6.1. PRSR 04-10-2006City of Elk River
REQUEST FOR COUNCIL ACTION Item Number
6.1.
Agenda Section Meeting Date Prepared by
Joint Meeting with Parks & April 1Q, 2006 Lori Johnson, City Administsatox
Recreation Commission
Item Description Reviewed by
Pinewood Financin
Introduction
The Council needs to determine the funding source(s) for the Pinewood Golf Course purchase.
Discussion
The item has been discussed briefly at several Council meetings with the intent that a final decision on the
funding source(s) fox Pinewood would be made when the lease and purchase were signed. These
documents were executed on Thursday at which time the $300,000 initial payment and first year lease
payment of $90,000 were paid to Paul and Pamela Krause.
The Council received a letter from the Parks and Recreation Commission with the Commission's
comments on funding this through the Park Dedication fund in the March 20, 2006, packet. My memo
for the March 6, 2006, meeting included possible funding sources and detailed financial information was
distributed at the meeting. If you do not have this information and would like another copy, please
contact me.
Briefly, two funding sources available in addition to Pack Dedication include the RDF Reserve and
Capital Outlay Reserve.
Financial Impact
Lease payments of $180,000 and purchase price of $7.,800,000 plus interest. There axe possible operating
shortfalls in the fast years of operation that will need to be funded. (Like the annual Ice Arena shortfall
that is funded by the General Fund, any projected shortfall can be included in the General Fund budget
or a different source may be identified after the shortfall is determined at the end of the year.)
Attachments
Action Requested
The Council is asked to identify the funding source(s) fox the principal, interest, and lease payments for
the Pinewood Golf Course.
S:\Councd\Lori\2006\Pinewood Financivg.doc
Council Action Motion by Second by Vote
Follow Up
S:\Cound\Loxi\2006\Pinewood Financing.doc