5.6. SR 05-06-1996 - Laserfiche WebLink

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r~ity of MEMORANDUM iver FROM: DATE: SUBJECT: Mayor & City Council Pat Klaers, City A~or iMc~Y:'el::~ssues × ITEM 5.6. A-C It appears that the long ice arena project planning process is winding down and that we are close to awarding the ice arena bids and beginning construction. I say that we are close because the city should wait to sign the contracts until the local banks have confirmed that they will be participating in this project in the amount of $2.1 million and at an interest rate that compares favorably to the public bond market. Even after this bank commitment, the city still needs to hold a public hearing on the issuing of the bonds. As previously reviewed with the City Council, the bids were very favorable for this project. The construction bids and soft costs (i.e., architect fees, legal fees, construction manager fees, ice consultant fees, construction contingency, builders risk insurance, engineering, bond issuance fees, etc.) bring the project to an estimated $2.65 million. This excludes the contributions from the city/utilities and youth hockey. The city/utilities contributions include the city portion of the building permit fee, sewer and water expenses to connect to Lowell Street (engineering, land acquisition, and actual construction) SAC and WAC fees, removal of the light poles, electric connection fee, and parking lot signage/striping. The youth hockey contributions include the locker room accessories, landscaping, signage, scoreboard, concession equipment, paint and labor for both interior and exterior areas, hockey goal nets, hockey equipment, and other items for the interior part of the building. Additionally, it should be noted that the locker rooms will not be finished and that two of the three sets of bleachers will also not be provided. The permanent bleachers are in the project but the retractable bleachers are not. The financing for the project is $2.6 million plus $50,000 from youth hockey over time. The $2.6 million comes from the bank ($2.1), the Mighty Ducks grant ($250,000), the city ($50,000), youth hockey cash ($150,000) and the Rogers Plastics Foundation ($50,000). The $50,000 over time from youth hockey is needed to make the project work. However, the city needs this money in 1996 in order to pay off the contractor. Accordingly, the city should 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425