5. EDSR 05-14-2007 - Laserfiche WebLink

Home Browse Search

REQUEST FOR ACTION To Item Number Economic Develo ment Authori 5. Agenda Section Meeting Date Prepared by Ma 14, 2007 Lori ohnson, Ci Administrator Item Description Reviewed by Consider Resolution Approving Lease Agreement Between the Economic Development Authority of the City of Elk River and Reviewed by the Young Men's Christian Association of Metropolitan Minneapolis and the Ground Lease Between the City of Elk River and the Economic Development Authority of the City of Elk River. Action Requested The EDA is asked to review and consider the resolution approving the lease agreement between the Economic Development Authority of the City of Elk River and the Young Men's Christian Association of Metropolitan Minneapolis and the Ground Lease between the City of Elk River and the Economic Development Authority of the City of Elk River. Background/Discussion The city council met on May 7 to discuss the lease agreement between the EDA and the YMCA. The EDA is the issuing authority for the bonds on this project; therefore, the lease is between the EDA and the YMCA. However, the city must consent to the lease in order for it to be binding. The city council is meeting at 5:00 on May 14 to again review the lease and, assuming the council takes action at that time, the EDA is requested to act on the lease. Below are some of the highlights of the lease. The last item listed is the allocation of the Sherburne County Landfill Legacy grant that the Council will be discussing. The term of the lease is 31 years, automatically renewing after that point with aten-year termination clause. The initial term was increased by one year because the lease starts one year before the building is open for operation. The lease requires the construction of a full-size gymnasium of approximately 8,000 square feet including an office for city recreation staff. The city has guaranteed use of the gym for a minimum of 23 hours per week plus all times when the building is open and the gymnasium is not scheduled by the YMCA. Park and Recreation Director Bill Maertz is very pleased with the design of the gym and arrangement for city use of the gym. Each resident of the city will receive aone-time waiver of the joiner's fee and each household will receive a guest pass four times per year allowing all residents to have access to all basic services at the YMCA for one day. S:\Council\I,ori\EDA memo re YMCA lease OS 14 07.doc