MASON CITY — The City Council in Mason City Tuesday night scheduled the public hearing for the sublease agreement with Mason City Youth Hockey for the new multi-purpose arena as well as management services for the facility.
The fixed payment for the yearly lease and management fees is $81,000, with a ticket charge also being included based on actual ticket sales. The agreement also includes language pertaining to things like insurance requirements, payments required for the space and management services provided by the new arena manager, approving signage and naming rights in the arena, and the operation of concessions.
The agreement is a five-year term with seven automatic extensions if notice of termination is not provided by either party, with the first term being five-and-a-half years due to the partial season this year.
Councilman John Lee reminded everyone that Youth Hockey will not only be paying the yearly lease fee but also sinking in $1.5 million into the arena development. “One thing that people forget is their involvement of a $1.5 million upfront fundraising cost that they are paying for this entire thing, it’s kind of upfront before they start paying rent. I see that as obviously very big partners in this and the fundraising that’s going on.”
City Administrator Aaron Burnett says Youth Hockey’s fundraising and capital campaign are ongoing leading up to the arena’s opening in December. “I know that they’ve reached out to companies across the region as far as naming rights and sponsorships. There’s sports marketing and then there’s the capital campaign which are kind of two different things. Sports marketing is like dasher boards and things along those lines, the in-ice advertising, sponsorships for suites, things along those lines. Then there’s the capital campaign, which is the $1.5 million that we’re talking about. Mercy is one of the lobby naming partners, and there’s quite a few others that have signed on.”
The North Iowa Bulls also announced on Tuesday that they’ve agreed to the terms of a lease with Mason City Youth Hockey to play in the new arena.
The public hearing is scheduled for the council’s November 5th meeting, with the council to vote on approval of the sublease after the public hearing.