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<br />rll ---'\) <br />( )j <br />~Iil <br /> <br />ITEM 5.6. <br /> <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor & City Council <br /> <br />FROM: Pat Klaers, City Administratoc/ J <br /> <br />, <br /> <br />DATE: January 23. 1995 <br /> <br />SUBJECT: Ice Arena Update <br /> <br />The ice arena project is moving forward and it is appropriate for the Council to receive an <br />update on this project at its 1/23/95 meeting. Project architect, Chuck Freiberg, from <br />RSP Architects, Ltd., will be present to review the plans for the project. Attached for <br />your review are some pages from the project proposal. <br /> <br />Construction Manager, Mr. Brad Lemberg, from Independent Consulting Engineers, Inc., <br />will also be in attendance at this meeting to review with the City Council the estimated <br />costs for various components of the project. At this time, it is estimated that the total <br />project will cost approximately $2.45 million. This is less than the project estimate that <br />was discussed with the City Council on 11/28/94. The amount discussed in November <br />was approximately $2.8 million. <br /> <br />e In the attached memo from Mr. Lemberg there are approximately $476,500 worth of <br />possible deductions from the project. If all of these deductions took place, the project <br />would be slightly under $2 million. It should be noted that it is not possible to deduct all <br />of the items listed. Such items as the parking lot (#2), the utility work (#3), and the <br />landscaping (#14) have to be constructed, but Mr. Lemberg is showing these as possible <br />deductions because he hopes they can be financed outside of the bond issue. These three <br />items are about $50,000. Also, it is a goal of the Task Force to have such items as #4 and <br />#5 (referring to bleachers) incorporated into the project at this time. Nonetheless, if $2.45 <br />million is not available, and it doesn't look like it will be, some of these deduction items <br />could be added at a later date. <br /> <br />Regarding the finances for the project, Mr. Lemberg indicates that with all the deductions <br />we are still above the project budget of $1.8 million. This was the estimated amount that <br />would be available from a bond sale based on approximately $220,000 per year being <br />available for debt. We have very positive information from the local banks that a bond <br />sale in the open market will not be necessary and that the City can directly negotiate the <br />selling of bonds to our local banks. Due to the local banking requirements versus the <br />requirements for the selling of bonds on the open market, it is now estimated that we will <br />have more than $1.8 million available for the project. The amount for the project could <br />be as high as $1.9 million. <br /> <br />- <br /> <br />13065 Orono Parkway · P.O. Box 490. Elk River, MN 55330. (612) 441-7420. Fax: (612) 441-7425 <br />