CR 10-044 Approve Loan Agreemtn between City of Hopkins and Hopkins ARea Little League for Construction of Batting Cages at Maetzold Fieldr
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May 12, 2010
CITY OF
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HOPKINS
Council Report 2010-044
Approve Loan Agreement between City of Hopkins and Hopkins Area Little
League for Construction of Batting Cages at Maetzold Field
Proposed Action.
Staff recommends adoption of the following motion: Move that Council authorize
City Staff to sign a $15,000 loan agreement with Hopkins Area Little League plus
approve a $3,000 City contribution to finance the construction of two batting
cages and practice pitching mounds.
Overview.
This project includes constructing two fenced side-by-side batting cages between
fields #2 and #3 and two fenced pitching mounds just outside the outfield fence
of field #2. The total project cost is $30,000. The City would contribute 10%, or
$3,000 to the project plus a 5 -year $15,000 loan. The city contributions would be
funded from the Park Dedication Fund. The Hopkins Area Little League
previously borrowed funds from the city for a 2003 project that added lighting to
field #2 - this 4 -year, $30,000 loan was repaid on -schedule. The Hopkins Park
Board approved providing funding assistance to HALL for these improvements at
its November 16, 2009 meeting. It is anticipated that the Park Board will approve
the construction of the improvements and the loan agreement at its May 17, 2010
meeting. If approved, the work would be completed within one month.
Supporting Information.
• Diagrams and photos of proposed improvements
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U
n Agreement & Promissory Note
Steven J. Stadler
Public Works Director
Financial Impact: $3,000 + $15,000 loan Budgeted: Y/N N
Source: Park Capital Improvements Fund (301)
Related Documents (CIP, ERP, etc.): Notes:
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AGREEMENT FOR A LOAN FOR MAETZOLD FIELD BATTING CAGES AND
PITCHERS PEN PRACTICE AREA
This Agreement is made and entered into as of the day of 12010,
by and between the City of Hopkins, a municipal corporation ("City") and Hopkins Area Little League
("HALL"), a non-profit corporation.
field.
RECITALS
1. Maetzold Field is a City park providing for several amenities including ballfields and soccer
2. The HALL has successfully partnered with the City of Hopkins to make many capital
improvements to the City park including a 2003 project to add lighting for ballfield #2.
3. The principal user of the field is HALL which has requested that two batters cages and a
• pitchers pen area be added to the park.
4. HALL has agreed to assume all of the costs to purchase and install the new batters cages and
pitchers pen in the estimated sum of $30,000.00 less a $3,000 City contribution and has requested that the
City loan HALL the sum of $15,000.00, to commence installation of the improvement for use in the 2010
Little League season.
5. HALL seeks a loan in the amount of $15,000.00 payable in annual installments with interest
for a term of five years.
NOW, THEREFORE, in consideration of the aforementioned recitals and the mutual promises and
conditions hereinafter set forth, the parties agree as follows:
1. The City agrees that it will contribute $3,000 towards the project from the Park Dedication
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Hopkins\LittleLeague 1
• Fund and provide a loan to HALL in the sum of $15,000.00 for its use in commencing the installation and
construction of such improvement within sixty days of the date of this Agreement.
2. HALL does hereby agree to pay the contractor the inital sum of $15,000.00 from its own
finds and the City contribution and thereafter draw on the loan proceeds for the balance of the amount to
be due and owing the contractor upon completion of the project.
3. HALL shall deliver to the City its Promissory Note in the sum of $15,000.00 providing for
consecutive annual payments to the City ol'$ 3,000.00 with interest thereon of 4% per annum commencing
July 1, 2010. The Promissory Note shall be in the form attached hereto as Exhibit A.
4. It is understood and agreed by both parties to this Agreement that the improvements
installed pursuant to this Agreement are deemed to be permanent fixtures and shall become the property of
the City
• 5. The City agrees following installation of the improvement to be responsible for continued
maintenance and repair as needed from time to time.
6. HALL agrees that it shall comply with all codes, ordinances, laws and regulations with
respect to the installation and construction of the improvement. HALL shall furnish to the City the
Purchase Agreement, including plans and specifications provided by the vendor for its review and
comment.
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HopkinsUttleLeague 2
0 IN WITNESS WHEREOF, the parties have signed this Agreement on the day and year first above
written.
IIn
Its
HOPKINS AREA LITTLE LEAGUE
CITY OF HOPKINS
By
Eugene J. Maxwell
Its Mayor
By
Richard Getschow
Its City Manager
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Hopkins\Little League
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PROMISSORY NOTE
$15,000.00
2010
FOR VALUE RECEIVED, the undersigned Hopkins Area Little League promises to payto
the order of the City of Hopkins the principal sum of Fifteen Thousand Dollars ($15,000.00) with
interest thereon at the rate of four percent (4%) per annum payable in consecutive monthly
installments of Three Thousand Dollars ($3,000.00) annually commencing July 1, 2010 and on
the 1st day of July each year thereafter until July 1, 2015 upon which latter date the entire
unpaid balance of this Note, including accrued and unpaid interest, shall be due and payable
upon demand of the holder. All such payment on account of the indebtedness evidenced by this
Note shall be first applied to interest on the unpaid principal balance and the remainder to
principal.
All payments due hereunder shall be made at 1010 First Street South, Hopkins,
Minnesota 55343 or at such other location as the holder of this Note may, from time to time,
designate in writing.
It is agreed that at the election of the holder or holders hereof and without notice, the
entire principal sum remaining unpaid hereon, together with accrued interest thereon, shall
become at once due and payable at the place of payment aforesaid in case of default in the
payment of principal or interest when due in accordance with the terms hereof or in case default
shall occur and continue for fifteen (15) days (in which event election may be made at any time
after the expiration of said fifteen (15) days, without notice) in the performance of any other
agreement contained in said Agreement. The holder of this Note may exercise this option to
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HopkinsTromissoryNote
• accelerate during any default by Makers regardless of any prior forbearance. If suit is brought to
collect this Note, the Holder hereof shall be entitled to collect all reasonable costs and expenses
of suit, including, but not limited to, reasonable attorney's fees.
All parties hereto severally waive presentment for payment, notice of dishonor, protest
and notice of protest. This Note shall be the joint and several obligation of all makers, sureties,
guarantors and endorsers and shall be binding upon them and their successors and assigns.
HOPKINS AREA LITTLE LEAGUE
:
Its
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HopkinsTromissoryNote 2