The topic of royalty payments by the city of Worthington from the Worthington Event Center is among the agenda items for Tuesday’s Worthington City Council meeting.
During its April 13, 2020 meeting, the council approved suspending the collection of the 10 percent gross sales royalty fee from the Event Center operator, and that the city would pay all Event Center utility expenses due to mandated COVID-19 closures imposed by Gov. TIm Walz and the State of Minnesota. Since that time, according to Tuesday’s agenda packet, the city has paid $116,128.53 in utility expenses while last collecting management fees in December 2019. Management fees collected in 2019 were $23,115.61.
According to profit and loss statements shared with city staff for the period of 2020-2023, the Event Center operators posted an annual average loss of $47,238 despite the city's financial support. It was also indicated that they likely would have to terminate their agreement with the city if the financial support did not continue. Council action is requested on the matter.
Also Tuesday, the council will consider a facility use agreement with Minnesota West Community & Technical College for the JBS Field House.
Under the terms of the agreement, Minnesota West would agree to pay the city a one-time fee of $200,000 on or before June 30 of this year to be dedicated to future facility improvements including replacement of artificial turf, wall and column protection/padding and netting at the ends of their useful lives, estimated to be in eight to 10 years. These funds will be placed in the city's Equipment Revolving Schedule designated Field House account. In addition, the city will provide exterior backlit signage on the facility with logos of the Minnesota West Bluejay branding.
For use of the space, Minnesota West agrees to pay an annual fee of $3,500 beginning July 1 of this year and running through June 30, 2039.
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