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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel R. Hanson, City Administrator <br />DATE: September 19, 1997 <br />RE: Historical Society Addition <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Moreton <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />Attached is correspondence from Jean Donovan, president of the Historical Society, requesting the <br />Council to consider their request for a larger, permanent facility as part of the 1998 budget discussions. <br />This matter has been on hold for awhile and it would seem appropriate to reach a decision on this project. <br />Some pertinent facts for your consideration are as follows: <br />♦ As part of the 1997 Capital Improvement budget, $250,000 was designated for this project. These <br />funds have been set aside in a special project budget for this addition and are available <br />♦ We were going to designate %z of our 10% fund proceeds for this project (approximately $25,000 to <br />$30,000 per year). That is not occurring due to the Gambling Control Board's interpretation of lawful <br />expenditures. These funds are accumulating with no designation being made at this time pending <br />anticipated legislative corrections to this definition in the 1998 session. <br />♦ As indicated in Jean Donovan's letter, the Historical Society is expressing interest in becoming <br />involved in charitable gambling when they are legally eligible to do so. (May of 1999) This would <br />be contingent on the availability of a site. Proceeds could help with capital and ongoing expenses. <br />♦ The architect's budget indicated total project costs of approximately $317,000. While this is an <br />estimate and we would expect actual costs to be lower, I must point out that recent trends in the <br />construction industry indicate this assumption is not as safe as it was a few years ago. <br />♦ Other alternatives have been discussed for housing the Historical Society. I believe previous <br />correspondence has addressed these alternatives. (Copies are available for your review should you <br />require them.) <br />If the desire is to move forward, now would be a good time to start planning to take advantage of timing <br />for the 1998 construction season. If the decision is to abandon the project, those funds would be available <br />for other uses within our capital improvement budget. Another option may be to further study this matter <br />in order that an informed decision is reached that is comfortable with everyone. Staff would like direction <br />from the Council as to how you would like to proceed with this matter. <br />JRH:kpv <br />Page 60 <br />