HomeMy WebLinkAbout2006-132 Council ResolutionJo
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Council Member Stoltz introduced the following resolution and moved
its adoption:
CITY OF LINO LAKES
RESOLUTION NO. 06-132
RESOLUTION APPROVING AN ADDENDUM TO 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 Amended and Restated Development Agreement dated March
13, 2006 (the "Development Agreement "), which specifies the parties' 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 ") on certain property defined in the Development Agreement as the "Site."
1.03. Pursuant to the Development Agreement, the City has conveyed the Site to the
YMCA without cost to the YMCA, and has also issued its $3,500,000 City of Lino Lakes,
Minnesota, Revenue Note (YMCA Project) Series 2006A and $500,000 City of Lino Lakes,
Minnesota, Revenue Note (YMCA Project) Series 2006B (together, the "Revenue Notes "), and
expects to issue its $2,460,000 General Obligation Abatement Bonds, Series 2006C (the
"Abatement Bonds "), all to help finance the Facility.
1.04. The City has also received a grant of Community Development Block Grant funds
(the "CDBG Grant ") from Anoka County in the amount of $150,000, the proceeds of which are
intended to help finance a portion of certain development costs of the Facility.
1.05. The City and YMCA have determined a need to amend the Development
Agreement in order to provide for use of the CDBG Block Grant as an offset against certain fees
and charges payable in connection with the Facility.
1.06. The City has also determined that the CDBG Grant represents "federal assistance"
within the meaning of Minnesota Statutes, Section 116J.993, subd. 3(19), and as such does not
constitute an additional business subsidy to the YMCA for the purposes of Minnesota Statutes,
Sections 116J.993 to 116J.993.
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Section 2. City Approval; Further Proceedings.
2.01. The Council authorizes the Mayor and City Administrator to execute an Addendum
to the Development Agreement in a form approved by those officials and reviewed by the City's
bond counsel, which Addendum provides for application of CDBG Grant funds for the benefit of
the YMCA as generally described in this resolution.
2.02. City staff and officials are authorized to take all other actions needed to implement
the Addendum and any agreement between the City and Anoka County regarding the CDBG Grant.
Approved by the City Council of the City of Lino Lakes, Minnesota this 14th day of August,
2006.
The motion for the adoption of the foregoing resolution was duly seconded by
Council Member O'Donnell and upon a vote being taken thereon, the following
voted in favor thereof:
Stoltz, O'Donnell, Reinert,: Carlson, Bergessn
The following voted against the same:
ATTEST:
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AGENDA ITEM 6B
STAFF ORIGINATOR: Mary Alice Divine
DATE: August 14, 2006
TOPIC: Consideration of Resolution No. 06 -132 Approving an
Addendum to the Development Agreement between
the City of Lino Lakes and the YMCA to provide for
disbursement of Community Development Block
Grant funds.
Vote Required: Simple Majority
BACKGROUND:
The City Council entered into a development agreement with the YMCA of
Greater St. Paul in June 2005, which was subsequently amended in March of
2006. The purpose of the agreement was to enter into a financial partnership
with the YMCA to build a facility in Lino Lakes.
Previous to that in July 2004, the city, on behalf of the YMCA, entered into an
agreement with the Anoka County Housing and Redevelopment Authority for a
• $150,000 Community Development Block Grant (CDBG) for the purposes of
including a teen center in the YMCA.
The YMCA has now raised funds needed to begin construction. The public
improvements for the Legacy at Woods Edge project —which are necessary for
construction of the YMCA, and which benefit the YMCA —are being completed.
All necessary documentation has been provided to Anoka County HRA, allowing
the CDBG funds to be disbursed.
This resolution authorizes an addendum to the development agreement with the
YMCA to provide for disbursement of the grant funds through the City of Lino
Lakes by reducing costs of fees associated with construction of the facility.
OPTIONS:
1. Approve Resolution No. 06 -132, an approving an Addendum to the
Development Agreement between the City of Lino Lakes and the YMCA
to provide for disbursement of the CDBG funds.
2. Deny Resolution No. 06 -132
3. Return to staff for further consideration.
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RECOMMENDATION:
• Option 1
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