Loading...
HomeMy WebLinkAbout12/20/1990 Council Minutes (2)fiL 1 COUNCIL WORK SESSION DECEMBER 20, 1990 Mayor Bisel called a work session of the Lino Lakes City Council to order at 5:45 P.M., Thursday, December 22, 1990. Council Members present: Neal, Kuether, Reinert, Bohjanen. Council Members absent: none. City Planner, John Miller; City Administrator, Randy Schumacher and Clerk - Treasurer Marilyn Anderson were also present. Mr. Schumacher explained that the purpose of this meeting is to introduce the Council to BTR Acquisitions of Vadnais Heights. BTR Acquisitions is considering relocating their facilities to Lino Lakes. The purpose of the second port =on of the fork session is to update the Council regarding :nside Sports. BTR Acquisitions, Vadnais Heights Mr. Schumacher introduced Mr. Rick Trombley and Mr. Bernie Reeck of BTR Acquisitions. Mr. Miller explained that this company is looking at two (2) or three (3) possible locations in the Lino Industrial Park. They are most interested .1n a trianc-.:lar shaped lot located near the freeway. This location would allow BTR to erect a sign that could easily be seen from the freeway. The lot is located in TIF District No. 1 -4. This City does need a project in that district by June 1, 1991. :here could be advantages to the relocation of BTR to Line Lakes for both the company and the City. Nr. Miller explained that a 20,000 square f_ot structure constructed of tilt up concrete is planned. The building would be connected to municipal utilities. There will be an outside storage area which would be bermed and landscaped with pine trees. The sign would be a monument sign, be landscaped and lighted. It would be attractive. BTR woul± like to cet an indication from the Council that they would be a welcome addition to Lino Lakes. They will then post an escr_w and proceed with 1991 construction plans. 13'1'R explained that they will need a minirur of two (2) acres for - their business. They are currently looking at approxi- .ately three (3) acres. They employ twelve (12) people. The primary business is buying, reconditioning and sales'of used office equipment, storage systems and racking syst_ms. Outside storage areas are needed primarily for pallet racki-a. BTR is- planning on a minimum investment of $200,000.00 to gat started in Lino Lakes. They arc also looking for a loan fr_- the city of ',0,000.00 at 8'. interest. Mr. ::chumachor - .ot.ed that $35.00 per square foot, the I3'I'R building will cost approximately $700,(700,00. The representatives from BTR =xpla.ined that the total root of the improverent will he well ver $700, !.00. 1 1 1 w 180 COUNCIL WORK SESSION DECEMBER 20, 1990 There are no plans to sublet any portion of the facility to other types of businesses. Mr. Miller explained that he is also talking to Custom Manufacturing regarding construction of a building at the corner of Lilac Street and 4th Avenue. This building would be constructed in 1991 by Custom Manufacturing and sublet. Mr. Miller explained that he is also working with Emtech of Burnsville. The president of this company lives in Forest Lake and the business is presently located in Burnsville. They are considering relocating in Lino Lakes. Mr. Miller said he hoped to have this company before the Council to explain their needs. Emtech is looking at the property that Gary Uhde currently has a purchase agreement on. Mayor Bisel asked Mr. Miller to bring to the Council specific details on all three (3) of these companies. Council Member Kuether asked if the City is planning to block traffic from entering Marvy Street to the west of these possible developments. Mr. Miller said that the street probably will have to be blocked. Inside Sports Mr. Fred Dresser from Inside Sport appeared before the Council. Mr. Miller presented a memorandum to the Council dated December 20, 1990. This memorandum is an outline of the Proposal /Analysis /Recommended Action for Inside Sports. Mr. Dresser explained that the planned total cost of the improvement is still $4,552,003.00. The land is appraised at about $500,000.00. (New location, Elm Street property owned by Centennial School District) Mr. Dresser posted pictures showing what the facility would look like. The dome would contain batting cages, locker rooms, lounge, grill which would overlook the indoor and outdoor playing fields, public rest rooms, a small pro -shop, video room and offices. The Minnesota Sports Federation will manage the facility and will build their own office building. This office building would house the Sports Hall of Fame. Don Munson, Chief Executive Officer for Inside Sports explained that financing will be managed through Piper, Jaffray, Hopwood. Inside Sports will provide $1,600,000.00 in cash equity. Of this amount, $1,000,000.00 will be used in the construction of the facility and $600,000.00 will be set aside for operating funds for the next three (3) years. Lino Lakes will provide the land. PAGE 2 181 COUNCIL WORK SESSION DECEMBER 20, 1990 Mr. Munson explained that Inside Sports and the City of Lino Lakes will sell revenue bonds for the balance of the project. The City will not be liable in case of default but will get a fee for issuing the bonds. The City will be expected to "replace" the school property with other land. The school will accept land outside of the MUSA boundary. Total cost to the City is estimated at $105,000.00. Mr. Munson said the City would be expected to sell twenty five (25) acres of the school property to Inside Sports for $1.00. In addition the City will be expected to issue permits and licenses as needed for the construction and operation of the facility. The facility is already preleased fifty (50) of the fifty two (52) weekends in the 1991/1992 season. Piper, Jaffray will determine if the prelease agreements are correct, if the income projections are correct and if the feasibility report prepared by Inside Sports is correct. A feasibility report will be given to the City for their review. It should be received by the end of January or middle of February, 1991. Mayor Bisel asked about the revenue bonds that will be issued for the financing of the facility. Mr. Munson explained that the full faith and credit of the City is not behind these bonds and there is no responsibility or liability to the City if Inside Sports is unable to repay them. Mr. Schumacher will check with the City Attorney to determine what effect this bond issue would have on the City. Mr. Munson said that the proposal being presented today differs from the previous proposal in that the City will have no liability for the operation and maintenance of the facility. He also noted that if the feasibility study does not indicate that this facility can maintain itself, Piper, Jaffray, Hopwood will not underwrite the project. (Piper, Jaffray, Hopwood is requiring that Inside Sports provide 1/3 of equity in project, that a satisfactory feasibility report be submitted and that at least 60% of the 1991/1992 season be preleased. Preleasing requires that a cash deposit be made.) Council Member Kuether asked if a "no compete" clause will be required by the City. Mr. Munson said that Inside Sports would be happy to sign this clause. Council Member Reinert noted that Inside Sports is using the land as part of the 1/3 requirement from Piper, Jaffray, Hopwood. He felt that in effect Inside Sports would be using the City's equity. Council Member Neal noted that about two (2) weeks ago another dome opened. Mr. Munson said that this was a golf dome. It was PAGE 3 1 1 1 1 1 COUNCIL WORK SESSION DECEMBER 20, 1990 noted that softball fields could be put inside this dome, however they would not be the same size as planned in the Lino Lakes facility. Council Member Kuether noted that the dome planned for Lino Lakes does not meet state building code requirements. Mr. Munson said that Inside Sports would work with the City to design a permanent structure. A variance probably would be needed. Council Member Bohjanen asked if the Blaine Sports Center would be in competition with Inside Sports. Mr. Munson said no. Mayor Bisel told Mr. Munson that a written proposal is needed so that the City Attorney and the City Fiscal Agent can review it. This proposal is also to be reviewed by Mr. Ron Batty. Mayor Bisel adjourned the work session at 6:30 P.M. These minutes were considered, corrected and approved at the regular Council meeting held on February 11, 1991. / / ,, I (-)2 , ) Mari lyiG. An erson, Clerk- Treasurer Harold L. Bisel, Mayor PAGE 4