| Agenda Item: | 12.
| | Agenda Title: | Discuss and consider action on an Ice Rink Service Agreement with Ice Crown Rinks for the Bee Cave on Ice for 2023-2024, authorizing a deposit in the amount of $48,966.40 and authorizing the use of Hotel Occupancy Tax Funds.
| Council Action:
| Discussion and possible action
| | Department: | Administration
| | Staff Contact: | Dori Kelley
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1. INTRODUCTION/PURPOSE
In 2022 The City of Bee Cave voted to bring an open-air, holiday ice skating rink to the community. Bee Cave City Council voted to use up to $300,000 in HOT funds for the installment and operations of the the ice skating rink, duly named "Bee Cave on Ice". This project was in partnership with the Hill Country Galleria, who paid $100,000 towards the rink, with the agreement that they would be fully reimbursed.
2. DESCRIPTION/JUSTIFICATION
a) Background
Bee Cave on Ice hosted over 25,000 skaters. People from over 100 zip codes graced the rink, which even included 80 year old ice skaters. After a successful inaugural season, residents and businesses are asking if the City of Bee Cave will bring Bee Cave on Ice back.
In the two months it was open, Bee Cave on Ice grossed $392,748.32. Bee Cave on Ice generated over $29,000 in sales tax. Between taxes, credit card transaction fees, and the administration fees associated with the rink, Bee Cave on Ice net: $340, 919,68. Per the city’s contract with the Hill Country Galleria, the city reimbursed their $100,000 investment which left approximately $240,000 back into the city’s HOT fund.
Total expenses for the ice skating rink's inaugural season was $400,000, which included one-time costs for electrical work and the biljax, which was the foundation the rink was installed upon. These one-time costs were nearly $100,000 and will be reused for Magnolia Theater's upcoming summer musical, and another season of Bee Cave on Ice.
b) Issues and Analysis
After a wildly successful first season, we would like to request Bee Cave on Ice returns for a second season.
In order to secure the dates needed for the installation and dismantle of the ice skating rink, Ice Crown Rinks will require a $48,966.40 deposit on March 10th 2023, with a full deposit reimbursement until March 31st, 2023.
In order to guarantee Bee Cave on Ice's success in another season, we would like to request $300,000 in HOT funds. If granted, $300,000 will be in the upper level of city funds used towards a second season of Bee Cave on Ice. City staff has already secured sponsorships and will continue working towards sponsors for the ice skating rink to alleviate city costs.
3. FINANCIAL/BUDGET
| Amount Requested | $300,000 | | Fund/Account No. | | | Cert. Obligation | | | GO Funds | | | Other source | | | Grant title
| | | Addtl tracking info | |
4. TIMELINE CONSIDERATIONS
5. RECOMMENDATION
City staff would like to recommend that council approves the March 10th, 2023 deposit of $48,966.40 and the use of up to $300,000 in HOT funds for a second season of Bee Cave on Ice.
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