Title
Moving $4,750,000 of revenues and expenditures relating to Arena Loan Forgiveness granted by the State of Minnesota from the 2016 Rivercentre Capital Budget to the City Capital Project Budget.
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WHEREAS, the 1998 Laws of Minnesota, chapter 404, section 23, subdivision 6 authorized an appropriation to fund a $65,000,000 loan from the State of Minnesota to demolish the existing St. Paul RiverCentre Arena and to design, construct, furnish and equip a new arena, (the “Arena”); and
WHEREAS, the loan was not available until the City had leased the Arena, and the lessee, (the “Tenant”), had agreed to make rental payments which solely secured and repaid the loan; and
WHEREAS, $48,000,000 of the loan was to be repaid by the City in State fiscal years 2004 through 2021 with the Tenant rental payments and the payments in years 2004 through 2013 were made as scheduled; and
WHEREAS, the 2013 Laws of Minnesota, Chapter 85, Article 5, Section 47, (the “State Law”) amended the repayment schedule of the loan, reducing the payments by $500,000 in State fiscal years 2014 and 2015 and requiring no repayment from the City in fiscal years 2016 through 2021; and
WHEREAS, the State Law requires that the amounts scheduled to be repaid in state fiscal years 2016 through 2021 be used solely to pay for or finance design, construction, or equipment to make arena improvements according to a project list mutually agreed to between the City and the Tenant; and
WHEREAS, the amounts scheduled to be repaid and expenditures associated with the agreed upon project list have been budgeted and reported in the RiverCentre Arena Capital budget; and
WHEREAS, to effectively fulfill the purposes mandated in the State Law, the appropriate place for the budgeting and reporting of the funds is in the multiyear City Capital project fund; now
THEREFORE BE IT RESOLVED, by the City Council of the City of Saint Paul, upon recommendation of the Mayor, that $4,750,000 be moved from the RiverCentre Capital budget to the Saint Paul Capital Improvement Budget, heretofore adopted by the Council, and hereby amended as set forth:
…Financial Analysis
See Attachment