09-09-1985 CC MIN - Laserfiche WebLink

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REGULAR WEEKLY SCHEDULED MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, SEPTEMBER 9,1985 MEMBERS PRESENT: Mayor Hinkle, Councilmembers Gunkel, Schuldt, Williams and Engstrom MEMBERS ABSENT: None STAFF PRESENT: Torn Bublitz, City Administrator: Steve Solomon, representing the City Attorney's Office. 2. Consideration of Agenda Items 3.5 - Barthel PUD, 40 - Gates Avenue, and 6.5 - Star Cities Conference, were added to the agenda. 3. Elk River Ice Arena Revenue Bond Mr. Steve Solomon of the City Attorney's Office, reviewed the various transactions required for the Council to authorize the issuance of a revenue bond for the remodeling of the Elk River Ice Arena. He noted that the State Statutes impose certain requirements on cities to provide financing for revenue bonds and include the following: 1. OWnership of the Ice Arena is transferred to the City of Elk River. 2. The City leases the arena to the Hockey Association. 3. Rental payments indebtedness on Association is pay the bonds. 4. When the debt is paid, the title is returned to the Association. must be sufficient to pay the the revenue bonds and the Hockey committed to paying sufficient rents to Mr. Solomon noted that the First National Bank of Elk River is the lead bank in the transaction, the other banks being the Bank of Rogers and the Bank of Elk River. Mr. Solomon then proceeded to review the Resolution authorizing the issuance of the revenue bonds and specifically reviewed the terms of the loan arrangement on page three of the resolution. He explained that the bond purchase agreement stipulates that the City agrees to sell the revenue note and the bank agrees to buy the note for $300,000. He emphasized