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<br /> -..-.-- -- ------- <br /> 1- - DRAFT <br /> I ARDEN HILLS CITY COUNCIL - JANUARY 13. 1997 7 <br /> ~ Supplemental Agreement <br /> I 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 /> I 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 /> I case. <br /> Mr. Fritsinger stated that MASC and our financial advisors have indicated there would be no <br /> I effect on the City's bond rating unless the project failed. <br /> I Mayor Probst indicated he favors the proposal for a replenishing escrow. <br /> Councilmember Malone expressed concern that if this project was to fail, there are no assets to <br /> I attach from the Hockey Associations. He discussed the possibility of a buyout of the City's <br /> sheet if the project should fail. Mr. Fritsinger stated he would discuss this proposal further with <br /> Ehlers and Associates. <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 /> I Councilmember Malone reiterated his desire for ownership of the City's sheet in the event of <br /> project failure. <br /> I A discussion ensued regarding the City's share of the cost of a possible buyout. <br /> I 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 /> I Mr. Fritsinger stated he would further discuss this clause with Ehlers and Associates. <br /> I Mayor Probst inquired how the changes in the financial terms would affect the City's bond <br /> ratings. Mr. Fritsinger stated he would clarify this for the Council at the January 27, 1997 <br /> I meeting. <br /> Hicks moved and Keirn seconded a motion to table discussion of the Master and <br /> MOTION: <br /> I Supplemental Agreements to the January 27, 1997 Regular Council meeting. The <br /> motion carried unanimously (5-0). <br /> t- <br /> I <br /> .- <br />