PRECA 11-04-1981 - Laserfiche WebLink

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LEASE PURCHASE The lease-purchase allows fora regional park concept. The City of New Brighton would become the developer and lessor using the Ramsey County Park concept. The intent of lease-purchase is to maintain fee control of the property and control over the development. The most important aspect of this arrangement is to pro- vide a future revenue base for the City of New Brighton consistent with the market value of the land and the improvements. The City of New Brighton would lease the park for a defined period of years and provide a purchase option at the end of the lease. The lease-purchase concept assumes those certain assets owned by the City of New Brighton should be viewed as revenue producing rather than service orientated. i The advantage for the County of Ramsey is primarily cash flow. This includes the cash required to own and operate the facility. The mechanics are: (roughly) 1. New Brighton gets reimbursed for purchase price of land ($650,000 + (-)). 2. This amount can be used as part of the development cost of the City of New Brighton or used to offset current budget requirements. 3. The present amount of funded dollars owned by Ramsey m~+ be used as pre- payment on lease and therefore used as portion of park funding requirements. 4. New Brighton leases park to Ramsey for 20 years (same as redemption bond .period) for at least the original value of land and improvements. The lease value would equate to 53i~,000 per year (5650 + 51,769 x 13°0).