City Council Meeting Date: October 15, 2024
To: Mayor and City Council
City Administrator
From: David E. Bennett, Public Works Director/City Engineer
Title
Consider Approval of Cost Share Agreement with the City of Dundas for the New Ice Arena.
Body
Action Requested:
The Northfield City Council Approves of Cost Share Agreement with the City of Dundas for the New Ice Arena
Summary Report:
The City of Northfield, City of Dundas, Northfield School District, and Northfield Hockey Association have partnered in funding the construction of a New Ice Arena to serve our Community. The framework of the partnership was approved by Dundas City Council on May 28, 204 and by Northfield City Council on June 18, 2024.
Since the framework our community partnership was approved, staff have been working with City Attorney for both Northfield and Dundas to create the funding agreement for the New Ice Arena. The New Ice Arena is scheduled to start construction in the spring of 2025 and opening is planned for late summer of 2026.
Key items in the agreement include:
• The cost share is set by the net tax capacity of each city for the year the bond is issued for construction (which is planned for 2025).
• Dundas current net tax capacity as compared to Northfield net tax capacity is 12%. So, Dundas’s annual capital contribution to the project is estimated to be $151,963 per year for 20 years.
• The first payment will be in 2026.
• The final cost share will be determined after all the bids are in and the total estimated project cost is determined.
Alternative Options:
NA
Financial Impacts:
New Ice Arena Cost is $20.9 Million.
Tentative Timelines:
See Attached