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Crosslake council warned a $2.8 million LCCMR funding conflict could leave city exposed; Loon Center vows alternate funding
Summary
At a May 27 special meeting, City Administrator Lori Conway told the Crosslake City Council that a legislative conflict between MMB and LCCMR could risk a $2.8 million grant for the Loon Center; the Center said it will seek private donations or increase its construction loan if state funding is lost.
City Administrator Lori Conway told the Crosslake City Council at a May 27 special meeting that staff had identified a conflict in legislative language between Minnesota Management and Budget (MMB) and the Legislative-Citizen Commission on Minnesota Resources (LCCMR) that could jeopardize a $2.8 million LCCMR grant for the Loon Center.
Conway said the City serves as fiduciary for the LCCMR funds and therefore needs assurances the Loon Center will have alternate means to cover a $2.8 million shortfall if the grant is lost. She added that because the ground lease is valued at just over $703,000, the City’s exposure—if it were required to sell the lease to repay the State—would be limited to the lease’s market value.
John Mobeck of the Loon Center told the council that, if the LCCMR funding is lost, "the project will continue with private donations or adding the costs to the construction loan." When Council Member Robin Sylvester asked about the deadline for using the funds, Mobeck said the deadline is June 30 and that the Center had already incurred the associated costs. Council Member Jayme Knapp asked when pending donations would arrive; Mobeck said he expected those donations to be paid by November.
Council Member Sandy Farder asked whether there had been any contention with State officials. Mobeck replied that the Center was "just abiding by the law and doing what they have to do." No council member moved to take formal action during the special session.
The meeting convened at 10:00 A.M. and, with no further business, Mayor Jackson Purfeerst adjourned the meeting at 10:15 A.M. The council did not record any motions or votes related to the matter during the session.
