HomeMy WebLinkAbout10/14/1991 Council Minutes1
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CITY OF, LINO LAKES
COUNCIL MINUTES
DATE October 14, 1991
TIME STARTED 6:00 P.M.
TIME ENDED 6:32 P.M.
MEMBERS PRESENT: Bisel, Bohjanen, Kuether, Neal, Reinert
MEMBERS ABSENT : None
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Staff members present: Randy Schumacher, City Administrator; John Miller, City
Planner; Daniel Tesch, Assistant to the City Administrator; Centennial Fire Chief
Bennett; Peter Kluegel, Building Official. Others included Don Monson and Fred
Dresser of Inside Sports.
INSIDE SPORTS
Mr. Miller began the presentation by explaining what had taken place over the past
few months with Inside Sports. He continued that Mr. Monson and Mr. Dresser have
been working with lenders, and are looking for some kind of commitment from the
city to take to these potential financiers.
Mr. Dresser began by inviting the City Council to St. Paul to see their recently opened
facility on Rice Street. He stated that the Lino Lakes facility will be larger.
Mr. Dresser presented an agreement that had been put together by their attorney and
reviewed by Mr. Ron Batty. He explained that they now have three groups willing to
finance this proposal. These agencies are located in Boulder Colorado, Long Lake
Minnesota, and Florida. These agencies /individuals are looking for some sort of
commitment from the city, for example a letter stating if Inside Sports secures
financing within 120 days, then the city will go ahead with the project.
Mr. Schumacher told the council that he had spoken with Mr. Ron Batty about
"Detrimental Reliance Claims" which in effect say that if the city signs an agreement
with this type of go ahead, we may be liable for costs down the road. Mr. Hawkins
has also spoken with the council on this in the area of improvements.
Mr. Dresser stated that he would be willing to waive the Detrimental Reliance Claim.
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COUNCIL WORK SESSION
October 14, 1991
Mr. Schumacher was concerned about entering into any agreement whereby we
would liable for any dollars.
Council Member Kuether had some questions with the agreement in the area of
finances, operating expenses, market values, and no compete clauses.
Council Member Neal raised the issue of the dome, and would like the city placed on
any insurance forms in case something should happen to the facility. That way we
would be assured of some compensation. Mr. Neal asked who would be running the
restaurant. Mr. Monson replied that they would run it themselves.
The question of the dome was raised and the problems the Building Official had with
a possible variance. Mr. Monson stated that Lakeville and White Bear Lake have both
granted variances for the dome facilities within their communities. Fire Chief Bennett
stated that he would like to see the plans prior to any construction.
Council Member Reinert asked Mr. Schumacher how the city would not be responsible
for bonds when the bonds had the city listed on them. Mr. Schumacher explained
Industrial Revenue Bonds and how mortgage or insurance companies are responsible
in these situations. Mr. Monson stated that this issue was no longer valid as they
have secured their own financing. Mr. Reinert questioned the validity of the
document if the clause was incorrect.
The council instructed Inside Sports to return at a latter date with a revised document
that had been reviewed by Mr. Batty and the Fire Department.
Meeting was adjourned at 6:32 P.M.
These minutes were considered, corrected and approved at a regular meeting
of the Lino Lakes City Council meeting held on October 28, 1991.
, ('-7? < ,
Marilyn;/G. Anderson,
Harold L. Bisel,
Clerk - Treasurer Mayor
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