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