems optimistic and we have explored the possibility of an interim situation. As you know, our buildings and equipment are largely transportable, so, though a permanent installation would be preferred, we could erect an Ice rink within 16 weeks, if the utilities and site were available now. To this end, we have had discussions, on a confidentail basis, with the Empire Polo Club in Indio, who have an area of land available now, with utilities on site, on which we could erect our Rink and have it complete and operational by November this year. LC( T . "1-C �� _ e-` - Indoor Center a for Education in sports 10E A Public Benefit Corporation filed for 501.C.3'not for profit'status PLEASE REPLY TO:71-760 San Jacinto Drive,Rancho Mirage,CA 92270 Tel: 760 333 6916 Fax: 760 328 0659 E-Mail:theiceoasis@aol.com This would alleviate a lot of anxiety and concern for many people in the Valley and allow us to concentrate on expanding the Ice activities and special education programs we have initiated, without delay. Our current approximate breakdown of cost is now, Building,25,000 sq. ft with R34 insulation, 20 feet to eaves 175,000 Extension for Pro shop, boot store, rest rooms and changing, 3,000 sq. ft* 44,000 Insulated ceiling for humidity control 24,000 De humidifier 25,000 Lighting 15,000 Sound and electric's * 18,000 Sand,concrete and groundwork 12,000 Restrooms,plumbing, septic/sewer installation etc 60,000 Icemaking equipment,dasher boards and accessories 380,000 Boots,pro shop stock,signage, catering and incidentals * 27,000 Car park,fencing/walls, landscaping, exterior detail, signs* 15,000 Zamboni * 22,000 working capital * 150,000 Advertising, promotion, printing, office expenses, computers and software * 33.000 Total cost $1,000.000 Items marked * can be reduced in quality, specification or bought second hand, if savings are required. We have incorporated in the State of California and are preparing our 501.C. 3. filing with the IRS,which will probably take 12-16 weeks to conclude. Should we be able to proceed immediately with the Indio project, we could have an Olympic Ice sheet with 2,000 seats available by November this year. However,our fundraising and pledges would not be forthcoming until our 501 C.3. status is formalized. We have commissioned and paid for the production and issue of working drawings, engineers calculations and other technical information, for the building, which should be available by the end of this week and supplied a holding deposit. The City of Palm Desert had said previously that, regardless of location,they will support the establishment of an Ice Rink, even a temporary unit,though all our proposals allow for the transportation of the building and equipment, all components are permanent in specification and use,but able to be moved at will, without major cost or disruption. Indoor-Centel. .ar Education in sports ICE A Public Benefit Corporation filed for 501.C.3'not for profit'status PLEASE REPLY TO:71-760 San Jacinto Drive,Rancho Mirage,CA 92270 Tel 760 333 6916 Fax: 760 328 0659 E-Mail:theiceoasis@aol.com We need to place our orders and provide the requisite deposits to secure delivery and fabrication, with the Indio project,we will not have sufficient time to orchestrate our funding,if we are to complete the project in the earliest possible time. Under this circumstance, we would propose to the City a financial arrangement as follows. The City provide a 10 year loan of$500,000,which hopefully will be matched by Westfield Holdings(or a substantial part thereof), we will be able to accommodate the balance or provide the working capital and other funds necessary,to initiate the November operation. In addition, it is our intention to provide the second sheet of Ice as soon after the first is completed,by which time our fundraising will have been implemented and the fact that one rink is already in operation,will substantially encourage potential advertisers, sponsors and benefactors. We would propose that, as an incentive for us and our supporters, we repay at the rate of 50 cents on the dollar, on the loan in the first three years,thereafter,any balance being subject to an interest charge at 6%per annum. As an example, should we repay$250,000 within the three year period,the City would, in effect, have provided a$250,000 contribution to the facility,which we believe is not an unreasonable arrangement in view of the high use factor emanating from the Palm Desert location. This plan would encourage the community to support the project, entice other cities to participate and would enable many young people and seniors the opportunity to renew their recreational activity, with a minimal delay. It would alleviate the City of Palm Desert from trying to accelerate the Recreational Park on Country Club, to an unworkable level which may, yet again, result in many residents of the City and the Valley experiencing extreme disappointment and upset. We have spoken with Westfield Holdings Head Office, who have confirmed an eagerness to contribute, with the City of Palm Desert as our initial financial backer, we feel sure that their contribution will be forthcoming without delay and will probably match the City's input. We are ready, willing and able to implement our proposals now. As soon as the land and utilities are available, wherever located, we have the expertise and incentive to forge ahead and complete this project within four months. Indoor Center for Education in sports ICE A Public Benefit Corporation filed for 501.C.3`not for profit'status PLEASE REPLY TO:71-760 San Jacinto Drive,Rancho Mirage,CA 92270 Tel: 760 333 6916 Fax: 760 328 0659 E-Mail:theiceoasis@aol.com Working in cooperation,the completion of this project in such an encapsulated time period, will be a notable and substantial achievement,bringing social and economic welfare to the benefit of the Citizens of the Valley and much kudos and commendation for the City of Palm Desert. We await your response in hopeful anticipation. Sincere Pet - Peter H. Flax Chairman Indoor Centers for Education in Sports. Indoor Centers for Education in sports ICE A Public Benefit Corporation filed for 501.C.3'not for profit'status PLEASE REPLY TO:71-660 San Jacinto Drive,Rancho Mirage,CA 92270 O Tel: 760 333 6916 Fax: 760 328 0659 E-Mail:theiceoasis@aol.com ►--' ari Z r The City of Palm Desert - n Civic Center �- Palm Desert ¢' r:i CA 92260 June 25th 2001 - CID 410 cr Dear Mayor Ferguson and Councilors, P1 o' The Ice rink. As we advised previously, we represent all the organized skating associations and users of the Coachella Valley,as an`umbrella' group,who have a specific objective in the provision and funding of an indoor sports center to accommodate the needs of the people of the Valley. It is apparent to us that the proposals by Landmark Properties( The old Desert Sports Group)and the Tennis Garden at Indian Wells, are not specifically intended to provide what the Valley residents require for their use,but are imposing multi million dollar developments for professional use and presentation. In simple terms,an outlay of even $5M would necessitate a return on capital that would negate the possibility of affordable rates for local skaters and amateur use. Proposed costs of $20-30M would impose an obligation on the owners and operators of such a complex to concentrate on use by Professional sport or visiting extravaganzas, curtailing use by local residents or schoolchildren, in order to justify the expenditure to shareholders,bankers and investors. After exhaustive research and obtaining numerous quotations and specifications,we have obtained prices and delivery of an appropriate building, steel frame `Butler' style, in two colors,230 x 125 with 20 ft. eaves height and energy efficient insulation(to R34 or better)and refrigeration machinery,for a total cost,including Ice making and grooming equipment,hockey dasher boards and accessories and basic offices and retail areas,for under$850,000. We have also made inquiries, for financial support, from major commercial prospects and have received enthusiastic response,with initial pledges totaling over$350,000. We have no doubt that within a eight week period,we can produce confirmed offers of sponsorship,donation or contracted advertising revenues to cover the anticipated capital cost and an amount for working capital. Our target would be$1M. Indoor Centers for Education in sports ICE A Public Benefit Corporation filed for 501.C.3'not for profit'status PLEASE REPLY TO:71-660 San Jacinto Drive,Rancho Mirage,CA 92270 Tel: 760 333 6916 Fax: 760 328 0659 E-Mail:theiceoasis@aol.com However,all prospects require a confirmed location and timetable and to this end,we now need confirmation from the City of Palm Desert that the offer of 2 acres of ground, road access, parking and utility hook-up,at the new recreation Park on Country Club, will be forthcoming,enabling us to proceed with confirming our offers of financial backing and reserve the equipment now available and held for our project. We would then be in a position to confer with Planning and Public building and works,to complete the specification and costing and agree aesthetic requirements and details for the erection and utility connections. With the closure of the Mall rink imminent,despite the substantial public protest and general condemnation of the Westfield Mall Management for their callous indifference to the plight of the local residents and their children,it is imperative that the new rink be implemented as speedily as possible. With this in mind,our proposals are sensible, cost conscious and effective,providing a regulation size ice rink,with seating and facilities, at an overall cost capable of ensuring ice time at affordable rates,in a building that will serve the community well and fulfill the need,as a civic amenity, which can operate on a self sufficient basis, without a subsidy or bond issue. But we require the City to commit to our proposal now and give us the opportunity to bring our proposition to fruition. This will entail a commitment to work with us over the next four weeks and provide a timetable for the production of necessary paperwork; a)detailing the land grant arrangements, b)a management agreement(detailing the status and Executive powers,as between ourselves and Parks and Recreation,whom we anticipate will operate the remainder of the Park), c) operating procedures and provisions in respect of access and car parking(especially as the rink operates on much more extended hours then the park will probably demand), d)construction details for works to be completed by the City in respect of the utility connections, site preparation,roads and car park. We would ask the City to note that we have had offers of support from licensed contractors,concrete suppliers and Engineering and architectural service company's,who will provide services free,or at substantially reduced rates,in order to accelerate and complete the new arena. These services will be on offer to help the City with the groundwork's that will be required. • a� a Indoor Centers for Education in sports ICE A Public Benefit Corporation filed for 501.C.3'not for profit'status PLEASE REPLY TO:71-660 San Jacinto Drive,Rancho Mirage,CA 92270 Tel: 760 333 6916 Fax: 760 328 0659 E-Mail:theiceoasis@aol.com When the discussion for the proposed location took place at the committee meeting, chaired by the City Manager,the roads, car parking and utility connections were agreed as the City's liability,as part of the land provision and landscaping. It is incumbent on all of us to try and initiate this project with all haste. We are able to complete our phase of the project within 14 weeks, from the time the prepared site and utility connections are handed to us. It is purely the time the City needs to commence building works,that will dictate the completion of the Ice Arena element of the project and six months is not an unrealistic chronology,but we all must cooperate to achieve this as an objective. As this is a formal proposal on our behalf,we would appreciate a response within the next 14 days, indicating outline acceptance of our offer to construct and manage this Civic amenity within the new recreational park. On the strength of a positive response within two weeks, we can obtain confirmation of our funding, source our on site management and complete contracts for use with the revenue producing organizations, who will provide a substantial element of our income. We suggest that 28 days should be adequate to prepare and agree draft documentation and a tentative completion date. We need to place our deposit for the purchase of the building,which will accommodate the issue of detailed drawings and engineering calculations from the Manufacturer. This will also encourage the displaced Ice users of the Valley to support the project in the interim and facilitate the initiation of schools,colleges and the new University, in establishing teams and programs in Ice Hockey and Figure Skating and the consolidation of our Ice Hockey league. Our group is represented by Attorney,Bruce Williams and the initial Board will include, Peter Flax, Susan Hofheinz,Sandra Wright Schulz(USFSA),Gary Stevens(Desert Hockey),Bob Ross(Desert Dazzlers),Laura Walsh and other individuals,with interest in ice skating sports, from our major benefactors and commercial supporters. We await your response with urgent and keen interest. Si cerel Peter H. Flax Indoor Centers for Education in Sports.