City approves agreement for planned new ice arena facility

An agreement for ownership and leasing of the planned new ice arena facility was approved Monday by the Worthington City Council.

The District 518 proposal specifies that the school district would own the facility and property, provide use of the existing parking areas and be responsible for future capital maintenance. In addition, the school district would ensure the building and provide facility snow removal and lawn maintenance.

The city would enter into a 25-year operational lease agreement to manage the daily operations, be responsible for operational expenses, schedule facility use, hire and supervise operational staff, perform daily maintenance and coordinate programming for high school hockey, youth hockey and public use.

The District 518 Board of Education is expected to vote on the proposal during its meeting next week. The city is contributing a total of $10 million toward the project, with City Administrator Steve Robinson stating that the money will be distributed for the work on a  "pay-as-you-go" basis, as opposed to all of it up front. The school district, in addition to the land, is providing $5 million in funding, while the Worthington Youth Hockey Association is committing to $1 million toward the project to be disbursed in four payments through April 2028.

Council members asked multiple questions Monday in advance of the vote on the agreement, which was approved unanimously. 

On the subject of ice time scheduling and rates, Robinson said the city's primary goal will be giving the public every opportunity it can to utilize the new arena. Rates, meanwhile, will be calculated by identifying five similar facilities, surveying them and taking the average rate. This rate will be adjusted at a minimum of every three years; it was also noted that District 518 will pay for ice time.

The current ice arena facility managed by the city will continue to operate. While additional seasonal employees will need to be hired with the second facility, there shouldn't be a necessity for more full-time help. As for a Zamboni for the new facility, the plan is to use the machine currently in the old arena, and then lease a Zamboni for that building.

As the city is slated to manage operations for the new ice facility, it would also collect the revenues generated.

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Among other business, two conditional use permits and a subdivision involving businesses along Minnesota 60 were all approved Monday night as part of a full council agenda.

The first conditional use permit approved was for property at 703 Oxford St. Mision Evangelica del Espiritu Santo de Los Santuarios del Monte Sinai Inc. requested the permit to allow for the use of the existing building as a church. The building is located in the B-3 district, where churches and other similar public institutional and cultural uses are permitted by conditional use only.

The subject property is currently operated as an event center. The applicant is proposing to rent the building from the owner and utilize it as a church. The building will need only minor changes to convert it to a church building.

After that conditional use permit was approved, another CUP was granted to Gleeson Constructors & Engineers, which applied on behalf of Swift & Company (JBS) have applied for a conditional use permit to allow for an approximately 19,000 square foot barn and CO2 Stun addition to the east side of the JBS plant located at 1700 Highway 60 NE. The addition will provide additional hog pens and allow for the reconfiguration of the existing pens and stun area inside the building. City code states that heavy manufacturing including meatpacking, stockyard and slaughterhouses are allowed by conditional use only.

With regard to the subdivision request, Community Development Director Matt Selof explained that Mark Thier -- the owner of Tru Shine Truck Wash, located at 2405 Highway 60 — is considering pursuing another business opportunity where he would potentially construct another building on the property. In order to be able to someday sell off the new business, he asked approval of a subdivision of the property.

The parcel will be approximately 3.5 acres in size and utilize access easements to maintain access for the new parcel, truck wash, repair center and gas station. Tru Shine Truck Wash, Ron’s Repair and Circle K are located at the site. The subject property is currently zoned ‘B-3’ General Business District.