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<br />Financial Impact <br />Once the lease is approved, the city (through the EDA) is obligated to issue $12,000,000 of debt to fund <br />this project with the debt being repaid through tax levies that may be reduced by grant proceeds. The <br />lease does not provide an escape clause for the city because the maximum obligation is set at $8,000,000 <br />plus the land contribution. The city is liable for the entire debt if the YMCA does not may rent payments <br />as scheduled. <br /> <br />Attachments <br />. Resolution approving Lease agreement by and between the Economic Development Authority for <br />the City of Elk River, Minnesota as Lessor and the Young Men's Christian Association of <br />Metropolitan Minneapolis as Lessee and Ground Lease between the City of Elk River and the <br />Economic Development Authority <br /> <br />. <br /> <br />Lease agreement by and between the Economic Development Authority for the City of Elk River, <br />J\linnesota as Lessor and the Young Men's Christian Association of Metropolitan Minneapolis as <br />Lessee. <br /> <br />. <br /> <br />Ground Lease between the City of Elk River and the Economic Development Authority <br /> <br />. <br /> <br />Alternate lease language providing all grant proceeds go to the city <br /> <br />. <br /> <br />Spreadsheet showing estimated tax reduction resulting from grant proceeds <br /> <br />. <br /> <br />Estimated project budget provided by the YMCA <br /> <br />Action <br /> <br />Motion by_ <br /> <br />Second by _ <br /> <br />Vote <br /> <br />Follow Up <br /> <br />S:\Council\Lori\2007\ Yl\1CA Lease Approval 05 1407.doc <br />