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City Council Minutes Page 6 November 7, 2005 ----------------------------- residents want and will use a YMCA and if the referendum does not pass then the message is clear that the community will not support a YMCA. Councilmember Motin concurred. Mayor Klinzing stated that the YMCA has indicated they are not in favor of the city obtaining funding through a referendum as that is not normally how YMCA funding is obtained. She stated that a referendum would leave it up to the residents and that if the city were to fund without a referendum then other items would have to be cut from the budget. Councilmember Dietz questioned what would happen if the city passes a referendum and the county does not provide their portion of the funding. Mayor Klinzing indicated that the referendum question could be written to include a contingency of the county providing their portion of the funding. Councilmember Dietz indicated that he would like to discuss this issue with the county at the joint city/county worksession and see where the county stands on this issue. 9.3. Pinewood Golf Course Update Mayor Klinzing explained that residents of the Pinewood area have expressed interest in having the Council purchase the golf course rather than having it become a residential development. Mayor Klinzing stated that she has had two meetings with Mr. Krause and he has indicated that he would like a purchase price of $2.9 million for the course but would be willing to accept $2.4 plus interest. She indicated that Mr. Krause stated that he would like $500,000 up front to cover development expenses and that he is willing to take payments for the remainder. Parks and Recreation Director Bill Maertz reviewed budget figures and summaries he prepared if the city were to purchase and run the Pinewood Golf Course. Councilmember Farber stated that he believes that if advertising and marketing were increased for Pinewood that the revenues would go up substantially. Mr. Maertz noted that currently Pinewood has no website and is not marketed. He stated that if the city were to purchase it could be marketed both on the city’s website and through City Recreation marketing materials. Councilmember Dietz indicated that residents have expressed concerns over spending this type of money on a golf course because 25 residents are upset about a potential residential development near them. He stated that he believes the purchase should be brought before the voters on a referendum much like the YMCA proposal as discussed earlier. Councilmember Farber stated that he believes Pinewood is an investment and that the city can sell it for development after a couple years if the golf course if not profitable. Mr. Maertz indicated that the city should hold an informational neighborhood meeting if they purchase it to explain to the residents that if the course if not profitable, the city reserves the right to sell the property for development at any time. Councilmember Gumphrey questioned how the golf course purchase would be funded. Ms. Johnson explained that some possible funding sources would be reserve funds that are not designated for other purposes such as funds from the RDF payment in lieu of taxes, the government building reserve, the undesignated portion of the capital outlay reserve, and the park dedication fund. Councilmember Gumphrey indicated that he is skeptical about depleting a majority of the city’s reserves.