04-25-2005 - Laserfiche WebLink

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Mounds View EDA April 25, 2005 Regular Meeting Page 5 of the final decision. City Clerk/Administrator Ulrich stated that the City first learned of this development in July 2004 when the City was first approached with the proposal. He stated that Medtronic indicated that they found serious problems with the development of the site in New Brighton two to three months before approaching the City of Mounds View. He stated that he does not know if negotiations are occurring at other sites. Jerry Linke, Former Mayor, asked how much staff time has been devoted to this project. City Clerk/Administrator Ulrich stated that over the last month staff has devoted approximately 1400 hours noting that Director Ericson has devoted a significant amount of time to the project but the majority of hours involved a variety of staff members. City Clerk/Administrator Ulrich stated that the plan is to review the golf course numbers, get feedback from the Community; and determine the current situation. He stated that once they know all of the development numbers and can compare, an analysis would be done. He stated that the results of the analysis would be discussed at future meetings. Stacy Kilvang, Ehlers and Associates, provided the Commission and Community with a brief background, history and update on the financing of the golf course. She stated that they have designated as an Enterprise Fund that would be self-sustaining with the hopes of bringing cash and dollars back to the City funds. She stated that there is a need to be realistic and conservative when forecasting the budget in addition to knowing and understanding the market. She stated that, as a City, they should try to determine where the golfers are coming from and also determine how to stay competitive. She noted that golf is a weather dependent sport and the best dates are May through August. She stated that the golf course opened in 1995, financed with revenue bonds. She explained that it was found that the revenue generated was only covering operating costs and was not sufficient enough to also pay off the debt. She stated that in 2002 and again in 2004 a billboard was negotiated with Clear Channel to help offset the debt. She stated that in 2002 the City began to offer an interfund loan, which will be in effect from 2002 to 2012, to help cover the operating losses. She explained that an interfund loan does increase annually noting that the intent, in theory, is to have the City interfund loan paid in full by 2018. She provided the Commission with a historical overview of the gross revenues from 1995 through 2004 noting that they are seeing a trend, from 2002 to 2004, showing an increase in the revenues. She indicated that it is falling short by a little noting that that the billboard and the interfund loan are what is making the City flush. She noted that the loan was large in 2002/2003 stating that it would decrease annually until it is finally paid back in 2018. She stated that the most realistic projects come from reviewing the bottom line best-case scenario noting that they are currently reviewing 2019 and 2033 and again at the end of the 25-year term. She indicated that they have retained earnings each year noting that this is a cash balance brought forward that must be kept in a reserve account until paid. She provided the Commission with an overview of the operating revenue and expenses noting that they are under budget by approximately