PRECA 02-03-1982 - Laserfiche WebLink

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LEkSE ?UP,CHA,SE The lease-purchase alic:rs fora regional park concept. The City or" New Brighton ti~~ould beco;.~a the developer and lessor using the Ramsey County Park concept. The intent of iease-purchase is to r~aintain fee control of the property and control over the develop~~,~nt. The most important aspect of this arrangement is to pro- vide a future revenue base Tor the City of i~e~~~l Brighton consistent with the ~- r4:e t va i ua cf the l and and t'r,e i ~~prove~~ents . The City of t~ew Brighton woul d lt:~se the p:are; fcr c defined period of }'cars and provide a ;.urchase option dt the end of the iease. The lease-purchase concept assumes those certain assets c,,nsd by the City of ';e~~r Brighton should be viewed as revenue producing rather than service orientated. The advantage for the County of Ramsey is primarily cash flow. This includes the cash required to o~rn and operate the facility. The mechanics are: (roughly) 1. I~e~~r Brighton gets reimbursed for purchase price of land (5650,000 + (-)). 2. This amount can be used as part of the development cost of the City of flew 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 par4: fundinc requirements. 4. Idevr Brighton leases park to Ramsey for 20 years (same as redemption bond period) for at least the original value of land and improvements. The iease value would equate to S3i~+,0u3 per year (5650 + 51,769 x i3~~). ,~