6.5. SR 12-15-1997 - Laserfiche WebLink

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DEC-83-97 03:29 PM PELSTRIN~01 5509221 P.03 such, we should proceed to resubmit. All requests will go to tile legislature for committee review and hearings. He did suggest some modifications, which will' have thc impact of emphasizing a broader statewide h'npact for the project. We can review these suggestions at our meeting today. He dso raised the issue of Minnesota ^mateur Sports Commission's role in the process. The MASC has been successful in achieving legislative approval without recommendations from Department et' Finance. As a state agency, however, thc Department of Finance believes that MASC should review this proposal. We should develop a strategy to address this issue prior to legislative hearings. In summary, the modiRcations required r'or Friday's resubmission are relatively modest. They have raised thc issue, however, of addressing the issues of pre design Itudy, discussions with MASC. and building legislative support for this project over the next 60 days prior to committee hearing.~. STATUTORY REOUIREMENTS FOR CITY/Sp_ORTS FEDERATION RELATIONSHIP Patrick KJaers, City Administrator for the City of Elk River. received the attached letter for Commissioner Simoneau regarding the statutory requirements that the city will need to undertake to assure the availability of the bond proceeds. These transactions are governed by state constitution and a number of regulations must be met to qualiFT for the funding. After a review of the issues and a discussion with Pat Klaers. the rnost serious issue appears to be the requirement that thc lease must be structured as an "operating lease" and that the facility, if ultimately sold, should be sold at a fair market value and the sale must be approved by the Commissioner of Finance. Clearly, the City becomes the owner of the facility and needs to take the responsibility for the facility, wi~h this understanding. In further discussions with Mr. Mehrkens. he admitted that thc nature of these lease relationships vary significantly, depending upon the agency and non-profit relationship. We obviously need to meet the statutory requirements, but it appears the long-term relationships and commitments can be structured to meet thc needs of the city and the Sports Federation. In the short term. thc resubmittal this Fridnv should be n[tninahle. Tile process. however, suggests that additional activilies ~'¢garding verifying project cost and legislative support will require continuing, on-going activity.