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2008-03-31 CC Minutes Joint ISD 885JOINT ALBERTVILLE, ST. MICHAEL AND STMA SCHOOL DISCTRICT 885 MEETING MINUTES MARCH 31, 2008 Albertville City Hall — Multi -purpose room 6:00 p.m. CALL TO ORDER — ROLL CALL Acting Chairman Ron Klecker called the March 4-31, 2008 joint meeting to order at 6:00 p.m. Members present: Albertville Council_ Mayor Ron Klecker, Council members Fay, Vetsch, Wagner, Albertville staff: City Administrator Larry Kruse —Absent Council member Berning n it.o,.h„ iio _f.,ff= City n a . . r . y KPIWA St. Michael Council_- Mayor Jerry Zachman, Council members Marx, Eggert, Kasel St. Michael staff: Steve Bot and Mark Weigle -Absent Joe Hagerty. STMA School District 885 - Chairman Chuck Lefebvre, School Board members Carol Steffens, Gayle Weber, Jeanne Holland, Doug Birk and Drew Scherber- Wright County Commissioner Elmer Eichelberg. Others Present: Aaron Bronm, Crow River News `STMAARENA EXPANSION:---------------------------------------- ------- Formatted: Font: 12pt City Administrator Kruse presented the attached request for consensus to complete an RFP for the arena expansion. Kruse stated that although the STMA Arena Board has the authority to do the study, it is good to make sure all three councils/boards agree on the matter. So to encourage good communication Albertville City Administrator Kruse presented the attached request for consensus. Albertville City Administrator Kruse reviewed the Request for Proposals (RFP) to complete a feasibility study for the arena expansion. Kruse noted the RFP provides two options to finance the project. One method is to pursue a municipal bond and the other alternative is to pursue a school bond referendum hoping to gain state participation. Kruse asked the group if it was their ambition to pursue a bond referendum for the expansion. School representatives expressed concern that their priority would be an excess levy referendum and the school did not have any plans to pursue a facilities bond for many years. The consensus Joint Albertville, St. Michael,_ and _STMA School District 8855 Meeting _ _ _ _ _ _ _ _ _ _ _ - - Formatted: Font: sold March 31, 2008 Minutes Page 2 of 5 was that pursuing an arena bond would reflect negatively towards the school's needs for an excess levy referendum. Further, Dr. Ziegler stated the State may not be supportive in funding just an arena. It was the consensus of the School Board to not include a referendum financing option in the RFP financial analyst. The City of St. Michael and City of Albertville concurred. It was briefly discussed if the STMA Arena Board has the capacity to handle the RFP process for the arena expansion. It was mentioned whether there are funds to hire someone. City Administrator Kruse stated that Albertville can assist with coordinating the RFP work, but suggested that the STMA Arena Board be very involved in the interview and selection of a consultant. It was stated that it is necessary to manage the expectation of the Youth Hockey Association. Completing a study is by no means a commitment to an arena expansion. Having adequate funding will continue to be the driver for a project_ as each board/council indicated that no funds were available for this project in the foreseeable future. It was also reported that the RFP process will not move forward until the Hockey Association escrows sufficient funds for the study. All in attendance were in agreement to pursue an RFP for an arena expansion and report back with information as it progresses. `STMAARENALAND----------------------------------------------- - -- Formatted: Font: 12pt Dr. Ziegler reported she is working with the School attorney and Albertville City Attorney Mike Couri to close on the property. It appears the title to the land will be in School District 885's name and that there will be an agreement stating the land is to be used for an arena and further giving credit to the school for a future arena project. T. MICHAEL LIBRARY ------------------------------------------- --- Formatted: Font: 12pt Community Development Director Marc Weigle told the group that the Friends of the Library and City of St. Michael are exploring a new library. The desire is to replace the current 3,600 square foot library with one in the 10,000 square foot range. Library advocates are thinking of pursuing a state grant up to one million dollars to fund construction. The exact site has not been determined, but it would be in Town Center on City -owned property and possibly combined with a new City Hall. Weigle stated the City wanted to get people thinking about this and to encourage Albertville's continued support. There was general consensus that a new library was needed. ST. MICHAEL 2008 ROAD CONSTRUCTION t Formatted: Font: 12 pt St. Michael City Engineer Steve Bot updated the group on a number of 2008 road projects_ M:\City Council\Council Minutes\2008 Minutes\M 03-31-08 joint Albertville-STMA School -St Michael Appmved.doc Counoihcounoil Mini.31 09 ioint nibo.. ille An......,...oa a,.,.nVnubfie n.,4Git. Joint Albertville, St. Michael,_ and _STMA School District 8855 Meeting _ _ _ _ _ _ _ _ _ _ _ - - Formatted: Font: sold March 31, 2008 Minutes Page 3 of 5 CSAH 19 from Albertville's City limit line to Highway 241 will likely start in June or July and may not be done before school starts. The County will be communicating detours and scheduling sometime in the near future. One -Way Pair: Around July 1 the one-way pair construction will start and the City will be holding informational meetings and keeping everyone informed. Jamison Avenue: Construction planning is underway with the goal to complete prior to the new high school opening in Fall 2009. The first informational meeting with be sometime in May. WRIGHT COUNTY — ELMER EICHELBERG _ _ _ _ _- Formatted: Font: 12 pt Commissioner Eichelberg reported the jail is under construction and on schedule. The County is currently working on updating the Wright County Comprehensive Plan in the Northwest Quadrant. Foreclosures continue to be a concern. rALBERTVILLE/STMA POND LAND SETTLEMENT - - - - - -- - - Formatted: Font:12 pt Chairman Lefebvre emphasized the importance to complete the settlement on the land settlement as the school wants to move from being in the development and building business to education. Kruse stated letters have been exchanged and now a meeting is necessary between staffs to iron our any differences. If there are issues, Lefebvre suggests getting a couple Board and Council members to iron out any differences. NEW BUSINESS — None ADJOURN —Meeting adjourned at 7:15 p.m. _ _ _ _ _ Formatted: Font: Not Bold Attest: Larry Kruse, Recording Secretary M:\City Council\Council Minutes\2008 Minutes\M 03-31-08 joint Albertville-STMA School -St Michael Approved.doc Counoihcounoil Mini.31nibo.. ille An .oa a,.,.nVn..bhe n.,4Git. Joint Albertville, St. Michael,_ and _STMA School District 8855 Meeting _ _ _ _ _ _ _ _ _ _ _ - - Formatted: Font: sold March 31, 2008 Minutes Page 4 of 5 Memorandum STMA ARENA: March 31, 2008 SUBJECT: REQUEST FOR CONSENSUS OF SUPPORT FROM STMA SCHOOL DISTRICT 885, CITY OF ALBERTVILLE AND CITY OF ST. MICHAEL FOR THE STMA ARENA BOARD TO PROCEED WITH ARCHTECTURAL PROPOSALS FOR A STUDY TO EXPAND THE ICE ARENA RECOMMENDATION: It is respectfully requested that the STMA School District 885 Board, City Council of Albertville and the City Council of St. Michael consider the following: Agree to support the STMA Arena Board inviting up to three architectural firms to submit proposals to expand the STMA Arena as per the Request for Proposal dated March 31, 2008. It is understood that the STMA Arena Board has the authority to interview and award a contract to the successful firm, contingent upon the Youth Hockey Association entering into an escrow agreement to cover 100% of the cost and depositing such funds with the STMA Arena Board prior to its award. For the purpose of the selecting a firm and understanding how the firm will charge for the study and future professional services, this proposal assumes the construction will take place in 20, however this is not in any way committing to construction in that year. BACKGROUND: Albertville has secured an option to purchase approximately 1.6 acres of land from Mr. Don Barthel to accommodate a second sheet of ice. STMA School District 885 has $458,000 of Bond Funds to complete this land purchase. The School is preparing an Agreement which will allow purchase of the property either in the School's name or the STMA Arena Boards name, and securing a credit for the School toward a future arena project. At this time it is unknown if an arena project will cash flow and be successful without a government subsidy. All three government units comprising the STMA Arena Board have stated that none of them have any excess funds to contribute towards an expanded facility. So it appears to expand the arena will require a positive cash flow from future operations to cover operations and debt service. Most likely all three jurisdictions will want some type of cash reserve should projected cash flows lag behind projections, as current reserve funds have been dwindling. Completion of the financial analysis in the study will give decision makers a better perspective on fiscal matters. The RFP has been structured to provide finance numbers for both a General Obligation Bond and funding through a school referendum seeking to take advantage of State assistance. Although a referendum may or may not be an option, the numbers will be useful as the project is evaluated. M:\City Council\Council Minutes\2008 Minutes\M 03-31-08 joint Albertville-STMA School -St Michael Approved.doc Counoihcounoil Mini.31nibo.. ille An .oa a,.,.nVn..bhe n.,4Git. Joint Albertville, St. Michael,_ and _STMA School District 8855 Meeting _ _ _ _ _ _ _ _ _ _ _ - - Formatted: Font: sold March 31, 2008 Minutes Page 5 of 5 KEY ISSUES: • If the School and Arena Board want to purchase the property, the Barthel land transaction must be completed in the very near future. • The School needs to do their due diligence on using the bond proceeds to acquire the land and secure a credit towards a future arena project. • Architectural firms must be identified and invited to submit. • The STMA Arena Board must interview architects. • An attorney should draft the Youth Hockey Association escrow agreement. • The STMA Arena Board needs to execute an agreement with the selected firm. FINANCIAL CONSIDERATIONS: The Youth Hockey Association has volunteered to pay 100% of the cost of the study. Respectfully submitted, Larry R. Kruse, City Administrator Attachments: RFP for Architectural Services M:\City Council\Council Minutes\2008 Minutes\M 03-31-08 joint Albertville-STMA School -St Michael Approved.doc Counoihcounoil Mini.31nibo.. ille An .oa a,.,.nVn..bhe n.,4Git.