2. SR 05-14-2007 - Laserfiche WebLink

Home Browse Search

REQUEST FOR ACTION To Ci ,Council Agenda Section S ecial Meetin Item Description Consider Resolution Approving Lease Agreemenr Between the Economic Development Authority of the City of Elk River and the Young Men's Christian Association of Metropolitan J\linneapolis and the Ground Lease Between the City of Elk River and the Economic Development Authority of the City of Elk River Meeting Date Ma 14,2007 Item Number 2. Prepared by Lori ohnson, Ci Administrator Reviewed by Reviewed by Action Requested The City Council is asked to review and consider the Resolution approving the Lease Agreement (Lease) between the Economic Development Authority (EDA) and the Young Men's Christian Association of Metropolitan Minneapolis (YMCA) and the Ground Lease between the City of Elk River and the Economic Development Authority for the City of Elk River. Background/Discussion At the May 7, 2007, worksession, the City Council tabled this item so that Councilmember Gumphrey could be in attendance. After reviewing the main provisions of the lease, discussion focused on the allocation of any grant proceeds the city would receive from the Sherburne County Landfill Legacy Grant (grant). Discussion centered on the YMCA's request to receive one third of the grant proceeds. Based on Council discussion of this item, attached is alternate lease language that provides that all of the grant proceeds go to the city to reduce the tax levy. I have again attached information on how these grant proceeds could reduce the tax burden placed on our taxpayers for paying the $8,000,000 city debt for YMCA. Obviously, the more grant proceeds the city receives, the lower the levy for this debt repayment will be which results in substantial decreases in the amount the tax property owners will pay for the YMCA in the fIrst three to four years. Further, in speaking with County Administrator Brian Bensen, Sherburne County's intent in developing this grant program was to reduce city and townships' costs for public facilities and, specifIcally in this case, to reduce the cost that would be borne by Elk River's taxpayers for the YMCA. By passing proceeds of the grant to the YMCA, we are not fully meeting the intent of the County's grant program. Following Council action on this item on Monday, the EDA will need to consider the lease. The YMCA will also need to approve the lease before the project proceeds. Once the lease has been agreed upon by all parties, the construction management contract will be presented to the Council. At this point, we have delayed that item until the May 21 agenda. The proposed construction manager RJM has assured us that this does not cause a problem with the schedule and that construction could still be completed on time. S:\Counci1\Lori\2007\ J1M:CA Lease Approval 05 14 07.doc