8.2. SR 02-05-2018
Request for Action
To Item Number
Mayor and City Council 8.2
Agenda Section Meeting Date Prepared by
General BusinessFebruary 5, 2018Cal Portner, City Administrator
Item Description Reviewed by
Resolution Directing Staff to Prepare for Bond Sale
Reviewed by
Action Requested
Direct, by resolution, staff to prepare for bond sale to finance recreation facility improvements.
Background/Discussion
The architects hired by the city to design the ice arena and field house facility have nearly completed their
work and are preparing bid documents to begin the project directed by the City Council.
The project will include two bid packages, the first to order and purchase precast walls, which require a
longer lead time to manufacture. The second bid package will be for the remainder of the construction
work.
In collaboration with ISD #728, construction is scheduled to begin following the school year and the
boys’ tennis season with the plan to have the heavy exterior construction work complete before the 2018-
19 school year begins.
Once the bids are accepted, the city will incur construction costs and the proceeds from a municipal bond
issuance will be required.
In order to maintain the project timeline and in light of Council discussion regarding the financing, staff
requests clear council direction to move forward.
The attached resolution includes direction for staff to prepare another council resolution as required by
state statute to initiate an election for local option sales and use tax for the next general election.
Financial Impact
N/A
Attachments
Resolution
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
City of Elk River
City Council
Resolution 18-____
A Resolution of the City Council of the City of Elk River Directing Staff to Prepare
for a Bond Sale and to Prepare a Resolution Directing a Local Option Sales and Use
Tax
WHEREAS,
the city has recreation facilities in need of significant financial investments to maintain
current and future uses; and
WHEREAS,
a general election referendum was held in November of 2016 to provide for a
multipurpose recreational facility to replace existing facilities as well as add a number of park and trail
improvements; and
WHEREAS,
upon failure of the referendum, in January of 2017 the City Council expressed
consensus to engage architects to refine specific facility plans for the Elk River Ice Arena and Lion
John Weicht Park; and
WHEREAS,
in August of 2017, the Council, by unanimous consent, directed staff to request
proposals for architectural services to further develop those plans; and
WHEREAS,
as plans are nearly complete and ready for construction bidding, bond debt will need
to be issued to finance facility construction. Bond investors will purchase such bonds with the
understanding the City of Elk River will repay the debt with interest; and
WHEREAS,
the city’s principal guarantee for repayment is the general tax levy; and
WHEREAS,
the Council has indicated a desire to initiate the local option sales and use tax process
as a potential means to possibly repay the bond debt.
NOW, THEREFORE, BE IT RESOLVED
by the City Council of the City of Elk River,
:
Minnesota, as follows It is the Council’s desire to make the aforementioned recreation facility
improvements utilizing municipal bonding to finance the project and staff shall begin preparations to
issue such bonds. The Council also desires to initiate the local option sales and use tax process for the
next general election.
th
Passed and adopted this 5 day of February 2018.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk