City OKs turning arena over to BAHA

Brainerd has cleared the way to have the Brainerd Amateur Hockey Association manage the Brainerd Area Civic Center and Gold Medal Arena.

In a special meeting Tuesday, the Brainerd City Council in a 5-1 vote approved offering a five-year arena management contract to BAHA that would give the nonprofit organization control of arena operations.

"I believe this is a contract that is definitely in the best interest of the citizens of Brainerd," said council member Mary Koep in making the motion to offer the contract. "I think it allows many protections for them, it will save them enormous amounts of money as well as put in place a capable and qualified managerial team who have an interest and the ability to bring this forward and bring to fruition some of the capability that exists but has not been realized with our arenas."

The contract now needs BAHA's approval. BAHA President Mike Blanch said the board will meet Wednesday to discuss the contract and offer changes. He believes BAHA can work with what the city's offered.

"I think it's a positive step for us, the city, the users. I think it's a good thing," Blanch said after Tuesday's meeting. "You've seen some of the contention (with the arena over the years). To remove that and let them get on with some other things that need to be done in the city I think is a positive thing."

Voting against offering a management contract to BAHA was council member Bob Olson. Council member Lucy Nesheim was absent.

Olson went through a list of items he felt should be changed or included the contract.

The first item he addressed was the vending contract, which is up for renewal. Olson made a motion that the donations from the vending contract should go toward installing an elevator in the arena.

Olson's motion was defeated by a 5-1 vote, with only Olson in favor.

While not against installing an elevator in the arena, council member Kelly Bevans said including it in the arena contract would be too specific in a management contract.

Olson also wanted it put into the contract that the city will not provide BAHA any compensation that would pay for daily operational expenses, but decided against making such a motion because he believed it would fail.

"At end of year you will see BAHA back here asking for a subsidy," Olson said.

Koep said the contract involved no city subsidy, and would in fact save the city because BAHA would have to pay utilities and personnel costs.

The lone Olson motion that did succeed was having BAHA present the city with a budget on revenues and expenses by the council's Sept. 18 meeting.

Koep was the only vote against. She said it was irrelevant as BAHA will be setting its own budget without city involvement.

"If they submit a budget and then every line item or every cent wasn't adhered to as it was exactly presented ... then they'll just be subject to more harassment by some members of the council. I just can't see it," Koep said.

Olson said it was irresponsible for any council member to not vote for his motion.

"What are you afraid of?" he asked.

Though he didn't offer motions to do so, Olson also said he wanted BAHA members to give a personal guarantee in case of negligence on their part, he didn't want to see the city allow BAHA to sell naming rights and he wanted costs for maintenance and repairs over $10,000 to be split by the city and BAHA.

Overall, Olson said the contract presented did not provide enough protection for Brainerd taxpayers. He said the city could increase rates to get revenues to cover expenses.

"I do feel that if city council members, myself included, got real serious about managing the arena we could manage it," he said.

Bevans said if the only thing there was to look at was whether expenses are covered by revenues, the simplest way to solve that would be to close the facility.

He said what also needs to be looked at is the use of the facility as a skating arena.

"I felt (BAHA) had the greatest vision and opportunity ... and the greatest relationship of users to expand on that ability to make the arena a useful and wonderful place," Bevans said. "It's not just a dollar and cents thing."

Bevans also felt the contract offered to BAHA gave the organization the leeway to succeed as well as protected city taxpayers, who are currently on the line for all arena expenses.

"Since we've been working on this contract I felt I was not only getting comfortable but enthusiastic for the future of arena," Bevans said. "Truth be told, (the city) has been (operating the arena) for a number of years and it hasn't worked financially."

MATT ERICKSON may be reached at matt.erickson@brainerddispatch.com or 855-5857.

Highlights of the proposed contract between city and BAHA

• If BAHA and the city enter into a contract, BAHA will pay a $200 annual contract fee to the city. The contract will be for five years.

• BAHA will be responsible for all accounting and will keep arena funds separate from other BAHA accounts.

• BAHA will have the full control over the use of the premises and agree to use the premises for the purpose of operating ice arenas and dry floor facilities.

• BAHA will work closely with all current and future users of the premises to schedule usage and work to secure long-term usage commitments. The city will not involve itself in scheduling of the premises.

• BAHA will cooperate with the city to conduct recreational or community related activities at the premises, including Soap Box Derby events held in the parking lot.

• BAHA will provide qualified personnel as it sees fit to operate and maintain the premises.

• BAHA will have the right to adjust all fees and charges as it sees fit.

• BAHA will promote the use of the premises through its marketing plan and the city will exercise its best efforts in assisting in the promotion of arena.

• BAHA will be entitled to any and all revenues generated from arena operations. All revenues in excess of expenses will be used first for significant repairs and maintenance to the premises, then to capital improvements.

• The premises should be operated daily, weather and maintenance permitting, with opening and closing times as BAHA deems appropriate.

• BAHA will keep and maintain all building structures.

• BAHA will be responsible for all operational costs, including all utility costs as well as all routine internal maintenance and janitorial services. The city reserves the right to inspect the premises at any time without notice and demand that conditions which are in its opinion unsanitary be corrected without delay.

• BAHA will be responcible for all maintenence and repairs up to $10,000. The city will be responcible for maintenance and repair costs after BAHA has paid the intial $10,000.

• Maintenance and repairs to the premise's equipment and fixtures, including dehumidification, heating, ice plant and Zambonis, will be the responsibility of BAHA.

• The city shall be responsible for routine maintenance and snow plowing of the parking lots. At no time will city plowing of the parking lot take priority over plowing of other city streets.

• The city will assist with ice removal from the arenas.

• The city has the right to make whatever capital improvements it deems necessary or desirable at any time.

• BAHA will have the right to operate food and beverage concessions within the facility on its own behalf.

• BAHA will be permitted to erect and display, or permit to be erected and displayed, signs within the premises. Any revenues received by BAHA for said advertising within the premises shall be the property of BAHA.

• BAHA will be allowed to negotiate naming rights for the premises subject to the requirement that the word Brainerd be included in the name and the change be approved by the city.

• The city will have the right of access all portions of the premises at any time of the day or night with or without notice for any purpose whatsoever.

• BAHA will procure and maintain public liability insurance. The city shall obtain insurance against theft, property damage, or equipment equipment breakdown.

• BAHA will prepare written rules and regulations concerning the use and operations of the premises including usage rates, scheduling, ice time tournament play, locker use, leagues, dry floor usage and other similar matters.

• If BAHA is found in default of the contract, it will be given 30 days to cure the default. The contract can be modified or terminated by either party with a 90-day notice.