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<br />. <br /> <br />. <br /> <br />. <br /> <br />ARDEN HILLS CITY COUNCIL - JANUARY 13. 1997 <br /> <br />7 <br /> <br />Supplemental Agreement <br /> <br />Mr. Fritsinger reviewed the down payment plan, and the various options the City has in meeting <br />this payment. He also reviewed the escrow agreement in regard to establishing a replenishing <br />fund, and the responsibility of each community of 1,000 hours of ice time. <br /> <br />Councilmember Aplikowski requested clarification that the four communities of MANS would <br />together be responsible for the 1,000 hours of ice time Mr. Fritsinger replied that would be the <br />case. <br /> <br />Mr. Fritsinger stated that MASC and our financial advisors have indicated there would be no <br />effect on the City's bond rating unless the project failed. <br /> <br />Mayor Probst indicated he favors the proposal for a replenishing escrow. <br /> <br />Councilmember Malone expressed concern that if this project was to fail, there are no assets to <br />attach from the Hockey Associations. He discussed the possibility of a buyout of the City's <br />sheet ifthe project should fail. Mr. Fritsinger stated he would discuss this proposal further with <br />Ehlers and Associates. <br /> <br />Mayor Probst requested clarification of the City's obligation if the project were to fail. Mr. <br />Fritsinger stated the City's responsibility would be a percentage of the hours for 25 years. <br /> <br />Councilmember Malone reiterated his desire for ownership of the City's sheet in the event of <br />project failure. <br /> <br />A discussion ensued regarding the City's share of the cost of a possible buyout. <br /> <br />Councilmember Aplikowski stated that the Master Agreement does contain a default clause <br />regarding End of Term Right of Renewal. Mr. Fritsinger stated this clause was in regard to <br />financial failure. <br /> <br />Mr. Fritsinger stated he would further discuss this clause with Ehlers and Associates. <br /> <br />Mayor Probst inquired how the changes from five $500,000 shares, with Mighty Ducks being <br />one of the five, would affect the overall project bonding requirements. Mr. Fritsinger stated he <br />would clarify this for the Council at the January 27, 1997 meeting. <br /> <br />MOTION: <br /> <br />Hicks moved and Keirn seconded a motion to table discussion of the Master and <br />Supplemental Agreements to the January 27, 1997 Regular Council meeting. The <br />motion carried unanimously (5-0). <br />