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<br />r <br /> <br />. <br /> <br />. <br /> <br /> <br /> <br />City Council Minutes <br />January 21, 1985 <br />Page Three <br /> <br />financial consultant, Springsted, Inc, it was indicated that the process of <br />issuing revenue bonds is not very complex if the local banks are interested <br />in purchasing the bonds. <br /> <br />Discussion was carried on regarding the local banks in the bond issue. The <br />City Administrator indicated that the local banks were involved in the original <br />construction of the arena and it has been indicated that the local banks would <br />be willing to participate in a bond issue for the required improvements. The <br />City Administrator indicated that Springsted indicated that the City would <br />have to have ownership of the arena in order to issue the revenue bonds with <br />a lease back agreement to the Elk River Youth Hockey Association until such <br />time as the bonds are paid off. <br /> <br />General discussion was carried on regarding placing the revenue bonds with the <br />Bank of Elk River, the First National Bank and the Rogers Bank and the term of <br />the bonds; ten years versus fifteen years. Discussion was also carried on <br />regarding the high school using the arena and the agreement the school has with <br />the Elk River Youth Hockey Association to 1987. <br /> <br />Mr. Dave Taus indicated that the Elk River Youth Hockey Association has a <br />commitment from the School to use the arena and it has been indicated that <br />the Suburban North Conference League would allow home games to be played in the <br />arena after improvements are made. <br /> <br />Discussion was carried on regarding the interest rate on revenue bonds versus <br />a private loan. Discussion was also carried on regarding the use of the arena <br />during the off-season, if the City had ownership of the buildings. Discussion <br />was also carried on regarding a contribution from the City of Elk River of <br />$3,000 toward the payment of the bonds for the next five years. <br /> <br />Councilmember Engstrom indicated that he was in favor of the City supporting <br />the issuance of revenue bonds if the local banks were interested in purchasing <br />the bonds. Councilmember Engstrom indicated that if the banks placed their <br />v trust in the Elk River Youth Hockey Association, it should not be a great risk <br />to the City of Elk River. <br /> <br />COUNCILMEMBER ENGSTROM MOVED TO AUTHORIZE THE CITY TO PURSUE THE ISSUANCE OF <br />GENERAL OBLIGATION REVENUE BONDS FOR THE ELK RIVER YOUTH HOCKEY ASSOCIATION WITH <br />THE NECESSARY LEGAL REQUIREMENTS AS RECOMMENDED BY SPRINGSTED, INC. COUNCILMEMBER <br />GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. <br /> <br />COUNCILMEMBER GUNKEL MOVED TO AUTHORIZE THE CITY OF ELK RIVER TO BUDGET $3,000 PER <br />YEAR FOR THE NEXT FIVE YEARS FOR THE ELK RIVER YOUTH HOCKEY ASSOCIATION WITH THE <br />CONDITION THAT THE GENERAL OBLIGATION REVENUE BONDS ARE SOLD FOR THE IMPROVE- <br />MENTS OF THE BUILDING. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION <br />PASSED 3-1. COUNCILMEMBER WILLIAMS OPPOSED. <br /> <br />6. Transient Merchant License Renewal - Public Hearing <br /> <br />Mayor Hinkle indicated that Mr. John Wahl of 15403 Sunfish Lake Boulevard, <br />Anoka, has requested a transient merchant license to sell flowers at the north- <br />west corner of the intersection of Highway #10 and Jackson Avenue. Mayor Hinkle <br />indicated that Mr. Wahl was issued a transient merchant license in 1984 to sell <br />