04-13-2006 Charter Packet - Laserfiche WebLink

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l:l l Y k-M IN UIL W UKK SESSION FEBRUARY 8,2006 APPROVED 1 site. The Woods Edge development required these infrastructure improvements, which 2 are fully assessed to Hartford Group, thus relieving the city of that obligation. 3 4 Community Development Director Grochala advised the YMCA has spent years 5 fundraising in the community, and has approximately$6.3 million available for 6 construction. However, construction costs have risen considerably since 1999. A 7 community capital campaign is underway to attempt to raise an additional $800,000 8 needed to build the full sized gym. While continuing to try to raise funds, the Y board 9 concluded the first phase needs to be in the ground this year, and submitted for approval 10 what could be built with$6.3 million. This facility includes a half-sized gym, and the 11 leisure pool and multi-purpose room were omitted,while recognizing these facilities 12 could be added in the future. The exterior fagade of the facility also falls short of the 13 architectural and materials standards set for the Woods Edge downtown development. 14 15 Community Development Director Grochala continued indicating City Council members 16 have expressed their concern with the size of the first phase of the YMCA facility, the 17 lack of a leisure pool which is attractive to the young family demographic in Lino Lakes, 18 and the lack of architectural appeal of the facility. 19 20 Community Development Director Grochala stated staff has discussed with the YMCA, 21 Springsted, and Kennedy& Graven options that might be available to provide the size 22 and type of facility that City Council and the community had anticipated. It is estimated 23 that currently$1,850,000 is needed to do the building that was approved,with the 24 addition of the leisure pool. 25 26 Community Development Director Grochala explained the following alternative funding 27 scenario that provides $1,850,000 to build the leisure pool in the first phase,plus 28 additional upgrades to the fagade of the building. 29 30 1. Part of the 2005 updated agreement called for a 5-year, 10 percent discount to 31 Lino Lakes residents on their monthly membership fees at the YMCA. While this 32 is a considerable benefit to residents who join the Y,it restricts the ability of the 33 YMCA to take on more debt, and benefits only residents who become members. If 34 that portion of the agreement were eliminated, it would enable the YMCA to take 35 on an additional $1 million in debt. 36 37 2. Springsted updated its analysis of the capacity of the Tax Abatement District, 38 based on assumptions of anticipated values and phasing of the southern portion of 39 Woods Edge. A 15-year abatement will generate $2,406,845. 40 41 3. The city is currently committed to 15-years of abatement for its $1.5 million 42 contribution. There is capacity available to provide the additional$850,000 to 43 meet the current gap in funding. This potential additional contribution would be 44 capped at $850,000. Any additional funds raised by the YMCA would lower the 3