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HomeMy WebLinkAbout01/28/1991 Council Minutes1 1 1 COUNCIL WORK SESSION JANUARY 28, 1991 Mayor Bisel called a work session of the Lino Lakes City Council to order on Monday, January 28, 1991 at 5:55 P.M. Council Members present: Reinert, Bohjanen. Council Members absent; Neal, Kuether. City Planner, John Miller; Administrator, Randy Schumacher and Clerk- Treasurer, Marilyn Anderson were also present. Mr. Fred Dresser, Don Munson and Attorney, Tom Hay were present representing Inside Sports. The purpose of the work session was to discuss the draft of the developer's agreement for Inside Sports. Mr. Miller reminded the Council that Inside Sports had been before the Council on December 20, 1990 and was directed to prepare a draft developer's agreement. A draft has been prepared and will be presented this evening for the Council to review. Mr. Miller reviewed several items in the draft: City of Lino Lakes Obligations: - Lino Lakes would purchase twenty six (26) acres of land for approximately $297,000.00 and sell it to Inside Sports for $1.00. - Inside Sports would "use our best interests" and sell taxable Revenue Bonds for $3,000,000.00. - Lino Lakes would consider the developer's request for a liquor license (Investigation of applicant is a requirement) - Lino Lakes would consider a variance to the uniform building code. (Currently the Code says that a permanent dome sturcture cannot be built. The developer would have to provide evidence that there will be no harm to persons using this facility.) Inside Sports Obligations: - Quarantee minimum market value of $3,000,000.00 as of January 1, 1992. - Agree to pay $297,000.00 to Lino Lakes. - Although the draft shows that there will be 9% interest, Mr. Miller recommended that this be deleted or else the debt will just keep on growing. - Lino Lakes will get a maximium of fifteen (15) hours weekly of the site before noon on weekdays. - "No compete" agreement (developer would like this to be limited). - $15,000.00 letter of credit. PAGE 1 214 215 COUNCIL WORK SESSION JANUARY 28, 1991 Mr. Miller explained that a TIF District has already been created in the area proposed for Inside Sports. This TIF District must have a project on line by May 1, 1991. If the Council accepts the Inside Sports development, this District will be saved. This development will also provide approximate $190,000.00 a year in sewer and water charges. The taxes realized in the first two (2) years of operation will be equalivant to the cost of the land. Mr. Miller also noted that the project will not go forward if Inside Sports is unable to sell the revenue bonds, if Lino Lakes will not issue a liquor license and if the dome cannot be constructed because of the building codes. Inside Sports have asked that two (2) items in the developer's agreement be modified or deleted. The first item concerns interest. Inside Sports is asking that this item be deleted. The "no compete" clause is also a concern for Inside Sports. The developer is asking that this clause be amended so that it addresses specific areas or time frames. The draft agreement proposes to borrow $297,000.00 from the TIF Fund to purchase the land. This is a legal expenditure from this fund. This money will be paid back. This means that Lino Lake's investment in the project is zero (0). Mr. Miller recommended that the Council review the document, "find tune" it and have the final agreement prepared. Mr. Dresser discussed the "no compete" issue. He noted that no other facilities are being considered in Minnesota at this time, athought there is one being planned for Milwaukee, Wisconsin. He asked the Council to consider restricting the "no compete" clause to a specific location and time frame. Mr. Hay explained that the sewer and water assessment on the property is not paid. He said that Inside Sports takes the attitude that the landowner is responsible for paying all previous assessments. Mr. Hay also noted that the proposed agreement is a win /win situation for the City. Mr. Schumacher explained that he wanted the Council to take time to go through the agreement and to determine if there are any strong feelings by either party. The agreement will be given to Attorney Ron Batty for his review. He asked that if Council Members saw any "weak or soft" areas, this should be brought out now. Mr. Hay said that he did not want to talk about technical points at this time, however, he noted that the proposal suggestes that the actual cost of the facility will be the assesed amount. He PAGE 2 1 1 1 1 COUNCIL WORK SESSION JANUARY 28, 1991 said it is the proposal of Inside Sports that $3,000,000.00 be the assessed value. The dome structure was discussed. Mr. Munson noted that there really are two (2) different chapters in the Minnesota State Building Code that addresses domes. He said that he would like the Police Chief /Fire Chief /Building Inspector to inspect some like sturctures and visit the manufacturers facilities. Mr. Munson said public safety is the first concern of Inside Sports. Mayor Bisel noted that the dome is actually a fabric similar to mylar. Mr. Munson said that a collapse of the dome was the biggest concern. He noted that even with a huge hole in the dome, the rate of deflation is still about one (1) hour. There will be backup auxiliary power and the side walls will be at least eight (8) feet tall. These measures should insure a safe exit in case of an emergency. This dome will be unlike any dome in Minnesota. Domes in other nearby cities were discussed. Mr. Munson noted that these domes all go to the ground. Some are year round facilities and others are deflated during the winter season. It was noted that a resturant will be housed in the facility. A liquor license will be required for this resturant. Mayor Bisel asked when the Revenue Bonds are proposed to be sold. Mr. Munson explained that after the feasibility report is completed and accepted by Piper, Jaffrey and the pre - leasing agreements have been completed. He also noted that a very large investor has been secured. These minutes were considered, corrected, and approved at a regular meeting of the Lino Lakes City Council held on February 11, 1991. ari yn . Anderson, Clerk- Treasurer 7` Harold L. Bisel, Mayor PAGE 3 216