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Honorable Mayor Henry A. Duitsman <br />City Council for the City of Elk River <br /> November _.__, 1996 <br /> Page 2 <br /> <br />It is proposed that the facility will be designed by Minnesota Sports Federation with review and approval <br />by City representatives. The facility will be constructed and financed by the City, if the City deems the <br />project to be financially feasible, and 19fmnesota Sports Federation will execute a lease/purchase agreement <br />to fully amortize the City financing. <br /> <br />~[INNESOTA SPORTS~FEDERATION REPRESENTATIONS: <br /> <br />Minnesota Sports Federation represents its interest in the project and intends to proceed as follows: <br /> <br />1. Minnesota Sports Federation is a private, non-profit 501(c)3 organization with over 200,000 <br /> members and participants in its programs. <br /> <br />2. Minnesota Sports Federation intends that the proposed project will serve as its operational <br /> headquarters and primary indoor sports facility. <br /> <br />3, Minnesota Sports Federation intends to locate the Minnesota Amateur Sports Hall of Fame as a <br /> pan of the project. <br /> <br />4. Minnesota Sports Federation intends to net lease the proposed facility from the City at a minimum <br /> annual cost equal to the City's annual debt service and related project costs. <br /> <br />5. Minnesota Sports Federation intends to cooperate with the City to encourage programming to <br /> enhance local community recreational opportunities. <br /> <br />6. Minnesota Sports Federation intends to equip the facility with equipment valued at $300,000.00. <br /> <br />7. Minnesota Sports Federation intends to be responsible for all on-going operating costs. <br /> <br />8. Minnesota Sports Federation has provided a financial pro-forma, and will work with the City to <br /> update it as required by the City, which accurately reflects the revenues, project costs, on-going <br /> lease and operating expenses. <br /> <br />9. Minnesota Sports Federation will not undertake any actions, change its organizational structure, <br /> or change its operational parameters that will adversely affect the tax-exempt status of the project <br /> bonds. <br /> <br />DCS 500952 <br /> <br />£0~ 669'0N S~LI~ * ago L0:60 96/SI/II <br /> <br /> <br />