08/06/2020 EDAC Packet - Laserfiche WebLink

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ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3C STAFF ORIGINATOR: Michael Grochala, Community Development Director EDAC MEETING DATE: August 6, 2020 TOPIC: YMCA Update REQUEST: Discussion BACKGROUND As many of you are aware, the Chain of Lakes YMCA recently notified the City and residents that the local facility would not be reopening as a result of the COVID-19 impacts. Staff and the City Council will be holding additional meetings with the YMCA to further discuss this issue. The City and YMCA entered into a Development Agreement in 2006 to build a recreational facility that included a teen center, gym, indoor lap swimming pool, leisure style zero -depth pool, cardiovascular/strength training area, aerobic studio, locker rooms, family program space and childcare on certain property defined in the Development Agreement as the "Site." The City provided the land, infrastructure (streets and utilities), grant funds in the amount of $150,000, and a subsidy in the amount of $2,460,000. The City also assisted the YMCA through the issuance of conduit bonds in the amount of $4,000,000. These are not an obligation of the City, but allowed for lower interest rates for the YMCA. The deed conveying the property does place a continuing restriction on the property for thirty years from the date of conveyance. If the YMCA (i) sells the land and building to an entity which is not a 501(c)(3) corporation; (ii) becomes insolvent or bankrupt; or (iii) no longer operates the facility as a recreational facility, the City has the right to re-enter and take possession of the property. The City will be exploring every option available to obtain a satisfactory resolution to this issue. EDAC CONSIDERATION None required. Discussion only. ATTACHMENTS 1. None.