09-09-1985 CC MIN - Laserfiche WebLink

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~ PAGE 2 CITY COUNCIL MINUTES SEPTEMBER 9, 1985 that the City of Elk River is not committed in any way to levy taxes to pay the obligation, however, the City commits that the revenues it receives under the lease arrangement will be applied to payoff the debt. He added that the Hockey Association must provide for the payment of debt service and operating expenses. Mayor HInkle inquired if there were any penalties for prepayment. Mr. Solomon replied that there are some modest disincentives to prepay, however, he indicated the bank has not indicated any problem with the prepayment provision. Councilmember Gunkel commented that it appears to be inefficient to have the City receive funds from the association and then transfer them to the bank. Mr. Solomon replied that a direct payment could be arranged and is allowed under the statute, but some accounting would have to be made as per the stipulation of the statute. The Council continued to discuss this item and there was a general consensus of agreement among Councilmembers that the payments should be made directly from the association to the bank. The Council then discussed the issue of who was to pay for the preparation of the legal documents required in connection with the revenue note. Mayor Hinkle stated that it was his oplnlon that the Council was to act as the go-between and not the financier in the transaction and the Hockey Association was to pay for all fees and preparation of all documents. After discussion consensus among Association to revenue bond. by the Council, there was a Councilmembers to require the pay all legal fees associated general Hockey with the Councilmember Williams inquir~d as to the rates charged by the hockey association for lce time. Mr. Dave Taus, representing the Hockey Association, stated that the hourly rates for ice time were $68.00 per hour for ice skating and $110 an hour for broomball. He added that there has been no problem with selling ice time in the arena.