8.0. SR 07-24-2000Tity
of
iver
MEMORANDUM
Item #8
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat Klaers, City ~_~ist~ator
July 24, 2000
Other Business
There are a number of items I would like to discuss with the council under
the Other Business agenda item:
e
e
e
e
e
Motion to formally accept the resignation of Building and Zoning
Secretary Theresa Ferguson and authorize staff to seek candidates for
the position.
Whether or not the council is ready to make a decision on the financial
consultants for the city.
The draft MSF letter.
An update on the Northstar Corridor activities, including the August
10 demo site and the distribution of demo tickets.
MnDOT Highway 10 study...public information open house scheduled
for Monday, August 21 at Big Lake City Hall from 4:30 - 7:30 p.m.
Economic Development/Chamber Open House to meet the Business
Development Team on Thursday, July 27, from 4-6 p.m. at the Golf
Course.
Advise the council of an approximately $4,000 expense to rebuild the
septic sewer system at the Nord house at the entrance to Woodland
Trails Park.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
'Tity of
Memorandum
River
TO:
FROM:
MAYOR AND CITY COUNCIL
STEPHEN ROHLF, BUILDING AND
ZONING ADMINISTRATOR
DATE:
JULY 24, 2000
SUBJECT:
CONSIDER RESIGNATION OF
BUILDING AND ZONING
SECRETARY, THERESA FERGUSON
AND AUTHORIZE FILLING THE
VACANCY
Building and Zoning Secretary, Theresa Ferguson, has resigned. Ms. Ferguson had been
in that position for approximately three months. Staff recommends the Council accept
Ms. Ferguson's resignation and authorizes staff to seek candidates to fill that position.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
qity of
iver
July 20, 2000
Mr. Perry Coonce
Executive Director
Minnesota Sports Federation
592 Dodge Avenue NW
Elk River, Minnesota 55330
Dear Perry:
As you know the YMCA has contacted the city regarding doing some
programming in Elk River this year. In the past two months, city and school
representatives have met with the YMCA staff three times. In addition to
programming, a large part of the meeting time has been spent on the
possibility of having the YMCA construct a facility in the city.
YMCA representatives have indicated to the city that if programming is
successful and a feasibility study indicates positive results, then construction
of a facility in Elk River is a strong possibility. One of the big community
needs, a pool facility, would be part of a YMCA project and this would be a
benefit to everyone. The city is also looking at addressing some of its space
needs if a YMCA project moves forward. In a cooperative effort with the
YMCA, it is possible that the city senior center needs could be addressed as
well as the large banquet room needs for such things as weddings and
conferences. Finally, the school community education department is also
looking at the possibility of participating in such a construction project.
To everyone involved, a facility seems to be worth investigating. The first
step is a feasibility study and it is anticipated that the city and the YMCA
would jointly fund a study in the near future.
YMCA representatives have looked at two sites in the city of Elk River and
they are very interested in the site that the city offered to the Minnesota
Sports Federation (MSF) in its 1996 letter of intent. As you know, this letter
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
Mr. Perry Coonce
July 20, 2000
Page Two
of intent is approaching four years old and did not represent a binding
commitment by either party. In the March 25, 1997, fundraising letter
provided to you by the Mayor, it was indicated that everyone was optimistic
that MSF could break ground on its new facility in the fall of 1998. Obviously
this has not happened. As we have discussed in the past, this land cannot
and will not sit vacant for the long term as demands continue to accumulate
for city facilities. I must acknowledge to you that if the YMCA aggressively
commits to the community and desires this site for a proposed facility, then
the City Council will agree to donate this property for the project. The city
strongly wants to be the home of the MSF Sports and Wellness Center and
will work aggressively with you to locate another site if the YMCA project
moves forward on the "water tower"site.
If all this takes place, for all intents and purposes, the letter of intent with
MSF will have expired. A timeframe for the MSF project has been a frequent
(3 or 4 times a year) question I have received from City Council members
regarding our 1996 letter of intent. In hindsight, the letter of intent should
have required annual commitments on its anniversary in order to ensure that
both parties were still working toward the same goal and that the land
continues to be available for the project. Regardless of the YMCA project, we
should reestablish a new letter of intent in early 2001.
I don't think that anything in this letter has been or will be a surprise to you
based on our past conversations. I simply wanted to take this opportunity to
document what is transpiring, and quite frankly, if the YMCA is going to
commit to the city, it appears that MSF will lose its preferred site in Elk
River. However, as we have recently discussed, hopefully there are
alternative, and maybe better, Elk River sites for your project.
If you have any questions, please feel free to contact me.
Very truly yours,
Patrick D. Klaers
City Administrator
November /OQ, 1~96
Honorable Mayor Henry A. Duitsman
and City Council for the
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
Re:
"Letter of Intent" for
Minnesota Sports Federation Project
INTRODUCTION
The Minnesota Sports Federation and the City of Elk River do hereby express their intent to mutually
explore the feasibility of proceeding with the development ora 59,500 square foot recreational facility.
This letter represents the proposed terms and conditions to mutually proceed with the investigation and
negotiation phase of project development and financing.
NOTWITHSTANDING ANYTHING TO THE CONTRARY, HOWEVER, THIS LETTER DOES NOT
REPRESENT A BINDING COMMITMENT, BY EITHER PARTY, TO PROCEED WITH TIq2E
DEVELOPMENT, FINANCING, OR OPERATION OF THE PROJECT.
PROJECT DESCRIPTION
The proposed development project consists of approximately a 59,500 square foot indoor sports
recreational facility to be operated by the Minnesota Sports Federation. The facility is proposed to be
constructed on a minimum 6-acre site (final acreage to be mutually determined after review and approval
of the site plan) located at the water tower site, south of Highway 10 and bordered by Hudson Street to
the west.
The facility will be a multi-use indoor sports facility designed for volleyball, basketball, touch football,
indoor soccer, and wrestling. The facility will contain offices, locker rooms, food service, meeting rooms,
and will be the official home of the Minnesota Amateur Sports Hall of Fame.
The Minnesota Sports Federation will utilize the facility for conducting clinics, recreational league
activities and tournaments. In addition, the City and Minnesota Sports Federation will work together to
develop local programming and preferential fees to benefit area residents.
Honorable Mayor Henry A. Duitsman
City Council for the'City of Elk Kiver
November /'?, 1996
Page 2
It is proposed that the facility will be designed by Minnesota Sports Federation with review and approval
by City representatives. The facility will be constructed and financed by the City, if the City deems the
project to be financially feasible, and l~mnesota Sports Federation will execute a lease/purchase agreement
to fully amortize the City financing.
MINNESOTA SPORTS FEDERATION REPRESENTATIONS:
Minnesota Sports Federation represems its interest in the project and intends to proceed as follows:
1. Minnesota Sports Federation is a private, non-profit 501(c)3 organization with over 200,000
members and participants in its programs.
2. Minnesota Sports Federation intends that the proposed project will serve as its operational
headquarters and primary indoor sports facility.
3. Minnesota Sports Federation intends to locate the Minnesota Amateur Sports Hall of Fame as a
part of the project.
4. Minnesota Sports Federation intends to net lease the proposed facility from the City at a minimum
annual cost equal to the City's annual debt service and related project costs.
5. Minnesota Sports Federation intends to cooperate with the City to encourage programming to
enhance local community recreational opportunities.
6. Minnesota Sports Federation imends to equip the facility with equipmem valued at $300,000.00.
7. Minnesota Sports Federation intends to be responsible for all on-going operating costs.
8. Minnesota Sports Federation has provided a financial pro-forma, and will work with the City to
update it as required by the City, which accurately reflects the revenues, project costs, on-going
lease and operating expenses.
9. Minnesota Sports Federation will not undertake any actions, change its organizational structure,
or change its operational parameters that will adversely affect the tax-exempt stares of the project
bonds.
DCS 500952
Honorable Mayor Henry A. Duitsman
City Council for the City of Elk River
November ./fi, 1996
Page 3
CITY REPRESENTATIONS:
The City represents its interest in the project and intends to investigate and explore project feasibility as
follows:
Cooperation with Minnesota Sports Federation in the design, construction, and financing and
development of the proposed project.
Provision, at no charge, of a minimum 6-acre site located at water tower site for development of
the facility and potential expansion. The City and Minnesota Sports Federation will masterplan
the site and agree to the appropriate acreage (see attached site map). Minnesota Sports
Federation shall secure all zoning, subdivision, street vacation, and other necessary government
approvals.
The City recognizes the need for lV~aesota Sports Federation to have access to additional softball
fields for summer tournaments. The City represents that it intends to develop four new softball
fields on a portion of property identified as the "Cass Property". In addition, the City owns 23
acres immediately to the south of the proposed fields which may be available for development
approximately 15 years from now. The City's intentions to support Minnesota Sports Federation
and their requirement for outdoor softball fields is as follows:
mo
The City will consider providing usage of some or all of the new four fields complex or
existing Elk River softball complex on seven to nine weekends per summer (June, July,
August and September - additional to current field usage by Elk River Softball Association
of Minnesota Sports Federation tournaments) by Minnesota Sports Federation, as
necessary. Use of the softball fields shall include concession stands and gate revenue.
Usage of the softball fields shall be contingent on the evidence of the benefit to the City
of the sports tourism and corresponding economic impact generated to the community by
tournaments held by the Minnesota Sports Federation at the fields. Minnesota Sports
Federation will reimburse the City for any of its costs, such as additional maintenance,
satellites, police, etc., associated with such use of the fields.
The City will consider, at the point it no longer requires the use of the 23-acre site for
waste disposal, south of the proposed fields on the Cass Property, entering into a
preferential land lease or equivalent land sale of this property. Minnesota Sports
Federation shall be responsible for development of the site, and the site will be a joint use
facility.
DCS 500952
o
Honorable Mayor H.enry A. Duitsman
City Council for the City of Elk River
November /,~, 1996
Page 4
The City intends to finance the facility, if determined to be financially feasible, through bonds and
lease the facility to Minnesota Sports Federation.
The City will consider sale of the facility to Minnesota Sports Federation, after debt retirement,
for the sum of $1.00, exclusive of land costs.
The City will consider providing a "right of first refusal" on the sotiball fields adjacent to the
Minnesota Sports Federation development site, should the City decide to relinquish its
ownership/control of this land.
MUTUAL REPRESENTATIONS:
The Minnesota Sports Federation and City intend to mutually cooperate on the following:
Determination of whether the project is feasible through the generation of a reliable financial pro-
forma and exploration of financial sources.
The schedule and timing for the project.
The determination of a construction company and architect. The City and Minnesota Sports
Federation shall comply with public bidding requirements as required by state statute.
Local programming options and cost reimbursement, if appropriate.
The potential and process for future facility expansion and the development and management of
additional outdoor recreational facilities adjacent to the facility.
The specific terms, conditions, and security for a development agreement, lease/purchase
agreement, soi~ball field usage agreement, operations plan including preferences for Elk River
citizens, and related agreements.
The City and 1Vfinnesota Sports Federation agree to cooperatively support existing commitments
to the Sherbume County Fair, to provide additional parking during the annual four day county fair.
The Minnesota Sports Federation will submit license applications as required by City ordinance
to grant a 3.2 liquor license and charitable gaming for the facility. Minnesota Sports Federation
will work with the City to assure that alcoholic beverages will not be dispensed during youth
DCS 500952
Honorable Mayor Henry A~ Duitsman
City Council for theCity of Elk River
November ]~, 1996
Page 5
tournaments. Should Minnesota Sports Federation meet traditional guidelines for approval, the
City would expect to approve these licenses.
PRE-DEVELOPMENT COMMITMENTS:
In consideration of these representations and intentions the parties do hereby intend to proceed as follows:
To conduct a financial feasibility analysis at Minnesota Sports Federation's cost of the project to
forecast anticipated revenues and expenses and an overall financing plan, said cost not to exceed
$7,500.00 without Minnesota Sports Federation's consent. An initial determination as to
feasibility is the primary determinant as to whether to proceed with other activities. Minnesota
Sports Federation shall provide the City with reliable revenue projections prior to the City's
commitment of significant time or money in further investigation or negotiation activities.
To select a project con,ruction company (determined by selecting the lowest responsible bidder)
and architect.
3. To initiate further design and develop detailed specifications for the facility.
4. To establish facility operational parameters.
The City and Minnesota Sports Federation anticipate that all development costs will be included
as a pan of the project. In the event, however, that the project does not proceed, the parties agree
to pay costs as follows: (1) The City agrees to pay up to $3,000.00 for a preliminary financial
analysis of the project; (2) lVFmnesota Sports Federation agrees to pay for preliminary architectural
development costs for the project; and (3) Minnesota Sports Federation and the City agree to pay
for their individual direct expenses.
Either party to this letter may terminate the activities described in this letter at any time at its sole
discretion by written notice to the other party.
The CiF9 of Elk River,.,
fiity ~,~lerk-
Minne~ports Fede~n
DCS 500952
/ ~ATER LINE I,
'~'~ 219,5545.0 AcS'F' ,~ ii 102,557 S.F,~
z
z
COUNTY
FAIR
SOFTBALL
0 200
PARCEL AREAS
/ S~ WEST OF city
.L. ~ GARY STRE~
~':t¥ of
iver
March 25, 1997
Mr. Perry Coonce
Executive Director
Minnesota Sports Federation
592 Dodge Avenue NW
Elk River, Minnesota 55330
Dear Perry:
It is with great pleasure that the City of Elk River welcomes the Minnesota Sports
Federation to our community. As you know, the Elk River City Council
unanimously approved the letter of intent between the city and the Minnesota
Sports Federation at its November 18, 1996, meeting.
This letter of intent indicates that, assuming all goes well with the Minnesota
· Sports Federation's fundraising efforts, the city will offer MSF six plus acres for the
development of a 59,000 square foot sports center. Lots of work needs to done by
both parties in the near future, but we are optimistic that MSF can break ground on
its new facility in fall, 1998. The MSF sports center will provide a wonderful
opportunity for local youth and adult recreation programming and will quickly
become a focal point of our community for sporting events.
With your excellent history and quality staff, the city is confident that it will not be
long before MSF will be moving into Phase II and Phase III of its long range plans.
The city is particularly excited about the future development of an outdoor
recreation field complex that will compliment the sports center.
The city looks forward to a long and mutually beneficial relationship with MSF. If
there is anything the city can do to help you accomphsh your goals, please make
sure you contact me immediately.
Ver~ truly youjTs, .
City of Elk River
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
MINNESOTASPORTS FEDERATION
Barrington Center · 592 Dodge Avenue · Elk River, Minnesota 55330-2886
(763) 241-1789 · Outside Metro Area Toll Free 1-$88-222-MSF1
Fax (763) 241-1736 · VVWW.MSFI.ORG · STAFF @ MSFI. ORG
Faxed and Mailed March 31, 2000
Mr. Patrick Klaers
City Administrator
13065 Orono Pkwy
Elk River, MN 55330
Dear Pat,
First of all, please let me apologize for the delay in getting this update to you. As you probably know, March
and its "Madness"makes it the busiest month of the year at Sports Federation offices.
Couple that with the lack of a Marketing Coordinator working directly on the capital campaign, and it has made
my responsibilities pretty overwhelming. Fortunately our new Marketing Coordinator, Shelly Burzinski, has
recently joined our staff with her number one priority the capital campaign/corporate sponsorships.
Per your request attached is the most current capital campaign summary which reflects a total of $458,872
in pledges, giving and designated funds as of November 30, 1999. The pledges outstanding are $89,145 of
which $75,000 is from two reliable supporters. Since the November 30 report, an additional $5,000 has been
raised. We continue to assess each team participating in MSF tournament play $10.00 for the capital
campaign which generates approximately $40,000 on an annual basis.
You will note in the Springsted generated report for the city dated September 4, 1996 it assumed the MSF
would commit $259,444 in cash toward the project. Since the MSF is not interested in carrying the large
remaining debt load, we intend to raise at least one million dollars before proceeding.
For your info, enclosed are several articles highlighting projects somewhat similar to ours. Not surprisingly
two have contacted us regarding a joint venture in their designated location or extensive use of their facilities.
The Maple Grove facility has a large price tag and is private; and we question if it can meet operating costs
and mortgage payments all the while paying the investors a return on their investment.
As we've mentioned in the past, the difference between these facilities and the MSF's in that in large measure,
we already have the programs in place to fill it.
One aspect of the Burnsville facility that is appealing, is the school district's use of the facility during the day.
With respect to the capital campaign, we plan to continue to move forward, hopefully at a quicker pace now
that the staff position has been filled. Please bear in mind we have generated almost all of our support to date
from our membership. To date, the Elk River corporate or philanthropic community has not been approached
or the Elk River youth sports organizations. The greater Minnesota community has not been tapped either nor
have foundations. ~ ~'~
If questions arise, please do not hesitate to call. l' ~
Executive Director
cc: Karen Larsen, President
enclosures
SERVING MINNESOTA THROUGH SP
Th~ Minnc~-~ta 2port~ Federation serves as the local a.s.sociat~on of the Amateur Sol, t:
and administers ~ National Youth Basku?doall Coundl and National Sporls ~
Th~,N,natc. ur Sof'd3all Association is r~cognizecl as th~ Nadonal Governing J
APR-2?-00 19:15 FROM:MN SPORTS FEDERATION 61E2411T56 TO:441T4E5
~ ~'~ MSF CAPITAL CAMPAIGN/PROGRAM & FACILITY
DEVELOPMENT SUMMARY
PAGE:O1
Donations and Funds From:
General Donors ........................... $133,934.12
Foundations ...............................~ 20,000
Corporations ......... ~ ..................... 0
Umpires & Game Officials .................... $ 13,680.25
Leagues & Associations ..................... $19,990.75
District/StateTournament Hosts ............... $ 6,301.00
$ 2,947.25
SIT Hosts .................................
Subtotal
$196,853.37
(NOTE: Cash in hand is $107,708.37; pledges outstanding are $89,145.00)
MSF General Fund for Program and Facility Development ....... $226,345.34
Hail of Fame Building Funds to Date ........................ $ 35,674.16
Grand Total Pledges, Giving and Designated Funds ....... $458,872.87
as of November 30, 1999
NOHTHHTAH
MEMORANDUM
Executive Committee:
Betsy Wergin, NCDA Chair
Sherburne County July 18, 2000
Paul Ostrow, NCDA Vice
Chair
City of Minneapolis To:
Councilmember
Paul McCarron
Anoka County F rom:
Mark Stenglein
Hennepin County Regional Subject:
Railroad Authority
Steve Billings
City of Fridley Background
Lewis Stark
Haven Township
Patrick Klaers, City of Elk River
NCDA
August 10, 2000, Commuter Rail Demonstration Ticket
Distribution
The Northstar Corridor Commuter Rail Project is hosting a commuter rail
demonstration event on August 10, 2000. The main purpose of the commuter
rail demonstration is to inform the public regarding the progress of the Northstar
Corridor commuter rail project. The, event includes one VIP run and three runs
for the general public. Please see the attached schedule for the times and
locations of each run.
Ticket Distribution
Train tickets will include complete information on parking locations, boarding and
departure times, and events. Each NCDA member is receiving two tickets for
their personal use. Each organization represented by the NCDA has been
allocated tickets to distribute to businesses and residents in its community.
,,~,.~ r- .... +y has been allocated 36 tickets for Trip # 2. Important: Please
contact Peggy Aho at 651-222-7227 with your distribution plan. Ms. Aho
will contact you if she does not hear from you by July 21. The NCDA will
include your ticket distribution plan in its media alert, if appropriate. Tickets will
arrive at your office on July 26, 2000. Included with the tickets wi!! be a sign to
post at the point of ticket distribution to let businesses and residents know when
tickets are no longer available. You will be contacted on August 4 to see if your
organization has any remaining tickets for distribution. Please note these are
temporary station sites. If you have someone with special needs, please contact
Dartrell Lipscomb at 763-323-571 "..
Residents who do not receive tickets will still have a chance to learn more about
commuter rail at all station stops. Two ice cream socials will be held during the
demonstration run. The first ice cream social will be held in Saint Cloud at 1:00
p.m. and the second in downtown Minneapolis at 4:00 p.m. Included with the
tickets and the sign, you will receive a copy-ready flyer noting the times and
locations of the two ice cream socials.
Northstar Corridor Development Authority
2100 3r° Avenue, Anoka, Minnesota 55303-2265 (763) 323-5700 Fax: (763) 323-5682 www. northstartrain.org
July 17, 2000
NCDA Public Information Demonstration Project
Commuter Rail Schedule
August 10, 2000
Trip I -VIP Demonstration
Time Activity Ticket
8:00 am - 9:15 a.m. VIP Continental Breakfast in Minneapolis
8:30 a.m. Train Arrives
9:15 a.m. Depart* Minneapolis Downtown Station 1
9:49 a.m. Arrive in Anoka
Change Ends
10:10 a.m. Depart Anoka
10:45 a.m. I Arrive in Minneapolis Downtown Station
Trip 2 - General Public Demonstration
Time Activity Ticket
12:00 p.m. Depart* Elk River 2
12:12 p.m. Arrive in Big Lake
12:22 p.m. Depart Big Lake 3
12:52 p.m. Arrive in Saint Cloud
12:30 - 1:45 p.m. Saint Cloud Ice Cream Social/Change
Ends
1:20 p.m. and Buses to Big Lake and Elk River
1:30 p.m.
Trip 3 - General Public Demonstration
Time Activity Ticket
1:45 p.m. Depart* Saint Cloud 4
2:15 p.m. Arrive in Big Lake ~
2:30 p.m. Buses to Saint Cloud
Trip 4 - General Public Demonstration
Time Activity Ticket
3:15 p.m. Depart* Coon Rapids (Foley) 5
3:35 p.m. Arrive in Fridley
3:45 p.m. Depart Fridley 6
4:05 p.m. Arrive in Minneapolis Downtown Station
4:00 p.m. - 5:30Downtown Minneapolis Ice Cream
p.m. Social/Change Ends
5:00 p.m. Depart Minneapolis Downtown Station
5:20 p.m. Arrive in Fridley
5:30 p.m. Depart Fridley
5:40 p.m. Arrive in Coon Rapids
*Begin boarding 15 minutes prior to train departure.
Elk RiverArea
Chamber of Commerce
July 18, 2000
Patrick D. Klaers
City of Elk River
P.O. Box 490
Elk River MN 55330
Dear Pat,
On behalf of the Elk River Area Chamber of Commerce, I want to thank you and City of Elk River
for the generous partnership in Elk River's 4th of July celebration.
We greatly appreciate the $6,000 sponsorship of this highly anticipated and well received annual
community event.
Please pass on our thanks to everyone at city hall and to the council members. This event would not be
possible without the assistance we receive from our members, and I look forward to continuing this
successful relationship.
Do not hesitate to contact me if you have other ideas for sponsorship or if you desire to be part of our
program and activities.
Sincerely,
~. Gongoll
President
509 Highway 10 · Elk River, Minnesota 55330-1415 ° (612) 441-3110
"Building a Better Community Together"