10-17-1996 CC MIN - SPECIAL - Laserfiche WebLink

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SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL THURSDAY, OCTOBER 17, 1996 Members Present: Members Absent: Staff Present: Mayor Duitsman, Councilmembers Dietz, Farber and Scheel Councilmember Holmgren Pat Klaers, City Administrator; Phil Hals, Street/Park Superintendent; Jeff Asfahl, Community Education Director. Also Present: Pat Pelstring, Perry Coonce, Barb Northway and Al Mundt representing The Minnesota Sports Federation. Lana Huberty, Park & Recreation Commissioner arrived at 7 p.m. o Call Meetinq To Order Pursuant to due call and notice thereof, the special meeting of the Elk River City Council was called to order at 6 p.m. by Mayor Duitsman. Consider Agenda COIJNCILMEMBER SCHEEL MOVED APPROVAL OF THE OCTOBER 10, 1996, SPECIAL CITY COUNCIL MEETING AGENDA. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. Minnesota Sports Federation Worksession Pat Pelstring explained that the Minnesota Sports Federation (MSF) began negotiations with Elk River for a sports facility approximately 60 days ago. Staff has been reviewing both the site plan and financial pro-forma. The MSF has presented the city with a draft Letter of Intent which commits both MSF and the city to cedain obligations. Mr. Pelstring explained he and the City Administrator felt this worksession would be helpful to discuss issues related to the Letter of Intent before the Council takes action on the matter, Mr. Pelstring explained MSF is a private non-profit organization, with excess capital being reinvested in their programs. The MSF is seeking assistance from the city in obtaining financing, and MSF would be responsible for all operation costs and repayment of the debt service. Mr. Pe!string indicated the facility would benefit the local residents, and some h,,'pe of direct access ,would be negotiated for the park and recreation programming. Mr. Pelstring indicated he was hopeful the Council may consider the Letter of Intent at the Monday, Oclober 28, 1996, City Council meeting. Mr. Pelstring indicated the capital fundraising campaign would take some time after the site is selected. Mr. Pelstring noted that MSF would not expect the city to providing financing until all of the questions in terms of equity investment and the proposed operation have been answered.