02/08/2006 Council Packet - Laserfiche WebLink

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WS -2 approval what could be built with $6.3 million. This facility includes a half -sized gym, and the leisure pool and multi - purpose room were omitted, while recognizing these facilities could be added in the future. The exterior facade of the facility also falls short of the architectural and materials standards set for the Woods Edge downtown development. Proposed Alternative Development Scenario City Council members have expressed their concern with the size of the first phase of the YMCA facility, the lack of a leisure pool which is attractive to the young family demographic in Lino Lakes, and the lack of architectural appeal of the facility. Staff has discussed with the YMCA, Springsted, and Kennedy & Graven options that might be available to provide the size and type of facility that City Council and the community had anticipated. It is estimated that currently $1,850,000 is needed to do the building that was approved, with the addition of the leisure pool. The following is an alternative funding scenario that provides $1,850,000 to build the leisure pool in the first phase, plus additional upgrades to the facade of the building. 1. Part of the 2005 updated agreement called for a 5 -year, 10 percent discount to Lino Lakes residents on their monthly membership fees at the YMCA. While this is a considerable benefit to residents who join the Y, it restricts the ability of the YMCA to take on more debt, and benefits only residents who become members. If that portion of the agreement was eliminated, it would enable the YMCA to take on an additional $1 million in debt. 2. Springsted updated its analysis of the capacity of the Tax Abatement District, based on assumptions of anticipated values and phasing of the southern portion of Woods Edge. A 15 -year abatement will generate $2,406,845. 3. The city is currently committed to 15 -years of abatement for its $1.5 million contribution. There is capacity available to provide the additional $850,000 to meet the current gap in funding. This potential additional contribution would be capped at $850,000. Any additional funds raised by the YMCA would lower the city's commitment. The amount of the city's additional contribution would be based on final bid numbers and additional funds raised through fundraising. 4. Because the city did not have to find a funding source for extension of road and utilities to the YMCA, the total city contribution, in today's dollars, remains approximately the same 30 cents on the dollar that was originally anticipated in 1999. 5. The City Parks and Recreation Department is currently working with the YMCA for additional joint programming and opportunities for all residents to be able to utilize the facility. Council Direction Terri Heaton from Springsted and Steve Bubul from Kennedy & Graven will be present at the work session to answer questions. Staff is seeking Council direction regarding this alternative, based on the benefits gained from completing the YMCA leisure pool with phase one, rather than some undetermined time in the future.