CCP 06-30-2003 - Laserfiche WebLink

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l Memo to Mayor and Council Page 2 June 26, 2003 . to the County. The County Board will be considering final approval of the project and execution of the various documents at their July 1 st, 2003 meeting. Once approved, preliminary site work is expected to begin in July. Common Interest Community Documents To allow an ownership interest for the various partners, a common interest community will need to be established. To do that, several documents need to be executed including: 1. A Declaration of Covenants, Restrictions, and Conditions 2. Articles of Incorporation 3. Bylaws 4. Disclosure Statement While these documents cover a range of issues, the Council will note the following: > An association with a three person board of directors is created. Each party can appoint a board member. Board members have votes in proportion to their interest in the facility making Ramsey County the majority vote holder. . > Ramsey County Property Management will manage the association. > If the City would want to sell, Ramsey County would be offered the first of right of refusal. Sale is limited to governmental entities. At this point, the various CIC documents are substantially complete. However, there are various exhibits that need to be finalized prior to execution. Once finalized, they would be brought back to the Council for final approval. Project Financing At this point in time, to finance the $2,387,514 cost associated with this project I would propose the following financing scenario: 1. The project be funded out of fund 505, the PermiUlent Improvement Revolving (pIR) Fund. 2. An internal debt obligation be established for future repayment by other governmental and enterprise funds. Using the approach outlined above, the project can be financed on a temporary basis until a definitive decision is made on the disposition of the existing property and a specific allocation from other funds is determined. The PIR fund currently has a 2003 year estimated fund balance of $6,456,671. Regardless of whether the existing property is sold to offset expenses associated . with the new facility, there are sufficient fund balances in the enterprise and capital funds available to finance the project.