HomeMy WebLinkAbout2005-015 Council Resolution•
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LINO LAKES CITY COUNCIL
RESOLUTION NO. 05-15
APPROVING A DEVELOPMENT AGREEMENT WITH THE YMCA
WHEREAS, The YMCA has proposed to partner with the City of Lino Lakes to build a
facility in the downtown development Legacy at Woods Edge; and
WHEREAS, on March 8, 1999 the City passed a resolution endorsing the financial
support for the construction of the YMCA to include $1.5 million for construction costs,
6.7 acres of land, and infrastructure to the site; and
WHEREAS, The YMCA has determined it will provide benefits to Lino Lakes residents,
including reduced membership fees for five years and a teen center, and;
WHEREAS, the YMCA fits into the overall objectives of the Comprehensive Plan.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes,
Minnesota, the Development Agreement between the City and the YMCA is approved.
City staff and consultants are hereby authorized and directed to negotiate in good faith
regarding the financing structure that meets the needs and mutual interests of all parties
and to take any and all other actions necessary or convenient to affect the intent of this
resolution.
Dated: February 28, 2005
Mayor
ATTEST:
alCity Cler
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AGENDA ITEM 6D
STAFF ORIGINATOR Michael Grochala
DATE: 02/28/05
TOPIC: Resolution No.05 -15 Approving YMCA Development
Agreement
VOTE REQUIRED: Simple majority
BACKGROUND:
In 1999 the city adopted a resolution endorsing financial support of $1.5 million
for the construction of the YMCA in Lino Lakes. In addition, the city endorsed the
use of 6.7 acres of city -owned land in the downtown Woods Edge project and
the provision of infrastructure to the project. Providing this commitment enabled
the YMCA to move forward in securing its own financing and begin fundraising
for the remaining costs of construction.
City staff, Kennedy & Graven, and Springsted, the city's legal and bond
consultants, have been meeting with the YMCA to work out various aspects of
the YMCA/City rights and responsibilities under the agreement. The
development agreement is attached for your consideration.
AGREEMENT
The major elements of the development agreement include:
YMCA Responsibilities
• Build a facility of, approximately 50,000 sq. ft.
• Adhere to the principles of the Town Center Design Standards.
• Commit to remaining funds required to building the facility.
• Provide Lino Lakes residents a waiver of joiners' fees for the first three
months of operation, and additional "open membership" periods for the
next five years.
• Charge Lino Lakes residents monthly rates that are 10 percent below
standard monthly rates for five years.
• Provide a teen center available to all Lino Lakes resident youth.
City of Lino Lakes
• Commit $1.5 million in support of construction of the YMCA.
• Provide 6.7 acres of land for construction of the YMCA.
• Provide infrastructure (road, water and sewer) to the site.
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• Assist in providing tax - exempt financing for YMCA's additional
construction costs not raised through contributions (financing structure to
be determined).
TAX IMPACT
The tax impact on Lino Lakes residents for the city's $1.5 million commitment
starts out at $20 per year on a $228,000 home, and declines over the 15 years
of the bonds. The total impact on the $228,000 home is approximately $230 over
15 years. However, if a Lino Lakes resident joins the YMCA, the savings on a
single membership is $5 per month. A resident would recoup the $230 cost in
Tess then four years. This savings will be greater if the resident signs up during
the initial period that joiner fees are free, and also greater for family
memberships.
SUMMARY
The community has been eagerly anticipating the construction of the YMCA for a
number of years. This agreement sets forth the primary understanding under
which the YMCA and City will proceed so that the YMCA can move forward with
final architectural design. The YMCA anticipates beginning construction this fall.
OPTIONS:
1. Adopt Resolution No. 05 -15 approving the development agreement with
the Chain of Lakes YMCA
2. Do not approve the development agreement.
3. Return to staff for further consideration
RECOMMENDATION:
Option 1