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~l REQUEST FOR ACTION <br />.."., <br />River <br />TO ITEM NUMBER <br />Ma or and Ci Council 4.1. <br />AGENDA SECTION MEETING DATE PREPARED BY <br />Consent December 12, 2011 Tim Simon, Finance Director <br />ITEM DESCRIPTION REVIEWED By <br />Adopt a Resolution Approving Consent to a Merger of the Cal Portner, Ci Administrator <br />Young Men's Christian Association of Metropolitan REVIEWED BY <br />Minneapolis and Young Men's Christian Association of the <br />Greater Twin Cities <br />ACTION REQUESTED <br />The City Council is asked to adopt a resolution approving consent to merger of the Young Men's <br />Christian Association of Metropolitan Minneapolis YMCA and Young Men's Christian Association of the <br />Greater Twin Cities <br />BACKGROUND/DISCUSSION <br />Earlier this year, the YMCA announced a merger of the Young Men's Christian Association of <br />Metropolitan Minneapolis and the YMCA of Greater St. Paul. These two entities are planning to create a <br />single entity called Young Men's Christian Association of the Greater Twin Cities (Y-GTC). As you <br />recall, the EDA issued bonds to finance construction of the YMCA facility in Elk River by issuing bonds <br />in the amount of $12,000,000. Since we have a lease agreement with the YMCA -Minneapolis, we are <br />consenting to their merger into Y-GTC. The bonds are secured by the full faith and credit of the city. <br />The EDA has a lease agreement in which the YMCA pays, as "basic rent", one-third of the debt service <br />on the bonds. <br />The EDA will review the consent approval on December 12, 2011, at the regular EDA meeting. Since <br />the bonds are secured by the full faith and credit of the city, the City Council should consider the <br />attached resolution. <br />As part of the lease agreement, the EDA must consent to the merger so long as certain conditions were <br />met. Steve Bubul from Kennedy and Graven has attached a memo outlining the conditions. Mr. Bubul <br />represented the EDA\city on the original lease. In addition, Mr. Bubul has reviewed all documents and <br />sees no issue with the consent requested by the YMCA. Therefore, staff recommends approval of the <br />consent. <br />FINANCIAL IMPACT <br />All obligations will remain the same with the merger. <br />ATTACHMENTS <br />Resolution Approving Consent to Merger of the Young Men's Christian Association of <br />Metropolitan Minneapolis and Young Men's Christian Association of the Greater (Twin <br />Cities) <br />Memo from Stephen Bubul, Kennedy & Graven <br />ACt1011 Motion by Second by Vote <br />11/EIE1 IT <br />N:\Public Bodies\City Council\Council RCA\Agenda Packet\12-12-2011\CityYMCAmergerconsent[1].docx ~~ w "~"~ ~~' <br />