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215 <br />COUNCIL WORK SESSION JANUARY 28, 1991 <br />Mr. Miller explained that a TIF District has already been created <br />in the area proposed for Inside Sports. This TIF District must <br />have a project on line by May 1, 1991. If the Council accepts <br />the Inside Sports development, this District will be saved. This <br />development will also provide approximate $190,000.00 a year in <br />sewer and water charges. The taxes realized in the first two (2) <br />years of operation will be equalivant to the cost of the land. <br />Mr. Miller also noted that the project will not go forward if <br />Inside Sports is unable to sell the revenue bonds, if Lino Lakes <br />will not issue a liquor license and if the dome cannot be <br />constructed because of the building codes. <br />Inside Sports have asked that two (2) items in the developer's <br />agreement be modified or deleted. The first item concerns <br />interest. Inside Sports is asking that this item be deleted. <br />The "no compete" clause is also a concern for Inside Sports. The <br />developer is asking that this clause be amended so that it <br />addresses specific areas or time frames. <br />The draft agreement proposes to borrow $297,000.00 from the TIF <br />Fund to purchase the land. This is a legal expenditure from this <br />fund. This money will be paid back. This means that Lino Lake's <br />investment in the project is zero (0). <br />Mr. Miller recommended that the Council review the document, <br />"find tune" it and have the final agreement prepared. <br />Mr. Dresser discussed the "no compete" issue. He noted that no <br />other facilities are being considered in Minnesota at this time, <br />athought there is one being planned for Milwaukee, Wisconsin. He <br />asked the Council to consider restricting the "no compete" clause <br />to a specific location and time frame. <br />Mr. Hay explained that the sewer and water assessment on the <br />property is not paid. He said that Inside Sports takes the <br />attitude that the landowner is responsible for paying all <br />previous assessments. Mr. Hay also noted that the proposed <br />agreement is a win /win situation for the City. <br />Mr. Schumacher explained that he wanted the Council to take time <br />to go through the agreement and to determine if there are any <br />strong feelings by either party. The agreement will be given to <br />Attorney Ron Batty for his review. He asked that if Council <br />Members saw any "weak or soft" areas, this should be brought out <br />now. <br />Mr. Hay said that he did not want to talk about technical points <br />at this time, however, he noted that the proposal suggestes that <br />the actual cost of the facility will be the assesed amount. He <br />PAGE 2 <br />1 <br />1 <br />1 <br />