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Council reviews preliminary promissory note of up to $650,000 for splash pad and pool bathrooms
Summary
City staff presented a preliminary promissory note (preliminary line of credit) for DMDG Holdings LLC of up to $650,000 to support splash pad and pool bathroom work; withdrawals would be by pay request approved by council and staff said project cost details will be provided as they are finalized.
City staff brought a preliminary financing arrangement to the Madelia workshop: a promissory note (preliminary line of credit) for DMDG Holdings LLC of up to $650,000 to fund construction of a splash pad and pool bathroom improvements.
Staff said any withdrawals under the note would be made by pay request and require council approval. “These withdrawals will be by pay request approved by the council,” staff said, describing an open-book approach and council oversight on pay requests.
Council members asked for more granular cost breakdowns and for clarity on what the city would pay versus what the contractor or developer would pay. Mads, a staff member, said the project team was starting to firm up plumbing costs and other line items and that the estimate was currently expected to be on budget but that there remained potential changes.
Why it matters: the note would enable contractor cash flow for a project that affects public facilities (splash pad and pool bathrooms). It is preliminary in the workshop discussion; staff described procedures (pay requests) and said final accounting and a full project breakdown would be available on completion.
Next steps: no formal vote on the promissory note was taken at the workshop; council requested additional detail on pay-request procedures and a project cost breakdown before formal consideration.
