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MINUTES <br />CTTY COUNCIL <br />OCTOBER 22,1997 <br />currently has. Fahey stated that the City is trying to maintain the vitality <br />of its volunteer organizations. <br />Scalze pointed out the joint venture between the City and the School <br />District for construction of the gymnasium at the Little Canada <br />Elementary School as well as the shared use of athletic facilities. Scalze <br />felt that a lot came from having this back~round of knowing how the City <br />has worked with organizations over the years, and su~gested that perhaps <br />the City should do a better job of educating the general public of these <br />facts. <br />Donovan pointed out that the cost of constructing the addition would be a <br />loan and not a donation by the City. The Historical Society intends to pay <br />the money back. <br />Scalze pointed out that the building would belong to the City and not the <br />Historical Society. Should the Historical Society no longer be viable, the <br />City would be able to utilize this space. <br />LaValle pointed out that the agreement provides that 50% of net profits <br />fi•om charitable gambling would be paid to the City until the loan is repaid. <br />LaValle asked where the other 50% would go. LaValle thought that the <br />Fire Department paid all but 10% of their net profits to the City when they <br />were reimbursing the City for the cost of trucks. <br />Fahey stated that the Agreement is a declaration of intent. If there is no <br />charitable gamblin~ license available at the time the Historical Society is <br />eligible to conduct charitable gambling, there will be no source of income <br />for them. The Agreement is at this point a good faith commitment. Fahey <br />stated that he was comfortable with the risk associated in fiznding the <br />addition, and feels that it is an appropriate use of City funds, and felt it <br />was appropriate to expect the Historical Society to make fund-raising <br />efforts. <br />LaValle felt the percentage of net profits required to be paid back to the <br />City should be consistent with the percentage that the Fire Department <br />used. <br />Donovan stated that the Historical Society would pay a higher percentage <br />if they can. Donovan indicated that the Historical Society does not require <br />a big budget to survive and has gotten along on very little for the past <br />several years. <br />Pedersen pointed out the question raised about what the Historical Society <br />does that is distinctive to Little Canada. Pedersen pointed out that the <br />14 <br />