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~ity of <br /> <br />iver <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />MEMORANDUM <br /> <br />Mayor & City Council <br /> <br />Pat Klaers, City .a)dlministrator <br /> <br />October 15, 1996 g'~09~ <br /> <br />MSF Worksession <br /> <br />The city and Minnesota Sports Federation (MSF) have been discussing a <br />possible MSF project in Elk River since February, 1996. MSF is now to the <br />point in their project where they are requesting that the city and MSF enter <br />into a Letter of Intent for the project. As this Letter of Intent commits both <br />MSF and the city to certain obligations, it is appropriate for the City Council <br />and MSF to meet in a worksession to review and evaluate the project <br />proposal. <br /> <br />MSF needs the city to enter into a Letter of Intent so that it can do some <br />fundraising. Additional funds are needed by MSF because no project can <br />move forward until MSF has a certain level of funding available for the <br />project. In this regard, MSF cannot do any serious fundraising until the city <br />commits to provide sites for the project. Once the sites are established and <br />known, MSF will have something to market so it can raise the necessary <br />funds for the project. <br /> <br />The Letter of Intent between the city and MSF will provide the framework <br />for a development agreement. If MSF has a certain level of funding available <br />for the project and, if the city accepts the MSF projections for revenues and <br />expenditures, then the city will be committed to certain actions. In this <br />regard, the city will commit to financing the project; to provide MSF with a <br />six to eight acre site for its building; and, to provide land to MSF in the <br />future for the development of a field (and restaurant) complex along with <br />working out an appropriate schedule which allows MSF use of the new fields <br />that the city is constructing on the Cass property. <br /> <br />The most significant issue in this project is the city commitment to doing <br />public bonds for the construction of the facility. If the city does not commit to <br />financing the facility, there will be no MSF project. On the other hand, if the <br />city does commit to doing the bonding for this project and MSF cannot meet <br />its financial obligations, the city will be required to pay for the project. <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />