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. . . ARDEN HILLS CITY COUNCIL - MARCH 29, 1999 13 The Finance Committee met with Norwest Banks as a potential funding agency for the project. The Committee has decided not to pursue this avenue as Norwest Bank was biased about having things their way and the term may not have been 15 years. Mayor Probst asked if the City would have the $13 million dollars in financing to pursue a landlord situation. Mr. Post stated that there is an upper limit of2% of the market value for bonds. This would mean a $10 million dollar cap and there is currently $3.1 dollars million outstanding. Mayor Probst confirmed then that there is an upper limit of$7 million dollars. Mr. Post stated that this was correct. Councilmember Malone asked how the financing worked with the City of Hutchinson joint facility project. Mr. Post stated that each party involved put up their upfront capital funding as 25%, 25%, and 50%, with the City in the lead. This has worked well over the last couple of years. One thing that is impacting this arrangement is the State wanting to increase its size of the building, which would knock the City out of its lead position. Mayor Probst asked if the Hutchinsonjoint facility has a Board based upon the percentage of ownership. Mr. Post stated that it does. Mayor Probst confirmed that Ramsey County has not budgeted any money for this project. Mr. Post concurred and noted that the County has an upcoming jail project that may cost $9 million dollars. Mr. Fritsinger stated that, considering the fact that the Arsenal land transfer will occur in the next few weeks, it may be appropriate to get all the parties involved together to discuss the interest in the project. Councilmember Larson commended the Finance Committee and noted that, in the course of reviewing this project, they were able to discover new information. He stated that at the retreat, the Public Works Facility was made a priority and the consensus of the Councilmembers was that the most attractive alternative was a joint facility on the Arsenal. Councilmember Larson suggested that it might be helpful for the Council to formalize their desires. He noted, however, considering the difliculties the City has experienced with the Arsenal, if the Finance Committee is going to continue consideration of the project, they should also consider a stand alone alternative. Mayor Probst stated there are essentially two options. The first would be a campus of facilities where each party would have its own buildings and would share fuel and other common needs. He noted that the joint facility does not necessarily mean one building and whether or not the City would be the tirst or second one in cannot yet be determined. He agreed that the next step would be for the group to get together and work out these issues.