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<br />the time, the City said it would honor the lower price for a year, but then add it onto the rent the <br />following year. . <br /> <br />Mr. Sharp stated that he has been in this location for about a year and a half and most leases <br />started in November. He stated that if this increase is approved, it would be a 67% increase for <br />his rental units. He stated that he would like to see this increase spread over 2 years so he can <br />keep this space full. <br /> <br />Councilmember Dehen stated that if Mr. Sharp owned this property, he would be paying the full <br />property taxes. He stated that he feels this needs to be structured in a way that covers the <br />property taxes and doesn't hurt competition. He stated that he is not in favor of giving particular <br />entities in the City a break because it creates artificial inequities in the market. <br /> <br />Mayor Gamec confirmed that the other properties along Highway 10 are paying amounts that <br />cover their property taxes. <br /> <br />Economic Development Coordinator Sullivan stated that the other properties do pay for their <br />property taxes and noted that the Council wanted to try to have some viable businesses in this <br />area, . so the City could continue to collect property taxes. He noted that there are some back <br />taxes on this property. <br /> <br />Councilmember Olson asked if the City had any expenses on this property other than the <br />property taxes. <br /> <br />Economic Development Coordinator Sullivan stated that there is a property management fee and <br />other fees accumulated through the RALF process, such as for appraisals, consulting, gas, and <br />electric. He stated that these are pretty minimal and that the biggest is the property taxes. He <br />stated that the City also carries liability insurance for the property. <br /> <br />Mayor Gamec asked if the rent being paid was at marketrate. <br /> <br />City Attorney Goodrich stated that they had a conference call today, with commercial realtor, <br />Marty Fisher, who indicated that $1.25 to $1.50 per sq. ft. plus taxes is market rate. <br /> <br />Mayor Gamec stated that he doesn't see any way the City can change this, based on the other <br />leases it has. <br /> <br />Economic Development Coordinator Sullivan stated that the City could ask the County to re-. <br />evaluate the assessment on this property to see if the value is too high. <br /> <br />Motion by Councilmember Jeffrey, seconded by Councilmember Dehen, to require that K&K <br />Sharp, Inc. pay a rent increase on each of the leases at 6701 and 6745 Highway 10 in the amount <br />of the annual property taxes assessed against each property. <br /> <br />Further Discussion: Mayor Gamec asked Economic Development Coordinator Sullivan to talk <br />to the County about possible re-assessment and keep the Council updated. <br /> <br />City Council! June 24; 2008 <br />Page 90f 17 <br /> <br />P27 <br />