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y <br />92688.2HD <br />To: Mayor Grabek & Orono Council Members <br />From: Mark E. Bernhardson, City Administrator' <br />Cate: September 20, 1988lNG <br />Subjectr Spring Hill Conference Center - Closure S"P 2 8 <br />I,�i,.}� <br />ATTACHMENT 9F PRORG <br />A. Letter to Spring Hill Dated 9/15/88 <br />ISSUE - Apprising the CoLncil of the steps taken by the City -4r <br />relationship to the anticipated closure of Spring Hill. <br />INTRODUCTION - As you may be aware, Spring Hill has announced that the <br />operation as a non -prof it center wi 11 cease to exist in November of this <br />year. <br />DISCUSSION_ - The initial concerns for the closure of the center relate <br />both zoning and finance. <br />The attached letter highlights the zoning issue, as noted, that the <br />current conference center property has a permitted use for a non-profit <br />conference center. The ordinance also allows for a wider variety of uses <br />other than as a conference center. It was felt by staff that the Cit} <br />need:d to send the conference center a notice as to what possibilities the} <br />may have so that they do not undertake serious discussions with a use that <br />currently would not be allowed. Additionally, it s. oulc be noted that the <br />property abut-ing the center that they currently own is zoned single famil} <br />residential and would be allowe' only to be used for single famil% <br />residences or other items permited in such zones. <br />Se(-nnd ly, the City has for a number of -•ears, received a donation in lieu of <br />t? . from the conference center giver; Lhe fact that they have been able tc <br />mai .,:ain themselves as a tax exr.apt property. On the one hand, this tar <br />exempt status may change depending on the determination by Hennepin Cjunt} <br />and also the use to whic,i they out to the property. On the ;ether hand it <br />is anticipated that thoy will sL_.; making the annual contribution of about <br />$5.500, that they hav(- • •axle in the past. <br />