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HomeMy WebLinkAboutItem 08 - Ice Skating RinkMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: JULY 5, 2022 SUBJECT: CONTRACT WITH ICE LLC FOR CONTRUCTION AND OPERATION OF AN ICE SKATING RINK AT GRAPEVINE MAIN RECOMMENDATION: City Council to consider authorizing the City Manager to execute an agreement with ICE Challenge Enterprises LLC to construct and operate an ice skating rink at Grapevine Main during the next three Christmas seasons and take any necessary action. FUNDING SOURCE: BACKGROUND: This contract would provide for the construction and operation of an ice skating rink at Grapevine Main in Peace Plaza for the next three Christmas seasons. The rink will be operational from mid -November through the Christmas season and will cease operations on January 8. ICE Challenge Enterprises LLC will provide -90'x50' ice rink -Set-up and removal of rink -Management and staffing of the rink -Workman's comp insurance for employees -Ice rink signage -Skates -Ice Resurfacing Machine -Hours of operation are projected to be at least 4 pm to 9 pm Monday though Thursday and 4 pm until 10 pm on Friday and Noon until 10 pm on Saturday and Sunday - again, from November 18-January 8, 2023. City will provide: -3-Phase continuous power source for refrigeration (approximately $45,000), which would be reimbursed from revenue -110 volt power connection at skate rental area -Continuous water source -Coordination and payment of all necessary permits Payment Structure: -$168,950 of revenue will be paid to ICE to cover costs associated with the installation and operations of the rink. -$45,000 will be reimbursed to City to cover cost of 3-phase power. -$20,000 will be reimbursed to ICE to cover cost associated with decking under ice sheet. -Additional daily revenue will be split 70% to Grapevine and 30% to ICE. Sponsorships will be split 90% to Grapevine and 10% to ICE. The agreement and pro forma are attached. Staff from all affected City departments have been involved in the discussion since the addition of this amenity during the CCOT is expected to increase parking and pedestrian demand during the period of operation and we have plans in place to address the expected demand. ICE has operated a similar rink in Frisco Square and Forney. This will be their largest facility in the Metroplex. Staff recommends approval. An Agreement (the "Agreement") between ICE CHALLENGE ENTERPRISES, LLC (I.C.E.) and CITY OF GRAPEVINE ("Client's for construction and operation of a temporary outdoor ice rink on Client's property located at the Peace Plaza at 815 S. Main Street, Grapevine, TX 76051. Final and exact location within the Plaza space, to be determined based on a final site inspection to be based on client's needs and special event traffic flow. This proposal provides full management, staffing, and maintenance of the Ice Rink. This Agreement will commence on the date of signing and terminate on January 31, 2023. This proposal is for a 52 day operation (7.5 weeks) Ice Rink size 90ft x 50ft with a 30ft x 40ft skate concession area. The following outlines the terms of the Agreement. ICE LLC, will provide the followina: 90' x 50' temporary ice rink and 30' x 40' skate concession area • Set-up and Removal • General Manager • All Day to Day Staffing for all ice rink operations and maintenance, including but not limited to cashier(s), skates (rental, distribution, maintenance, and cleaning), ice cleaning, rink safety and maintenance. Onsite staff to wear consistent uniform attire. • All payroll expense related to ice rink • Workman's Compensation Insurance • Ice Rink Signage, graphic standards to be provided by client. All eauioment for ice rink will be Drovided • Rink piping grid System (90' x 50') • Air-cooled chiller, pumps, hoses, and all peripheral equipment • Glycol (secondary refrigerant) Perimeter Modular dasher boards (room for vinyl decal sponsor graphics inside the rink area, banners outside the rink perimeter) Graphic standards to be provided by client. • Wood Deck Structure to be built by I.C.E. • Ice rink load bearing wood deck base to be approved by a qualified third party individual at Client's expense. • Ice Resurfacing Machine • POS Structure or Tent based on event needs and space requirements • Rental Ice Skates 280 pairs • Skate Racks or Shelves • Skate change area with rubber floor covering (1200 sq. ft.) • Wood -frame covering over rink header piping • Professional supervision for set-up and removal • General labor for set-up and removal • General carpentry • Tools, equipment, and supplies for set-up/removal • Refrigeration technician on -call • Liability -related signage and waiver release forms will be of the Liability Sticker system format. • I.C.E. to provide a PA system as existing Events sound system will be utilized for CCOT Set up will begin on or after November 11, 2022. Rink must be operational by November 18, 2022. Rink completely removed by January 20, 2023. Any necessary repairs to plaza to be completed by January 27, 2023. I.C.E. and Client to view and photograph the rink site before construction starts and then inspect after January 20, 2023 to then make any repairs by January 27,2023. ICE LLC, will provide operation of the rink as follows: Rink will be open to the public daily from November 18th 2022 through January 08tn 2023. Fifty Two (52) days of operation, closed Thanksa_ ivina_ Dav, closed Christmas Dav and closina earlv New Year Eve at 6Dm • Hours of operation will be from: • 4:00pm until 9:00pm Monday thru Thursday It was suggested that the rink would open at 12:OOpm once school is out. • 4:00pm until 1O:00pm Fridays It was suggested that the rink would open at 12:OOpm once school is out. • Noon until 1O:00pm Saturday and Sunday Final hours of operation will be finalized and agreed upon with Client closer to the event. Private Ice Rental will be available Monday thru Sunday at $500.00 per hour, prior to opening times Monday thru Sundays for Corporate and Special Events Revenue for private and corporate events to be included in rink revenue. Performance Quality — I.C.E. agrees that no activity, performance, exhibition or entertainment that is potentially dangerous to the public or which is illegal, indecent, obscene or lewd shall not be allowed nor any political signage, statements, speeches or protests. Client will provide: • 3-phase, 480-volt, 400-amp continuous power source for refrigeration; (Client assumes and pays all electrical costs for the event) Electric installation costs based on invoices to be added to the contingency costs and not to exceed $45,000. • 110 volt power connection will be provided at skate rental area and for rink lighting. • Continuous water source adjacent to the rink site, including connections and meter. Client assumes and pays all water costs for the event, 9,000 gallons needed to build the rink and an additional 4,000 to maintain the rink. • Coordination and payment of all permits and licenses required for installation and operation of the equipment and event, if required. The Total to be paid to ICE for the construction, operation, and removal of the rink is not to exceed $168,950 for the operating season November 18th 2022 through January 8th 2023. Installation of power is an additional $45,000 to be added to upfront reimbursables. Client agree to 3 year term and will make payments to ICE LLC as follows: The not to exceed amount of $ 168,950 will be paid as follows: This will be a 100% contingency Agreement between ICE LLC and City of Grapevine, where Ice LLC will collect the first $168,950 in ticket sales, private ice sales and any other revenue related to the day to day operation of the ice rink. I.C.E. to provide a breakdown of the $168,950 expenses. Upon full repayment of the $168,950, Client will then be reimbursed $45,000 from ice rink revenue for expenses related to installation of electrical power. ICE LLC will be reimbursed for the cost to prepare the site for the Ice Rink with a wooden decking system not exceed $19,000. It is agreed that after approved reimbursables have been met the remaining revenue from sales will be shared with Client retaining 70% and ICE LLC retaining 30%. Client reserves the right to audit all ticket sales and income associated with operation of Ice Rink. Client will be responsible for all sponsorship sales and dasher board advertising sales. 90% of sponsorship and dasher board advertising will be retained by Client and 10% of this revenue will be retained by ICE LLC. To secure this pricing and proposal, an agreement between Client and Ice Challenge Enterprises (ICE LLC) must be signed below on or before July 8, 2022. Compliance with Law: Client will fully comply with all applicable local, state and federal ordinances, codes, laws and regulations in connection with the Client's activities under this Agreement. I.C.E. will fully comply with all applicable local, state and federal ordinances, codes, laws and regulations in connection with the responsibilities of I.C.E. hereunder. Assignments: Neither party's rights and obligations hereunder may be transferred or assigned and any attempted assignment by either party shall be void and of no effect. Binding Effect: This Agreement shall be binding upon, apply and insure to the benefit of the parties and their respective heirs, personal representatives, successors and assigns. Applicable Laws: This Agreement shall be governed by, construed and enforced in accordance with the laws of Texas, excluding any conflict of law or rule which would refer construction to the laws of any other jurisdiction. Venue for any litigation under this Agreement shall lie exclusively in State District Court in Tarrant County, Texas. Agreement Constitutes Entire Agreement: This instrument contains all terms, provisions and agreements between the parties hereto concerning the subject matter set forth herein and oral conditions or understandings at variance with or in addition hereto are void and of no effect. No oral or written communications will be effective to alter, amend or terminate this Agreement unless in writing and signed by duly authorized representatives of the parties hereto. Bankruptcy, Insolvency, Etc.: If either party is declared insolvent or bankrupt, or if a trustee in the bankruptcy or a receiver is appointed for either party, then and upon the happening of any of these events, non -bankrupt party may at its option immediately, with notice terminate and cancel this Agreement. No Partnership or Joint Venture: Nothing contained herein shall be deemed or construed by the parties hereto or by any third party as creating a relationship of (i) principal and agent, (ii) a partnership, or (iii) a joint venture between the parties hereto; it being understood and agreed that neither any provisions contained herein, nor any acts of the parties hereto, shall be deemed to create any relationship between the parties hereto except as independent contractors. Notices: Except as otherwise specifically provided herein, any and all notices required or permitted under this Agreement shall be in writing and shall be deemed delivered upon personal delivery or upon mailing thereof when properly addressed and deposited in the United States Mail, first class postage prepaid, registered or certified mail, return receipt requested, or when properly addressed upon deposit with a trackable overnight courier service. Notices shall be properly addressed if addressed to the parties as follows: If to I.C.E.: Ice Challenge Enterprises, LLC 3309 E Simmons Rd Edmond, Oklahoma 73034 Attention: Dmitri Logoutine If to Client: Bruno Rumbelow, City Manager City of Grapevine 200 Main S. Main Street Grapevine, TX 76051. With a copy to: City of Grapevine Mathew C. G. Boyle, City Attorney 200 Main S. Main Street Grapevine, TX 76051. The addresses for notices may be changed by written notice given to the other party as provided above. Counterparts. This Agreement and any attachments thereto may be executed in counterparts and all such counterparts shall constitute one agreement binding on both of the parties. Severability. Should one or more of the provisions of this Agreement be determined to be illegal or unenforceable, the other provisions nonetheless shall remain in full force and effect. The illegal or unenforceable provisions or provisions shall be deemed amended to conform to applicable laws so as to be valid and enforceable if such an amendment would not materially alter the intention of the parties. Insurance. Client agrees to provide an event liability insurance policy of $1,000,000 per occurrence, and I.C.E LLC will be listed as an additional insured. The certificate of insurance will be provided to ICE LLC by November 11, 2022. Indemnification by Client. To the extent allowed by law, Client shall indemnify, defend and hold I.C.E. harmless against and from any and all claims, lawsuits, losses, damages, expense, liabilities or penalties which arise from, or relate to Client's obligations under this Agreement and the negligent or willful acts or omissions of Client, it's employees, agents, or contractors in connection with Client's obligations under this Agreement. Indemnification by I.C.E. I.C.E. shall indemnify, defend and hold Client harmless against any and all claims, lawsuits, losses, damages, expense, liabilities or penalties which arise from, or relate to I.C.E.'s obligations under this Agreement, including, but not limited to, installation and removal of the ice rink and equipment, as well as the design, manufacture, delivery, repair and/or replacement of equipment or the use of the ice rink, and the negligent or willful acts or omissions of I.C.E., its employees, agents, or subcontractors arising out of I.C.E.'s obligations under this Agreement, including, but not limited to, installation and removal of the ice rink and equipment, as well as the design, manufacture, delivery, repair and/or replacement of equipment or the use of the ice rink. Default. Any and all provisions in the Agreement with reference to default on the part of Client, are subject to I.C.E. (i) providing Client written notice of the existence of any such default, and (ii) permitting Client three (iii) business days after receipt of the notice in which to cure such default prior to I.C.E. exercising any of its remedies provided under the Agreement or by law. Force Majeure. Neither Client nor I.C.E. shall be required to perform any term, condition, or covenant in the Agreement so long as such performance is delayed or prevented by force majeure, which shall mean acts of God, strikes, lockouts, material or labor restrictions by any governmental authority, or any other cause not reasonably within the control of the affected party and which by the exercise of due diligence of the affected party, that party is unable, wholly or in part, to prevent or overcome. Weather. In the event of rink closure or adjusted rink opening times due to abnormal weather conditions, specified in Exhibit B, attached hereto and incorporated by reference herein. I.C.E. LLC, will not be liable for any financial losses incurred. Repairs. I.C.E. shall be responsible to make all needed repairs to the ice rink and/or equipment and shall be responsible for the costs of the repairs unless the repairs are due to the negligence of Client, its employees, agents, or contractors, in which event, I.C.E. may charge Client for the reasonable cost of repairs. I.C.E. agrees to make any and all repairs necessary for the use of the ice rink in an expedient manner. If both parties agree with all the terms outlined in this Agreement, please sign below: If you have any questions or concerns, please call directly: Pierre Panayi at (972) 849-8124 or Dmitri Logoutine at (405) 274-6892 Agreed to on the day of , 2022 by: Dmitri Logoutine, Owner, Ice Challenge Enterprises LLC Bruno Rumbelow, City Manager, City of Grapevine 03/29/22 OUTDOOR ICE RINK 1st YEAR REVENUE PROJECTIONS HOTEL VIN PEACE PLAZA GRAPEVINE TEXAS OPERATION FROM NOVEMBER 18, 2022 thru January 08, 2023 Estimated Profit REVENUE & EXPENSES DATES Revenue Expenses* (Loss) [A] Public Skating 1600 skaters NOV 18th/27th $ 32,000.00 $ 32,000.00 Public Skating 1400 skaters NOV 28th/DEC 04th $ 28,000.00 $ 28,000.00 Public Skating 1400 skaters DEC 05th/11th $ 28,000.00 $ 28,000.00 Public Skating 1600 skaters DEC 12th/18th $ 32,000.00 $ 32,000.00 Public Skating 2200 skaters DEC 19th/25th $ 44,000.00 $ 44,000.00 Public Skating 2600 skaters DEC 26th/JAN 01st $ 52,000.00 $ 52,000.00 Public Skating 2600 skaters JAN 02nd/08th $ 52,000.00 $ 52,000.00 PRIVATE ICE RENTAL SEASON $ 6,000.00 $ 6,000.00 ELECTRIC/UTILITIES* SEASON $ 5,100.00 TITLE SPONSORSHIPS (NAMING RIGHTS) SEASON $ 15,000.00 SIGNAGE/ ADVERTISING** SEASON $ 36,000.00 ICE INSTALLATION ICE SEASON $ 168,950.00 STARS/CHALLENGE SAND & LEVELING SITE* SEASON $ 3,850.00 30% paid to ICE LLC for sales in excess of SEASON $ 21,000.00 $169K $ 325,000.00 $ 197,900.00 $ 127,100.00 SEASON 1 TOTAL BASED ON $20.00 Per Person NOTES: PROJECTED REVENUE BASED ON 20.00 PP WITH OR WITHOUT SKATE RENTAL AND FOR ONE HOUR SKATE TIME (SUGGESTED FOR 1st YEAR) (Projected on 200 tons of Refrigeration) PROJECTED TOTAL OF SKATERS FOR 1st SEASON IS 13,400 "Conservative Estimate at $1,500 for each dasher board 24 sold boards revenue would be $24,000 75% of capacity (32 Board Spaces Available) EXHIBIT A: Pro Forma EXHIBIT B: WEATHER Abnormal Weather Conditions: A. Prolonged wind from the South with speeds exceeding 23 mph B. 100% Humidity/Rain C. Temperatures exceeding 72 degrees Fahrenheit We look forward bringing this unique, seasonal event to the Peace Plaza at 815 S. Main Street Grapevine, Texas, for its inaugural year during the holiday season. If you have any questions do not hesitate to contact Pierre Panayi at: (972)-849-8124 Respectfully, ICE STARS COMPANY LLC ICE CHALLENGE ENTERPRISES Pierre Panayi Dmitri Logoutine President & Owner Owner/Operator