05/14/1990 Council Minutes (2) - Laserfiche WebLink

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1 1 COUNCIL WORK SESSION INSIDE SPORT PROPOSAL MAY 14, 1990 Mr. Batty explained to the Council that there are no "no- risk" financial options available to the Council. The Council is facing a policy question in this matter. Council Member Reinert asked if the developer wants the City to take a risk in the event. that the facility cannot meet its obligations, is the developer willing to share profits with the City. Mayor Bisel explained that the developer felt the trade -off would be that the City gains by the increase of commercial taxable property which increases the tax base in the City. Mr. Batty noted that the developer is hoping that this facility will be the start of other entertainment /recreation facilities in the area. Council Member Bohjanen asked if Inside Sports has any track record. Mr. Batty said no and noted that other domed sports facilities are not quite like what is planned for Lino Lakes. Council Member Bohjanen asked if another such facility is planned for the City of Blaine. Mr. Batty said no. He noted that the prime market for this facility will be leagues that already exist and are willing to drive long distances to the facility. Mayor Bisel told the Council that the Minnesota Sport Federation has agreed to run this new facility and to locate their offices in the facility. This would be a good base. Council Member Reinert asked Mr. Batty is he has translated the risk into dollar figures. Mr. Batty said no. Mr. Batty noted that there is a risk and said he did not know if the risk was worth taking. Mr. Batty told the Council that the developer expect to radse $2,000,000.00 in sixty (60) days for the facility. They are looking for City assistance because they are unable to get bank financing at a rate they find acceptable. Several other questions were asked. If the developer files Chapter 13, who retains ownership of the facility. Mr. Batty said that would depend on what type of financial assistance is offered by the City. Mayor Bisel asked how would the City get its money back if the City did not own a portion of the property. Mr. Batty said the City may not recover the money. Council Member Reinert said he felt that if the City v. going to take the risk it should be rewarded. Mr. Bat said the reward would be in the form of "spin -off" develop t. Council Member Reinert asked if the developers have b thoroughly checked. Mr. Batty said no hov,PuA -- . there a firm that will do this for a fee. This has not been • because the staff is not sure what the Council would done. Council Member Reinert said he would also like analysis of the impact of this facility on police, fi Ind PAGE 2 87