Council approves new ice facility lease with 35% rate hike

The Worthington City Council approved on Monday a new lease agreement between the city and the Worthington Hockey Association for the city to lease the existing ice arena.

Due to increased cost of staff and supplies, there is a 35% increase in the rate that had been in place for the first three years the city has managed the facility. The rate under new the agreement, which had already been approved by the hockey association, will go from $85 per/hour to $115 per/hour. Director of Public Works Todd Wietzema said Monday that the facility ran a deficit of $73,000 last year. The rate increase is be the first in the three years that the city of Worthington has been managing the facility.

The lease will renew annually unless one of the parties gives advanced written notice, and there will be additional discussions about leasing should a new arena be constructed in the future.

Also Monday, the council approved tax abatement for construction of a new fertilizer equipment parts retail center on East Gateway Drive.

The proposed project for Fertilizer Dealer Supply is estimated at around $4,000,000. Up to seven new jobs are planned for the operation of the business with salaries ranging from approximately $50,000 per year to upwards of $100,000 per year, according to material included in the council meeting packet.

Approved along with tax abatement was a development agreement for the project.

In another agenda item, council members approved a lease agreement with Geldner Underground of St. Peter that involves property containing the city’s east water tower. Geldner plans to use the property as a lay down and staging yard for materials and equipment associated with an upcoming rural fiber optic installation construction project. Geldner will pay Worthington Public Utilities the sum of $500 per month for its lease payments. 

In other business, the council approved a transfer of funds back to Tax Increment Financing District No. 7: Darlings Third Addition. 

A total of $49,261 will be transferred from the Spending Plan; that money was part of more than $2.3 million in unobligated funds in TIF transferred to the Spending Plan back in December 2022. The city used a little more than $1.1 million of this money for its 2023 North Humiston Utility Improvement Project. The rest of that money had been transferred last September.

The council also approved a request from the city's public works staff to a do a 2025 budget amendment to purchase a new snow plow for its front wheel loaders. The cost of this new plow would be $46,800, with the money to come from excess operational snow removal funds.

Additionally, council members recognized recipients of the city's 2024 Longevity Awards, who were honored during a lunch event Tuesday. Honorees were: 30 Years of Service — Joe Byrne; 25 Years of Service — Jesse Larson; 20 Years of Service — Bob Brandner, Nate Grimmius, Chris Hillesheim and Eric Roos; and 10 Years of Service -- Ron Froderman, Tammy Makram, Jodi Mulder, Steve Robinson and  Jake Walker.