HomeMy WebLinkAboutA001 - Council Action Form dated January 27, 1998 + 1
ITEM # ,
DATE: 1/27/98
COUNCIL ACTION FORM
SUBJECT: AMES/ISU ICE ARENA
BACKGROUND: At the January 13, 1998, City Council meeting, Council accepted the
Ice Is Nice Committee's commitment to finance the cost of a special election to assess
the public's financial support in contributing $1.7 million toward the construction of a
new $3.7 million Ice Arena.
Staff was directed to contact the City's bond counsel to have the ballot measure and
the resolution prepared for Council action to officially authorize this special election.
The following ballot measure was prepared by Dorsey and Whitney LLP, Attorneys:
"Shall the City of Ames, in Story County, Iowa, issue its bonds in an
amount not exceeding the amount of $1,700,000 for the purpose of
paying the cost, to that extent, of constructing and equipping a
recreation building consisting of a single surface ice skating facility
in and for the City?"
The resolution calling for an election on the proposition of issuing general obligation
bonds states that the special election will be held on Tuesday, March 31, 1998, with
the polls open from 7:00 a.m. to 8:00 p.m. This date has been approved by the Story
County Auditor.
ALTERNATIVES:
1. The City Council can adopt a resolution calling an election for March 31, 1998, on
the proposition of issuing $1.7 million in general obligation bonds for the construction of
a new ice arena.
This project is contingent upon ISU's contribution. In the event that this vote is
successful and Iowa State University does not contribute $2 million toward this
project, the City will not exercise its authority to issue general obligation bonds.
2. The Council can choose to not adopt a resolution calling an election on the
proposition of issuing general obligation bonds for the construction of a new ice arena.
CITY MANAGER'S RECOMMENDATION:
The City Manager recommends Alternative #1 whereby the residents of our community
will have the opportunity to express their interest in contributing financially toward the
construction of a new single surface Ice Arena. This project offers a unique
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opportunity to partner with other non-City entities so that citizens gain the benefit
of a $3.7 million facility for an investment of $1.7 million.
It should be remembered that City Staff will be working with ISU administrators to
develop an agreement outlining the $2 million commitment from ISU as well as
ownership and construction management issues. If ultimately we are unable to
finalize such an agreement, the City will not pursue the new facility, and the
bonds will not be issued.
CITY COUNCIL ACTION: