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HomeMy WebLinkAbout2006-132 Council ResolutionJo • • • 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. • 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: 295099v1 SJB LN140 -90 2 • 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. • RECOMMENDATION: • Option 1 • •