GYMNASIUM APPROVED 3-1
AS PART OF THE VICTORIA FIELD HOUSE
On July 11th Victoria councilmem-bers voted 3-1 to include the construction of a gymnasium as part of the Victoria Field House project at Diethelm Park.  According to Paul Donna, the city's finan-cial consultant and vice president of Juran and Moody, the gymnasium will add $810,000 to the bond issue.
Those voting in favor of the gym were Mayor Mary Meuwissen and Coun-cilmembers Richard Tieden and Gordon Simanton.  Jerry Bohn voted against the gym.  Dave Lindgren was absent.
Mr. Donna said the gymnasium will cost the city $66,000 per year over the life of the 30-year bond.  Total amount of revenue per year that the city will need, above and beyond the selling of 6 months of prime ice time at $175/hour and adver-tising revenue, is now estimated to be around $200,000 in a worst case scenario.
"I'm concerned about saddling future councils," said Jerry Bohn.  He doubted the amount of revenue that is projected through the selling of advertising.  And he said residents will come in asking for more than a gymnasium "shell" for batting balls around, that they'll want the whole ball of wax.  He said the numbers were being fudged.
Replied Mayor Mary, "Yes, people come in and always want more.  That's why we have our Park and Rec budget.  The gym is a hard asset, a fixed asset.  I'd rather have this than a survey, for exam-ple.  And I don't appreciate you saying we fudged the numbers.  I get tired of that negative talk.  The city is going to pay $200,000 per year to have a $6 million facility."
Regarding the city's land dedication fee, which is paid in land or cash by de-velopers, the mayor said, "We've been taking the land for our parks, and now we can take the money to put into our facilities."
Said Councilmember Tieden, "At our growth rate of 150 new homes per year, that's 150 new kids per year.  I think that $66,000 per year is well within the accept-able risk.  The issue now is the gymnasi-um, not the rest of the facility.  We don't have to go back over that.  Five years from now, a gymnasium would cost considerably more. 
"We've got to make a decision now for the electrical contractor.  If you listen to what the VAA [Victoria Athletic Association] says, we need the gymna-sium to accomplish those sorts of things.  It's a pivotal thing.  No matter who I talk to -- the Lions, the Chamber, residents -- they say do it now.  Get it done right today.
"The $200,000 is not a loss or a debt.  It's an opportunity for our community.  It's a matter of perspective.  Is the glass half empty or half full?  Do you see it as a need or a financial obligation?  If you see it as a financial obligation, you'd never spend any money on anything.  We've got this beautiful park, and I think we should move ahead with this.
"When we were building our home, I was taught to get it built, get the size you want, get the space, and finish it off as you can afford it.  I think it would be shortsighted to let this go."
Said Councilmember Gordon Siman-ton, "To me, the amenities we're offering with just the field house -- the ice, the walking track, aerobics -- are narrow.  Jerry [Bohn] plays a vital role on the council, letting us know what the risks are.  But I think when we're doing something for kids, it's easier to go back and tax for extra money ... I don't think we've explored all the ways we can produce revenue for this building.  There's never been a better time to borrow money, and 150 homes per year is not carved in stone.  If we had to go to 200 homes, we could change that number.  The growth in this community can handle the facility and its costs."
The addition of a gymnasium to the field house was approved.

SELLING THE VICTORIA FIELD HOUSE
THROUGH ADVERTISING AND NAMING RIGHTS
"I'm very happy and excited with the progress we've made," said Jody Vlatko-vich of the Tonka Bay Group who was hired to sell advertising displays in the Victoria Field House.  "We're two-thirds of the way there."  He reported in June that he has $187,000 in commitments.  The goal is to "net out" $240,000 at this time.  His commission is twenty percent.
According to the city's finance director, Jylan Johnson, there are 34 dasher boards each being sold for $3,000 on 3-year-contracts; 10 wallboards each being sold for $3,800 on 3-year contracts; three "team sponsor" signs each being sold for $4,800 on 3-year contracts; and naming rights for $200,000.
Hockey season users of the ice arena will be the Chaska Hockey Association (150 hours), Holy Family Catholic High School (200 hours), Minnetonka Youth Hockey Association (700 hours), Waconia Youth Hockey Association (500 hours), and the City of Victoria (150 hours).  These hours are contracted for the six-month season.
He said that Coke has been very gen-erous with the City of Victoria, proposing two different options, one with $125,000 upfront cash.  He said that amount is just for the right to have the Coke products sold at the field house; money is also made in the sale of Coke products.
On July 25th, however, councilmem-bers did not approve a beverage agree-ment with the Coca Cola company, as recommended by Jody Vlatkovich.  The agreement gives Coke exclusive rights to sell their products on all city property.  This right extends beyond Diethelm Park, to include the Acorn House, Lions Park, and City Offices, for example.
Said Councilmember Jerry Bohn, "I didn't realize we were locking in the whole city with this."  He thought the bid was only for rights at the field house.
Councilmember Gordon Simanton said, "When you're going for exclusivity, I'm not sure right now what this means to us.  In order to give exclusivity, I'd like to know what non-exclusivity means to us.  I've got nothing to compare this with right now.  I just want to make sure we make the right decision."
Council asked for time to review the Coke and Pepsi bids and determine how Mr. Vlatkovich, who wasn't present on July 25th, concluded Coke had the best bid.
Meanwhile, no one has stepped for-ward at this time to purchase naming rights.  He said the Pagel family contribut-ed $200,000 to name the Pagel Center at the Minnetonka facility. 

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