07 17 2006 EDA MIN SPEC - Laserfiche WebLink

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SPECIAL MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, JULY 17, 2006 Members Present: President Gongoll (6:10 p.m.), Commissioners, Dw~ ex, Farber, Gumphrey, Klinzing, Motin, and Tveite :~Iembexs Absenu I~ione Staff Present: City Administrator Loxi Johnson, Director of Economic Developmem Catherine Meheech, Citv Attorney Peter Beck, and Depu4- Clerk Tina Allard Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Economic Development Authority was called to order at 6:00 p.m. by Vice President Dwyer. Resolution Calline fox an Election on $12.000.000 General Oblieauon Bonds (Y:b1CA Referendum) Ms. Johnson stated the Council has directed the city to work with the YMCA on refining a financing stmctuxe fox a YMCA facien~ in Elk River and to prepare a ballot referendum for die Primary Election. Mr. Beck stated the city is not able to partner with the YMCA in a way that meets the YMCA's requirements because statutory requirements are too restrictive. He stated the EDA as a separate poetical entit}' can parmex with the YMCA and it creates more flexibiety because the lease agreement may be entered into. He stated there are still some capital improvement issues that need to be addressed. Commissioner Modn questioned what would happen if the city were to prepay the bond. He further stated Item LG.1. in the Memorandum of Understanding should be changed to 20 from 21. Ms. Johnson stated it is unlikely the bonds would be paid early but if the citj• refinanced the bonds they would have to work with the YivICA on terms. Commissioner Gumphxey stated the term "Community Center" should be removed from the ballet and replaced with the term "Recreational Faciery." He stated concerns with the YMCA leaving in 20 years and the city being stuck with a facility they can't lease out. He stated it would be easier to sell the facility to the public as a recreational facility. Councilmember Farber concurred but for different reasons. The Commission concurred with the language changes fox the ballot and the resolution. Steve Bubul, Kennedy & Graven-Stated the EDA as a separate entity is allowed to issue bonds fox the purpose of promoting economic development. He stated leasing of a YMCA facility would be considered an economic development function.