07 17 2006 EDA MIN SPEC - Laserfiche WebLink

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Economic Development Authority Minutes Page 2 July 17, 2006 Casey Scott, YIvICA representative-Presented a conceptual rendering of a YMCA facility and discussed amenities. Cotnnussioner Tveite asked if the city's bond rating would be affected. Mx. Bubul stated yes but with the YMCA making payments toward the debt the city might be able to avoid it Vice President Dwyer asked fox revenue projections. Mr. Casey stated the facility would be expected to lose money in the first few years but the YbICA organization will cover the debt. Commissioner Motin stated he has many- concerns with the YMCA project. He listed the following concerns: • The process used to pass the YIvICA through the EDA • Intent of EDA statutes with the lease being an economic development function is being stretched • Increased project costs from $3 million to $12 million • Memorandum of Understanding not reviewed by the YMCA • EDA has had no involvement with this project until this meeting • YMCA will be in direct competition with other businesses • Tax burden created fox residents/businesses • EDA meeting not televised to the public Commissioner Motin stated it is not the purpose of the EDA to fmance these types of projects. Commissioner Klinzing stated the YMCA project needs to be put before residents to decide. She stated Elk River has needed a community center for years. She stated taxpayers do not want to pay for a community center because they end up paying fox the facility through taxes, membership fees, and subsidizing (because community centers do not cash flow in many cities). She stated the YMCA facility would act as the community center for Elk River and provide other functions such as programming, outreach needs, and community builder. Mayor Klinzing stated having a YMCA facility will draw companies to Elk River. She stated the reason the city has to act quickly on this project is to meet election deadlines. MOVED BY COMMISSIONER GUMPHREY AND SECONDED BY COMMISSIONER KLINZING TO ADOPT RESOLUTION 06-O1 CALLING FOR AN ELECTION REGARDING ISSUANCE OF GENERAL OBLIGATION BONDS BY THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER IN A MAXIMUM AMOUNT OF $12,000,000 AND THAT THE TERM "COMMUNTY CENTER" ON THE RESOLUTION AND PROPOSED BALLOT BE REPLACED WITH THE TERM "RECREATIONAL FACILITY." MOTION CARRIED 6-1. Commissioner Motin opposed. Adjournment There being no further business, Vice President Dwyer adjourned the meeting of the Elk River City Council at 6:40 p.m. Submitted by: