HomeMy WebLinkAbout2005-105 Council ResolutionCITY OF LINO LAKES
RESOLUTION NO. 05-105
RESOLUTION APPROVING A BUSINESS SUBSIDY AGREEMENT
BETWEEN THE CITY OF LINO LAKES AND YMCA OF GREATER SAINT
PAUL
BE IT RESOLVED By the City Council ( "Council ") of the City of Lino Lakes, Minnesota
( "City ") as follows:
Section 1. Recitals.
1.01. Under Minnesota Statutes, Sections 471.15 to 471.191 (the "Recreation Act "), the
City is authorized to acquire, equip and maintain recreational facilities, and also to cooperate
with a nonprofit organization in the operation of such a recreational program in any manner in
which the parties mutually agree.
1.02. In furtherance of a cooperative program under the Recreation Act the City and the
YMCA have entered into a certain Development Agreement (the "Development Agreement "),
which specifies the parties' anticipated responsibilities regarding the development and financing
of a facility that includes a teen center, gym, indoor pool, cardiovascular /strength training area,
aerobic studio, family program space and Kids Stuff (the "Facility ").
1.03. The Facility will be constructed by the YMCA on land currently owned by the
City (the "Site ").
1.04. The Development Agreement contemplates, among other things, that the City will
convey or lease the Site to the YMCA without cost to the YMCA, and further that the City will
contribute $1,500,000 in funds toward construction of the Facility, all subject to the terms of
definitive agreements to be entered into by the parties.
1.05. The City expects to finance its financial contribution through issuance of bonds
(the "Abatement Bonds ") secured by property tax abatements under Minnesota Statutes, Sections
469.1812 to 469.1815 (the "Abatement Act ").
1.06. In connection with issuance of the Abatement Bonds, the City also intents to
approve a resolution granting a property tax abatement under the Abatement Act (the
"Abatement Resolution ") for certain property that is adjacent to and benefits from the Facility.
1.07. The City also expects to finance additional costs of the Facility through issuance
of so- called qualified 501(c)(3) revenue bonds (the "Revenue Bonds ").
1.08. 'While the Facility will be operated in part as a cooperative effort with the City
under the Recreation Act, the City has determined that its contribution of land and City funds to
the YMCA constitutes a business subsidy within the meaning of Minnesota Statutes, Section
116J.993 to 116J.995 (the "Business Subsidy Act ").
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1.09. The City has determined that amounts paid from proceeds of the Revenue Bonds
do not consitute a business subsidy, under Section 116J.993, Subd. 3(14) of the Business Subsidy
Act.
1.10. The parties have determined to finalize the financial agreements between them
regarding the Facility in part through a business subsidy agreement (the "Subsidy Agreement ")
in accordance with the Business Subsidy Act.
1.11 On this date, the City Council held a duly notice public hearing regarding the
Subsidy Agreement.
Section 2. City Approval; Further Proceedinzs.
2.01. The Subsidy Agreement as presented to the Council is hereby in all respects
approved, subject to modifications that do not alter the substance of the transaction and that are
approved by the Mayor and City Administrator, provided that execution of the documents by such
officials shall be conclusive evidence of approval.
2.02. The Mayor and City Administrator are hereby authorized to execute on behalf of the
City the Subsidy Agreement and any documents referenced therein requiring execution by the City,
and to carry out, on behalf of the City its obligations thereunder.
2005.
Approved by the City Council of the City of Lino Lakes, Minnesota this 25th day of July,
ATTEST:
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