SUBJECT: The Downtown Erie Ice Rink
A Resolution of the Board of Trustees of the Town of Erie Approving an Agreement with The Recess Factory LLC for the Purchase and Installation of an Outdoor Ice Rink; and a Resolution of the Board of Trustees of the Town of Erie Approving a Lease Agreement with the Diana Shannon Living Trust for 130 Wells Street, Erie, Colorado
DEPARTMENT: Administration
PRESENTERS: Malcolm Fleming, Town Administrator, Patrick Hammer, Parks and Recreation Director, Ben Pratt, Economic Development Director
TIME ESTIMATE: 30 minutes
FISCAL SUMMARY:
Cost as Recommended: Ice Rink Purchase: $86,488
Maintenance: $23,060
Deconstruction: $3,000
Total: $112,548
Balance Available: 100-20-910-605000-100370: $0
100-20-910-573100-000000: $19,110
Budget Line Item Number: 100-20-910-605000-100370; 100-20-910-573100-000000
New Appropriation Required: Yes
STAFF RECOMMENDATION:
Approve resolution authorizing the purchase agreement.
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
Providing an amenity to draw both local and regional people to downtown is critical to increasing foot traffic for Erie’s downtown restaurants and retail businesses. This need is even more apparent given the COVID-19 pandemic restrictions.
Several communities throughout the Front Range including Louisville, Loveland, Denver, Parker, Belmar in Lakewood, Northfield and others use seasonal ice rinks as a tool to drive foot-traffic to commercial locations and to provide safe community activities. These rinks are typically open November through February, with varying daily schedules and hours throughout the week. The rinks are most commonly used for drop-in skating, but can be used for scheduled programs as a way to make additional revenue to help off-set costs.
With this background in mind, staff researched potential locations, costs and operational logistics to have a seasonal ice skating rink in downtown. Based on this research, staff recommends purchasing a system that can set-up and taken down each winter, and, with the exception of certain maintenance activities, operated by Town staff. This wintertime ice rink in downtown Erie would provide an attractive amenity to draw people downtown, increase business activity in the area, and provide safe community activities for residents and visitors in Erie.
Potential Locations. Staff evaluated three locations for this facility: the vacant lot at 555 Briggs Street, the vacant lot at corner of 130 Wells Street and Kattell, and a location in Coal Creek Park. Because it is a larger location, has more parking adjacent to the site, utilities are easy to access, is visible from Briggs Street (only 60 paces away), and because the property owner is very supportive of the project and willing to let the Town use the lot at no cost, staff recommends the 130 Wells location.
Current Rental and Purchase Options. Staff solicited price quotes from companies that specialize in providing this type of service. Due to time constrains, staff only received two qualified responses to our request. One of the quotes was to rent the facility, and the other was to for the Town to purchase and own the equipment. A summary of the proposals is included:
The rental proposal was provided by a qualified vendor that has experience offering seasonal rinks in Colorado. The quote includes rental of a 40’X80’ rink, a mandatory site supervisor for operations, rental of maintenance equipment and skates. The proposal specifies that the first month’s rental fee is $85,000 and an additional $20,000 per month after. Part-time staffing and restrooms is not included in this quote and would be the Town’s responsibility.
The purchase quote was provided by local Erie company, Recess Factory, which also has experience operating ice skating facilities in Colorado. Recess Factory is a current vendor for the Town and provides logistical support, tents/tables/chairs, and road closure equipment for several events in Erie. They also host races and events contractually on the Town’s behalf. The purchase quote includes a 100’X45’ rink, daily site maintenance and equipment, and support constructing site improvements. Part-time staffing and rental skates are not included in this quote and would be the Town’s responsibility. However, restroom cost has been factored into this total.
Experience in Nearby Cities. The City of Longmont has owned and operated an ice rink for several years. According to Longmont staff, the facility did not break even initially, but for the past few years has generated net revenue. In Louisville, the Louisville Downtown Business Association (LDBA) contracts with Boulder Creek Events to operate the seasonal ice rink (WinterSkate). The LDBA initially provided financial support for WinterSkate when the facility/program was just getting established, but has not done so for the past several years because the vendor is able to make a profit on the facility. The City has a license agreement authorizing the vendor to use the Steinbaugh Pavilion and adjacent parking area at no cost for the WinterSkate, similar to what the Town does for the Farmer’s Market. In Louisville the vendor is responsible for transferring the utilities to their name while the rink is in place. Thus, in both Longmont and Louisville, ice rinks have proven-over time-to either be self-supporting enterprises or net revenue generators for those cities.
Recommendation. With a smaller commercial area in downtown Erie than either Louisville or Longmont, with no track record of past performance, with the uncertainty of the pandemic, and on short notice, the vendor who responded to the Town’s request for a rental quote is obviously attempting to cover significant uncertainty and risk. Given the urgency to activate downtown during the winter months and the November calendar date, and given the ability of ice rinks in other nearby cities to be self-sustaining, staff recommends the Board approve purchasing the equipment, subject to Town staff completing due diligence to evaluate the quality of the equipment, because it would enable the Town to initiate a winter skate program this year at lower cost than renting, and will enable the Town to have a winter skate program in future years, likely enabling the Town to recoup the investment. Additionally, it is staff’s intent to offset some or all of these costs by offering sponsorship opportunities to the business community.
Fiscal Impact: New appropriation of up to $112,548
Board Priority(s) Addressed:
ü Attractive Community Amenities
ü Prosperous Economy
ü Small Town Feel
ü Safe and Healthy Community
ü Fiscally Responsible
ATTACHMENTS:
1. Resolution
2. Proposed Layout of 130 Wells Ice Rink
3. Purchase Agreement
4. Recess Factory Invoice- Construction & Deconstruction
5. General Services Agreement- General Maintenance
6. Recess Factory- General Maintenance Invoice
7. 130 Wells Lease Agreement