CCP 02-10-1997 - Laserfiche WebLink

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-- ---- --- - ---- -------------- --------- ------- orr-" ~\ '{~T .. .it '-'J .-.. ,-- , ,~",hr ARDEN HILLS CITY COUNCIL - JANUARY 27. 1997 10 D. Quad Ice Arena Master and Supplemental Agreements I .. 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. I 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: I Total cost of the proiect The projected cost of the project is between $9.5 and $9.9 million. The source of funds will be . $2.5 milliou in down payments and $7.4 million in bond proceeds. MASC and Ehlers and I Associates, Inc., have both iudicated 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. I If proiect goes into default. can the City buyout its portion ofthe debt Under the Master Agreement, the City's share of the project is a salable asset. At any time, a city I 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 of the options available to the participants would be the buy-out ofa city's portion of the debt and I potential ownership of that portion. Mayor Probst requested clarification of the City's debt responsibility. He stated he understood it I 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 I 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 creditiug of hours. Mayor Probst expressed concerns that Arden Hills approve of the way hours are credited. Mayor I 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 I Filla, City Attorney, has been in contact with the Attorney General's Office in regards to the agreement. .. I ---------------