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HomeMy WebLinkAbout02/09/2006 EDAC Minutes1 APPROVED CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE:Thursday,February 9,2006 MEMBERS PRESENT:J. Milbauer,J. Schwartz, B. Combs, K. Corson,K. Hansmann, J. Helgemoe, T. Vacha, S. Rymer MEMBERS ABSENT:J. Kuschke OTHERS PRESENT:M. Divine GENERAL/MINUTES Minutes of January 5, 2006 were not complete for approval. ACTION ITEMS YMCA Financing Ms. Divine reported that the YMCA is planning to build this year. They are concerned that any further fundraising efforts won’t keep pace with the rising costs of construction. The Y has received site plan approval from Planning & Zoning and City Council. However, there has been a general disappointment in the 37,000 sq. ft. facility they are proposing. It is considerably smaller than what was planned, does not include a leisure pool or regulation sized gym, and the exterior of the facility does not have the architectural character that meets standards of the Legacy development. The leisure pool is approximately $1.3 million . Mr. Rymer said it’s unfortunate, because the leisure pool is the regional draw. Council asked staff to consider some options to build the larger facility. Staff and financial counsel has worked with the Y and came up with an optional plan. Ms. Divine reviewed the history of the Y, including the original purpose to use the city contribution as a draw for other development. The agreement with the Y was the city would contribute the land and the infrastructure, plus $1.5 million in cash for construction.The city has been relieved of the obligation of the infrastructure costs, which was fully assessed to the Legacy development.In return for the city contribution, the residents would receive 5 years of a 10% discount on monthly memberships, plus other benefits. A new proposal that the council will be considering drops that discount, which allows the Y to finance an additional $1 million. Also the city would contribute up to an additional $850,000 in tax abatement.The tax abatement district has the capaci ty to support the additional subsidy.This would ensure the construction of the leisure pool.Mr. Milbauer noted they are still fundraising and the Y hopes not to need the entire $850,000 additional contribution. 2 The contribution can be justified if the city wants a recreation center. A public owned center would cost the city around $8 million, plus the long term operations and maintenance costs. Even with additional contribution, the city still gets the Y for thirty cents on the dollar. Steve Rymer stated a Y was not technically a community center. He asked if they would consider a daily fee for use of the facility. Ms. Divine said they have rejected that, since it is a membership based organization, and perceive a loss of membership.They have no experi ence with daily user fees.They are also concerned about issues with access to nonmembers. The Y and staff are exploring what benefits they can give.Members discussed the Y’s need to reconsider and have daily fees for nonmembers.Mr. Milbauer suggested that they try a nonmember daily fee for a period of time to see if it hurts their profits.Ms. Schwartz stated that if the $2.35 million impact is $30/year on residents, residents should get 7 free passes per year. Ms. Divine said they have guest passes, but nonmembers have to accompany the guest. Members said in the big picture it is a benefit the city needs, and it will help bring tax base to the new development.Ms. Divine said the new growth in the Legacy will cover the impact on residents. The members discussed the lack of architectural character.Mr.Vacha said the design standards need to be met.Ms. Divine stated there may be modest improvements to the façade with the city’s additional contribution.They also had concerns that the Y needs to build before competing fitness centers get built.Ms. Divine noted that the Y is needed to spur additional development downtown. It should act as an economic positive in the long run. Ms. Divine stated the council will holding a public hearing on the additional tax abatement on February 27. Mr. Rymer moved to support the use of an additional $850,000 tax abatement for the YMCA project for the inclusion of a leisure pool and improved architectural design of the facility. A condition was added that the abatement be contingent upon increased public access through, but not limited to, resident user fees for a negotiated period of time.Mr. Corson seconded the motion. Motion passed with Mr. Milbauer abstaining. UPDATES Hardwood Creek: Ms. Divine stated the developers will be coming to EDAC in the spring with an updated plan.The AUAR covers the requirements needed for transportation improvements for this development to occur. Country Inn & Suites: Ms. Divine informed the board that a groundbreaking will be Feb. 23. EDAC members will be getting invitations. 2006-2007 Action Plan: Will be postponed until new board appointments are made. Meeting adjourned.