Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute an Amended and Restated Lease Agreement with DSE Hockey Centers, L.P. for an Expansion of the McKinney StarCenter
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
(5A: Create Affordable Recreational and Cultural Arts Activities for
All Ages Throughout the City)
MEETING DATE: March 3, 2020
DEPARTMENT: City Manager’s Office
CONTACT: Barry Shelton, Assistant City Manager
Patricia L. Jackson, PE, Facilities Construction Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approval of the proposed lease agreement.
ITEM SUMMARY:
• This item is for the approval of an amended lease agreement between the City of McKinney and DSE Hockey Centers, L.P. (Dallas Stars).
• The McKinney StarCenter is owned by the City of McKinney and leased to the Dallas Stars.
• The City of McKinney and the Dallas Stars have negotiated terms of an amended lease agreement in conjunction with an expansion of the facility.
• The current facility is approximately 85,000 square feet and includes two full-size ice rinks.
• The proposed expansion project would include one sheet of ice with 2,000 seats, additional locker rooms and other facilities to facilitate hosting of youth level hockey games, tournaments and other events.
BACKGROUND INFORMATION:
• The current lease became effective October 1, 2009; the term is 20 years with two 5-year renewals.
• The amended lease will have a new 20-year term, with two 5-year renewals.
• Programming offered includes hockey and figure skating academies.
• Team training and league games are held at the facility on a 7 day/week schedule.
• The strong recreational hockey program offered at the McKinney StarCenter, along with the McKinney North Stars travel organization, has resulted in the McKinney StarCenter hosting more kids playing hockey than any other rink in Texas.
• The McKinney StarCenter is home to the MISD high school hockey program, winner of the Texas High School State Championship in 2015 and 2016 as well as state runner-up in 2017 and 2019.
• Additionally, public skating is offered periodically throughout the week.
• A promotional event, featuring a Dallas Stars player or coach, or team practice is scheduled annually.
• The Dallas Stars promote the City of McKinney through game programs and advertising/announcements.
FINANCIAL SUMMARY:
• The guaranteed maximum price of the StarCenter expansion project is $13,800,000.
o DSE Hockey Centers will contribute $2,000,000 towards the construction.
o On November 21, 2019, the McKinney Community Development Corporation (MCDC) approved a grant of $4,500,000 towards the construction.
o The remaining funding for the project is $7,500,000 of previously issued CO bonds.
• The associated budget amendment allocates $14,000,000 for the project. The additional $200,000 will be used for associated costs such as building commissioning, materials testing and project management.
• The terms of the lease agreement increase the monthly rent to cover the cost of the expansion project.
• The tenant is responsible for the cost of operations and maintenance.
BOARD OR COMMISSION RECOMMENDATION:
• N/A