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<br />Attorney Goodrich replied we have by consensus agreed on $1,753,500. He stated that with <br />regard to relocation benefits - Escrow of $125,000 plus clean up and they will indemnify us. <br />Council wanted to have tenants have written leases and that we should use a reasonable effort to <br />obtain that. Council's thought with regard to relocation expenses was that those expenses are <br />there when you buy a property. If we are on the hook for relocation, we do not want to have <br />very expensive relocation expenses. It's to our benefit to keep these down even if they <br />indemnify us. <br /> <br />Councilmember Olson stated that you either get a lease or you don't. <br /> <br />Councilmember Strommen commented that Mr. Bury wouldn't want to just kick out his tenants. <br /> <br />Mr. Goodrich stated we want written leases - if we do not have them, we will not close. <br /> <br />Director of Public Works Olson stated that you mentioned you did not know what promises were <br />made to the tenants. <br /> <br />Councilmember Look commented that Mr. Bury indicated the two leases were verbal so we do <br />not know what was said. <br /> <br />Mr. Goodrich reviewed language for the written leases. <br /> <br />Councilmember Look inquired what if they have options to extend their leases for an indefinite <br />amount of time - how would we deal with that? <br /> <br />Mr. Goodrich again reviewed the language for dealing with the leases. He discussed the <br />language which included no additional subletting allowed on the property or that subleases <br />would require City approval. <br /> <br />Mr. Goodrich referred to the Condition of Premises. This is an as-is purchase. We are not <br />buying this property on the condition of the building. There are 21 acres and also concrete <br />barriers. <br /> <br />Councilmember Jeffrey stated the barriers have a scale and inquired what if the scale is <br />destroyed. He felt that would need to be restored in to a workable condition at the time we close <br />on the property. <br /> <br />Mr. Goodrich inquired if during the lease time, Mr. Bury has to be responsible for the scale to <br />which Councilmember Jeffrey responded yes. We called that scale out as something of value to <br />the City. <br /> <br />Councilmember Olson inquired what the scale is worth. <br /> <br />Director of Public Works Olson stated that the blocks and scale are worth about $60,000. <br /> <br />Special City Council Meeting /February 19, 2008 <br />Page 4 of9 <br />