Memo - Overpass Skate Park
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MEMORANDUM
To:
FRoM:
DATE:
SUBJEcr:
Honorable Mayor and Members of the City Council
Jay Strachota, Facilities Director
March 23,2005
Overpass Skate Park 2005 Season
Background
At the February 2,2000 work session, staff asked the Council for their opinion of operating the
Overpass Skate Park under a 5-year operators agreement with the management of "The 3rd
Lair", an indoor skate park in Golden Valley, MN. The proposal did not require a financial
investment from the city, The council was in favor of the concept and instructed staff to move
forward in executing the agreement. The 3 Rd Lair management then changed their opinion of
what it would take for them to successfully operate the park and asked for a $10,000 investment
from the City to be spent strictly on materials to improve the park and The 3rd Liar would
provide the builders to repair existing equipment and create new equipment. Under this scenario
the City would own any improvements. The reason they changed their approach is they believe
the park requires a new look in order to attract the number of attendees (attendance revenue)
needed to offset the expenses. Without the investment they regretfully cannot afford to take the
financial risk of signing an operators agreement to operate the park in 2005
Options to consider for the 2005 season
1. The 3rd Lairs proposal
· The City invests $10,000 for materials only for park improvements and repair
· The 3rd Lair provides the labor to do the repairs and improvements
· The City owns the improvements
· The 3rd Lair operates the park under contract with the City
· This plan would result in the highest utilization and most hours of operation
for the existing park
2. Selling the equipment and purchasing tier I equipment
· Tier I equipment doesn't require staffing or additional insurance
· Very little used equipment on the market so resale value of existing equipment
is unknown
· Most communities in our area have tier I equipment in their park system
3. Operating the park witli City staff.
· Annual net cost of approximately $13,000 -$17,000 to operate the park
· Limited days and hours of operation and low utilization
· Who supervises the facility? The Depot Manager, who was the past skate park
supervisor is no longer a city employee.
4. Selling the equipment and not rebuild a skate park facility.
· It is now commonplace for communities in our area to have tier I equipment
in their park system
Reciprocity Consideration
The City of Hopkins and the City ofSt. Louis Park have a reciprocity agreement between the
Overpass Skate Park and the St. Louis Park Aquatics Center. Residents of either city get into
these facilities at a resident rate. (The 3rd Lair has agreed to honor the reciprocity agreement). If
the Overpass were closed this benefit to residents would be lost. '
The Council's direction on the Overpass Skate Park will aid staff in moving ahead with
arrangements for the 2005 season.