STMA ARENA BOARD AGENDA MONDAY, SEPTEMBER 13, 2021

ALBERTVILLE CITY HALL 6:00 PM

1) CALL TO ORDER – ROLL CALL 2) ADOPT AGENDA 3) APPROVAL OF THE MINUTES OF AUGUST 9, 2021 (pgs. 2-3)

4) APPROVAL OF THE MINUTES OF AUGUST 30, 2021 – Special Meeting (pg. 4)

5) FINANCE REPORTS

a) Approve the August list of claims as presented in the amount of $40,689.78 and August report (pgs. 5-8)

6) ARENA MANAGER a) Monthly report (pg. 9)

7) OLD BUSINESS a) Hat Trick Hockey Lease (pgs. 10-24)

b) Ice Allocation Policy (pgs. 25-27)

8) NEW BUSINESS

a) Arena Board Goal Setting - Discussion

b) Community Room Use - Discussion 9) YOUTH HOCKEY ASSOCIATION 10) ADJOURN

ST. MICHAEL-ALBERTVILLE ICE ARENA BOARD MINUTES August 9, 2021

6:00 p.m.

Present: Chairman Larry Sorensen and members, Keith Wettschreck, Tim Lewis, Ryan Gleason, Kari Dwinnell, Walter Hudson and Aaron Cocking. Also present: City Administrator Adam Nafstad, City Finance Director Tina Lannes, STMA Arena Manager Grant Fitch, School and Ground Director Jason Bichler, and Adam Longberg from Hat Trick Hockey. The meeting was called to order at 6:00 p.m. by Chairman Sorensen. Set Agenda Member Dwinnell requested adding goal setting to the agenda under new business. Members Dwinnell\Cocking moved to set the agenda as amended. All voted aye. Approval of Minutes Members Hudson\Gleason moved to approve the minutes of the June 14, 2021 Board Meeting as presented. All voted aye. Finance Reports Lannes presented the finance reports. Members Cocking\Lewis moved to approve the June/July list of claims totaling $50,883.80 and the July Financial Report as presented. All voted aye. Lannes provided the board with the 2nd Quarter Budget to Actual projection. Arena Manager’s Report Fitch presented the Arena Managers report mentioning that the hours sold in July was 235 hours which was 15 hours less than projected. Fitch updated the Board that all the hydraulic hoses were replaced and service was complete on the Olympia. Fitch reported staff is in the process of replacing the full-time vacancy of the Arena Maintenance position. Old Business There was continued discussion on the sale of additional ice time especially in the off (summer) season, hours of operation and Ice Rental Rates. Members Dwinnell\Hudson moved to include a daytime rate of $135 per hour. All voted aye. Nafstad brought forward an updated concept for repurposing the old lobby for retail space at the arena with Hat Trick Hockey. There was discussion on the concept with the arena board, leasing agreement and capital improvements. Member Lewis suggested to investigate different funding/leasing options. There was continued discussion on funding/leasing options. Member Dwinnell excused herself from the meeting at 7:01 P.M. There was a discussion on risks for both the STMA Arena Board and Hat Trick Hockey. Staff was directed to investigate funding/leasing options and bring back information along with the updated concept to the September Meeting.

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STMA August 9, 2021 Minutes Page 2

Member Lewis mentioned if there was a way to separate the retail business from being seen as an extension of STMA School District. Nafstad stated there will be a physical separation between the retail space and the old sheet of ice. Nafstad updated the Board on the possibility of leasing out the concession stand. There was continued discussion on that option and staff was directed to continue looking into it if there is interest. New Business Chairman Sorensen stated to add goal setting to the next agenda due to the absence of member Dwinnell. Chairman Sorensen mentioned possible topics under goal setting for the STMA Arena Board might include budgets, operation profits, ice time and other goals that would serve the community. Adjourn Members Cocking\Lewis moved to adjourn at 7:30 p.m. All voted aye. Attest: _________________________________ Tina L. Lannes, City Finance Director

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ST. MICHAEL-ALBERTVILLE ICE ARENA BOARD MINUTES August 30, 2021 – Special Meeting

(7:00 pm following Joint Governance Meeting)

Present: Chairman Larry Sorensen and members, Keith Wettschreck, Ryan Gleason, Kari Dwinnell, Walter Hudson and Aaron Cocking. Also present: City Administrator Adam Nafstad, Albertville City Attorney Mike Couri, St. Michael Councilmember Joe Hagerty, and Steve Sachs and Adam Longberg from Hat Trick Hockey. The meeting was called to order at 7:08 p.m. by Chairman Sorensen. Set Agenda The agenda was adopted as proposed. It was noted the meeting was in addition to the Board’s regular monthly meeting and necessary to keep the Hat Trick Hockey Lease moving forward. Hat Trick Hockey Lease The Board reviewed the layout of the proposed 2,800 square foot retail buildout and discussed the quoted costs associated with the proposed leasehold improvements, which are estimated to be $300,000. Nafstad explained the mezzanine buildout option for use as dryland space and noted the quoted cost to include the improvements was estimated at $200,000. Nafstad informed the Board the Youth Hockey Association was not able to attend the meeting, but is evaluating the project. Couri and Nafstad presented the lease agreement and addressed questions from the Board. Longberg and Sacks explained their timeline and their need to have a better understanding if the lease was something the Board was open to with or without the dryland space. Longburg also explained the risk Hat Trick was assuming with the proposed buildout and lease. The Board had lengthy discussions on leasing the space, rent and rent payment options, rent rates if Hat Trick exercises its renewal options; as well as, what type of agreement with Youth Hockey would be needed if Youth Hockey decided to move forward with the dryland option. The unofficial general consensus of the Board was endorsement of the lease agreement with Hat Trick Hockey and direction to staff to develop a similar agreement with Youth Hockey should they build the dryland mezzanine. Adjourn Meeting adjourned at approximately 8:00 p.m. Attest: _________________________________ Adam Nafstad, City Administrator

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STMA Ice Arena Budget to Actual August 2021 (Cash Basis)

STMA Arena 2021 Budget

August 2021

Actual

2021 Actual YTD 8/31/21

2021 YTD % of Budget

Income

Ice Rental $672,585.00

$26,159.50

$351,001.10

52.19%

Concessions $35,000.00

$8.00

$64.50

0.18%

Room Rental $500.00

$0.00

$0.00

Other Revenues (Advertising/LMC/Ins Claims/ATM) $20,000.00

$0.00

$699.42

3.50%

Vending $1,500.00

$0.00

$631.55

42.10%

Open Skate/Hockey, etc. $6,000.00

$2,214.42

$9,193.15

153.22%

Interest $1,000.00

$0.00

$0.00

0.00%

reimbursement - Cities $0.00

$0.00

$0.00

0.00%

Misc. Revenue $100.00

$30.00

$105.00

Total Income $736,685.00 $28,411.92 $361,694.72

49.10% Expenses

Salaries, Wages, Taxes & Benefits $347,175.95

$6,348.78

$182,581.99

52.59%

Supplies (Office, Misc.) $1,500.00

$0.00

$173.59

11.57%

Supplies (Concession) $28,700.00

$0.00

$0.00

0.00%

Fuel, Misc. $500.00

$162.16

$335.64

67.13%

Professional Services $29,200.00

$252.78

$16,907.69

57.90%

Sales Tax $3,448.00

$107.02

$673.04

19.52%

Telephone $2,250.00

$175.12

$1,347.84

59.90%

Electric $130,000.00

$14,667.02

$78,239.61

60.18%

Gas $45,000.00

$2,300.81

$26,065.81

57.92%

Water $15,000.00

$954.87

$4,845.96

32.31%

Refuse $2,750.00

$0.00

$671.96

24.43%

Insurance $22,000.00

$0.00

$13,589.00

61.77%

Education/Training $1,500.00

$0.00

$198.00

13.20%

Administration $13,812.66

$1,151.06

$9,208.44

66.67%

Misc. $5,700.00

$619.34

$3,421.50

60.03%

Repair Maintenance – Machinery $15,000.00

$0.00

$14,938.22

99.59%

Repair Maintenance – Building $40,000.00 $845.82 $23,865.33

59.66%

Total Operating Expenses $703,536.61

$27,584.78

$377,063.62

53.60%

Net Income/Loss $33,148.39 $827.14 ($15,368.90)

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STMA ICE ARENA CASH BALANCES AND RECEIVABLES

August 31, 2021

Cash Balance Operations

Est. Cash Balance Operations 1/1/21 (audited) $1,681 Add Acct Rec 2020 collected 2021 $153,276 Add Revenues $361,695 Less Expenses $(377,064) Est. Cash Balance Operations 08/31/21 $139,588

Accounts Receivable (invoiced) Operations August 31, 2021 - $29,973.75

Cash Balance Dedicated Capital Improvement Fund

Arena Owner Dedicated Cap. Imp. Fund Beginning Balance 1/1/21 $100,664 Invoiced St. Michael $15,000 $15,000 Invoiced ISD 885 $15,000 $15,000 Invoiced City of Albertville $15,000 $15,000

Balance 08/31/21 $145,664

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STMA Ice Arena Vendor Check Detail Register August 2021

Check # Check Date Vendor Name Amount Invoice Comment

9894 e 08/02/21 ARAMARK E 810-00000-405 Repair/Maint - Buildings $26.60 2530000223 Arena mats,mops

9898 e 08/02/21 CTM SERVICES, INC E 810-00000-404 Repair/Maint - $643.84 4809 service/repair to 2002 Olympia Millennium Ice Resurfacer E 810-00000-404 Repair/Maint - $12,891.09 4834 service/repair to 2002 Olympia Millennium Ice Resurfacer

9899 e 08/02/21 ECM PUBLISHERS, INC. E 810-00000-433 Dues and Subscriptions $90.66 846278 Arena Maintenance & Shift Supervisor

9909 e 08/02/21 MR CUTTING EDGE LLC E 810-00000-404 Repair/Maint - $40.00 3576 Ice Scraper Blade 84" Total $40.00

9910 e 08/02/21 MSDSONLINE, INC E 101-41000-300 Professional Srvs $2,599.00 239932 MSDSonline HQ Renewal 8/9/21-8/8/22

9912 e 08/02/21 RUSSELL SECURITY RESOURCE INC. E 810-00000-405 Repair/Maint - Buildings $345.00 A40067 Arena Electronic Access fobs not working

9914 e 08/02/21 SCR, INC E 810-00000-405 Repair/Maint - Buildings $153.34 C006340 Monthly CO2 Tank Charges E 810-00000-405 Repair/Maint - Buildings $650.00 W67381 Cooling 1 Maintenance on Gold Rink E 810-00000-405 Repair/Maint - Buildings $173.00 W67446 Assisted Mech Energy Systems w/installing water tap E 810-00000-405 Repair/Maint - Buildings $1,813.00 W67610 Refrig 2 Maintenance on Gold & Blue Rink E 810-00000-405 Repair/Maint - Buildings $626.97 W67746 leak check & repaired a couple small leaks on rack

9916 e 08/02/21 ZEE MEDICAL SERVICE E 810-00000-405 Repair/Maint - Buildings $42.35 54104913 Arena medical supply replenish

9930 e 08/20/21 RESOURCE TRAINING & SOLUTIONS/ E 810-00000-130 Employer Paid Ins ($813.00) 2108021558 Emp Health Ins E 810-00000-130 Employer Paid Ins $3,594.50 2108021558 Emp Health Ins

9949 e 08/09/21 CITY OF ALBERTVILLE E 810-00000-382 Water Utilities $754.23 JULY 2021 Arena Wtr Bill 7/20/21 87-00000315-00-0 E 810-00000-382 Water Utilities $200.64 JULY 2021 Arena Wtr Bill 7/20/21 87-00000310-00-5

9952 e 08/16/21 AEM FINANCIAL SOLUTIONS, LLC E 810-00000-301 Auditing and Acctg $155.63 446683 FS Accounting - 2021 Reporting

9953 e 08/16/21 ARAMARK E 810-00000-405 Repair/Maint - Buildings $26.60 2530000330 Arena mats,mops

9958 e 08/16/21 ECM PUBLISHERS, INC. E 810-00000-433 Dues and Subscriptions $358.82 847228 Ice Arena Maintenance & Shift Sup E 810-00000-433 Dues and Subscriptions $260.52 848529 Ice Arena Maintenance & Shift Sup

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STMA Ice Arena Vendor Check Detail Register August 2021

Check # Check Date Vendor Name Amount Invoice Comment

9963 e 08/16/21 FERRELLGAS LP E 810-00000-212 Motor Fuels $162.16 2014330206 Propane Delivery

9977 e 08/16/21 SCR, INC E 810-00000-405 Repair/Maint - Buildings $153.34 C006439 Monthly CO2 Tank Charges

9984 e 08/16/21 WRIGHT-HENNEPIN COOP ELECTRIC E 810-00000-381 Electric Utilities $10.74 Arena Elevator Monitoring 8/31/21

10004 e 08/19/21 MN DEPARTMENT OF REVENUE E 810-00000-315 Sales Tax $107.02 AUGUST Arena Sales Tax

41049 08/02/21 HILLYARD, INC. E 810-00000-404 Repair/Maint - $75.59 700470797 Wired hose w/cup

41050 08/02/21 MET LIFE LIFE INSURANCE E 810-00000-130 Employer Paid Ins $433.68 AUGUST Emp Life, Dental,Stdis,Vision

41060 08/10/21 CHARTER COMMUNICATIONS E 810-00000-321 Telephone $54.72 0131538073 Arena Cable 8352305160131538

41062 08/16/21 Ace of Albertville - Arena E 810-00000-405 Repair/Maint - Buildings $19.97 119014/1 plastic pail,multi purpose cleaner E 810-00000-405 Repair/Maint - Buildings ($4.00) 119043/1 ice melt bucket,multi purpose pail return

41066 08/16/21 CENTERPOINT ENERGY E 810-00000-383 Gas Utilities $2,300.81 AUGUST 5898 Lachman Avenue NE

41087 08/16/21 STEP SAVER, INC. E 810-00000-405 Repair/Maint - Buildings $105.00 146744 bulk salt

41089 08/16/21 XCEL ENERGY E 810-00000-381 Electric Utilities $14,656.28 743007631 5898 Lachman Avenue NE 51-5873315-4

41090 08/18/21 CHARTER COMMUNICATIONS E 810-00000-321 Telephone $120.40 0131702081 Arena Voice 8352305160131702

41098 08/31/21 MET LIFE LIFE INSURANCE E 810-00000-130 Employer Paid Ins $433.68 SEPTEMBE Emp Life, Dental, Stdis, Vision 810 STMA ARENA $40,689.78

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MANAGER’ GENERAL UPDATE Date: September 13th, 2021 To: STMA Arena Board From: Grant Fitch, STMA Arena Manager ARENA MONTHLY RENTAL HOURS –AUGUST

User Hour Sold STMAYHA 6 hours AAA 73 hours RYHA (Rogers) 0 hours Adult Hockey 6 hours High School Boys/Girls 0 hours Public Skating/OH 71 hours Private rentals 58 hours

________________________________________________________________________ Total Hours Sold 214

Monthly Budget Projection 200 OPERATIONS: 8-21-21 St Cloud Refrigeration was called to respond to a power outage. Glycol pumps, VFD’s tripped and needed to be reset. System down for about 2 hours. Maintenance: Albertville Public Works had the Arena parking lot restriped when they contracted to do other city facilities. All stalls, handicapped symbols, and fire lanes repainted. Work completed Tuesday September 1st 2021 Staffing: Conducted interviews on Wednesday September 8. The hiring recommendation will be presented the Albertville City Council at their Sept 20th meeting. We anticipate an early October start date. STMAYHA:

• Season starts September 13th (skills and drills) • Try Hockey for free Saturday September 18th 10 to 11:30am • YH Try-outs Bantam & Peewee September 26th, 27th and October 2nd, 3rd • YH Try-outs Squirts October 7th, 8h, 9th and 10th • YH Try-outs Girls 12U October 1nd,2nd and 3rd • YH Try-outs Girls 10U October 8th, 9th and 10th

Showcase AAA Hockey: The final Tournament (Warrior Cup) scheduled for September 10th 11th and 12th for a total of 40 rental hours. Total of about 400 hours sold to summer AAA programs from April 1st through September 12th 2021

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Hat Trick Hockey Lease Date: September 9, 2021 To: STMA Arena Board From: Adam Nafstad Attached is the Hat Trick Hockey Lease Agreement as presented at the Special Arena Board Meeting held on August 30, 202. In general, the terms of the lease are $3,000 per month for 10 years with two successive 5 year renewal options. The lease requires Hat Trick to construct the lease hold improvements and establishes a rent credit in the amount of the improvements. In lieu of monthly rent payments, the rental credit will be decreased by $3,000 per month. Once the credit is exhausted, Hat Trick will make monthly cash payments. Legal edits by both parties are still in the works. At this time it is not known if the STMA Youth Hockey Association will be participating in the project and constructing finished space above the retail space. Once STMA YHA has a better understanding of project budget and timing, the Association will determine if they desire to move forward with the project. It is assumed, the Association will be able to finalize a decision by the end of the month. Motion to Consider: Motion approving the lease subject to City Attorney edits and directing staff to execute the lease by September 28th, 2021, if STMA YHA decides not to move forward with a project. The intention of the above motion is to approve the Hat Trick lease yet allow the Association time to decide whether they will be moving forward with their project. If prior to Sept. 28 1 the Association decides they want to go forward with their project, the lease will not be executed and will be revised to include STMA YHA portion of the project.

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ST. MICHAEL-ALBERTVILLE ICE ARENA JOINT POWERS BOARD COUNTY OF WRIGHT

STATE OF MINNESOTA

LEASE BETWEEN THE ST. MICHAEL-ALBERTVILLE ICE ARENA JOINT POWERS BOARD AND HAT TRICK HOCKEY ALBERTVILLE LLC

THIS AGREEMENT, made this _____ day of ______________, 2021, by and between the St. Michael – Albertville Ice Arena Joint Powers Board (“Board” or “Lessor”) a joint powers board under the laws of the State of Minnesota, and Hat Trick Hockey Albertville, Inc. a Minnesota corporation (“Lessee” or “Tenant”), to rent a portion of the STMA Ice Arena located at 5898 Lachman Avenue NE, Albertville, Minnesota 55301 for commercial retail space. WHEREAS, The Lessor in consideration of the rents and covenants hereinafter mentioned, does hereby demise, lease, and let unto the Lessee, and the Lessee does hereby hire and take from the Lessor a portion of the following premises located at 5898 Lachman Avenue NE, Albertville, Minnesota 55301 as graphically depicted on attached Exhibit A (“Leased Premises”). NOW, THEREFORE, in consideration of the foregoing and mutual promises and covenants set forth, the parties hereby agree as follows: 1. LEASED PREMISES

The Board leases to Lessee the Leased Premises.

2. TERM A. The Term of this Agreement shall be for 10 years commencing on the

date that a temporary or permanent occupancy permit is issued to Lessee following the completion of the installation of the General Improvements as required in paragraph 5.A.1 below. Lessee shall have access to the Leased Premises upon the execution of this Lease by all parties for construction purposes consistent with the construction requirements of this Lease. If no temporary or permanent occupancy permit is issued to Lessee by June 30, 2022, this lease shall be void.

B. Lessee shall have two successive five-year lease renewal options, the

first commencing upon the expiration of the initial term of this lease and the second commencing upon the expiration of the first five-year renewal option (provided the first renewal option is exercised). In order to exercise such options, Lessee shall send written notice to the Lessor of its intent to exercise such renewal option at least 90 days but not more than 365 days prior to the expiration of the lease term. Said renewal shall be on the same terms as this lease, except that there shall be no rental credit that is applied during such option term and the rent

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shall be increased or decreased by the percentage change in the Consumer Price Index for All Urban Consumers (CPIAUC) as published by the United States Bureau of Labor Statistics (or a successor index if the CPIAUC is discontinued and a successor index is maintained by the Bureau of Labor Statistics) from the date of the execution of this lease to the date of the commencement of the option in question. Said options may be terminated by the Lessor before their exercise in the event the Lessor permanently ceases using the Arena for hockey games and hockey practices prior to the expiration of this lease or prior to the commencement of the second option if the first option is properly exercised.

C. In the event the Ice Arena is unable to conduct its normal operations for

a period of 30 days or more due to extraordinary circumstances beyond its control (e.g. mandated government shutdown due to a pandemic, etc.), the Lessee’s obligation to pay rent under this lease shall be suspended during such shutdown and the term of this lease shall be extended for the same amount of time that the Ice Arena is unable to conduct its normal operations.

3. AUTHORIZED USE

The Board grants to Lessee the exclusive use of the Leased Premises for use as commercial retail space only. The Leased Premises shall be used and occupied by Lessee only for the uses specified in this Agreement. Lessee is prohibited from any use of the Leased Premises not specifically permitted under this Agreement without the prior written approval of the Board, such approval to be given at the Board’s sole discretion.

4. RENT, FEES AND CHARGES A. Rent shall be in the form of building improvements and monthly

rent payments as follows:

1. Monthly rent on the Leased Premises shall be $3,000 per month, subject to the building improvement credit set forth in paragraph 4.A.2 below, plus other rental expenses as set forth in this paragraph 4. Lessee’s first monthly rent payment shall be due on the day following the day a temporary occupancy permit is issued as set forth in paragraph 2 above.

2. Lessee may apply a rental credit equal to the lesser of 1) the total cost of installing the General Improvements described on Exhibit B that are actually paid by Lessee (hereafter referred to as the “Reimbursed Construction Cost”) or 2) $336,000.00 in lieu of cash payments of rent. Such rental credit may be used in lieu of rent payments, with the amount of such credit being reduced by the cumulative amount of rental credit applied under this Lease.

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Once the rental credit is exhausted, the Lessee shall pay rent monthly in the amount required under this Lease.

3. The Lessee shall be responsible for paying all payments in lieu of real estate taxes required to be paid to Wright County. If the Wright County billing for such amounts is in the name of Lessor, Lessee shall pay such amounts to Lessor at least 14 days prior to the date Lessor must make such payment to the County. If the Wright County billing for such amounts is in the name of Lessee, Lessee shall timely pay such amounts to Wright County.

4. Rent shall be paid to Lessor in advance on the first day of the term of this lease and on the same day of each succeeding month, provided that Lessee shall not be required to pay rent during the suspension period as set forth in paragraph 4.A.2. Payment shall be sent to the City of Albertville’s Finance Director, or such other such person as Lessor may specify, and that said Lessee will keep and maintain the Leased Premises during the aforesaid term, and quit and deliver up the Leased Premises to the Lessor at the end of the aforesaid term or at any previous termination thereof for any cause, in as good order and condition and state of repair, reasonable use and wearing thereof excepted, as the same now is or may be put by the Lessor.

5. Upon expiration or termination of this Lease, all improvements

made to the Leased Premises by Lessee, including all improvements described on Exhibit B, shall be deemed additions to the real estate and shall become the property of the Lessor, in which case Lessor shall have no obligation to reimburse Lessee for any unused rental credit. All such unused rental credit shall expire upon the expiration or termination of this Lease.

B. Utilities The Lessor shall be responsible for paying all gas, garbage, sewer and water utilities consumed during the term of the lease. The Lessee shall be responsible for pay all other utilities including, but not limited to, cable and phone/internet and electrical. In the event the Lessee places so much cardboard in the garbage that it hinders Lessors use of the garbage dumpster, Lessee shall pay for a separate cardboard disposal service for the cardboard boxes it generates. Lessee shall not waste utilities in the Leased Premises. Payments under this subparagraph shall not be subject to the rent suspension contained in paragraph 4.A.2.

C. Interest and Late Fees Lessee shall pay a penalty for late or delinquent payments during the Term of this Agreement and any extensions of twelve percent per annum on the

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balance of the unpaid amount calculated from the date the amount is due until the close of the business day upon which the delinquent payment is received by the Board. D. Maintenance Lessee shall be responsible at its expense for all maintenance to the inside of the Leased Premises, the doors and windows, and the HVAC unit Lessee shall install on the roof of the Leased Premises. Lessor shall maintain the outside of the structure housing the Leased Premises (including the roof) and the parking lot.

5. LEASEHOLD IMPROVEMENTS A. Installation/Construction of General Improvements.

1. Subject to the terms of this Paragraph 5, the Lessee shall construct

at its sole cost and expense the general building improvements to the Leased Premises described on the attached Exhibit B (“General Improvements”) and shall equip the Leased Premises with trade fixtures and all personal property necessary or proper for the operation of Lessor’s business. The Lessee shall proceed with reasonable diligence to enter into a contract for work and shall use reasonable efforts to complete such work by December 31, 2021. Such General Improvements shall become the property of the Board upon their installation and shall remain the property of the Board upon the termination of this lease. The trade fixtures and personal property added by Lessee shall remain the property of Lessee. The trade fixtures and personal property added by Lessee shall remain the property o The Leased Premises shall be considered ready for occupancy by Lessee when the Lessor has obtained a temporary or permanent occupancy permit following the installation of the General Improvements.

2. The Lessee shall not be obligated to construct the General

Improvements if the total cost of such General Improvements, including architectural fees, engineering fees and construction costs is estimated to exceed $336,00.00. In such event, the Lessee may either waive its right to terminate this lease and elect to construct said General Improvements or cancel this lease by serving written notice of cancellation on the Board by the earlier of: 1) within 14 days of presentation of such estimated costs to the Lessee; or 2) October 31, 2021. In the event the Lessee cancels this lease, both the Board and the Lessee shall be released from all obligations of this lease.

3. At the time of the execution of this lease, the parties estimate that

total costs of the General Improvements will be approximately

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$290,000.00. Construction and installation of the General Improvement shall be at Lessee’s sole expense.

4. The Lessee at its sole expense shall obtain all permits necessary to

install the General Improvements. 5. The Board may have designated representatives present at the

Leased Premises for inspection purposes at all times (or such times as the Board may deem necessary) during the construction and installation of the General Improvements.

6. Lessee shall provide the Board with a construction schedule for

installation of the General Improvements. Further, Lessee shall notify the Board one week prior to initiation of construction of the General Improvements to coordinate review of the construction activities and to allow the Board time to initiate any safety precautions deemed necessary to protect the health and safety of patrons of the STMA Ice Arena.

7. Installation and construction of the General Improvements shall

not interfere with (i) any construction work of the Board, (ii) the management and operation of the STMA Ice Arena, or (iii) the use of the STMA Ice Arena by other tenants or occupants.

8. Upon the execution of this Lease, Lessee shall have access to the

premises for purposes of commencing construction of the General Improvements.

B. Liens Lessee shall: 1) keep the Leased Premises free and clear from all liens for labor performed and materials furnished on behalf of Lessee; and 2) defend, at Lessee’s cost, each and every lien asserted or filed against the Leased Premises, or against this Agreement and any improvement on behalf of Lessee on the Leased Premises and pay each and every judgment resulting from such lien. Lessee’s contractor shall, prior to commencing work on the Leased Premises, provide the Board with a payment bond in the amount of the estimated cost of the General Improvements. C. Title to Improvements and Structural Alterations All personal property shall be removed by Lessee upon termination of the lease term. Any improvements to the Leased Premises shall become the property of the Board.

6. MAINTENANCE OBLIGATIONS

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A. Board Obligations The Board shall maintain the building, landscaping and shall clear snow and ice from the sidewalks, entryways to the building, and parking lot, but the Board shall not be obligated to maintain the interior of the Leased Premises, nor any fixtures or equipment installed in the Leased Premises as part of the General Improvements.

B. Lessee’s Obligations Lessee shall be obligated, without cost to the Board, to maintain all portions of the Leased Premises not maintained by the Board per paragraph 6A above. Lessee shall keep the Leased Premises in good appearance, repair, and safe condition at all times. Lessee shall be responsible for all janitorial service and garbage removal within the Leased Premises.

7. DAMAGE TO OR DESTRUCTION OF LEASED PREMISES

A. Repair All damage or injuries to the Leased Premises and to fixtures, appurtenances, and equipment by Lessee, moving property in or out of the Leased Premises or by installation, removal of furniture, fixtures, equipment, or other property by Lessee, or resulting from any other cause of any other kind or nature whatsoever due to carelessness, omission, neglect, improper conduct, or other causes of Lessee, or their subtenants, invitees, agents, or employees shall be repaired, restored, or replaced promptly by Lessee within fifteen (15) days at its sole cost and expense to the satisfaction of the Board. The Board will notify Lessee in writing if the Board determines repairs must be made. No rent shall abate if damage resulted from any act of Lessee or their subtenants, invitees, agents, or employees. If repairs are not made within fifteen (15) days of the notification of the damage, and the Board was not responsible for the damage, the Board will notify Lessee in writing that the Board will make the repairs and charge Lessee the current hourly rate for labor and materials at cost, unless otherwise agreed to. An administrative overhead charge of fifteen percent (15%) shall be added to the total cost (employee plus material cost) of the billing. Additional interest at the rate of eighteen percent (18%) per year shall accrue if the sum is not paid within five (5) days after rendition of a bill or statement, therefore. If the Board and its employees or agents damage the Leased Premises through their gross negligence or intentional act, the Board will be solely responsible for the repairs. If damage occurs that is not the fault of Lessee, or any of its subtenants, invitees, agents, or employees in any way making the Leased Premises unusable, rent and all other charges shall be abated on a per day pro-rated basis during the time the Leased Premises are unusable.

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B. Exceptions from Liability The Board shall not be liable or responsible to Lessee for any damage or destruction to Lessee's property from any cause other than the Board’s own intentional or negligent acts.

8. INDEMNIFICATION AND INSURANCE

A. Indemnification To the fullest extent permitted by law, Lessee does hereby covenant and agree to indemnify and hold harmless the Board and its members, officers, agents and employees (collectively “Indemnitees”) from and against any and all liabilities, losses, damages, suits, actions, claims, judgments, settlements, fines or demands of any person arising by reason of injury or death of any person, financial loss, or damage to any property, including all reasonable costs for investigation and defense thereof (including, but not limited to, attorney’s fees, court costs and expert fees) of any nature whatsoever arising out of or as a result of Lessee’s operation at or about the Leased Premises including, but not limited to, construction of the General Improvements, or the acts or omissions of Lessee’s officers, agents, employees, contractors, subcontractors, licensees or invitees, regardless of where the injury, death or damage may occur. The Board shall give Lessee reasonable notice of any such claim or action. In indemnifying or defending an Indemnitee, Lessee shall use legal counsel reasonably acceptable to the Board. The Board, at is option, shall have the right to select its own counsel or to approve joint counsel as appropriate (considering potential conflicts of interest) and any experts for the defense of claims. Lessee, at its expense, shall provide to the Board all information, records, statements, photographs, video, or other documents reasonably necessary to defend the parties on any claims. This provision shall survive expiration or earlier termination of the Agreement. The furnishing of the required insurance hereunder shall not be deemed to limit Lessee’s obligations under this Agreement. As a distinct and separate indemnification obligation, Lessee shall defend, indemnify, and hold the Board harmless from any claims or liabilities as a result of Lessee’s failure to procure and to keep in force the insurance required as part of this Agreement. Lessee shall not use or permit the Leased Premises to be used in any manner that would void Lessee or the Board’s insurance or unreasonably increase the insurance risk. Lessee shall comply with all requirements imposed by the insurers for the Board and Lessee. B. Board Insurance During the term of this Lease, the Board shall insure the building and all fixtures belonging to the Board against fire and other casualty. The Board shall pay all premiums to obtain and keep in force such insurance

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coverage. The Board shall not be obligated to insure Lessee’s contents.

C. Lessee Insurance During the term of this Lease, Lessee shall maintain in force a liability insurance policy from an insurer licensed to do business in Minnesota naming the Board as an additional insured with the greater of the following liability limits: 1) $2,000,000 per person for personal injury or death and $2,000,000 per occurrence for personal injury or death or damage to property, or 2) the municipal tort liability amount as set forth in Minn. Stat. 466.04 or its successor statute. Prior to occupancy of the Leased Premises and annually thereafter Lessee shall present the Board with certificates of insurance evidencing the required insurance. All policies of insurance shall contain a provision or endorsement that the coverage afforded will not be canceled or reduced in limits by endorsement, and that renewal will not be refused, until at least 30 days prior written notice has been given to the Lessee. Upon receipt of such notice, the Lessee shall promptly forward a copy of the notice to the Board. Lessee shall be responsible for providing its own contents and renter’s insurance.

D. Insurance

The Lessee shall be responsible for insuring its contents contained in the Leased Premises.

9. COMPLIANCE WITH LAWS

A. Compliance with Laws Lessee, at its sole expense, shall promptly comply with and conform to all present and future laws, ordinances, regulations, and requirements of federal, state, county, and other government bodies of competent jurisdiction that apply to or affect, either directly or indirectly, Lessee’s use and occupation of the Leased Premises, and with any lawful order or direction of any public officer relating thereto and operations and activities under this Agreement. The Board shall have the right to and shall adopt and enforce reasonable rules and regulations with respect to the use of the Leased Premises and related facilities, which Lessee must observe and obey, provided such rules do not conflict with the normal operating procedures for the intended use of the property by Lessee. B. Notices of Violation Lessee shall notify the Board within two (2) Business Days of any notices of violation of any laws, ordinance, rule, regulation, or order.

10. DEFAULT

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A. Events of Default Any of the following shall constitute a default of this Agreement by Lessee. 1. Lessee is in arrears in the payment of rent for a period of five

(5) days after written notice of default from the Board.

2. Lessee fails to operate the Leased Premises as required, or Lessee fails or neglects to do or perform or observe any of the covenants contained herein on its part to be kept and performed and such failure or neglect shall continue for a period of not less than thirty (30) days after the Board has notified Lessee in writing of Lessee’s default hereunder and Lessee has failed for reasons other than those beyond Lessee’s control to correct such default within said thirty (30) days (such thirty (30) day notification period shall not be construed to apply to any default in payment of rent).

3. Lessee shall be declared to be bankrupt or insolvent according

to law, or if any assignment of its property shall be made for the benefit of creditors.

4. Lessee fails to maintain the required insurance for any time

period as required under this Lease.

B. The Board’s Rights Upon Default The Board, or those having an estate in the Leased Premises, may take any of the remedies set forth in the following subsections.

1. Immediately, or at any time thereafter, without further notice to Lessee, but in compliance with applicable law, re-enter into or upon the Leased Premises or any part thereof and take possession of the same fully and absolutely without such re-entry working a forfeiture of the rents or other charges to Lessee for the full Term of this Agreement, and in the event of such re-entry, The Board may proceed for the collection of the rents or other charges to be paid under this Agreement or for properly measured damages; or

2. The Board may, at its election, terminate Lessee’s rights under this Agreement upon written notice in the manner hereinafter provided and re-enter Leased Premises as of its former estate therein, and Lessee covenants in case of such termination to remain responsible to the Board for all loss of rents and expense including reasonable attorney’s fees which the Board has suffered or paid by reason of termination, during the residue of the Term; or

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3. The Board shall further have all other rights and remedies including injunctive relief, ejectment, or summary proceedings in unlawful detainer, and all such remedies shall be cumulative.

11. RIGHT OF ENTRY

The Board, its officers, agents, and employees shall have the right, without limitation, throughout the Term of this Agreement to enter upon the Leased Premises for any lawful purpose, including the purpose of determining whether Lessee is complying with its obligations herein. Such entry by the Board shall not be deemed to excuse Lessee's performance of any promise, term, condition, or covenant required of it by this Agreement, and shall not be deemed to constitute waiver thereof by the Board.

12. QUIET ENJOYMENT

So long as Lessee is not in default in its obligations hereunder, the Board covenants and agrees that Lessee shall have, hold, and enjoy peaceful and uninterrupted possession of all of the Leased Premises, subject to Lessor’s right of entry set out herein.

13. DESIGNATED PARKING SPACES

Lessee shall have the right to post signs on four parking spaces in front of the leased premises as identified on the attached Exhibit C reserving such parking spaces for Lessee’s business use. Such signs and their method of installation shall meet the approval of Lessor.

14. GENERAL PROVISIONS

A. Sublease or Assignment Lessee shall not sublease, transfer, assign or allow any other person or entity operating rights under this Agreement without the Board’s prior written consent. This Agreement is binding on all legal representatives, successors or assigns. Consent is subject to payment of all rents and the performance of all covenants, conditions and terms contained in this Agreement by Lessee. In no case shall the Board be obligated to consent to any sublease, transfer, or assignment. A sublease of the premises by Lessee shall not release Lessee from the obligations of this Lease without the written consent of the Board. B. Minnesota Law and Jurisdiction The laws of the State of Minnesota shall govern this Agreement. Lessee further consents to the jurisdiction of the Minnesota state courts.

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C. Severability If any term, condition, or provision of the Agreement or the application thereof to any person or circumstance shall, to any extent, be held to be invalid or unenforceable, the remainder thereof and the application of such terms, provisions, and conditions to persons or circumstances other than those as to whom it shall be held invalid or unenforceable shall not be affected thereby, and the Agreement and all the terms, provisions, and conditions hereof shall, in all other respects, continue to be effective and to be complied with to the full extent permitted by law. D. Accord and Satisfaction No payment by Lessee of a lesser amount than the rent or other payments required in this Agreement shall be deemed an accord and satisfaction. The Board shall accept such payment without prejudice to the Board’s rights to recover the balance of rent and/or payments due or to pursue any other remedy. E. Attorney’s Fees and Costs In the event of any default of this Agreement, Lessee shall reimburse the Board for all reasonable and documented fees and costs incurred by the Board including reasonable attorney’s fees, relating to such default and/or the enforcement of the Board’s rights hereunder. F. Relationship of Parties It is understood and agreed that nothing in this Agreement is intended or shall be construed as in any way creating or establishing the relationship of co-partners hereto, or as constituting Lessee as the agent, representative or employee of the Board for any purpose or in any manner whatsoever. Lessee is to be and shall remain an independent Lessee with respect to all services performed under this Agreement. G. Headings The headings incorporated in the Agreement are for convenience in reference only and are not a part of the Agreement and do not in any way limit or add to the terms and provisions hereof. H. Waiver The waiver or breach by Lessee or the Board of any term of this Agreement shall not be deemed a waiver of any subsequent breach of the same term or any other term of this Agreement. I. Entire Agreement

This represents the entire agreement between the parties. This Agreement may only be modified if done in writing and executed by both parties.

J. Return of Leased Premises

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Upon expiration or termination of this Lease, Lessee shall return the Leased Premises to the Lessor in substantially the same condition as when Lessee took possession (but with modifications to the Leased Premises as approved by the Lessor), normal wear and tear excepted. K. Notices Any notices to the parties herein shall be in writing, delivered by hand or registered mail addressed as follows: St. Michael – Albertville Ice City of Albertville Arena Joint Powers Board Attn: Finance Director 5959 Main Avenue NE P.O. Box 9 Albertville, MN 55301 Hat Trick Hockey Albertville Steve Sachs

4109 7th Avenue North Anoka, MN 55303 L. Access to Leased Premises. Lessee shall have access directly to the Leased Premises from the exterior of the building and from the interior of the building. Such interior access shall have two locks on it, one controlled by the Lessee and one controlled by the Lessor. The Lessor shall allow access to the Ice Arena directly from the Leased Premises during such times as the Ice Arena is open to the public for events.

IN WITNESS WHEREOF, the parties hereto signed and executed this instrument the day and year first above written, but effective as of the date set forth in Article 2. Date: __________________, 2021 ST. MICHAEL – ALBERTVILLE ICE

ARENA JOINT POWERS BOARD By:______________________________ Its: Chairperson By:______________________________ Its: Secretary

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Date: __________________, 2021 HAT TRICK HOCKEY ALBERTVILLE, INC.

By:______________________________

Its: Chief Executive Officer

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EXHIBIT A

EXHIBIT B

EXHIBIT C

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Ice Allocation Policy - Draft Date: September 9, 2021 To: STMA Arena Board From: Adam Nafstad Attached is an updated draft of an Ice Allocation Policy for the Board’s consideration. This policy sets prioritizes user groups, sets deadlines for ice requests, and requires users to prepay or enter into a rental agreement.

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STMA Ice Arena

Ice Allocation and Sales Policy (DRAFT)

rev. 9/9/2021 Introduction: This policy governs the allocation of ice hours and sales for the STMA Ice Arena and includes both the Gold (old) and Blue (new) sheets of ice. This policy has been adopted by the STMA Arena Board and may be revised from time to time. Policy objectives include:

• Operate the facilities in an equitable, cost-effective and fiscally sustainable manner; and

• Balance and best meet the demands of the School District, local youth hockey community, and private organizations; and

• To ensure all parties understand the ice time allocation process Policy:

1. Prioritization of User Groups

The primary constituencies served by the STMA Arena include the STMA School District, the STMA Youth Hockey Association, general public skating/hockey recreation, and private groups and organizations. Priority of ice allocation shall be as follows: First - STMA/NWC High School Games Second - STMA/NWC High School Practices (prior to 6 pm) Third - STMA/NWC Hockey Boosters Fourth - STMAYHA Hockey Games, Practices and Tournaments Fifth - Public Skating and Community Recreational Programs Sixth - Civic, Community or Non-profit Organizations within the School District Seventh - Local Private For-Profit Organizations Eighth – Non-local Private For-Profit Organizations Ninth - Civic, Community or Non-profit Organizations outside the School District Notes:

• For-profit priority will be based on usage with priority given to highest usage.

• Allocated ice can only be used for intended user – i.e., ice allocated to youth hockey can only be used by youth hockey.

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2. Processing of Ice Allocations

Requests for ice shall be submitted to the Arena Manager as follows:

Fall/Winter Session (Oct 1 to March 15) - Requests for Fall/Winter ice must be received by July 1st of the current year. Allocations will be confirmed by August 1st of the current year.

Spring Session (March 16 to May 31) - Requests for Spring ice must be received by December 1st of the previous year. Allocations will be confirmed by January 31st of current year.

Summer Session (June 1 to September 31) - Requests for Summer ice must be received by February 1st of the current year. Allocations will be confirmed by March 1st of the current year.

Requests received after these deadlines will be processed on a first-come first served basis and based on the priority of the group.

User requests for increased ice time will be considered only if ice time is available. Ice hours may be allocated, returned or taken under this policy only in whole hour time slots shown on the Arena Mangers master schedule for the year. As a multi-sheet facility, the two sheets of ice will be generally reserved as follows:

Gold Sheet – Practice and Private Rentals Blue Sheet – Games and Scrimmages

3. Payment, Fees and Contracts

Hourly ice rates shall be as set annually by the STMA Arena Board. With the exception of the School District, all users reserving ice shall prepay or enter into an Ice Rental Contract. Refunds for cancellations will be subject to the Ice Rental Contract.

4. Cancellations

The STMA Arena reserves the right to cancel ice time for emergency repairs, public safety, school/community events and building maintenance. When this occurs, the STMA Arena will attempt to provide alternate accommodations.

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