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Ory of <br />ERiver <br />REQUEST FOR ACTION <br />TO ITEM NUMBER <br />Economic Develo ment Authorit ~ 3.G <br />AGENDA SECTION MEETING DATE PREPARED BY <br />Consent December 12, 2011 Tim Simon, Finance Director <br />ITEM DESCRIPTION REVIEWED By <br />Adopt a Resolution Approving Consent to Merger of the Young <br />Men's Christian Association of Metropolitan Minneapolis and REVIEWED BY <br />Young Men's Christian Association of the Greater Twin Cities <br />ACTION REQUESTED <br />'The Economic Development Authority (EDA) is asked to approve a resolution approving consent to <br />merger of the Young Men's Christian Association of metropolitan Minneapolis and Young Men's <br />Christian Association of the greater twin cities <br />BACKGROUND/DISCUSSION <br />Earlier this year the YMCA announced a merger of the Young Men's Christian Association of <br />Metropolitan Minneapolis and the YMCA of Greater St. Paul. 'Ilrese two entities are planning to create a <br />single entity called Young Men's Christian Association of the Greater Twin Cities (Y-GTC). As you <br />recall, the EDA issued bonds to fmanee construction of the YMCA facility in Elk River by issuing bonds <br />in the amount of $12,000,000. "the EDA has a lease agreement in which the YMCA pays, as "basic rent" <br />one-third of the debt service on the bonds. Since we have a lease agreement with the YMCA- <br />Minneapolis, we are consenting to their merger into Y-G"1 C. <br />As part of the lease agreement the EDA must consent to the merger so long as certain conditions were <br />met. Steve Bubul from Kennedy and Graven has attached a memo outlining the conditions. Mr. Bubul <br />represented the EDA on the original lease. In addition Mr. Bubul has reviewed all documents and sees no <br />issue with consent requested by the YMCA. Therefore, staff recommends approval of the consent. <br />FINANCIAL IMPACT <br />All obligations will remain the same with the merger. <br />ATTACHMENTS <br />• Memo fox Stephen Bubul (Kennedy & Graven) <br />• Resolution Approving Consent "1'o Merger Of "1'he Young Men's Christian Association Of <br />Metropolitan Minneapolis And Young Men's Christian Association Of The Greater Twin <br />Cities <br />• Consent To Merger Of The Young Men's Christian Association Of betropolitan binneapolis <br />And Young Men's Christian Association Of The Greater "Twin Cities <br />Action Motion by Second by 'Vote <br />Follow Up <br />voreele er <br />N.APublic Bodice\City CouncilVI~inanaV"I'im\2071\YMCAmc~gc¢on~cntdoca ~~~~~~ <br />