5.2. SR 12-11-1995ITEM 5. 2.
ty of� MEMORANDUM
l TO: Mayor & City Council
River
FROM: Pat Klaers, City Admi i r
DATE: December 11, 1995
SUBJECT: Ice Arena Project Update
I wish to remind the City Council that I will be at the School Board meeting
on Tuesday, December 12, 1995, in order to be present when the School
Board considers the real estate agreement between the city and the school
district for the sale of the ice arena site. A cover letter on this agreement
from our city attorney was distributed to the Council last week. The
proposed agreement includes a safeguard for the school and the city whereby,
if the city does not issue bonds for the project, then the property will revert
back to the school district.
Attached for your information is an update from the Minnesota Amateur
. Sports Commission regarding the status of our Mighty Ducks Grant
application. The Commission is requesting clarification on the sources of
project funds. This financial information needs to be confirmed and the
Commission is seeking written assurances from the city regarding its
construction timetable. The Sports Commission is asking that the city sign
off that it is prepared to guarantee construction if the grant is received. You
will note that in the example at the bottom right, it identifies funding yet to
be secured and zero dollars are offered in the example. Obviously the Sports
Commission wants to see that the project is 100 percent funded if the grant is
received and that there will not be any chance of a city receiving a grant and
then not doing the project.
•
The City Council will need to review the finances for the project on Monday,
December 11, 1995, as well as authorize me to sign off on the agreement
which states that the city will guarantee construction of the project if the
grant is received. Staff is working on the financial information required in
this recommendation letter and will have this information to share with the
Council on 12/11/95.
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441 -7420 • Fax: (612) 441 -7425
/V\-ASVm
40
December 5, 1995
Mr. Patrick Klaers
City Administrator
City of Elk River
P.O. Box 490
13065 Orono Parkway
Elk River, MN 55330
Dear Mr. Klaers:
MINNESOTA AMATEUR
SPORTS COMMISSION
1700 — 105th Avenue N. E.
Blaine, MN 55434
Phone:612- 785 -5630
Fax:612- 785 -5699
The Minnesota Amateur Sports Commission (MASC) is requesting
additional verification of financial and general information
regarding your application for a state ice arena grant.
As the MASC Board makes its final deliberations on grant
applications, it seeks to verify key information.
• We seek clarification on the sources of your total project
capital costs. This financial information needs to be confirmed
as either commitment of cash or written documentation of the
financing.
In addition, the Board seeks a written assurance of your
construction timetable. We request that you use the attached
letter and fax it to our office as soon as possible (612 -785-
5699) or no later than December 14, 1995.
Thank you.
Paul D. Erickson
Executive Director
Minnesota Amateur Sports Commission
PDE / j c
Enclosure
An Equal Opportunity Employer
EXAMPLE
•Minnesota Amateur Sports Commission
1700 - 105th Avenue N.E.
Blaine, AN 55449
•
Dear MASC Board:
The City of Elk Bend, MN hereby confirms that our
(Applicant Name)
Mighty Ducks Ice Arena Project of $ 1,500,000 has the
(Total Project Construction Costs)
following firm commitments:
$ 150,000
$ 250,000
$ 150,000
$ 250,000
Cash on Hand
Written Cash Pledges -- Hockey Assn.
Written Cash Pledges -- Community
School District Commitment
$ 250,000 City Commitment
S
S
S
$ 250,000
$ 1,300,000
-------------------
-------------------
County Commitment
Possible State Grant
TOTAL -- FIRM COMMITMENTS
The balance of $ 200,000 will be financed by 1st Bank of Elk
(Uncommitted Balance) (Bank or Gov't Entity)
Bend. If we are successful in receiving a state grant, we are
prepared to sign a (January, 1996) grant agreement that will guarantee
that
construction will begin in April 199 6 and will be completed by
(Month)
April 199 7 .
(Month)
Yet to be secured funds $ -0-
Yet to be secured financing $ -0-
(Authorized Signature)
RECOMMENDATION LETTER
*Minnesota Amateur Sports Commission
1700 - 105th Avenue N.E.
Blaine, MN 55449
Dear MASC Board:
The hereby confirms that our
(Applicant Name)
Mighty Ducks Ice Arena Project of $ has the
(Total Project Construction Costs)
following firm commitments:
$ Cash on Hand
$ Written Cash Pledges -- Hockey Assn.
$ Written Cash Pledges -- Community
$ School District Commitment
$ City Commitment
$ County Commitment
$
• $ Possible State Grant
$ TOTAL
------------- - - - - --
The balance of $ will be finance+
(Uncommitted Balance)
If we are successful in receiving -a state grant,
sign a (January, 1996) grant agreement that will
construction will begin in 199 and
(Month)
199
(Month)
(Authorized Signature)
I by
(Bank or Gov't Entity)
we are prepared to
guarantee that
will be completed by
NOTE: Include only cash commitments or financing commitments above. If your
community has a goal to raise additional monies or has not yet secured financing,
please indicate below:
Yet to be secured funds $
Yet to be secured financing $
•
RECOMMMNDATION LETTER
• Minnesota Amateur Sports Commission
1700 - 105th Avenue N.E.
Blaine, MN 55449
Dear MASC Board:
The C ( O ;� f. I ,N-, �i{ 1 VSPX' hereby confirms that our
(Appllc Name)
Mighty Ducks Ice Arena Project of $ a. LD CC), O o C has the
following firm commitments: (Total Project Construction Costs)
$ 144, a. 0 o Cash on Hand
$I is too
$ Sa, o00
$
$ 50 0o0 C ��
$
$ Q, loo, 00 o �41
Written Cash Pledges -- Hockey Assn.
Written Cash Pledges -- Community
School District Commitment
City Commitment
County Commitment
_,towA O:Pro c.0 f-d. s
Possible State Grant
TOTAL
The balance of $ will be financed-by
(Uncommitted Balance) (Bank or Gov't Entity)
If we are successful in receiving -a state grant, we are prepared to
sign a (January, 1996) grant agreement that will guarantee that
construction will begin in 199 and will be completed by
199 (Month)
(Month)
(Authorized Signature)
NOTE: Include only cash commitments or financing commitments above. If your
community has a goal to raise additional monies or has not yet secured financing,
please indicate below:
Yet to be secured funds $ —L-*�
/ Yet to be ecured financing $ -
" to 00 0-.-, o� q l !4' a. % �0 0 0 p 1�Dl.d 1� J L3
('�) A a.o