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EOty1� ,.,�� Request for Action <br /> River <br /> To Item Number <br /> Mayor and City Council 4.7 <br /> Agenda Section Meeting Date Prepared by <br /> Consent December 4, 2017 Lori Ziemer, Finance Director <br /> Item Description Reviewed by <br /> Authorize Cancellation of Interfund Loan of the Cal Portner, City Administrator <br /> Park Dedication Fund to the GRE Reserve Fund Reviewed by <br /> Action Requested <br /> Adopt,by resolution, the cancellation of the interfund loan of the Park Dedication Fund to the GRE <br /> Reserve Fund for its share of the final Pinewood Golf Course payment. <br /> Background/Discussion <br /> In 2006, the city purchased Pinewood Golf Course for $1,800,000 plus interest and lease payments of <br /> $180,000. The council consensus was to use $390,000 for the down payment and first lease payment <br /> from the GRE Reserve Fund. The remaining payment balance would be split 50% each from the Park <br /> Dedication Fund and the GRE Reserve Fund. <br /> However,with the decline in the development activity and the lack of sufficient Park Dedication <br /> Revenue, the Park Dedication Fund did not have the funds available for its share of the final payment of <br /> $1,140,446 (net of the $410,000 legal settlement) in 2016. Therefore, the GRE Reserve Fund provided <br /> the financing for the final Pinewood payment with the intent the Park Dedication Fund repay its share <br /> with an interfund loan as Park Dedication Revenue became available. <br /> Due to the inadequate generation of Park Dedication Revenue,it is recommended to cancel the $570,223 <br /> interfund loan of the Park Dedication Fund to the GRE Reserve Fund as it could be years before the <br /> loan would be paid off. If the city were to sell the golf course each fund would be reimbursed their pro- <br /> rated share for any money put into Pinewood towards the purchase price and interest. <br /> Financial Impact <br /> Cancel the $570,223 interfund loan of the Park Dedication Fund to the GRE Reserve Fund for its share <br /> of the final Pinewood payment. <br /> Attachments <br /> ■ Resolution authorizing the cancellation of the interfund loan of the Park Dedication Fund to the <br /> GRE Reserve Fund <br /> ■ April 10, 2006, City Council minutes <br /> The Elk River Vision <br /> A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By <br /> service, and community engagement that encourages and inspires prosperity INAWRE1 <br />