7.0. SR 08-25-2003 - Laserfiche WebLink

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Budget Worksession Memo August 25, 2003 Page 2 of 13 By way of history, conversations with the YMCA started shortly after we had Council discussions about the scope of a city hall - police facility construction project. At that time we had a lot of discussion about large meeting room space, a senior center, a teen center, etc. The discussion with the YMCA centered on the city adding funds to a building project for having some of its space needs addressed, the city providing land for the facility, and the YMCA doing the YMCA. It was also proposed that the city would be the fmancing agent for the project. We always knew that the YMCA would request some city funds for the YMCA part of the project but had no idea what our ultimate investment would be, whether it would be 0, 10, 25, or 33% of a construction project. Following the initial meetings and conversations in later 2000, a survey was conducted and presented to the public in spring 2001, a Founder's Committee established, programs began to be run in Elk River, the Sheriff submitted a possible funding proposal, and most recently the YMCA staff liaison has been promoted to another position. It has been slightly over two years since the survey results were presented to the public. At this time, the YMCA is trying to ascertain from the city our financial role in a construction project and whether or not a facility can be constructed rather quickly or whether this project is going to go through a more lengthy process. If the city is going to contribute to a YMCA building, then there are only a few funding sources available. The city can use the lease/purchase approach for this type of facility by way of making payments to an agency like the EDA. This is how the 1993 city hall project was funded and how the public safety project of 2003 is being funded. The lease/purchase payments would likely be funded with an annual tax levy that is outside of the levy limit. This approach would make the city a true partner in the project and the owner of the building. The city recently made plans to collect a host fee from the landfill. The money generated through this host fee that is available for any city activity. Part of this money may need to go into the 2004 operating budget. The City Council could designate some or all of these funds for a community center or YMCA facility. Another funding source for a city contribution to a YMCA, if a city contribution is to be made, is the government buildings fund. All of the government building funds are committed through 2004 to the current city hall reconstruction project. After 2004, these funds are not yet committed to a project. Regarding the community center type of facilities that the city wanted to add to the YMCA project, it should be noted that some of the needs have already been met. In this regard, the large meeting room space for conferences and weddings has been met by the private industry via Black Woods. Additionally, the city is investing $563,000 for saving the Little Theater. Also, the seniors are operating within an updated facility at the Guardian Angels complex and are considering some parmership into the Handke Family Center. (Any city involvement by way of a long term senior facility in the Handke facility may require some city funding.) Accordingly, the YMCA project in Elk River could be just a YMCA project and not a city community center-YMCA project.