02/27/2006 Council Minutes (2) - Laserfiche WebLink

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• ' COUNCIL MINUTES FEBRUARY 27, 2006 APPROVED Public Safety Department — Expenditure of Drug Forfeiture Funds: Authorize use of funds in the amount of $5,000 to Re-establish Lino Lakes as a supporting community For the purpose of continuing juvenile diversionary Services through the Forest Lake Area Youth Service Bureau Approved Authorize expenditure of $1,500 to $2,000 on updated Exercise equipment and accessories for the Wellness Room FINANCE DEPARTMENT REPORT, AL ROLEK Approved Public Hearing, Consider Resolution No. 06 — 34 Regarding Tax Abatement and Business Subsidy in Connection with the YMCA Project YMCA Financing, Mary Alice Divine — Economic Development Coordinator Divine advised in 1999 the City of Lino Lakes entered into an agreement to partner with the YMCA to bring a facility to Lino Lakes. The city committed $1.5 million toward construction of the facility, plus 6.7 acres of land and the cost of infrastructure to the facility. The City Council approved a Tax Abatement District, using the mechanism of tax abatement as a source of funding for its commitment of $1.5 million toward construction of the facility. • Together with the City's $1.5 million commitment, the YMCA's commitment of $2.5 million in debt financing, and local fundraising, the YMCA was able to raise approximately $6.3 million for construction of the facility. The YMCA determined that additional fundraising was not keeping pace with rising construction costs and it needed to build a facility this year that did not include a leisure pool in the first phase of construction. Staff has explored with the YMCA, Springsted, and Kennedy & Graven options that might be available to provide the size and type of facility that the 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. 2