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Mounds View City Council September 27, 1999 <br /> Regular Meeting Page 6 <br /> golf course. He stated, in his understanding this is approximately$100,000 for the next 16 years, <br /> and he was not aware if this was interest free. <br /> Mr. Jahnke commented he was aware it takes time to pay for things, however, the citizens were <br /> promised the golf course would not cost them anything. He added the golf course was still not <br /> making any money, and there was no guarantee that it would. He stated the golf course had <br /> hired a new manager and purchased a new truck, without getting rid of the old one. He stated he <br /> had discussed this with several residents and Representative Barbara Haake, adding that many <br /> people are not aware of what is happening in this regard, however, when they are made aware, <br /> they are also very concerned. <br /> Mayor Coughlin explained the City has a fair amount of bonds that are outstanding at the golf <br /> course, and whether or not they continue operations at the golf course, or pave it over with <br /> asphalt, the City continues to have this obligation, which must be met. He added that if he were <br /> to purchase a house, invest $100,000 in it, or do nothing to it at all, the original mortgage would <br /> still have to be paid, regardless of whether or not he likes it. <br /> Mayor Coughlin stated he is two mayors removed from the original decision regarding the golf <br /> course, and all that he can do is pray that he will be provided with the wisdom and ability to see <br /> that these obligations are met, and the golf course becomes solvent. He commented he believed <br /> this would occur eventually, as the obligations will be paid off, however, not in this decade, and <br /> the Council's job was to pay the bonds as soon as possible, with as little "bloodletting" as <br /> possible. <br /> Mayor Coughlin stated any interfund loan that may be required in the short term, will be made at <br /> a 5 percent interest rate, which is essentially what the City earns on government bonds which are <br /> purchased for savings. He commented that there are no guarantees, and life was not fair. He <br /> noted just because he was Mayor, he could not make it fair, neither could he predict if there <br /> would be some catastrophic event which might impact this situation. He stated that all they can <br /> do is do the best that they can with what God has given them. <br /> Council Member Marty added that the golf course is required to pay back these loans with its <br /> profits. <br /> Council Member Stigney stated the documentation provided to the Council indicated .5 percent <br /> interest, payable after 16 years, and upon questioning this, found that it was an error, and should <br /> have reflected 5 percent interest, which still will not be repaid until after 16 years. <br /> Mayor Coughlin stated this was correct, adding that this is when the obligations will be met, and <br /> the golf course will have the money to pay back the loans. He commented that when the <br /> obligations are paid, it is hoped that the golf course will assist with funding of projects presently <br /> funded through Tax Increment Financing Districts. He pointed out that the Tax Increment <br /> Financing Districts will have expired by the time the golf course obligations are satisfied, and <br /> this might be a Godsend for a future Council, in that these two events will occur within a year of <br /> each other. <br /> There were no further requests or comments from the floor. <br /> 10. COUNCIL BUSINESS <br />