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<br />Memo to Mayor and Council <br />Page 4 of 5 <br />May 20, 2003 <br /> <br />. <br /> <br />is recommending that a common interest community be established. While this would <br />require some complex survey work to be performed, it is his opinion that this is the most <br />appropriate option. This will require an agreement between the various partners that <br />articulates short term obligations during the construction phase and long term obligations <br />regarding building operations, reinvestment, and related issues. <br /> <br />7. Project Financing and Property Disposition <br /> <br />It is anticipated that this project can be financed utilizing existing fund balances and proceeds <br />from the sale of the current property. A more detailed financing plan will be provided to the <br />Council in conjunction with final approval of the project. At this time, staff would like to <br />reaffirm the Council's position on the sale of the property. If the Council does want to <br />proceed with the sale of the property, a discussion regarding the desired uses needs to occur <br />at some point in the future. Once this occurs, the property should be appraised and <br />bidslrequest for proposals should be solicited. <br /> <br />8. Schedule and next steps <br /> <br />The tentative schedule for final review of the project is the following: <br /> <br />. <br /> <br />~ Mid May: Special City Council meeting to review project and Taskforce <br />recommendation <br /> <br />If the consensus is to proceed then: <br /> <br />~ May to June: Work with the County to draft operating and ownership agreements <br /> <br />~ June City Council Worksession: Review operating and ownership documents <br /> <br />~ June 30th City Council Meeting: Consider resolution approving participation in the <br />project and necessary agreements. <br /> <br />~ July: County finalizes contract with Mortenson, finalize construction drawings, and <br />begin construction. <br /> <br />School District Reauest <br /> <br />Enclosed for the Council's consideration is a letter from the School District requesting our <br />assistance in financing their portion of the project. The City Attorney is currently evaluating the <br />legal implications of our participation in this request. From a financial perspective, this could <br />take the place of some existing long term investments, although ten years is longer than our . <br />typical investment time horizon of five years. However, any loan would be collateralized with . <br />the School District's portion of the building and it appears as if they are open to a higher interest <br />rate given the period of time involved. Ultimately, it appears as if the School District would like <br />