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HomeMy WebLinkAbout1988-09-19 Park Board MinutesEDINA PARK BOARD SPECIAL MEETING 4:00 p.m. ieptember 19, 1988 Edina City Hall MEMBERS PRESENT: Bob Christianson, Jim Fee, Mac Thayer, Itti Furlong, Jean Rydell Andrew Montgomery, Bill Lord, Don Wineberg, MEMBERS ABSENT: Bill Jenkins, Scott Johnson STAFF PRESENT: Ken Rosland, Bob Kojetin, John Keprios, John Valliere, Larry Thayer, Stacey Kness Mr. Christianson called the meeting to order at 4:10 p.m. I. GOLF DOME PURCHASE Mr. Christianson said he met with Mr. Rosland after Tuesday's Park Board meeting to discuss the appraisal. He said the Park Board was under the impression that the appraisal included the structure and building as part of the premise in terms of the cost approach and the income approach and that cost caused the Park Board to vote against it. Mr. Rosland discussed the appraisal with Mr. Christianson and said the appraisal in fact did not state the included portion very clearly but did exclude the land and the structure. Based on that, the Park Board may have been operating under a misapprehension. We were asked to discuss this again before the City Council meets this evening to discuss bonding. Mr. Rosland gave a quick history of the issue. The basic issue was an attempt to do arena and golf course improvements and to purchase the golf dome to help pay for the bonds on the arena. Mr. Rosland and the Council received a letter from Mr. McFadden who works part time for the City. Mr. Kojetin answered what questions he could at Tuesday's Park Board meeting. Mr. McFadden is out of town now, but Mr. Rosland gave some answers to Mr. McFadden's golfing partner. One question asked was if the dome is insurable. Mr. Rosland contacted Mr. Flanagan who will insure the dome this year. The dome went without coverage one year but will have complete coverage of a $9,000 policy that would cover the dome for replacement if it blew down, etc. Mr. Fee said probably we could roll the dome into the policy coverage that we write with the City; it would be a lot less. Mr. Rosland said Mr. Valliere's staff has done an excellent job in the past couple years in increasing revenue at the dome. Two advantages for purchasing the dome: if we build the next nine holes, Mr. Valliere needs 12 -month help to do some of the over-all management which offers the ability of balancing the work load to have people on a year-round basis; the second advantage is cash flow. Without the golf dome you have a heavy load on the golf course. Mr. Rosland said the appraisal report indicates the dome is worth $620,000; we simply want to look at it as a business deal. Does it make sense to have a potential $50,000 - $75,000 cash flow for bond payments. Mr. Rosland called the Minneapolis Park Board and talked to them about the life of their domes. Their experience - 1 - indicated if you leave the domes up, their length of life is greater --maybe up to twenty years. The golf dome has a Teflar coating which adds to the life of the dome that others do not have. Mr. Christianson said what you want us to do is reconsider our previous discussion made on Tuesday night. Mr. Rosland said yes, if you feel comfortable to do so. Mr. Wineberg said if it can earn $50,000 that is the key other than having another recreational facility. $50,000 is a helpful for funding the arena bonds. Mr. Fee asked how old this dome is. Mr. Rosland said it is five years old. He talked to the Minneapolis Park Board about their tennis dome. Their feeling is you can expect twenty years with the domes easily. Storing them and taking them down creates the wear and tear. He did not contact Greenway Athletic Club about theirs; they have had one for ten years, and they leave it up all the time. Mrs. Furlong said maybe the Minneapolis Park's is different now because they are not taking it down any more. Mr. Rosland said the secret is leaving it up. Mr. Montgomery asked who are the owners of the facility. Mr. Rosland said the original owners were Ron, Flanagan, Frank Rog, and three golf pros. Mr. Flanagan bought out the golf pros two years ago. Mr. Montgomery asked about the appraisal figures. Mr. Rosland said the appraiser used two different approaches to come to the $620,000 figure. Mr. Montgomery questioned why the owners wanted to sell. Mr. Rosland said they are not pushing but are willing to do so. Mr. Christianson said from a procedural standpoint we have made a motion. Anyone on the prevailing side can move to reconsider it. Mr. Fee said our main reason for not approving it last time is we weren't certain about the appraisal's accuracy and we were seeing different revenue. Now these questions are all answered. I think I can insure it for a lot less. We are seeing numbers that seem pretty realistic. Mr. Rosland apologized that these questions were not answered at the earlier meeting. The appraisal came in too late. I appreciate your coming to this special meeting. Mr. Fee asked what if the nine -hole course doesn't go through? Mr. Rosland said if the nine -hole doesn't go through, the risk would even be more. Now you put all of the burden on the present 18 hole course to pay for the arena. - 2 - Mrs. Furlong said Mr. Rosland came back with a lot of answers. After hearing about the emergency meeting I kept thinking about what the golf course makes. We could pay for the new arena by the golf course. I have a gut feeling that if we didn't do this we were still all right. It seems that what you are saying is we are not all right. Mr. Fee asked if Braemar is under construction now? Mr. Rosland said yes, and we are committed to $1.8 million. Mr. Christianson said the issues are pretty clear; what are we going to do with it. He asked Mr. Montgomery if he wanted to change the motion. Mr. Montgomery said he did not want to change his previous motion. Jim Fee MOVED THAT THE PARK BOARD RECONSIDER THE MOTION OF SEPTEMBER 13, 1988, AND TO RECOMMEND THE APPROPRIATE AUTHORITY PROCEED WITH THE NEGOTIATION TO PURCHASE THE DOME AT A MAXIMUM OF $575,000. Mac Thayer seconded the motion. MOTION CARRIED. Andy Montgomery abstained. II. OTHER Mr. Kojetin stated at the last budget meeting with the Council, they requested to see some type of proposal on the Senior Center by October 3. After discussing it with Doug Johnson of the Community Center, I don't think we can come up with an answer by October 3. We are waiting on the School District to make a decision after the referendum if they will move into the Community Center. There is a possibility to use the west community room on the third floor, and with state handicap funds, we could possibly install an elevator. Mrs. Rydell said it sounds like the School Board was probably going to move into the community center. Mr. Kojetin stated the Council has approved the Hedberg project. The new development will be called Centennial Lakes. We will be receiving information on the park some time this winter. III. ADJOURNMENT Bill Lord MOVED TO ADJOURN AT 5:05 P.M. Jim Fee seconded the motion. MOTION CARRIED. - 3 -