7.3.A. SR 03-20-2006
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Administration March 20, 2006
Item Description
Pinewood Purchase A eement
Item Number
7.3.A.
Prepared by
Lori ohnson, Ci Administrator
Reviewed by
Introduction
Charlie Wilson, Gray, Plant, & Mooty, will give an update on the Pinewood Purchase Agreement that was
distributed at last week's meeting.
Discussion
Mr. Wilson will address the covenant issue as well as provide an update on the comments from Mr.
Krause on the Purchase Agreement.
FinanciallmDact
As previously discussed, $1,800,000 plus interest and lease payments. The Council has not made a final
decision on financing sources for this purchase. The Parks and Recreation Commission has submitted a
letter stating the Commission's position on the ftnancing and would like to be present when the financing
discussion takes place.
Attachments
Letter from Dawn Polston-Hork, Parks and Recreation Commission Chair.
Action Reauested
Receive input from Mr. Wilson and consider Purchase Agreement if covenant issue is resolved.
Council Action
Motion by _
Second by _
Vote
Follow Up
S:\Council\Lori\2006\Pinewood Purchase Agreement 2.doc
ElkRiver RecreaTion
7888851155
08/02/08 02:52P P.002
TO:
FROM:
SUBJECT:
DATE:
Elk River City Council and Mayor
Dawn Polston-Hork, Chair of Elk River Parks and Recreation Commission
Acquisition of Pine wood Golf Course by City of Elk River
Feb. 13,2006
The Park and Recreation Commission is supportive of the acquisition of the
Pinewood Golf Course. The Commission is not supportive of paying the entire cost
out of park dedication funds. The Commission requests that the Council consider the
following points:
1. Current projections show that the Park Dedication Fund may grow by 6
million dollars over the next 7 yean. Of this amount, 52.3 million in
principle and interest payments are slated to pay for Pinewood, or
approximately 38% ortbe projected growth.
2. Park and Recreation staff have been highly sllccessful in leveraging
additional funds at an average of 3 dollars for every dollar paid from Park
Dedication Funds. The 52.3 million payout for Pinewood represents a
potential additional loss of 54.6 million from other (non-City) sources for
park improvements and additional land acquisitions.
3. The Council sbould, if it bas not already done so, check the legality of using
Dedication funds to purchase land whicb it may sdl for a non-park related
purpose at a later time. H Pinewood is sold at a later time, will all Dedication
funds spent on the project be paid back to the Park Dedication account.?
4. The Commission is not opposed to using some park dedication assuming
that the payments are in line with rates paid for recent park land purchases. . ~
5. The Commission is aware that there are other costs related to upgrading
Pinewood such as remodeling tbe club bouse, upgrading equipment,
upgrading tbe irrigation system, and improving landscaping tbat will require
hundreds of thousands of additional doUan. The Commission is not
supportive of paying these additional costs from Park Dedication Funds.
In summary, the Commission is not opposed to the purchase of Pinewood. It does
bave many questions about the long-range implications of the purchase and feels
compelled to bring these concerns to the attention of tbe Council. IS-
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