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. e. . ARDEN HILLS CITY COUNCIL - JANUARY 27. 1997 10 D. Quad Ice Arena Master and Supplemental Agreements Mr. Fritsinger reported the Minnesota Amateur Sports Commission has asked the City Council to consider the approval of the Master and Supplemental Agreements for the Quad Ice Arena project. Mr. Fritsinger reviewed that the City Council first reviewed these Agreements on January 13, 1997, and raised several concerns at that time. He gave clarification on the following issues: Total cost of the proiect The projected cost of the project is between $9.5 and $9.9 million. The source offunds will be $2.5 million in down payments and $7.4 million in bond proceeds. MASC and Ehlers and Associates, Inc., have both indicated is customary to put an "up to" amount that is established in the contract agreements that is larger than the $47.4 million to accommodate changes in the cost of financing or insurance. Ifproiect floes into default. can the City buyout its Dortion of the debt Under the Master Agreement, the City's share ofthe project is a salable asset. At any time, a city may sell its share to another party if there is a willing buyer. Ehlers and Associates have indicated that in the case of a default, it would be expected that the parties would meet to discuss how to payoff any outstanding bonds. In the case of a default, Anoka County would take ownership of the property, not MASC or the State of Minnesota. Under that scenario, one ofthe options available to the participants would be the buy-out of a city's portion of the debt and potential ownership of that portion. Mayor Probst requested clarification of the City's debt responsibility. He stated he understood it to be 15% of 25% of the debt. Mr. Fritsinger stated that was correct. Current status of the fourth rink MASC is the current owner of the fourth rink. MASC is currently working with the Centennial Hockey Association to reach an agreement, but nothing has been finalized at this time. MASC's method of crediting hours to each arena Paul Erickson, MASC, presented a handout regarding crediting of hours. Mayor Probst expressed concerns that Arden Hills approve of the way hours are credited. Mayor Probst inquired if the other cities in SAMN were in agreement regarding crediting of hours. Mr. Fritsinger stated except for some insubstantial changes, they were in agreement. He stated Jerry Filla, City Attorney, has been in contact with the Attorney General's Office in regards to the agreement.