CITY GIVES CHAMBER $7,500
TO FUND THE VICTORIA VOLKSFEST
Councilmembers voted August 23^rd to give the Victoria Chamber of Commerce $7,500 from the city's general fund to help pay for the Volksfest.  Said Chamber President Jay Swenson, "Most of the money is for promotion and advertising.  We want everyone in Victoria to know what's going on."
Stated Mayor Mary Thun, "I was kind of distressed at the increase in costs."  Said Councilmember Tim Amundsen, "The Chamber is having trouble getting the businesses together.  How much of this [Chamber] budget could have been pulled together by businesses?  I would debate that it's a family friendly event.  It went from a community celebration [Touch of Bavaria] with dinner and dance to a showcase for businesses.  The burden for funding should be on the businesses."
In reviewing contracts presented by the Chamber for the city to sign, City Attorney Mike Norton said they were not valid.  They will be reworked.  Also, the Chamber will sign the contracts and not the city.
The city donation includes $2,500 for the Phat Pearl band to play that night in the parking lot by Schmitty's Tavern.

GOODBYE, DAVE; HELLO, STEVE!
LOOKING FOR A FOCUS ON VICTORIA
Steve Sarvi will be returning from National Guard Duty in Iraq to his position as the Administrator of Victoria on September 4th.  Mayor Mary Thun reported August 23^rd that she asked Steve about his intention to run for public office.  There have been reports that he might challenge Republican John Kline for the Second Congressional District Seat.  The website www.stevesarvi.com has been available for information.  "Steve confirmed that he was thinking about it," said Mayor Thun.  "The Personnel Committee is considering an employment agreement that could return him to the same position with Victoria, return him to a similar position, or he could ask for a leave of absence."
Stated Councilmember Kim Roden, "I do have concerns about a city adminis-trator totally focused on Victoria."
As August 23^rd was the last official Victoria City Council meeting over which Administrator Dave Urbia would preside, Councilmember Roden thanked him for his work.  "I've thoroughly enjoyed his high ethical standards," said Kim.  The entire council applauded Dave Urbia, who said, "It was great working with you."

IS THE LAND SWAPPED YET?
DOES VICTORIA REALLY OWN IT?
It was in the fall of 2003 that the City of Victoria entered into a contract for deed with MABSSCO in purchasing the Step Group Home property on Lake Auburn.  At that time Mayor Jerry Bohn said, "I would say we're not looking for an opportunity for investment, but for a trade."  The sale price was $1.5 million. 
As of August 23^rd, 2007, a trade of that property with Three Rivers Park District for acreage adjacent to downtown Victoria has not yet officially occurred, and issues remain on the table.  Loose ends have not been tied.  Councilmember Jim Paulsen delineat-ed the potential for $5.6 million in devel-opment cost for the parcel, including acquisition costs of $2.6 million, TKDA development cost of $1.7 million, and hard development cost of $1.3 million. 
"So the question is," said Jim, "where is that money coming from?"
Acquisition cost of the Land Swap property is about a million dollars more than purchase cost due to requirements in the agreement with the Three Rivers Park Park, according to Administrator Dave Urbia, such as acquiring a parcel of land to go to the park district to equal land value in the swap, demolition costs, future trail construction, and potential trail easement costs.

VICTORIA AND SCHOOL DISTRICT 112
HOPING FOR MASTER AGREEMENT IN OCTOBER
Stated Mayor Mary Thun on August 9^th regarding a possible contract between the City of Victoria and School District 112 regarding the Victoria Field House, "This agreement would be long term so we want to make sure the numbers are correct.  It obligates future councils." 
On August 23 Councilmember Jim Paulsen referred to a document before them as a template for a long term relationship.  "It's a win-win environ-ment," he said.  "We are proposing that School District #112 lease a pad of land from us [next to the Victoria Field House] for $125,000 and lease our existing ice for $275,000.  That's $400,000."
Councilmembers then unanimously approved a Memorandum of Understand-ing with School District 112 that develops such a joint ice facility at the Victoria Field House.  "It facilitates more formal discussions in order to develop a master agreement."
The relationship would permit Dis-trict 112 to build a new ice facility and use the existing ice facility.  According to the agenda statement by City Attorney Mike Norton, "The current concept is for the school district to construct a 500-seat ice arena with associated facilities.  The city would contribute its ice sheet.  The school district would be responsible for construction of the new ice arena and overall management and operations asso-ciated with the joint ice facility."
The attorney continued, "The school district would pay the city an initial fee of $400,000 a year which would be split into a ground lease of $125,000 a year and operations fee of $275,000 a year, each for a period ending in 2032.  Each fee would automatically increase at the rate of 2% a year over term of the agreement."
The City of Victoria and School District 112 will begin immediate negoti-ations to develop a master agreement for review and approval at the Victoria City Council meeting on October 11^th, 2007.
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