Regional Industry & News

BRECKENRIDGE — The Breckenridge City Council Tuesday approved a resolution related to the city’s previously awarded $3 million state grant for the Infinity Center, along with agreements involving the future transfer of school district property to the Breckenridge Port Authority.

The council approved a resolution required as part of the process for the $3 million in state funding previously awarded to the city for the Infinity Center.

City Attorney Jason Butts explained that the funding comes from general obligation bonding approved by the Minnesota Legislature. The resolution formally acknowledges the city’s acceptance of the funding and confirms that the city has the authority to apply for and receive the money.

The resolution also confirms that the funding will be used for the Infinity Center and that the city will comply with the requirements associated with the state funding.

Much of Tuesday’s discussion centered on the city’s long-term responsibilities connected to the grant.

Council members questioned what would happen if the Infinity Center were to close and how long the facility would have to remain in operation to satisfy the state’s requirements.

Butts said he did not have the exact required period available during the meeting, but explained that the facility’s use must continue to meet the state’s requirements for a community recreational facility.

“If Infinity goes belly up,” Butts said, the city’s portion could remain eligible as long as it continued to be used for some type of recreation benefiting the community.

Council members also asked whether the city could be responsible for construction costs exceeding $3 million.

Butts said the city’s portion of the project is structured specifically around its $3 million contribution.

“The way we have it set up, our portion is $3 million worth of the gym area,” Butts said.

He said the city’s portion would be limited to $3 million rather than making the city responsible for additional project costs.

Under the arrangement being developed, the city would own a portion of the Infinity Center associated with its investment, while the Infinity Center would operate the facility.

Butts said a use agreement is being drafted between the parties. Under the proposed arrangement, the Infinity Center would be responsible for operating expenses, insurance, replacement costs and other costs associated with operating the facility.

Council members asked who would ultimately operate the center. Butts said the city would not be responsible for its day-to-day operation.

The Infinity Center could operate the facility itself or arrange for management, he said, as long as the facility continues to meet the requirements associated with the funding.

The council also approved an agreement establishing the terms for a future transfer of property currently owned by Breckenridge Public School District.

The property includes the area where the current elementary school is located.

The school district is expected to convey the property to the Breckenridge Port Authority after it is finished using the site. The agreement is intended to provide a legally binding framework for the future transfer rather than leaving the matter to an informal understanding.

Butts said the city previously reached an agreement with the school district involving property exchanges. Because the school district will continue using the property, however, the transfer will not occur immediately.

The agreement establishes a future conveyance date and provides that the property will ultimately be transferred directly to the Port Authority.

The future conveyance is to occur by Jan. 1, 2031, subject to provisions addressing weekends, holidays and recording-office closures.

Butts told the council the date was selected based on the school district’s expected timeline for completing its new facilities.

Council members described the agreement as a safeguard for the city, particularly because the property transfer is several years away.

One concern raised during the discussion was the condition of the property when it is eventually transferred.

Council members asked whether the school district would remain responsible for maintaining the property if, for example, the roof or windows needed repairs shortly before the transfer.

Butts said the agreement requires the school district to maintain the property while it remains in possession of it and until the conveyance takes place.

The agreement also restricts the school district from voluntarily selling, transferring, leasing or otherwise encumbering the property without the required approvals.

The city would be able to assign its interest in the agreement to the Port Authority, allowing the Port Authority to take a larger role in the property’s future development or marketing.

Butts said the agreement also provides legal remedies if the school district fails to meet its obligations, including the possibility of seeking specific performance to require the transfer of the property.

The agreement will require approval by the participating entities before it becomes effective.

The council also approved three easements associated with ongoing school work.

One is a permanent utility easement that will allow the city to access and maintain a new sanitary sewer line serving the area.

Two additional easements are temporary and are intended to provide access during construction and related work.

The council approved all three easements together.

The council also approved bills and claims. Public Works crews are beginning seasonal work, including completing sanitary sewer work and preparing to flush fire hydrants.

City building officials continue to work on nuisance abatements and yard-maintenance issues.