07-17-2006 CC MIN - Laserfiche WebLink

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. . . City Council J\.finutes July 17, 2006 Page 3 . Cost to residents/businesses through a tax levy ($100 per year on a $200,000 home) and residents would still have to pay membership fees ($6,000-$9,000 a year) to use the facility Memorandum of Understanding (MOO) hasn't been reviewed by the YMCA Location of YMCA (not in an area where there are lots of kids) The process used to pass this item through the EDA (concern intent of EDA statutes being stretched) . . . Councilmember Dietz questioned if the tax levy for the YMCA would decrease as the population increases. He stated bringing a YMCA to Elk River has been in the planning stages for years and the city needs to put an end to it once and for all by allowing residents to vote on this issue at the next election. He stated the city may never be able to afford this project otherwise. Ms. Johnson stated the levy amount to each taxpayer would go down if the population increases. She further stated if the YMCA defaults on their lease the city will be responsible for those costs. Councilmember Gumphrey concurred with Councilmember Dietz. He stated having a YMCA will be an outstanding marketing tool to attract businesses. He stated it will offer many programs for seniors and kids. Councilmember Farber agreed with both Councilmember Motin and Councilmember Dietz. He stated he doesn't like the process of how this project came before the EDA. He stated he is concerned with the increased project costs. Ms. Johnson explained that the Council made a previous motion to approve the YMCA referendum with the city picking up two-thirds of the cost. The YMCA has increased its project cost estimate to $12 million. She stated city staff met with Council at the last worksession meeting to confirm they were comfortable with moving forward on this project. Mayor Klinzing stated the f111ancing was never set for this project during initial discussions. She stated Sherburne County may be willing to participate through the use of landfill abatement funds if the city uses green products. She stated residents have been requesting a community center for years. She stated taxpayers do not want to pay for a community center because they end up paying for the facility through taxes, membership fees, and subsidizing (because community centers do not cash flow in many cities). She stated the YMCA facility would act as the community center for Elk River and also provide programming and outreach needs and act as a community builder. She stated residents will make the decision whether they want a YMCA. She stated this is on the Primary Election ballot because there is momentum for the project and the city does not want this project to be associated with the school district levies that will be on the General Election ballot. Mayor Klinzing stated state statutes prohibited the city from partnering with the YMCA and the EDA was the best alternative for moving this project forward. She stated the YMCA has reviewed the MOD. Ms. Johnson clarified that YMCA staff reviewed the MOU but not the YMCA Board. Mr. Beck stated the MOU was originally prepared by the YMCA. Councilmember Motin stated citizens are not typically charged to use a community center and they will be charged membership fees to use the YMCA facility. He stated the city just