4.14. SR 05-19-2014 City of
Elk=' Request for Action
River
To Item Number
Mayor and City Council 4.14
Agenda Section Meeting Date Prepared by
Consent May 19, 2014 Cal Portner, City Administrator
Item Description Reviewed by
Elk River Boys & Girls Club Refinancing
Reviewed by
Action Requested
Adopt,by motion,a resolution consenting to the Elk River Boys &Girls Club refinance of their building.
Background/Discussion
The Elk River Boys &Girls Club Branch CEO Ricky Solomon has contacted the city seeking support for
the refinancing of their building loan.
The city has a ground lease with the club that requires the city to consent to any mortgage or other
security interest in the building. The refinancing will not result in the addition of new debt rather it will
enable the club to pay off their remaining debt (approximately$133,000) at a faster pace. Mr. Solomon
indicated the organization,under the leadership of their Board of Directors,has eliminated all of their
past outstanding debt over the last several years and is now financially very stable.
Central Bank is working the refinance. They would like a resolution from the city indicating we are aware
of the change in terms and consenting to the new mortgage.
Financial Impact
N/A
Attachments
■ Resolution
P0WIAEO 0
NaA f RE]
City of
Elk
River
Resolution 14-
A Resolution of the City of Elk River Consenting to the Bank Refinancing for
the Elk River Branch of the Boys & Girls Clubs of 10,000 Lakes
WHEREAS, The City of Elk River has and continues to be a strong supporter of the Elk
River Boys &Girls Club; and
WHEREAS, The City has a Ground Lease Agreement, dated March 16, 1999,with the Elk
River Branch of the Boys &Girls Club which requires the city to consent to any mortgage or
other security interest in the Boys &Girls Club building; and
WHEREAS, the Elk River Branch of the Boys & Girls Club is seeking to refinance
existing debt without adding new debt on the building; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River,Minnesota, as follows: the city is aware of and supports the improved financial
position which would result from said refinancing and consents to this refinancing and any
mortgage or other security interest in the Boys & Girls Club building,provided such
mortgage or security interest complies with the terms of the Ground Lease dated March 16,
1999.
Passed and adopted this 19"'day of May 2014.
John J. Dietz,Mayor
ATTEST:
Tina Allard, City Clerk
P O w E R E U 9 1
1`4 U