Melissa's City Council on Tuesday, Oct. 13, will consider starting the legal clock on up to $66.6 million in new city debt, and the agenda packet now spells out what the money would build.
The largest piece is the Melissa Athletic Center, a planned 129,573-square-foot indoor recreation building. The council accepted a guaranteed maximum price of $36,878,575.90 from construction manager Piazza Construction on Sept. 22 by a 7-0 vote, according to draft minutes in Tuesday's packet, and on the same night authorized an operating agreement with Melissa Sports to run the center.
What the borrowing covers
A staff report on the item lists four projects the certificates of obligation would fund:
- Melissa Athletic Center construction and a Z-Plex build-out
- An East Water Take Point facility
- Design of the Stiff Creek lift station
- Property and land acquisition
Tuesday's resolution would direct the city secretary to publish a notice of intent in the newspaper twice and post it on the city website for at least 45 days. The notice sets Dec. 8 at 6 p.m. as the tentative date for the council to adopt the ordinance authorizing the sale.
Who repays it
Gail Dansby, the city's executive director of administrative services, wrote that the projects would be paid from the Melissa Community and Economic Development Corporation's share of sales tax, from Tax Increment Reinvestment Zone No. 1 and from water and wastewater revenue, and that they "do not have an impact on current residents or property taxes."
The legal notice itself pledges property taxes as backing, along with a limited pledge of surplus water and sewer system revenue. It estimates a 5% interest rate, total principal and interest of $116,370,500 and a final maturity of Feb. 15, 2052.
