ICESR INFORMATION 2 04-05-2005 - Laserfiche WebLink

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AGREEMENT ELK RIVER ICE ARENA COMPLEX THIS AGREEMENT is made and entered into this day of February, 1998, by and between the City of Elk River, a municipal corporation under the laws of the State of Minnesota ("City") and Elk River Youth Hockey Association, anon-profit corporation under the laws of the State of Minnesota ("ERYHA"). RECITALS 1. The Elk River Ice Arena Complex (the Ice Arena Complex) is located at 1000 School Street in the City of Elk River, on the property legally described on Exhibit A attached hereto. 2. The Ice Arena Complex originally consisted of a single sheet of ice and associated space (the Original Ice Arena) constructed by ERYHA in 1971. The Original Ice Arena was renovated and expanded by ERYHA in 1985. This renovation was financed by the City but paid for by ERYHA.. ERYHA obtained more favorable financing terms by a transaction pursuant to which ownership of the Original Ice Arena was transferred to the City in consideration of obtaining the financing package and the Original Ice Arena was leased back to ERYHA under a lease dated October 1, 1985. The October 1, 1985 lease included a provision pursuant to which ERYHA could obtain ownership of the Original Ice Arena for $1.00 in consideration of ERYHA's retirement of the debt issued by the City to finance the renovation. This debt was retired on November 1, 1995, by ERYHA payments. 3. 'The City and ERYHA have cooperatively undertaken an effort to further expand and improve the Ice Arena Complex. Pursuant to these efforts the City is :currently completing construction of a second sheet of ice at the Ice Arena Complex, together with associated improvements to the Original Ice Arena and the property on which the Ice Arena Complex is located. The costs of these improvements are being financed from a variety of sources, including bonds issued by the City, a state "Mighty Ducks" grant, and contributions from ERYHA and Independent School District No. 728 ("ISD 728"). ERYHA's contributions include ERYHA's ownership interest in the Original Ice Arena, presently valued at $1.4 million. 4. The financing for the expansion and improvements of the Ice Arena Complex requires that: a. The City hold clear title to the entire Ice Arena Complex; b. The City manage and operate the Ice Arena Complex as a City facility; c. The City establish sufficient cash flow to make the bond payments by entering into long temp leases for space within the Ice Arena Complex and long term agreements with major users, including ERYHA, for ice time rental. BcckP 136759.2