Resolution 048-18RECORD OF RESOLUTIONS
Dayton Legal Blank, Inc., Form No. 30045
Resolution No. 48-18
Passed
,20
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A
SECOND ADDENDUM FOR A ONE-YEAR EXTENSION OF A LEASE WITH
CHILLER, LLC, FOR 7001 DUBLIN PARK DRIVE (THE"CHILLER")
WHEREAS, the City ("Landlord's and Chiller, LLC C"Tenant'� are parties to a Lease
dated March 26, 1993 (the "Lease's and amended by an Amendment to the Lease
dated June 12, 1997 (the "First Amendment', with respect to Tenant's lease of
certain real estate known as 7001 Dublin Park Drive, Dublin, Ohio 43017 (the
"Premises', as more particularly described in the Lease; and
WHEREAS, the term of the Lease for the Premises expires at midnight on
September 26, 2018, and Landlord and Tenant have agreed to extend the Term of
the Lease for an additional one-year period commencing on September 27, 2018,
and expiring on September 26, 2019, and to otherwise amend the Lease as more
particularly set forth in the Addendum attached hereto as Exhibit A; and
WHEREAS, the parties desire to enter into a lease agreement.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin, State
of Ohio, r7 of the elected members concurring that:
Section 1, The City Manager is hereby authorized to execute all necessary
documentation, including but not limited to, the addendum to lease agreement with
Chiller, LLC in substantially the same form as the one attached hereto as Exhibit' A,"
with changes not inconsistent with this Resolution, not substantially adverse to the
City, and which shall be approved by the City Manager and Director of Law. The
approval of changes thereto by those officials, and their character as not being
substantially adverse to the City, shall be evidenced conclusively by their execution
thereof.
Section 2. This Resolution
4.OAa) of the Revised Charter:
as ed this y of
ayor — Presi ing Offic r /
TTEST:
ective upon passage in accordance with Section
Clerk of Council
2018.
Office of the City Manager
6200 Emerald Parkway o Dublin, OH 43017-1090
IC o . f b11fl Phone; 614.410,4400 * Fax; 614410,4490Memo
To: Members of Dublin City Council
From, Dana L. McDaniel, City Mara,,,`
Date; August 9, 2018
Initiated By: Terry Foegler, Director of Strategic Initiatives/Special Projects
Re: Resolution 48-18 - Authorizing the City Manager to Execute a Second
Amendment for a One -Year Extension of a Lease with Chiller, LLC, for 7001
Dublin Park Drive (the Thilier')
Summary
The Chiller was constructed in 1993 through a public-private partnership between Central Ohio Ice
Rinks (COIR) and the City of Dublin, Under the terms of the original agreement, the City of Dublin
provided the 7.443 acres of land and COIR funded, developed and operated a two -rink ice skating
facility, with the rights to own and operate the skating facility for 25 years (See Exhibit A for
location map). At the time, the facility was being pursued in conjunction with the region's new
minor league hockey team, the Columbus Chill (with whom COIR was a closely held affiliate),
Under the agreement, the ground lease expires after 25 years and the ownership of the ice-skating
facility transfers to the City of Dublin. The current rights of the operator (now known as Chiller,
LLC) expire when its lease with the City of Dublin terminates on September 26, 20181
The Administration and the operator of the Chiller believe it is in both parties' mutual interests to
extend the existing lease in order to explore opportunities for the continuation, recapitalization and
possible expansion of the Chiller ice skating facility, Resolution 48.18 (attached) would simply
authorize the City Manager to execute the Second Amendment to the current lease of March 26,
1993, between the City and Chiller, LLC, providing a one-year extension to the existing lease, in
order to facilitate this joint exploration,
Background
An Agreement of Intent between the City of Dublin and Columbus Hockey Inc,, owner of the
Columbus Chill (a professional hockey franchise) was entered into in 1992, The agreement was
designed to induce Columbus Hockey to construct a new indoor, 70,000 square -foot ice hockey
training and recreational skating facility on 7,443 acres of land purchased by the City of Dublin.
The Agreement of Intent eventually resulted in the current Chiller Lease, which was executed on
March 26, 1993 with a term of 25 years and a six-month amendment thereafter (expiring on
9/262018). The lease provides that upon its expiration, the operator shall surrender the premises
to the City and transfer to the City the improvements located on the premises, Thus, the current
lease for the Chiller facility between the City and Chiller, LLC will expire on September 26 this year,
unless some action is taken to provide an extension,
Considerations
The initial objective of the public-private partnership was to provide an ice skating facility that
would advance the goals of both parties, The new minor league hockey team was looking for a
facility that would provide practice space for its team and office facilities, as well as to help nurture
Memo re, Res, 48.18 - Chiller lease
August 91 2018
Page 2 of 3
and grow regional interest in ice hockey via youth and adult programming, Dublin hoped to meet
the growing community needs of the Dublin area for (and growing interest in) recreational ice
skating facilities and programs, The lease includes provisions to help ensure both parties could
successfully achieve their goals, with the City incurring no costs in the development or operations
of the ice skating facility.
In 1997, Columbus was awarded an NHL team, the Columbus Blue Jackets, which began playing in
2000, The City of Dublin consented to the first amendment to the lease, which included an
Assignment and Assumption of the Lease in June of 1997 from Central Ohio Ice Rinks, Inc, to
Chiller, LLC (an affiliate of the Columbus Blue Jackets ownership),
In 1993, with the Chiller facility and its two ice skating rinks serving Central Ohio, our region had
one youth hockey organization with 200 players, one varsity high school hockey team, and six
adult ice hockey teams that included 100 players, By 2018, Central Ohio has six ice skating
facilities with nine rinks, six youth hockey organizations serving more than 3,000 players, 12
OHSAA varsity high school teams, five high school hockey clubs, and 16 junior varsity teams,
There are 209 adult ice hockey teams with over 3,000 players and 50,000 students attend classes
at these facilities, There is every indication that the demand for this type of recreational facility
and programming in our area continues to be growing at a healthy pace,
Chiller, LLC owns and/or operates all of the ice skating facilities in Central Ohio (as well as
operating a facility in Springfield, Ohio), It does this in order to help facilitate and grow interest in
ice hockey at all levels (which helps maintain and grow interest in the professional franchise),
while also providing ice time and programming for a variety of other purposes, Because of its
demographics, the Dublin area is likely among the highest areas of demand in Central Ohio for
these services and facilities. Currently, there are 350 Dublin students registered in local youth
hockey leagues and five high school teams with rosters totaling approximately 100 players.
To date, the needs of the Dublin community for ice skating facilities and programs appears to have
been very well met by the Chiller and Chiller, LLC, Chiller, LLC representatives have indicated that
(after 25 years of use) much of the mechanical equipment at the Chiller has reached the end of its
useful life and needs to be replaced, The City has undertaken a recent facility assessment, which
found that the facility calls for equipment replacement and immediate repairs to a sum of $42
million, Chiller, LLC would also like to explore with the City the possibilities of remaining at the site
well into the future and investigate the possibly of adding a third ice skating rink to the facility, As
such, they have requested that the City of Dublin extend the existing lease for another year while
the parties explore the possible opportunities to achieve these goals,
Lease Extension
An extension of the existing lease is needed to accommodate the joint exploration of the possible
recapitalization and expansion opportunities for the Chiller, which would enable the facility to
continue to provide this important recreational programming and better meet the growing
demand, The continued operation of the Chiller benefits the community by providing this unique
recreational facility and its ice -related programming to a wide array of Dublin area residents and
stakeholders (including members of the Dublin City School District), while requiring no additional
operational and financial commitment from the City.
Memo re. Res. 48.18 - Chiller tease
August 91 2018
Page 3 of 3
Recommendation
The Administration recommends that City Council approve Resolution 48-18, authorizing the City
Manager to execute the second amendment to the current Chiller tease to extend said lease,
under the existing terms and conditions, for one additional year, until September 26, 2019, wring
this period the Administration will continue to negotiate with Chiller, LLC regarding opportunities to
facilitate the potential renovation and expansion of the existing the Chiller facility in order to
continue to provide these needed recreation services and to help meet the growing demand for
these facilities,
SECOND AMENDMENT TO LEASE OF MARCH 26, 1993,
BETWEEN CITY OF DUBLIN, OHIO, AND CENTRAL OHIO ICE RINKS, INC.
THIS SECOND AMENDMENT TO LEASE (this "Second Amendment') is made and entered into
to be effective as of 2018 (the "Effective Date") by and between the CITY OF
DUBLIN, OHIO, an Ohio municipal corporation ("Landlord"), and CHILLER, LLC, an Ohio limited
liability company ("Tenant').
1,4octj0MILLI
A. Landlord and Tenant are the current parties to that certain Lease dated as of March 26,
1993 (the "Lease") and amended by an Amendment to Lease dated June 12, 1997 (the "First Amendment'),
with respect to Tenant's lease of certain real estate known as 7001 Dublin Park Drive, Dublin, Ohio 43016
(the "Premises"), as more particularly described in the Lease. Any capitalized term used but not defined
herein shall have the meaning given to such term in the Lease.
B. The Term of the Lease for the Premises expires at midnight on September 26, 2018, and
Landlord and Tenant have agreed to extend the Term of the Lease for an additional one-year period
commencing on September 27, 2018, and expiring on September 26, 2019, and to otherwise amend the
Lease as more particularly set forth herein.
NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Section 2.01 of the Lease is hereby amended so that the Term expires on September 26,
2019.
2. Except as otherwise provided in this Second Amendment, the Lease shall remain
unmodified and in full force and effect. This Second Amendment may be executed in any number of
counterparts, with each such counterpart being deemed to be an original instrument, but all such
counterparts together shall constitute but one agreement.
[END OF AMENDMENT — SIGNATURES APPEAR ON THE FOLLOWING PAGE]
1
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the
Effective Date.
Signed and acknowledged LANDLORD
in the presence of:
The City of Dublin, Ohio, an Ohio municipal corporation
U-3
Dana L. McDaniel
Its: City Manager
Signed and acknowledge TENANT:
in the presence of:
Chiller, LLC, an Ohio limited liability company
U-3
Wendy M. Herb
Its: President
This Instrument Prepared By: Frost Brown Todd LLC, One Columbus, Suite 2300, 10 West Broad Street
Columbus, Ohio 43215
2