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<br /> - <br /> w1lll( <br />Memorandum - Quad Ice Arena Master and Supplemental Agreements I <br />Page Two <br />January 24, 1997 .. <br /> The proforma's that were initially prepared by Springsted Public Financial Advisors were <br /> based on debt service for a bond in the amount of $7.2 - $7.9 million. I <br />3. If the project goes into default. can the City buy out its portion of the debt? <br /> Under the Master Agreement, the City's share of the project is a saleable asset. At any I <br /> time, a city may sell its share to another party if there is a willing buyer. <br /> There is no automatic buyout provision in the agreement. Ehlers and Associates have I <br /> indicated that in the case of a default, it would be expected that the parties would meet to <br /> discuss how to payoff any outstanding bonds. In the case of a default, Anoka County <br /> would take ownership of the property, not MASC or the State of Minnesota. Under that I <br /> scenario, one of the options available to the participants would be the buyout of a city's <br /> portion of the debt and potential ownership of that portion. <br />4. What is the current status of the fourth rink? I <br /> The MASC is the owner of the fourth rink. The City of Roseville has not yet made a I <br /> decision on its commitment to the project. <br />5. How will MASC credit hours to each arena? <br /> The City Council asked for clarification on Section III, E, 2 on pages 7 and 8. As with .. <br /> other portions of this agreement, the Council needs to refer to other portions of the <br /> agreement to better understand the use and credit hours. If you refer to page 5, b(ii), the I <br /> second and third paragraphs, the agreement clarifies that MASC is responsible for not <br /> just 2,080 hours, but an additional 2,080 guaranteed hours, for a total of 4, 160 hours. The <br /> concerns related to hour usage held by the other parties of the agreement were not I <br /> specific to the rental of winter hours. These hours are, for the most part, addressed <br /> through the Supplemental Agreement with the Hockey Associations. The main concern <br /> was the rental of hours during the shoulder seasons, specifically fall and spring. These I <br /> are the hours which historically are difficult to sell. <br /> The language in the first paragraph of page 8 indicates that during the winter season, I <br /> hours secured beyond the MASC guarantee will be credited equally. During the fall and <br /> spring, hours sold will be credited equally to each arena. During the summer months of I <br /> June, July and August, MASC is responsible for the hours on all four rinks. <br />6. In the case of default what. if any. impact is there on Arden Hills' bond ratinl!s? I <br /> According to Ehlers and Associates, should the project default, there would be no bond <br /> rating affect on the City of Arden Hills, The bonds are issued by Anoka County, so any <br /> related problems would result in an impact only on Anoka County. I <br /> .. <br /> 1 <br />