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<br />r.. <br />I CITY OF ARDEN HILLS <br />{t MEMORANDUM <br /> DATE: January 24, 1997 <br />I TO: Mayor and City Council <br />I FROM: Brian Fritsinger, City AdministratOl~ <br /> SUBJECT: Quad Ice Arena Master and Supplemental Agreements <br />I Request <br />I The Minnesota Amateur Sports Commission has asked the City Council to consider the approval <br /> of the Master and Supplemental Agreements for the Quad Ice Arena project. <br />I Background <br /> The City Council reviewed the Master and Supplemental Agreements at the January 13, 1997 <br /> Council meeting, At that meeting, the City Council asked for clarification of several issues in <br />I regards to the agreements, <br /> I have enclosed copies of the most recent versions of the Master and Supplemental Agreements, <br />Ie and addressed those questions raised at the January meeting. Other information about the project <br /> can be found in the January 10, 1997 staff memorandum previously provided to the City Council. <br />I Remainin~ Issues <br /> 1. Who is issuing the bonds? <br />I Though recent rumors indicated that MASC had been unable to reach an agreement with <br /> Anoka County, Anoka County officials have clarified that an agreement has been <br /> reached. The County Board will approve the agreement on January 29,1997. <br />I The County has not yet determined when they will issue bonds. While there is some <br /> discussion regarding the issuance of bonds immediately because of interest rates, the <br />I County prefers an August timetable. <br /> 2. What is the total cost of the project? (Page 2 - Master Agreement) <br />I The City Council had requested clarification on the total project cost as it related to <br /> reference of bonding in an amount not to exceed $9,000,000. <br />I The projected cost of the project is between $9.5 and $9.9 million. The source of funds <br /> will be $2.5 million in down payments and $7.4 million in bond proceeds. MASC, and <br />I Ehlers and Associates, Inc., have both indicated it is customary to put an "up to" amount <br /> that is established in the contract agreements that is larger than the $7.4 million to <br />f' accommodate changes in the cost of financing or insurance. <br />I <br />