In 2015 the Red Wing Port Authority agreed to assist Friends of American Ski Jumping in the
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1 TO: FROM: Red Wing Port Authority Board Shari Chorney, Interim Director Agenda Item No.: 10 A. 2 Meeting Date: April 5, 2016 ACTION REQUESTED: Motion to approve allocating $15, 000 towards the cost of Professional Fees for the Friends of American Ski Jumping Campaign Operational costs. BACKGROUND: In 2015 the Red Wing Port Authority agreed to assist Friends of American Ski Jumping in the development of a feasibility study in the amount of $2500. The study was successful in gathering the information necessary to affirm the support of the project. There are still two critical funding objectives. First is to raise approximately $250,000 to cover critical campaign operation costs, which include marketing, lobbying, legal work, and professional fees for campaign management. The second funding objective is to raise a minimum of $3 million through a public and private campaign to individuals, businesses and foundations. ATTACHMENTS: Letter of request from Friends of American Ski Jumping Campaign Operational Budget Snow Angel Bill Minnesota Snow Angel Program over view RECOMMENDATION: The Finance Committee is recommending the Port Authority board make the motion to approve allocating $ 15, 000 towards the cost of Professional Fees for the Friends of American Ski Jumping campaign operational costs. 315 West 4th St Red Wing, MN Website: www. redwingportauthority.org Phone:
2 A,,, fr4can SKI JUhIA, ryo m M, IF O! E' M1 M1EF MUSEUM PFD WINO MN EF American Ski Jumping March 2, 2016 Museum & Hall of Fame 406 Main Street Red Wing, MN Scott Adkisson President Red Wing Port Authority 315 West 4th St. Red Wing, MN Dear Scott, Friends of American Ski Jumping Jerry Borgen President Co -Founder It is with heartfelt gratitude that we write to thank you and other members of the Red Wing Port Authority for being a substantial partner and helping to fund our recent feasibility study. We also want to thank you for inviting Dennis Egan, Scott Lubansky and Senator Matt Schmidt to offer comments at the meeting yesterday. Fred Johnson Vice President Wally Wakefield Secretary, Co -Founder The study was successful in gathering the information we needed to affirm support of the project. A copy of the full study report as well as an executive summary has been made available to you and to the other Port Authority members. Del Ekstrom During During our our comments, comments, it it was was mentioned mentioned the the campaign campaign has has two two critical critical funding funding Treasurer Bill Mahr Director objectives. First is to raise approximately $250, 000 to cover critical campaign operational costs which include marketing, lobbying, legal work, and professional fees for campaign management. The need for campaign operational resources is immediate and will cover the next year of campaign operations. Rick Bergquist Director Ken Anderson Director Bryan Sanders Director The second funding objective is to raise a minimum of $3 million through a public and private campaign to individuals, businesses and foundations. FOASJ is now ready to take the next step in campaign organization. While we have no way of knowing the Port Authority' s ability to continue its investment in this project, we do know that extraordinary gifts will be needed up front to facilitate a well -organized and professional campaign. More specifically, would the Red Wing Port Authority consider helping Friends of American Ski Jumping by making a $ 25, 000 contribution? This donation would be used to facilitate the campaign' s marketing efforts. com
3 March 2, 2016 Red Wing Port Authority Page Two: Red Wing, Minnesota has a rich tradition in supporting American ski jumping dating back to the Even today, Red Wing helps to preserve its rich ski jumping heritage through its support of Friends of American Ski Jumping and the American Ski Jumping Hall of Fame. The idea of a renaissance of ski jumping in Red Wing, returning the sport to its original birthplace, increasing the local economy, and adding recreation opportunities can provide the Red Wing community with a brand one that reflects the state' s natural beauty, determination and innovation. Friends of American Ski Jumping value its relationship with the Red Wing Port Authority and we are confident in bringing this major undertaking to your attention. This project, the total cost of which is estimated at $3 million, is vitally important to FOASJ, Red Wing leaders, residents, and visitors. Funding for the proposed world class ski jump and outdoor recreation complex will come from area businesses, foundations, and individuals. Additionally, we will look to the possibility of other State resources as was mentioned by Senator Schmidt and Dennis Egan. The FOASJ Board and ski jumping constituents have given the program careful study and reflection. It has become obvious to us that success can only be achieved if all elements of Red Wing' s business community and Friends of American Ski Jumping constituency can be appropriately challenged and each responds in an extraordinary manner. We must point out that this request is consistent with the scope and importance of the project. There are also a number of other considerations: a) If significant organizations such as the Red Wing Port Authority cannot be inspired to provide extraordinary support, it will be difficult to reach the $3 million goal which, as has already been noted, represents the minimum level of required funding. b) Friends of American Ski Jumping have never undertaken a public and private sector funding appeal. This is the first time we have approached potential business, individual and Foundation donors for serious financial support.
4 VH o March 2, 2016` Red Wing Port Authority Page Two: c) The minimum $ 3 million in expenditures associated with the proposed project will give a boost to the economy, and has important ramifications for the Red Wing business community as well as for Red Wing residents and visitors. d) As you find it possible to provide a leadership gift as requested, Friends of American Ski Jumping will of course work with you in developing a special plan of recognition as the project matures. In closing, I want to stress the fact that we have come to the Red Wing Port Authority early on and prior to a public launch and that your early leadership giving is of tremendous importance to our fund- raising plans. You are certainly aware of the strategic" importance of an early decision to provide this level of support and how it could be instrumental in properly launching our campaign. A gift of the magnitude suggested would also be helpful in gaining important support from other businesses, organizations, individuals and potentially state funding. It would set a tone of giving that would be of great value over and above the actual dollar amount your gift. We are confident that you will give this matter your sincere consideration, and we look forward to your continued involvement in this most exciting effort. Sincerely, Bryan Sanders Friends of American Ski Jumping Jerry Borgen Honorary Ca - ign Chairman
5 Red Wing' s Flight Into the Future CAMPAIGN OPERATIONAL BUDGET Item Descript ion. Overall Cost Est. Mono Iy Professional Fees ( On- site direction over 9 months) $ 180, $ 20, Professional Fees ( Campaign State Lobby over 6 months) $ 30, $ 5, Professional Fees ( Legal, Lobby) $ 8, $ 2, Graphic Art for Video/ Promotional Brochure $ 2, Video Production $ 10, Printing $ 8, Kickoff Event $ 7, Supplies $ 3, $ Misc. Meetings/ Travel $ 5, $ , $ 28, Based on minimum $ 3 million goal, estimated cost per dollar raised is eight cents per dollar raised. Professional fees are determined on a flat fee structure and not a percentage of the funds raised. If campaign were to oversubscribe, the actual cost per dollar raised would decrease.
6 nual Economic Impact ITASCA SKI CLUB COLERAINE CLOQUET SKI CLUB SKI EVENTS PER YEAR WINTER AND SUMMER 2 SKI EVENTS PER YEAR WINTER AND SUMMER $ 288, $ 33, 620 DULUTH SM CLUB ST. PAUL SKI CLUB 2 SKI EVENTS PER YEAR WINTER AND SUMMER 5 SKI EVENTS PER YEAR WINTER AND SUMMER $ 33, $ 290, 000 RED WING AURORA SKI CLUB future estimates based on Olympic size hill) 1 SKI EVENT PER YEAR WINTER AND SUMMER 2 SKI EVENTS PER YEAR WINTER AND SUMMER $ 439, $ BUCK ML SKI & BATTLE CREEK SN REGIONAL PARK WDSOARD AREA 100 SKI EVENTS PER YEAR WINTER AND SUMMER 80, $ Impacting high school cross- country ski teams 21, 580, 000 5, 280, 000
7 The Snow Angels Program will be open to all youth minded ski development programs in future years and a mainstay program for years to come. The newly formed program is administered by the Minnesota Amateur Sports Commission ( the program' s fiscal partner). W W Z E 0 U W Y 19_ OLERAINE CLOQUET BURNSYILLE Q, BLOOMINGTON VV DULUTH MAPLEWOOD ST. PAUL RED WING 6 MILLION is requested for the first ycc,l' will be divided among 8 SKI SPORT development programs' The commission will invite proposals from across the state for construction of: 2+ ski jumps in a single location ( such as an Olympic training and qualifying jump) Additional jumps at existing facilities Maintenance at an existing ski complex Year- round skiing, boarding and ski jumping including artificial surfaces for summer training A cross- country ski facility expansion to help in promoting the high school team sport 4TA, W MN Ski and Snowboard Total Economic Impact Direct & Secondary 2012/ 2013 $ 401,192,689** Increased Annual Economic Impact + $ JDuluth w_ 0 Z ZZ o CURRENT VISITORS PROJE( TED VISITORS URRENT URRENT IMPACT IMPACT PROJE( TED IMPA( T , 33, FX FX Cloquet , 33, Coleraine , , , 900 St. Paul , ,000 w a Minneapolis 3, 000 6, , , 000 Red Red Wing Wing , 40, $ $ 34, 34, $ $ 5, 5, 280, 280, TOTAL TOTAL $ $ 6, 6, 365, 365, CURRENT CURRENT VISITORS VISITORS PROJECTED PROJECTED VISITORS VISITORS ( ( URRENT URRENT IMPACT IMPACT PROJECTED PROJECTED IMPACT IMPACT Buck Buck Hill Hill 160, 160, , 260, $ $ 12, 12, 800, 800, $ $ 21, 21, 580, 580, This This perpetual perpetual fund fund could could benefit benefit many many more more ski ski sport sport development development programs programs over over time. time. " " From From aa study study conducted conducted in in February February MN MN Ski Ski Area Area Association. Association.
8 Minnesota Snow Angel Program Administered by the Minnesota Amateur Sports Commission POSSIBLE FIRST YEAR PARTNERS Friends of American Ski Jumping, Original Organization ( Aurora Ski Club) 1887 Jumping and Cross Country American Ski Jumping Hall of Fame and Museum, Birthplace of American Skiing Main Street Red Wing MN St. Paul Ski Club Organized in 1885 Jumping and Cross Country St Paul Ski Educational Foundation, Oldest Organized Ski Club in America 1210 Sterling Street South Maplewood MN Minneapolis Nordic Ski Club Organized in 1922 Jumping and Cross Country 8401 East Bush Lake Road Bloomington MN Mt Itasca Winter Sports Center and Ski Club, Organized in 1906 Jumping, Cross Country, Alpine, and Snowboard 200 Mt Itasca Drive Coleraine, MN Cloquet Ski Club Organized in 1961 Jumping and Cross Country Pine Valley Park 1106 Olympic Dr Cloquet MN Erich Sailer Skier Education Foundation Legendary Capitol of American Ski Racing ( Ski Magazine) Buck Hill Ski Area, Organized in 1954 Alpine and Snowboard Buck Hill Road Burnsville MN Duluth Ski Club, Organized in 1905 Chester Park Drive Duluth MN Ramsey Co Cross Country Ski Trail Battle Creek Regional Park West St Paul, MN
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