Loading...
HomeMy WebLinkAbout2006-034 Council Resolution• • CITY OF LINO LAKES RESOLUTION NO. 06 -34 RESOLUTION APPROVING AN AMENDED AND RESTATED DEVELOPMENT 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, dated June 16, 2005 (the "Development Agreement "), which specifies the parties' anticipated responsibilities regarding the development and financing of a recreational facility. 1.03. The Development Agreement is proposed to be amended and superseded by the Amended and Restated Development Agreement, to be dated on or after March 1, 2006 (the "Amended and Restated Development Agreement "), between the City and the YMCA, which specifies the parties' anticipated responsibilities regarding the development and financing of a facility that includes a teen center, gym, indoor lap swimming pool, leisure style zero -depth pool, cardiovascular /strength training area, aerobic studio, family program space, women's, men's and family locker rooms, and Kids Stuff childcare (the "Facility "). 1.04. The Facility will be constructed by the YMCA on land currently owned by the City (the "Site "). 1.04. The Amended and Restated 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 $2,350,000 in funds toward construction of the Facility, which will include a zero -depth pool, all subject to the terms of definitive agreements to be entered into by the parties. 1.05. The Council has reviewed the Amended and Restated Development Agreement. Section 2. City Approval; Further Proceedings. 2.01. The Amended and Restated Development 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 Amended and Restated Development Agreement and any documents referenced therein requiring execution by the City, and to carry out, on behalf of the City its obligations thereunder. Approved by the City Council of the City of Lino Lakes, Minnesota this 13th day of March, 2006. ATTEST: ell, Acting Mayor • • • STAFF ORIGINATOR: CITY COUNCIL MEETING DATE: TOPIC: AGENDA ITEM 2A Mary Alice Divine March 13, 2006 Continuation of Public Hearing Regarding Tax Abatement in Connection with the YMCA i. Consideration of Resolution No. 06 -34, Approving an Amended and Restated Development Agreement between the City of Lino Lakes and the YMCA of Greater Saint Paul ii. Consideration of Resolution No. 06 -40, Approving a Tax Abatement Related to the YMCA Facility iii. Consideration of Resolution No. 06 -49 Approving an amended and restated Business Subsidy Agreement between the City of Lino Lakes and YMCA of Greater Saint Paul VOTE REQUIRED: Simple Majority BACKGROUND: A public hearing was opened on February 27, 2006 regarding consideration by the City Council to provide additional tax abatement to the YMCA for the inclusion of a zero -depth leisure pool in the first phase of construction. The hearing was continued to complete negotiations regarding the City's and the YMCA's financial commitments and the YMCA's Residential Use Covenants. Attached are amended agreements that supersede the original development agreement and business subsidy agreement with the YMCA that were approved on June 16, 2006. The amended agreement under consideration outlines the following: • The City's commitment of an additional $850,000 in tax abatement to the YMCA, for a total abatement of $2.35 million for the construction and development of an expanded YMCA facility. • The YMCA provides $3.5 million in debt financing for the construction and development of the expanded facility. • The City of Lino Lakes will eliminate the original request of a 5 -year, 10% discount on monthly membership fees. • In turn, the YMCA will provide certain benefits for Lino Lakes residents that include: 1. A Community Pass will be included in each Lino Lakes City Newsletter (4x per year) for a period of five years. This pass will allow an individual or family one use of the Chain of Lakes facility. There will be an expiration date on each pass based on the newsletter schedule. 2. Teen Center will be open to all Lino Lakes teens (6th — 10th grade) without a membership. (Fee $2 /day to start for nonmembers) 3. 4 annual community events will be held throughout the year free of charge to members and nonmembers. (If special activities, such as dinner, occur there will be a nominal charge.) 4. Free Learn to Swim water instruction will be offered in the early summer for children ages 3 — 10 on an annual basis for three years. (Includes nonmembers. Registration will be taken until classes are full). 5. Once a year the YMCA will do health testing for the Police and Fire. Departments. 6. Water aerobics will be offered to individuals with arthritis at a daily rate and will not require a membership. 7. Community Health Seminars 8. Senior Health Fairs will be offered annually which will include fitness classes, blood pressure checks and social opportunities. 9. Resident rate to participate in evening adult leagues (for Lino Lakes residents, a 10% discount for three years) 10. 10% resident discount for the Fall Fun Run 11. The YMCA will provide an initial period of 90 days from the grand opening of the building to join the YMCA with all joiner fees being waived. • Any potential savings from the cost projections in the final bids or value design reductions will be split 50/50 between the YMCA and the City of Lino Lakes. • The YMCA will construct an expanded YMCA facility to include the following: - -Lap lane swimming pool - - Leisure style zero -depth pool -- Sauna -- Teen. Senior Center -- Locker rooms: Women's, men's, family - - Gymnasium - - Aerobic Studio - - Fitness Center - - Kid's Stuff childcare - - Lobby /lounge - - Administrative offices The source of revenue that will be allocated for the city's additional $850,000 commitment will be tax abatement from the Tax Abatement District in Legacy at Woods Edge. Based on developer assumptions of anticipated values and phasing of the part of Woods Edge that is within the Tax Abatement District, a 15 -year abatement will generate in the range of $2,406,845. The capacity is available to meet an obligation of $2,350,000. • • RECOMMENDATION Staff is recommending closing the public hearing. Following the public hearing, staff is recommending the separate adoption of Resolution No. 06 -34 approving the Amended and Restated Development Agreement, Resolution No. 06 -40 approving a Property Tax Abatement, and Resolution No. 06 -49 approving the Amended and Restated Subsidy Agreement. ATTACHMENTS 1. Resolution No. 06 -34 2. Resolution No. 06 -40 3. Resolution No. 06 -49 4. Amended and Restated Development Agreement 5. Amended and Restated Business Subsidy Agreement