Agenda - Parks and Recreation Commission - 05/12/2022

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Parks & Assistant Public Works Superintendent Riverblood stated that the purpose of this case to continue to review the preliminary cost estimates for this project. He stated that this would be a large park in the category of a community park. He stated that the Commission reviewed the line item costs in great detail for the barn renovations at its January meeting. He briefly reviewed the different types of improvements outside of the barn renovations and estimated costs which would be broken into different phases. He noted that the total estimated cost for all project elements would be $3,800,000 which does not include the value of the land that would be dedicated or certain improvements that would be provided by the developer such as irrigation and infiltration. He noted that information was provided in the packet on the present value of the improvements at Central Park and Elmcrest Park which total about $18,000,000 each. He noted that those parks are similar in fashion in that they are community parks. He noted that the proposed cost for the improvements at this park would only be about 25 percent of the cost to develop the features of the other community parks, therefore it would appear that this is a good value to develop this community park that has been planned for this area of the community for the past two decades. He stated that at the last meeting there was a discussion on the value of the events that would be hosted for the event center, noting that it was stated that his projections may have been on the lower end. He provided more updated revenue projections for the first year, second year, and third year. He reviewed similar event centers within Minnesota and stated that almost all of those event centers had the same pricing for event rentals. He also noted the related economic benefit that could be experienced by existing businesses in Ramsey because of the event center. He stated that the proposed development did receive Preliminary Plat approval from the Council. Chair Bennett recognized that there are still moving parts between now and the next steps and appreciated the additional details provided. He stated that action is not required from the Commission but welcomed any comments. Commissioner Walker commented that he does not support the project, but since it has been pushed forward, he wants to ensure the park can be as good as it can be. He stated that he has serious concerns about the City getting into operation of a for profit business, as cities are notoriously bad at operating those types of uses. He stated that he would like to see a proposal of the expenses that would be needed for an event center such as staffing, utilities and supplies in order to review that element from a business perspective. He stated that while it is great to see the revenue projections, the expenses would also be needed in order to make that more accurate. He encouraged the City to lease that facility to ensure the taxpayers are not burdened with a net loss of an event center. He noted that leasing would provide guaranteed revenue with no risk of loss. Chair Bennett recognized that community assets such as community centers and pools fall into that category because of the operating expenses. He believed that information would be very helpful. Parks & Assistant Public Works Superintendent Riverblood agreed that staff could research those elements in order to provide those types of statements. He stated that there has also been discussion about having this facility only operational during seven months of the year to limit utility expenses. He stated that the community park is an important addition to the community and will be used for many purposes outside of the event center use. He noted that the large playground, athletic fields, and greenspace will serve many residents as well. Park and Recreation Commission/April 14, 2022 Page 3 of 5