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HomeMy WebLinkAbout1997-10-20; Parks & Recreation Commission; 1097-5; Sportsplex USA ProposalPARKS & RECREATION COMMISSION - AGENDA BILL AB# 1097-5 MTG 10-20-97 DEPT CSD TITLE : SPORTSPLEX USA PROPOSAL / ROLLER HOCKEY AT POINSETTIA PARK (ACTION) RECOMMENDED ACTION : Based upon the recommendation of the Commission Subcommittee, defer the issue of the Sportsplex USA proposal and consider a pay for play concept as part of future park development master plans. ITEM EXPLANATION : During the June 1997 meeting, the Commission considered a request by Sportsplex USA to develop a Roller Hockey / skating facility at Poinsettia Community Park. The proposal was based upon a pay to play concept in which participants would pay a fee to participate in a Roller Hockey League built and operated by a private company on City property. The facility was to be operated under a development lease revenue agreement between the City and Sportsplex USA. After considerable discussion the Commission unanimously (5-0) directed staff to investigate further legal and procedural issues and to establish a subcommittee to investigate the Roller Hockey proposal and liability issue. In further evaluation of this issue, Commissioners Baker, Pieratt, and Davidson along with two staff members visited the Sportsplex complex currently in operation within an industrial area of Poway. The facility was built by the City of Poway and designed specifically to accommodate the amenities and controlled access necessary for a private firm to operate the facility under a pay to play revenue generating business. Sportsplex USA operates the facility under a lease agreement with the City and all indications are that the park is successful from the standpoint of the private operator and the City. In essence, the City provides an area for recreational activity and generates a revenue without substantial operating costs. The amenities at the park include: • 3 Baseball / Softball fields • Basketball courts • Sand volleyball courts • Batting cages • Children's play area • Concession snack bar / restaurant • All lighted facility • Controlled admission gate • Restrooms After the subcommittee's review and observation of the Sportsplex facility, a meeting was held with Bill Berghoff representing Sportsplex USA. The purpose of the meeting was to engage in some general round table discussion between Commissioners, Sportsplex representatives and City staff to further evaluate the expectations and needs associated with provisions for a Roller Hockey facility at Poinsettia Park. AB# 1097-5 Page 2 After considerable discussion, it was acknowledged by both Sportsplex USA, Commissioners, and staff that a pay for play Roller Hockey facility built and operated by Sportsplex at Poinsettia Park was not a reasonable expectation for the following reasons: • A pay for play operation needs the support of other revenue producing enterprises such as a snack bar / restaurant. • The design of the park needs to accommodate access issues, retrofitting a developed parksite is difficult. • A Roller Hockey facility would also need the support of dressing / locker rooms. • A total park development concept anticipating a pay for play operation (including Roller Hockey) would best be addressed during the development of Alga Norte Park, Zone 19 or perhaps Zone 5 industrial recreation site. The Commission subcommittee members and staff will give an update on this issue and answer any specific questions. EXHIBITS: 1. PRC AB 6.97-3 Roller Hockey / Skating Rink development proposal 2. PRC Minutes - AB 697 -3 3. Memo to Sportsplex USA - Aug. 28, 1997 4. Newspaper article "Playground Paradise" 21 PARKS & RECREATION COMMISSION -AGENDA BILL AB#U<n-~3 _ MTG H^- l(o-<-n }EPT O 5 D TITLE : ROLLER HOCKEY / SKATING RINK DEVELOPMENT PROPOSAL (ACTION) RECOMMENDED ACTION : Consider a request to develop and operate a skating facility at Poinsettia Park. If the Commission concurs, direct staff to evaluate the issue further and return with more specific information for Commission review. ITEM EXPLANATION : Staff has received an unsolicited proposal for a private entity to develop and operate an In-Line Hockey / Skating facility at Poinsettia Park. Although staff has had preliminary discussions with Don Schlesinger and Bill Berghoff representing Sports Complex USA, it was recommended that they address this issue to the Parks and Recreation Commission before any further consideration is given to this proposal. The Parks and Recreation element encourages this type of privatization approach towards development, maintenance and operation of City owned park facilities, and it is a goal which is specifically acknowledged in the element under park development. However, prior to further consideration of this issue, staff has recommended that Sports Complex USA make a presentation to the Commission outlining their proposal and to present background information on other similar existing operations. In anticipation of this issue, staff has also requested information from the City Attorney's office for clarification on whether this type of privatized development would be required to undergo the formalized bidding process for development and operation. If the Commission concurs with pursuing this type of recreation development, your action would be to direct staff to work with the individuals associated with Sports Complex USA to evaluate more specific information relative to its development, operation, fiscal impact, benefits, required agreements, etc., and return to the Commission for further consideration. EXHIBITS: •t 1. Unsolicited proposal from Sports Complex USA. 2. Requestfor legal advice / formalized-bidding. EXHIBIT 1 0«.09 97 13:21 FAX 702 364 Ufluo SeMM>H • V0lW»bo« • feflirtba* • 1»OB»'"« ' l*#«t»>'»"» ' Ca'pctot. ».«*» • C«eu» Ovlmgt • fane' O'xJ »*»«« Transmitted by Facsimile to 760-434-7185 June9. 1997 Mr David Bradstreet, Community Services Director Mr. Keith Beverly, Senior Management Analyst City of Cartebad 1200 Carlsbad Village Drive Carlsbad, California 92008-1989 Re: Unsolicited Proposal to Develop and Operate a Roller Hockey and Skating Facility at the City of Carlsbad Polnsettia Community Park Dear Sirs: We enjoyed the opportunity to visit with you recently and discuss our interest in developing and operating a roller hockey and skating facility at Polnsettia Community Park ("Park") in thta tetter, we provide you with a brief , conceptual overview of our unsolicited proposal. We believe this Improvement will greatly enhance the Park by providing the community with new sports and recreation programming alternatives. According to UQA Today, more than 20 million Americans participate in in-line skating. Meanwhtie, roller hockey has emerged as the fastest growing participant sport In the United States. USA Hockey Indicates that In 1996. more than 3.5 million Americans played roller hockey and 50% of them played th@ game last year for the first time, in 1 997. USA Hockey projects that the number of participants will more than double and increase to 7.5 million. No part of the country has experienced a greater surge of interest in in-line skating and hockey man southern California, widely acknowledged now to be the "roller hockey hotbed" of the United States. Our preliminary plans provide for the construction, at our own cost, of Carlsbad's first RHI regulation size (185' x 85*) roller hockey and skating rink, with the option to buitd a second rink. This state-oMhe-art facility, built to USA Hockey tournament specifications. wiH be lighted and feature a "sport court" type flooring, professional dasher board system with tempered glass, electronic Scoreboard, hockey shooting POWftt »•*» CtlMINTt Cawrt P.O. to* ftf T*l. (»IT) 47t.«000 FM. 1*1*) 23 City of Carlsbad REQUEST FOR LEGAL ADVICE TO: CITY ATTORNEY FROM: KEITH BEVERLY DATE SENT: DATE NEEDED: June 4, 1997 June 13, 1997 DEPT: C.S.D. SUBJECT; Privatization Re: Development of recreational amenities on City property by private interests to be operated by them through Lease / Revenue Agreement. ADVICE REQUESTED; If the City receives an unsolicited proposal from a private interest group to construct and operate a Roller Hockey facility at one of the City's park sites under a lease agreement, is the City required to advertise and undergo the typical competitive bidding process in order to provide such a facility operated in such a manner? BACKGROUND INFORMATION (Prepare synopsis of facts, giving as many as possible. Add additional sheets if necessary or attach copies of supporting documents. The CSD staff has recently received a preliminary proposal from an individual who is interested in entering into an arrangement with the City to construct and operate a Roller Hockey facility at Poinsettia Community Park under a lease agreement. This arrangement may provide revenue to the City, however, it would provide the community with a pay to play Roller Hockey facility which may be relinquished to the City after a specific number of years of private operation. The terms and conditions of any agreement have yet to be considered, determined or established. The private interest which has approached the City staff has specifically asked if "The City receives an unsolicited proposal such as this, is it subject to the typical advertising and competitive bidding process?" It is anticipated that this issue will go before the Parks and Recreation Commission on June 16, 1997. At this time, it will only be presented as an informational item for their discussion, consideration and further direction of staff. Prepared by: Keith Beverly Approved by: Department Head Request Noted: 24 Parks and Recreation Cf mission 2 — June 16, 1997 CONSENT CALENDAR 1. AB #697-1 DIRECTOR'S REPORT To accept and file the Director's Report for June 1997. 2. AB #697-2 SUMMARY REPORT To approve, accept and file the Summary Report of the May 1997 Parks and Recreation Commission Meeting. ACTION: On motion by Commissioner Pieratt, Items AB #697-1 and AB #697-2 of the Consent Calendar for June 16, 1997 were approved. AYES: Chairperson Baker, Commissioners Cunningham, Richards, Cox, and Pieratt NOES: None ABSTAIN: None ABSENT: Commissioners Schulberg and Davidson PUBLIC HEARINGS None. DEPARTMENTAL REPORTS 3. AB #697-3 ROLLER HOCKEY/SKATING RINK DEVELOPMENT PROPOSAL Keith Beverly, Senior Management Analyst, gave the staff presentation on this item. He explained that this item was brought before the Parks and Recreation Commission as a result of a request made by an interested private party to develop a roller hockey/skating rink at a Carlsbad park. He clarified that originally the request was made for any of the Carlsbad park sites, but added that now the attention was being focused on Poinsettia Community Park. Don Schlesinger and Bill Berghoff of Sportsplex USA spoke on behalf of the private organization interested in developing the roller hockey/skating rink facility. Mr. Slessinger referred to their letter sent to the City of Carlsbad, which was included in the Commissioners' packets. He explained that he was a lawyer who was working with a partner in Las Vegas to develop a $5,000,000 sports park and described what will be included. Mr. Berghoff summarized his background and described the facility that he and his father operate in Poway. He added that they will be adding a roller hockey rink at the facility in Poway and mentioned the San Clemente facility as well. He stated that the public/private operation of the Carlsbad facility would be a win-win situation for both parties. Mr. Schlesinger presented statistics on roller hockey in the U.S. and stated that there was a great need for this type of facility. He outlined the details of the facility, including the size, sport court flooring, pro style dasher board system, electronic Scoreboard, hockey shooting gallery, changing areas, etc. Mr. Schlesinger stated that the main advantage of the public/private partnership for the facility was that it usually accelerated the timeline for constructing public recreational facilities. He described various uses, both youth and adult, for the facility, and distributed materials to show photos of other sites. :* f 25 •i EXHIBIT 2 Parks and Recreation C'^~ mission 3 — June 16, 1997 Mr. Berghoff added that public/private partnerships were the way of the future and referred to Chicago privatizing their golf courses. He stated that his company would build the facility, run it, and maintain it, and assured the Commissioners that it would be a first class facility. Questions and discussion included the following issues: • The ability to play different sports on the sports court type of flooring • Clarification that the park in Poway is a city park • The possibility of the City having to advertise and undergo competitive bidding process if this request was made by a private party • Public hearing requirements • The importance of a private company following guidelines set by the City such as waiving fees for residents, etc. • A review of what was planned for Phase 2 of Poinsettia Community Park • The pros and cons of including a skateboard park • Further description of the facility in San Clemente • Projections of gross revenue • The availability of staff on-site • The possibility of people using the facility outside normal operating hours • The establishment of a sub-committee to investigate further and report back to the Parks and Recreation Commission on the issues ACTION: On motion by Commissioner Cox, AB #697-3, to direct staff to investigate further legal and procedural issues and to establish a sub-committee to investigate the roller hockey concept and liability issue. AYES: Chairperson Baker, Commissioners Cunningham, Richards, Cox, and Pieratt NOES: None ABSTAIN: None ABSENT: Commissioners Schulberg and Davidson Chairperson Baker and Commissioners Pieratt and Davidson were appointed to serve on the sub-committee. 4. AB #697-4 VETERAN'S MEMORIAL PARK MASTER PLAN UPDATE Mark Steyeart, Park Development Coordinator, described the history and background of this item, as contained in the Commissioners' packets. He outlined what occurred since the existing Macario Master Plan was originally completed in 1981 and stated that there were some new factors affecting the Plan, including expansions of the riparian creek vegetation, changes in recreational trends, the inclusion of the golf course, and the inclusion of wetland mitigation for Cannon Road. He summarized by stating that there were many issues that should be reviewed. Questions and discussion included the following issues: • Update on the $28,000,000 amount that represented construction loan payments for 1998 and the amount of money collected for the park to date • Clarification of why a request was made for an update on Veteran's Memorial Park • Explanation of the park's proximity to Legoland • The timing for the South Shore Planning Study City of Community Services Department August 28, 1997 Sports Plex USA Bill Berghoff - General Manager P.O. Box 769 12349MclversCt. Poway, CA. 92074 Dear Bill, As per our telephone conversation, a meeting has been schedule to discuss the potential of a rollerhockey facility at Poinsettia Park on Monday, September 8, 1997. The meeting will be held at the Harding Street Community Center beginning at 10:00 a.m. The purpose of this meeting is to engage in some general round table discussion between Commission members, representatives of Sports Plex, and City staff to further evaluate the expectations associated with provisions for a rollerhockey facility at Poinsettia Park. As previously discussed with you via letter on June 27, 1997,1 suspect that at the conclusion of this meeting we will be able to reach a conclusion as to whether it is reasonable to pursue a privatized development / operation at Poinsettia Park. I look forward to meeting with you on September 8, 1997. Until that time, if you should have any questions, please feel free to contact me at 434-2825. Would you please notify Don Schlessinger of the meeting and see if he can attend if he feels it necessary at this preliminary stage of review. 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