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CITY OF ST. ANTHONY ' NOTES TO FINANCIAL STATEMENTS DECEMBER 31 , 1998 Note 14. Subsequent Event It is anticipated that the City will issued street improvement bonds in 2000 to ' fund 2000 street improvement projects. Note '15. Community Center Complex During 1995, the Housing and Redevelopment Authority and the City of St. Anthony jointly entered into a construction contract for the construction of a community , center complex; including .a city. hall , .recreational and educational facilities. Proceeds from general obligation tax increment bonds were used to finance costs associated with the recreational and educational portion of the complex. City , funds transferred to the Authority were used to finance the city hall portion of the project costs. The community center complex was completed in 1988 with cost totaling approximately $4,225,200. ' A portion of the Community Center is occupied by Independent School District #282, which houses its community services program in this facility. Under terms of a lease agreement between the City and the District, the District has agreed to make ' rental payments totaling $100,000 per each. It is anticipated the District will continue to lease this space for a twenty year period. The lease is automatically extended for successive twelve month periods unless terminated by the parties as ' provided in the agreement. Note 16. Building Acquisition ' During 1997, the Housing and Redevelopment Authority purchased property, with an ' existing building being utilized as a retail outlet, in Apache Plaza Shopping Center. The existing tenant had entered into a 15 year lease agreement with the former owner effective August 1 , 1996 and terminating on July 31 , 2011 . The Authority assumed the lease obligations with the existing tenant without significant modification of ' original lease terms. Terms of the lease require annual minimum rental payments of $67,840 for the period commencing August 1 , 1997 through July 31 , 2002; $74,302 for the period commencing , August 1 , 2002 through July 31 ,. 2007; and $80,763 for the period commencing August 1 , 2007 through July 31 , 2011 . In addition, the lease contains a percentage rent for each year gross sales exceed a threshold amount.. The lease agreement also contains , two five year options, which may be exercised by the tenant. Tenant is responsible for its pro-rata share of taxes, insurance and common area costs. Subsequent to acquisition, the Authority permitted the City to expand the building ' to include retail space for one of its off-sale liquor operations. This building expansion was financed by the issuance of liquor revenue bonds of $900,000 and was ' completed in November 1997. It is anticipated that no rent will be charged the City for use of this property, however, the City is responsible for debt service asso- ciated with the bonds issued. -32-