HomeMy WebLinkAbout4O - Dance Studio Lease
AGENDA NUMBER:
PREPARED BY:
SUBJECT:
DATE:
40
BRET WOODSON, RECREATION SUPERVISOR
CONSIDER APPROVAL TO NEGOTIATE NEW LEASE WITH
PRIORDALE MALL FOR THE DANCE PROGRAM
JUNE 19, 1995
INTRODUCTION:
The City of Prior Lake is currently leasing space at Priordale Mall
for the Parks and Recreation Department's Dance Program. The
initial lease was signed in 1991 and expires in August of this year.
If the dance program is going to continue at PriOl'dale Mall a new
lease needs to be signed. Staff needs to determine where the
program will be held so that the registration process can begin for
next season.
BACKGROUND:
When the original lease was signed in 1991 for use of Priordale
Mall, a lot of research was conducted into other possible sites to
house the program. The big problem with some of the other sites,
such as church community rooms and school gyms, is the time
commitment needed for the program. The dance program
cUlTently operates from roughly 3:30 - 9:00 four nights a week.
This is the same block of time where schools and churches are
using their respective space with their own activities. Therefore,
these locations would not work out for the program.
The current site at Priordale Mall has met the needs of the program
over the past four years by providing the necessary space, restroom
facilities, a separate entrance, and secured storage areas. This site,
with a few alterations and upgrades, can still meet the needs of the
pro gram.
DISCUSSION:
The 199411995 Dance program had 225 participants who took
weekly dance classes from September through May. The program
is very popular and the amount of participants is expected to rise in
the coming years.
There has been some suggestions that the program move into the
old Priority Fitness Center location. Staff did check with
representatives from the mall on that possibility. The site is
definitely bigger and would be less crowded, but it would also be
much more expensive. The site has two levels. The upper floor
could be used for the dance floor, but the lower level would also
have to be leased because the restrooms are located on that level.
16200 Eagle Creek Ave., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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ALTERNATIVES:
In addition to the restroom issue, extensive preparation work
would need to be done by our maintenance staff to prepare the site
for the upcoming season. The size of this site, including the lower
restroom area, doubles the square footage that our current site has.
This would mean that our annual lease payments would double.
This is not a realistic possibility due to budget constraints
anticipated in the coming years.
The original lease agreement from 1991 - 1995 contained the
following yearly cost figures: year one - $16,000, year two -
$18,000, year three - $20,000, and year four - $22,000.
Staff has been in contact with Priordale Mall about entering into
another lease. The following rates have been quoted to staff for a
five year lease: year one - $23,000, year two - $23,000, year three -
$24,500, year four - $25,500, and year five - $25,500. The new
lease would begin September 1, 1995 and expire August 31, 2000.
Staff is looking for council support to negotiate a new lease with
Priordale Mall to keep the program in its' current location. After a
new lease is drafted by Priordale Mall with the above mentioned
rates, it will be reviewed by the city attorney and ultimately
approved by the city council.
In addition to a new lease for the coming year, a new dance floor is
needed in the studio. Staff has had this item budgeted for 1995 and
intends on installing the floor if a new lease is agreed upon and
approved by the city council. The current floor at the studio is
hard tile placed directly on a cement slab. This is not appropriate
for a dance program. We have had many complaints about sore
joints and bad knees from dancing on the cement floor. For safety
reasons for participants and the instructors, the new floor is greatly
needed.
The floor itself would be a portable flooring set-up. Therefore, if
the program were to change locations or discontinue in the future,
the floor could be moved or sold. The estimated cost for the floor
in the large studio is $5,000. As mentioned above, this item is
budgeted for 1995 and would be included in the 1995/1996 Dance
Program Expense / Revenue Report. I have included a copy of the
1994/1995 report for your review.
Fortunately, the dance program is able to maintain its'
self-supporting status. With a modest growth in the program
coupled with slight increases in tuition, the program will remain on
a self-supporting basis for the 1995/1996 season and future years
to come.
There are two alternatives for the city council to consider.
1. Direct staff to negotiate a satisfactory lease at the Priordale
Mall for the dance program;
i
RECOMMENDATION:
ACTION REQUIRED:
REVIEWED BY:
BWCC6B
2. Drop the dance program due to a lack of community space
for the program.
Staff recommends Alternative #1, direct staff to negotiate a
satisfactory lease agreement at the Priordale Mall for the reasons
stated in the above report.
A motion, as part of the consent agenda, to direct staff to negotiate
an acceptable lease for the dance program with Priordale Mall, and
once agreed to by both parties, have the lease approved by the City
Council.
"1
I CITY OF PRIOR LAKE
1994-1995 DANCE PROGRAM
EXPENSE I REVENUE BREAKDOWN
REVENUE
Registration Fee $2,520.00
Residents - (171 x $10)
Non - Residents (54 x $15)
Costume Deposit (287 x $25) $7,175.00
Costume Payments $7,781.00
Tuition $45,985.25
21 - Regular Dance Classes $33,753.75
7 - Ballet Classes $9,524.00
2 - Kickline Classes $2,520.00
1 - Private Lesson $187.50
Recital Ticket Sales $5,850.00
450 - Saturday
450 - Sunday I
400 - Sunday II
$4.50 each
Dance T-Shirt Sales $400.00
(50 x $8)
Shoe Sales $3,283.00
OVERALL REVENUE TOTAL: $72,994.25
EXPENSES
Dance Costumes $13,153.18
Dance Shoes $2,375.27
Dance Supplies & Misc. $2,424.36
Dance Recital Charges $1,750.00
Dance Studio Facility Rental $22,000.00
Dance Instructor Salaries $20,580.76
(Lisa - $10,862.26)
(Janelle - $4,788.14)
(Michelle - $1,508.75)
(Tammy - $3,421.61 )
OVERALL EXPENDITURE TOTAL: $62,283.57
TOTALS: Revenues $72,994.25
Expenses $62,283.57
+ $10,710.68 170k
6/13/951