HomeMy WebLinkAboutMINUTES Stanley Park Committee 1986-10-29BRADFORD PUBLISHING CO.
RECORD OF PROCEEDINGS
/Stanley Park Committee
October 29, 1986
Committee:
Chairman Aldrich, Trustees Habecker and
Hix
Attending: Chairman Aldrich, Trustee Habecker
Also Attending:
Trustee Barker, Town Administrator Hill,
Manager Scott, Finance Officer Vavra,
Rick Dill & Rick Russell/Horse Show and
Rodeo Committee, Clerk O'Connor
Absent: Trustee Hix
INDOOR ARENA - FINANCING ALTERNATIVES:
Pursuant to the Committee's request dated September 15, 1986, Ms.
Linda Clark/Boettcher and Company and Ms. Mary Ann Braymer/Bond
Counsel appeared before the Committee to address financing
alternatives for an indoor arena. Ms. Clark advised one method
of financing the arena would be through "General Obligation
Bonds" (GO Bonds); the debt service could be paid through sales
tax revenues and backed by a mill levy. The GO Bonds would
require a vote, and the interest rate is lower. The Town has two
options in the GO Bond: adding an assessment to the mill levy or
using sales tax revenues. Another method of financing would be
through Sales Tax Revenue Bonds. This procedure is more
complicated and it requires a vote to authorize creation of a
"Capital Improvement Fund." A certain percentage of sales tax
collections or certain amount of dollars would be deposited into
the Capital Improvement Fund every year; these funds could only
be spent on capital improvements and for paying the debt service.
The Sales Tax Revenue Bond would require a $200,000 reserve fund
for a $2 Million bond issue, the interest rate is approximately
one-half point higher, and it could cost the taxpayer approxi-
mately $14,000 more a year. Bond Counsel Braymer stated that
pursuant to new tax laws, the facility must be available to all
on the same basis, with all users also paying the same fee.
Non-profit groups are not exempt from this law. Stanley Park
could not enter into long-term contracts, nor could they offer
discounts to users; however, Stanley Park could have premium
rates for the summer season. Should income from preferred users,
such as the Lions Club, exceed 5% of the debt service within one
year, the Internal Revenue Service could declare the tax-exempt
bonds taxable, which would be retroactive to the date of issue.
Ms. Braymer reported the Town's tax exempt General Obligation
bonding limit is 2.8 to 3.1 Million, excluding water bonds. The
Town should not issue bonds until such time as a firm
construction figure can be reached. In her letter dated
September 10th, Ms. Braymer included a proposed schedule for an
election; the entire process could take approximately four
months. Discussion followed concerning insuring, registering,
and rating of the bonds. Following conclusion of the discussion,
the Committee recommends Bond Counsel Braymer research and advise
whether Town -sponsored events, where a fee may be assessed, would
be included in the requirement whereby all users are charged the
same fee and whether other governmental entities would be
included in the 5% preferred users category.
STANLEY PARK SUB -COMMITTEE - REPORT:
Minutes of the Sub -Committee meeting held October 22, 1986 were
read. Pursuant to the Sub -Committee's recommendation, Trustee
Habecker and Public Works Director Widmer submitted a memorandum
listing the advantages and disadvantages of various concepts for
construction of an indoor arena. Listed below are advantages and
disadvantages for each concept:
BRADFORD PUBLISHING CO.
RECORD OF PROCEEDINGS
Stanley Park Commi
CONCEPT
ee - October 29, 1986 - Page two
ADVANTAGES
DISADVANTAGES
Full Architectural
Services
Unique design
Detail design
Partial Architectural Designer involve -
Services ment
Less design time
Less architectur-
al fee
More alternates
at bid
Building Manufacturers Simple administra-
Proposal tion
Less expensive
design
Modified Design/Build
Design/Build
Guaranteed maximum
price
Shorter project
time
Flexibility
Unknown prebid costs
Higher design costs
Long project time
Unknown prebid costs
Complicated bid re-
view
Limited final product
Unknown prebid costs
Public perception -
"fair" price?
Higher architect fee?
Team selection
Same as Modified Same as Modified
Design/Build Design/Build
Concept Concept
Following discussion, the Committee recommends proceeding with
the project with the goal of a bond election; however, the
Committee does not authorize the expenditure of any funds at this
time. The Committee determined the Modified Design/Build Concept
was most desirable, and recommends an RFP, seeking proposals for
architectural services, be prepared.
Trustee Habecker reported the facility had been revised by an 80'
addition to the building for a banquet facility. An estimate for
paving the parking lot immediately in front of the arena is
$30,000. A landscaping estimate has not been determined.
Estimated budget figures for the indoor arena are as follows:
Basic structure (which includes
bleachers, floor, electrical
wiring, heating, lighting and
insulation) 1.6 Million
Conference Room addition .3 Million
Fees .1 Million
Total Bond Issue 2.0 Million
Chairman Aldrich authorized President Dill to recommend a member
of the Horse Show and Rodeo Committee to serve on the
Sub -Committee.
The next Sub -Committee meeting will be held November 6, 1986 at
10:00 A.M. The Sub -Committee is charged with defining the actual
building.
There being no further business, the meeting adjourned.
NOV 12 1986
Vickie O'Connor, Town Clerk