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Home My WebLink About9.b. Minnesota Zoo Resolution of Support4 CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: FEBRUARY 3, 2004 AGENDA: MINNESOTA ZOO RESOLUTION OF SUPPORT AGENDA SECTION: LEGISLATIVE/INTERGOV' T PREPARED BY: JAMIE VERBRUGGE, CITY ADMINISTRATOR AGENDflW _B ATTACHMENTS: Resolution of Support; Press Release announcing APPROVED BY: Governor Pawlenty's proposal;- Minnesota Zoo FAQ; Select slides from Zoo informational presentation The Minnesota Zoo first opened its doors in Apple Valley in 1978, and recently celebrated its 25 birthday. This institution brings in approximately one million people each year and has an estimated state -wide economic impact in excess of $60 million. In recent years the Minnesota Zoo has faced some significant financial challenges. As State budget cuts became the norm, the quality of the zoo's infrastructure and visitor attractions began to decline. Today the zoo has over $30 million in repair and rehabilitation needs. Various zoo exhibits have been closed, some seasonally and some permanently. In an attempt to address this concern, the Minnesota Zoo developed a long range Master Plan which calls for expanding the visitor attractions at the zoo, as well as aggressively addressing the zoo's severe deferred maintenance needs. To help support the cost of implementing the zoo's adopted Master Plan, the Minnesota Zoo Board of Directors submitted a request to the state for $58 million in financial assistance ($48 million for new facilities and $10 million for asset preservation). On Monday, January 12 Governor Tim Pawlenty visited the Minnesota Zoo and announced his support for a $34.2 million financial package ($25 million instate bonding and $9.2 million in debt relief). Further deliberations on the subject will now begin in the Minnesota Legislature when they convene early next month. Cities within Dakota County have been asked to show their support for the zoo's financial request. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2004- RESOLUTION SUPPORTING STATE FINANCIAL ASSISTANCE FOR THE MINNESOTA ZOO WHEREAS, the Minnesota Zoo, located in Apple Valley, first opened in 1978 and has now been in existence for over 25 years, and WHEREAS, the Minnesota Zoo is an important state asset in that it attracts approximately one million visitors per year, and has an annual economic impact on the State in excess of $60 million, and WHEREAS, the Minnesota Zoo is facing significant financial pressures that have required the permanent and/or seasonal closure of various zoo exhibits, and WHEREAS, the Minnesota Zoo currently has a backlog of infrastructure refurbishment and repair needs in excess of $30 million, and WHEREAS, the Minnesota Zoo has requested state financial assistance to add new exhibits and to address the Zoo's severe deferred maintenance needs, and WHEREAS, the Rosemount City Council believes that it is in the best interests of the citizens of Rosemount, Dakota County, and the State of Minnesota that the Minnesota Zoo be provided with additional state resources to better enable it to carry out its mission. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount, that it supports the Minnesota Zoo's request for state financial assistance, and BE IT FURTHER RESOLVED by the City Council of the City of Rosemount that it encourages Governor Tim Pawlenty and the Minnesota State Legislature to fully fund the Minnesota Zoo's funding request in order to preserve and improve this important state asset. ADOPTED this 3rd day of February, 2004. William Droste, Mayor ATTEST: Linda Jentink, City Clerk RESOLUTION 2004- CERTIFICATION I hereby certify that the foregoing is a true and correct copy of a resolution presented to and adopted by the City Council of Rosemount at a duly authorized meeting thereof, held on the 3rd day of February, 2004 as disclosed by the records of said City in my possession. (SEAL) Motion by: Voted in favor: Voted against: Member absent: Linda J. Jentink, Rosemount City Clerk Second by: 2 STATE OF MINNESOTA OFFICE OF GOVERNOR TIM PAWLENTY 130 State Capitol • SaintPaul,'MN 55155 a FOR IMMEDIATE RELEASE: Contact: Leslie Kupchella January 12, 2004 (651) 296 -0001 GOV. PAWLENTY PROPOSES $25 MILLION IN BONDING AND $9.2 MILLION IN DEBT RELIEF AS PART OF PLAN TO REVITALIZE ZOO Apple Valley - Governor Tim Pawlenty today announced that his 2004 bonding bill will include $25 million for the Minnesota Zoo to fund general maintenance of park roads, facilities and utility systems, as well finance the construction of a new outdoor, interactive exhibit. The proposal will also relieve the zoo of $9.2 million in bonding debt. "A first class zoo is part of our first -in- the -nation quality of life," Governor Pawlenty said. "The Minnesota Zoo should provide every visitor the opportunity to experience and enjoy wildlife in more meaningful ways. It's important for the state to play a role in ensuring the zoo can provide award - winning recreational, educational and conservation programs for Minnesotans. — Governor Pawlenty's bonding proposal will provide funding for a new outdoor exhibit known as "Gateway to the North." The project will provide an exciting series of immersion exhibits and interactive learning areas. Brown bears will splash in a trout -filled stream, kids can search for "fossils" in a paleontological dig site, and Amur leopards will be seen from inside a rocky den. In addition, the Governor's proposal provides debt relief to the zoo for the $9.2 million outstanding on bonding authorized in 1994 for the dolphin exhibit, Discovery Bay. The plan will also help pay for repairs to park facilities, toads, paths and storm water systems. In total, Governor Pawlenty's plan represents a $34.2 million benefit to the Minnesota Zoo The zoo's collection currently includes about 2,300 animals, with 105 animals representing 15 species on the United States Endangered Species Act list. - -30 -- �0 > MINNESO Changing how you see the world The Minnesota Zoo's 2004 Capital Request to the Minnesota Legislature What is the Zoo asking for? The Zoo is asking for $48 million to fund the Biodiversity Center and the Gateway to the North exhibit, the first segment of our Master Plan. The Zoo is also requesting $10 million for asset preservation, addressing the deferred maintenance on the Zoo's existing physical plant. Is this a large request? In the context of other zoo revitalization efforts throughout America, this request is comparable. Recent public funding commitments to other zoos include $98 million in bonding for the Los Angeles Zoo, $48 million in bonding for the San Francisco Zoo, $50 million for the Denver Zoo, $41 million for the Seattle Zoo, $35 million for the Tacoma Zoo and Aquarium and $56.1 million in tax increment financing for the Akron Zoo. What is the history of these projects? In the last major bonding bill, the Legislature approved $8.1 million to begin work on the Master Plan. Governor Ventura vetoed these funds. The Zoo has not opened a new major exhibit since the Wells Fargo Family Farm in 2000. The last significant unconditional state capital support for the Zoo was in 1989, $750,000 for the Coral Reef exhibit. Why are these projects important? To maintain attendance, Zoos must offer new experiences to their visitors. To increase attendance, major new exhibits must be opened. These projects will strengthen the long -term financial viability of the Zoo, thereby facilitating improved and expanded environmental education and conservation programs, the core of our mission. Why are we asking for asset preservation funds? Our infrastructure is in need of repair and refurbishment. A 1.998 study identified $30 million in deferred maintenance needs at the Zoo. The requested funds will help maintain the investment that the state has already made in the buildings, roads and pathways at the Minnesota Zoo. Past projects have included repair and replacement of the perimeter fence and replacing damaged sidewalks and curbing. Included on our "to do" list are projects such as repairing the disintegrating main plaza, parking lot repairs and repairing the greenhouse foundation. What is the status of the l'oo's finances? The Zoo has received significant operating budget cuts over the past two years. Admission fees and membership fees have been increased but the market will not bear further increases in those fees without adding to the guest's experience. The operating budget of the Zoo is now at a point where decisions have been made to close exhibits, either permanently or seasonally. This can easily begin a downward spiral where attendance, and thus revenues, continues to decrease. How much of the Zoo's budget do the taxpayers pay? The state funds 39% of the Zoo's operating budget, down from 60% in 1985. The national average for zoos is 50% public support. Why is this investment in the Zoo important to the people of Minnesota? The Zoo is an important state asset and adds to the quality of life. Approximately one million people visit the Zoo every year, including 200,000 from greater Minnesota. The Zoo offers the state's largest conservation education program, serving over 100,000 K -12 students on field trips at Zoo Camp, and in other programs. The Zoo also has an annual economic impact on the state in excess of $ 60 million. Must both projects in the Master Plan be built now, or can they be done separately? To fully achieve the projected revenue and customer satisfaction potential, both projects need to move together. The Zoo currently lacks the infrastructure necessary to capture and serve the increased attendance that the Gateway to the North will generate. The Biodiversity Center will provide that infrastructure by creating a more efficient entrance, expanding currently inadequate retail space, adding additional food service options, increasing classroom space and adding space for traveling exhibits. These improvements will increase revenues. The Biodiversity Center will also house new animal attractions, which will help maintain the attendance increase experienced after the Gateway opens and provide a modest increase in annual attendance. What will the increased operating costs be for the two projects? The operating costs for the Gateway to the North are estimated to be an additional $676,575 per year. This includes 10 new full time equivalent staff, cost of animal feeding and care, and additional utility costs. This will be offset by revenue generating opportunities (rental fees and additional education programs)' and increased attendance. Attendance is expected to increase to 1,062,287 in the first year of operation. The Biodiversity Center is estimated to increase annual operating costs by $1.5 million. This includes 25.5 full time equivalent staff to provide additional education programming, animal care, customer service and building. maintenance. Other costs are primarily utilities. The Biodiversity Center is anticipated to increase revenues in retail, food service, rentals and education, thus offsetting some of the increased operating costs. An important component of the Biodiversity Center is space to house traveling exhibits. When new exhibits cannot be built, attendance can be maintained, and at times increased, by bringing in short term exhibits. How will the increased operating costs be funded? Additional operating costs are projected to be offset by increased revenues, resulting from new, improved and expanded revenue centers and modest increases in attendance. 11/7/03 Page 2 of 4 What are the attendance projections pre and post project? How were they calculated? The Zoo's attendance has been declining over the past several years. For the first time since 1990,our annual budget has been based on attendance of less than 1 million visitors. Given the current trend, upon opening the Gateway to the North we anticipate an increase in attendance of 10% over FY03, or 1,062,287. When other zoos and aquariums have opened major new exhibits, they have seen increases in attendance of 20% or more. The Minnesota Zoo experience includes a 25% increase with the opening of the Coral Reef, a 10% attendance increase with Discovery Bay and stable attendance with the opening of the Wells Fargo Family Farm. It should be noted, however, that both Discovery Bay and the Family Farm were replacing existing exhibits, rather than offering new animals. Given the new collection and exciting presentation planned for the Gateway to the North, a 10% increase can be anticipated. The opening of the Biodiversity Center is expected to increase attendance by 5 %. It includes both new permanent exhibits and space for traveling exhibits. What has the history been at other Zoos relative to new exhibits and attendance? Two factors result in increased attendance at zoos and aquariums: major new exhibits and significant births in the animal collection. In addition, with the ever - increasing competition for the recreation dollar, zoos have found they need to reinvest in existing exhibits and continually refresh exhibits to maintain steady levels of attendance. If Discovery Discovery Bay and the Wells Fargo Family Farm didn't increase attendance to a sustained new. level, why do you believe these projects will increase attendance? Both Discovery Bay and the Family Farm were essentially rel�aeing existing exhibits. Dolphins were already part of the collection; and the Farm replaced the old children's zoo. The Gateway to the North will bring engaging animals to the collection that are new to the Zoo: grizzly bears, sea otters and wild boar. The Biodiversity Center will include penguins. What new animals /experiences will there be with the Gateway to the North? Guests will have the opportunity to be nose -to -nose with grizzly bears, including watching them fish for trout. They will view active sea otters as they play and eat. Wild boar will be seen next to their predator, the Amur leopard. In addition, smaller animals, such as red fox may be viewed. When people enter this exhibit area, they will be "transported" to the far east of Russia. They will travel from the sea through the forest, to the mountains. Along the way, they will learn of the connection of these animals to North America and learn of the prehistoric and recent human/wildlife interaction.. These experiences will happen at a shoreline blow hole, an. opportunity to cool off on a warm day as the water surprisingly shoots out; at a shipwreck and trapper's cabin, where staff and volunteers provide interpretation and artifacts; at a mammoth dig, where children can dig for bones like the wooly mammoth bones on display. In addition, there will be a bi -level education center where visitors can view the bears on the ground level while classes, corporate meetings or special events occur in revenue generating space upstairs. 11/7/03 Page 3 of i What will visitors experience in the Biodiversity Center? The Biodiversity Center will not only address existing needs, but will prepare the Zoo for the future. The Biodiversity Center will provide space for additional education programs. This, in turn, will generate new revenue. It will also help to orient guests to the various trails in the Zoo. The center will provide space for our guests to learn about conservation efforts around the world. People will be able to enter the gift store without visiting the Zoo, potentially increasing sales. Sales will also increase by a redesign of the store to increase the capture rate of guests. On busy days, our current ticketing, retail and food space are inadequate. With the opening of new exhibits, particularly the Africa exhibit in future years, handling an increased number of guests will be difficult.. The Biodiversity Center will provide space for special traveling exhibits, which can generate repeat attendance with low capital investment. The Biodiversity Center will also include exhibits of species not currently at the Zoo. Visitors will be able to see penguins, giant anteaters, octopus and jellyfish, among others. An exciting "play/leam" nature exploration experience will cater to the needs of young (3 -7) year olds, something not currently offered. What new revenue opportunities do these projects present and how are you estimating revenue projections? These exhibits provide many opportunities for the Zoo to continue to increase earned income in entrepreneurial ways. Currently we cannot meet the requirements for business meeting space during the day. The Gateway will provide that space, which will also enhance our evening rental program. Revenue estimates have been developed based on history of our sales department and caterer. Many education programs currently fill quickly to capacity. The Biodiversity Center will triple available classroom space. Revenue estimates are based on current experience. Additional retail revenue estimates are based on the experience of our Gift Store operator, which provides similar service to 15 zoos and aquariums throughout the country. Space for traveling exhibits will not only provide opportunities to bring in new experiences for our repeat guests, but can be used as event rental space when not housing an exhibit New high profile exhibits will also provide new sponsorship opportunities for private sector partners. 11/7/03 Page 4 of 4 �� vw N, MINNESOTA,,-f"7l . . howyotlse , Minnesota's Zoo at the crossroads • Over 100,000 school children a year • Zoomobile provides outreach to Greater Minnesota • Award- winning School for Environ- mental Studies on Zoo grounds Lyl c I > < rD �• uo v'(D Number of Guests V1 O V1 O O O O O J O O O O O 9 0 1 .9 �O 0 X00 s � i " £ d £ £ r V• L yyr u a I• ' E 1 S f y F: DIV tom' i. ry [7 t � rj F iASfi a e gg Minnesota Zoo Master Plan F ky r� � a 2 W -- ". � Z �w �T � � �� ' � A �� ,. � ..., �s .r ... �. � Via_ .�� '� \�� ®. 4 ,': �$ ,. � 3 ., �� a.. f,, Como Zoo (St. Paul) Pt. Defiance Zoo and Aquarium (Tacoma) Woodland Park Zoo (Seattle) San Francisco Zoo Akron Zoo Denver Zoo Los Angeles Zoo $28 Million $35 Million $41 Million $48 Million $56 Million $62 Million $98 Million