3.0. SR 10-28-1996 - Laserfiche WebLink

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Intent, the city will need to make it very clear that if the financial pro forma is not to our satisfaction, then the city will not move forward with the financing of the project regardless of previous agreements regarding sites and secured capital by MSF. One of the major issues with this MSF project is financing. MSF must first raise a significant amount of capital before the project can move forward. As previously noted, this is one of the main reasons that a Letter of Intent is needed. Additionally, the city needs more data on the finances of MSF before it can be comfortable in recommending support for the city financing this project. This data includes additional information on the revenues projected for the fitness center along with data on the finances of the existing MSF operations. In this regard, the city needs to see if additional funds are available if the building revenue and expenditure projections are not correct. On October 28 1 think that you will hear some conversation about the 10 percent minimum MSF contribution to the bond issue, plus the possibility of MSF establishing a separate emergency/debt retirement fund in case the project estimates are not realized and additional funds are needed. Another significant issue with this proposal is the land for the building and for the fields. Staff believes, without seeing any plans to review, that the sports complex can be accomplished on five to six acres. The city is very interested in seeing the proposed plans for this facility and the long range master plan for activities around the sports complex. The city needs to know under what conditions MSF will want additional land around their sports complex. This situation relates to the additional two acres south of the apartment complex. Everyone at the city level is being very protective of this additional two acres. The city Park and Recreation Commission and staff members see this additional two acres south of the apartment complex as being very important to the long term development of Orono Park. Also regarding the building, at the last meeting we saw two cost estimates for the project. There is a very strong desire that this facility be of the "tip up panel" variety and not a metal building. This facility should meet our building park design standards and must be a building of high quality if the city is going to provide this level of assistance. Regarding field usage, it is believed that MSF, the existing softball complex facilities, and the youth sports activities on the Cass fields can all co-exist. There are no plans at the city level to allow MSF to use the existing softball complex. The Cass fields should be available in 1998 and it is planned that these fields would be available approximately two weekends per month for MSF usage for tournaments. Use of these fields by MSF for two weekends each month will not conflict with the needs of the youth sports organizations.