02/27/2006 Council Packet - Laserfiche WebLink

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Proposed Alternative Development Scenario • The original intent of the partnership with the YMCA was to provide a community center within the "town center" of Lino Lakes. The city was not willing to commit taxpayers to approximately $8 million needed to provide a city -run community center, coupled with additional long term commitment of public dollars for operations and maintenance. The partnership with the YMCA was a way to provide this type of community amenity for one -third the cost of a public facility, with no risk of future operations cost. The YMCA also provides membership opportunities to low income residents. In addition, the city saw the YMCA as a vital Zink in attracting additional development to the downtown. The Hartford Group, master developer of the Legacy at Woods Edge project, considers the YMCA as a critical anchor within the mixed use downtown that is now under development. Staff has explored 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 complete the building with the addition of the leisure pool. Part of the final 2005 agreement with the YMCA called for a 5 -year, 10 percent discount to Lino Lakes residents who purchased local memberships at the Chain • of Lakes YMCA. While this is a benefit to residents who join the Y, it restricts the ability of the YMCA to take on more debt, benefits only residents who become members, and does not apply to those who wanted memberships that included use of all Twin Cities YMCAs. If that portion of the agreement was eliminated, it would enable the YMCA to take on an additional $1 million in debt. • The city has also benefited from the development of Legacy at Woods Edge with Hartford Group as the master developers. If the YMCA had been constructed prior to Woods Edge being underway, the city would have been obligated for the costs of construction of Town Center Parkway, including improvements to the Lake Drive intersection, plus extension of utilities, to the YMCA site. The Woods Edge development required these infrastructure improvements, which are fully assessed to Hartford Group, thus relieving the city of that obligation. Considering that savings, the total city contribution, in today's dollars, remains approximately the same 30 cents on the dollar that was originally anticipated in 1999. 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 of taxes within the district will generate $2,406,845. 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.