INFORMATION #3 12-04-1995DOj T7 �� X01 Minnesota World Trade lctitt t {i 1 � rc is v tv �nr 1 d l rntcr
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December 1, 1995
Mr. Kim Brandell
Terpstra, Black, Brandell,
Kaminsky & Hoffman
913 Main Street
Elk River, MN 55330
Re: Ice Arena Agreements
Dear Kim:
Enclosed please find:
• 1. The proposed Real Estate Agreement between Independent School District No. 728 and
the City of Elk River for sale of the ice arena site to the City. If the form of this
Agreement meets your approval, I will have Pat Klaers deliver an original executed by
the City to Dr. Flanery.
2. The proposed Reciprocal Easement Agreement, to be executed and delivered at the time
of closing.
3. The "Mighty Ducks" legislation pursuant to which the arena will be constructed.
I have revised Sections 19.1 and 19.3 of the Real Estate Agreement to address the two issues
which I mentioned to you with respect to the "Mighty Ducks" legislation. That legislation
allows the City to finance the arena provided that the arena and its financing are approved by
resolutions of at least two of the following governing bodies: the city; the school board; the
county. The county is not proposed to have any involvement in the arena project. Therefore,
the logical thing would be for the city and school district to adopt such resolutions. I have
therefore added two sentences to Section 19.1 which provide that the Seller will adopt a
resolution approving the arena and its financing, and that the adoption of this resolution will be
Seller's only obligation with respect to the financing of the arena.
The "Mighty Ducks" legislation also provides for a sales tax exemption if the City and school
district are parties to a joint powers agreement that governs the ownership, operation and
maintenance of the arena. I have therefore revised Section 19.3 to provide that the Buyer and
DOHERTY
RUMBLE
& BUTLER
Mr. Kim Brandell
December 1, 1995
Page 2
Seller will enter into such a joint powers agreement. I have also added a sentence to the effect
that the Seller will have no ownership of the arena or any obligations with respect to
maintenance or operation of the arena. l have then incorporated into this revised section our
earlier language regarding an ice time agreement.
I tried to call on Friday to go over these "Mighty Duck" revisions. Please call if you have any
comments on these changes or any other problems with the proposed agreements.
Sincerely,
Peter K. Beck
PKB /eka
Enclosures
cc:
PXB 102706
Pat Klaers (w /enclosures)
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