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05-14-2007 CC MIN - SPECIAL e e e SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE CITY OF ELK RIVER (UPPER TOWN CONFERENCE ROOM) MONDAY, MAY 14,2007 Members Present Mayor Klinzing, Councilmembers Farber, Gumphrey, Motin, and Zerwas Members Absent None Staff Present City Administrator Lori Johnson, Parks and Recreation Director Bill Maertz, and Recording Secretary Jessica Miller Also Present Steve BubuJ, Kennedy and Graven 1. Call Meetin~ To Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 5:00 p.m. by Mayor Klinzing. 2. Consider Resolution A.pprovin~ Lease Agreement Between the Economic Development Authority of the City of Elk River and the Y oun~ Men's Christian Association of Metropolitan Minne'lPolis and the Ground Lease Between the City of Elk River and the Economic Development Authority of the City of Elk River City Administrator Lori Johnson indicated that this item was continued from the last meeting so Councilmember Gumphrey could be present for discussion. Ms. Johnson explained that based on the Council's elistussion last week, alternate language was drafted that provides for all of the grant proceeds to go to the city to reduce the tax levy. Ms. Johnson noted that in speaking with County Administrator Brian Bensen, Sherburne County's intent on developing the grant program was to reduce city and townships' costs for public facilities and by passing proceeds on to the YMCA, the city is not fully meeting the intent of the grant program. Mayor Klinzing asked the YMCA members if they would like a chance to speak. Harold Mezile, President and CEO of the Metropolitan Minneapolis YMCA - thanked the Council for helping to bring a YMCA to Elk River. Casey Scott, Vice President of Finance YMCA - indicated that he has no additional concerns than the ones expressed last week. He stated that the alternate language presented is not consistent with the Memorandum of Understanding that was approved. Councilmember Gumphrey explained that he believes the residents of the City of Elk River and of Sherburne County deserve 100% of the grant proceeds to be used to pay the tax levy down. Mayor Klinzing and Councilmembers Zerwas and Farber concurred that if the grant is awarded, the entire 100% of the proceeds should be allocated to the city to help reduce the tax burden of the YMCA to Elk River residents. Councilmember Motin disagreed. He stated that he believes the Council should stand by te Memorandum of Understanding. City Council Minutes May 14, 2007 - Special Meeting Page 2 MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO ADOPT RESOLUTION 07-49 a APPROVING LEASE AGREEMENT BETWEEN THE ECONOMIC _ DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER AND THE YOUNG MEN'S CHRISTIAN ASSOCIATION OF METROPOliTAN MINNEAPOliS AND THE GROUND LEASE BETWEEN THE CITY OF ELK RIVER AND THE ECONOMIC DEVELOPMENT AUTHORITY. MOTION CARRIED 4-1. Councilmember Morin opposed. 3. Adjoutntnent There being no further business, Mayor Klinzing adjourned the meeting of the Elk River City Council at 5:20 p.m. Minutes p,repared by J essi~a Miller. ./j. ~[' , ~-'/I-, / \..l/ ,. Tin. Allard City Qerk e e