5.6. SR 01-23-1995 - Laserfiche WebLink

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e At this time, it is necessary for Elk River Youth Hockey Association and other individuals to do some fundraising for this project. In order to do a $2 million project, either additional funds have to be raised, or the bids have to come in low. In order to do the $2 million project plus some bleachers (approximately $200,000), additional contributions have to be received. In the discussions with the banks, the City is looking at a twenty year debt structure where the interest rate is fixed for five year intervals. It is estimated that less than $200,000 will annually be necessary for the first five year period. The financing recommendations will get to the City Council in the next 30-45 days. The financing recommendations will also require some City Council action on the "worst case" scenarios for operating expenses and the repayment of debt for this project. Based on our available funds for debt (revenues minus expenses) and the amount ofthe payments that will be needed for this project; no City funds are anticipated to be needed for either the project debt or operating expenses. e At this time, everything looks positive from a financial point of view in order for this project to move forward. The project is slightly behind in its original timetable. This timetable, dated 11/2/94, is attached for your reference. In order to not fall further behind in our timetable, and in spite of the finances not being 100% finalized, it is recommended that the City Council authorize the architects to move forward with this project. As the Council may recall, the architects were only authorized to do phase one of the project. At this time, as far as the Task Force can see, the project is a reality and the City should authorize the architect to proceed in order for the project to be completed this year. Within the next few months, not only will the City Council have to approve the funding for the project, but they will also have to review and consider some land transactions between the City, School, and Youth Hockey. Also, the Planning Commission and City Council will be reviewing an administrative subdivision and conditional use permit for this project along with landscaping, parking plans, cross easements for parking, and access easements to School Street. Further along in the project, the Council will be authorizing the project to go out for bids, awarding the bids, and monitoring the construction of the project during the summer of 1995. The Council should also be aware of one other issue related to the finances of the project. As I understand it, there is some possible legislation that is going to be introduced that would provide up to $250,000 per community for the construction of new ice arenas. The goal is to help fund new arenas in order to meet the gender equity state law requirements. However, it appears that Elk River will be moving forward with this project prior to any legislation being approved or signed into law. If this is the case, we may not be eligible for any ofthese construction grant monies, simply because our project was bid out before any state law was approved. The Task Force needs to do additional research on the status of this possible legislation and whether or not Elk River would be eligible for any funds. e