Agenda Packets - 1998/12/23 - Laserfiche WebLink

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Page 3 tii%APPROVED November 9, 1998 Mounds View City Council $6.5 million on the Bel Rae Ballroom? 2. Is it true that the Children Home's Society wants to get out of their lease, or renegotiate the lease to a lesser amount? 3. Did the City lose or gain money in regard to the litigation at the "Golf Course." 4. Are the taxes charged on utilities in the City going to go up or stay at their current levels? City Administrator Whiting offered the following answers to Mr. Jahnke's questions: 1. The correct amount for the Community Center(the old Bel Rae Ballroom) is $6.2 million dollars. This is a total of all of the costs incurred to date. At the time of the referendum the amount was $3.3 million. Prior to that about$800,000- 900,000 had been spent. After the referendum process there were additions to the proposed design of the building, which were agreed to and approved by the City Council in conjunction with the Community Center Task Force. These changes brought the project to its current$6.2 million. Whiting told Mr. Jahnke that he would forward to him a breakdown of all of the costs. Mr. Jahnke expressed his concern that the citizens never had an opportunity to vote on all of the changes that are taking place on the project. "The original Resolution and the Charter called for only going over a certain percent, by a Resolution," he said. "Legally, by the Charter, how did this happen?" 2. Whiting told Mr. Jahnke the Children's Home Society, during the summer months, had been experiencing some shortfalls in the number of children that it cares for. Currently the number of children being cared for has increased. The City has been in discussion with Children's Home Society in regard to what could be done to keep them in the building or whether or not the City should find someone else to operate the facility. A verbal agreement has been reached to the effect that Children's Home Society will stay in the building for the "base rent," $30,000 for 1999. Any difference (shortfall)will be held in escrow to be paid back at some point in the future, or if they decide to break the lease ahead of time they will owe that amount($8,000 - 15,000)to the City. Their play ground equipment will be installed along with other undefined equipment. If and when they leave all of this equipment would be left to the City. The Council has agreed to this approach and a written document is being prepared by staff. 3. City Attorney Long told Mr. Jahnke the City won its litigation involving the Golf Course. The City was paid$125,000 as a result of this litigation. Cost of litigation was $300,000.