3.1. SR 05-21-2007 - Laserfiche WebLink

Home Browse Search

City Council Minutes May 7, 2007 Page 5 It was noted the new alignment concept would work better for Elk River by saving on wetlands and providing a straighter connection. 6.3. Resolution Approving Lease Agreement Between the Economic Development Authority of the City of Elk River and the Young Men's Christian Association of Metropolitan Minneapolis and the Ground Lease Between the City of Elk River and the Economic Development Authority of the City of Elk River Ms. Johnson reviewed the lease terms between the YMCA and the EDA as outlined in her staff report. She discussed the Sherburne County Legacy Grant and the compromise reached in the lease agreement for the grant. She stated one-third of the funds would go to the YMCA's rent payment and two-thirds would reduce the property tax levy for the city's share of the debt. She noted the grant has not been approved by the county yet. Ms. Johnson stated the city won't be getting the full $2 million available in the grant fund because the grant is based on materials and not total project cost as we originally understood. She stated the city would receive about $1.2-1.4 million and this would be a one-time shot at the funds. Sherburne County Commissioner Arne Engstrom stated the county board believed the full $2 million would go to the city. He didn't realize the $2 million could only be utilized as a one proj ect deal. Mayor Klinzing stated the city didn't apply for this grant for the library construction project because it couldn't meet the requirements necessary to get the full $2 million grant funds. Ms. Johnson read a letter submitted by Councilmember Gumphrey who couldn't attend the meeting tonight. Councilmember Gumphrey stated the full amount of the grant funds should be retained by the city. Councilmember Farber stated the city donated land and bonded $8 million for this project and the county grant was not a guarantee. He stated it was intended to help buy down the cost to the citizens paying on the bond. He stated it was never his understanding that the YMCA would get some of this money. Councilmember Zerwas concurred. Tom LaSalle, YMCA Representative -Stated this item was negotiated as part of the Memorandum of Understanding (MOU). He stated the city wanted to enlarge the gym to 8,000 sq. ft. and it was contemplated in the MOU to use some of the grant funds for the full size gym. He stated the YMCA has backed off from the position that it should be reimbursed for any excess over the $12 million agreed upon and to work out a split for the grant funds. Mayor Klinzing questioned why the YMCA agreed to continue with the city's requests if they knew the costs would be over $12 million. Councilmember Morin stated the city has made known that anything over the $12 million would by the responsibility of the YMCA.