06/01/1992 Park Board Packet - Laserfiche WebLink

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r-. AGENDA ITEM! 0 T 3IIY MEMORANDUM TO: All Park Board Members FROM: Marty Asleson DATE: May 28, 1992 SUBJECT: Financing Parks and Recreation/Golf Courses Please find enclosed a recent article presented in the Star Tribune concerning funding facilities through tax support mechanisms. The paradigm is now one of tax support is OK if the facility or service provides for the majority of the population. Special interest facilities -(community centers, ice arenas, golf courses) General Obligation Bond issues are being defeated on a consistent basis. Basically, the ones that are being passed are the ones where Revenue Bonds and Enterprise Funds are set up. Also enclosed is a much information as we were able to acquire at this time, on golf course financing. I did speak with the Minnesota Golf Association, and they referred me to Cottage Grove as one of the recent municiple golf course construction projects that seemed to work. This project was done on a cooperative basis with a land developer. I have enclosed a brochure of the development, River Oaks. The developer donated about 70 acres for a golf course, and the City leased about 67 acres from 3M Chemolite for the rest. They are leasing the land for $17, 500 per year. The houses are being built on the river bluffs, with lots that sell for between $25000 and $100, 000. The City did set up an Enterprise Fund for this project. This was a $2 . 6 million dollar Revenue Bond over 20 years. They are going to be in the "black" after the first year. Their operation and maintenance costs are paid for through tax revenue. This City chose not to do a market analysis or feasibility study. They recognized that it was a big gamble. There are many different sources of funding and financing for public enterprise. The most recent trend is "user-pay" methods. I would suggest a committee be formed to investigate the further .•. possibilities for Lino Lakes.