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Agenda - Council Work Session - 06/02/2009
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Agenda - Council Work Session - 06/02/2009
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3/18/2025 4:00:06 PM
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5/28/2009 12:15:35 PM
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Meetings
Meeting Document Type
Agenda
Meeting Type
Council Work Session
Document Date
06/02/2009
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<br /> <br />,(. <br /> <br />Larlrin <br />HoffiM~ <br /> <br />Larkin Hoffman Daly & Lindgren Ltd. <br /> <br />1500 Wells Fargo Plaza <br />7900 Xerxes Avenue South <br />Minneapolis, Minnesota 55431-1194 <br /> <br />GENERAL: 952-835-3800 <br />FAX: 952-896-3333 <br />WE': www.Iarkinhoffinan.com <br /> <br />May 14, 2009 <br /> <br />William K. Goodrich <br />RANDALL & GOODRICH <br />2140 Fourth Avenue North <br />Anoka, Minnesota 55303-2268 <br /> <br />CERTIFIED MAIL <br />RETURN RECEIPT <br />REQUESTED <br /> <br />Re: Bury & Carlsol1.-:---:City of Rainsey Lease <br /> <br />Dear Bill: <br /> <br />I received your May 8, 2009 letter. The City's attempts to charge Bury & Carlson and collect <br />storm sewer charges are in violation of the March 28, 2008 Lease Agreement (the "Lease") and <br />are in breach of the Lease. It is very clear under the terms of the Lease that Bury & Carlson is <br />not responsible for storm sewer charges. <br /> <br />Section 4 of the Lease refers to utilities. No other provisions of the Lease make any reference to <br />utilities (and there are certainly no references to storm sewer charges in the Lease). If you are <br />able to point to another applicable provision of the Lease, I would be happy to review it, but I <br />believe the only remotely relevant clause for purposes of the City's position would be .. <br />Section 4.1 (a), which states in its entirety: "Tenant shall be billed in its own name and make <br />direct payment to any utility company for the furnishing of gas and electricity for its use of the <br />Leased Premises including municipal water and sanitary sewer service." In your May 8, 2009 <br />letter, you are apparently taking the position that the Lease requires Bury & Carlson to pay all <br />utilities and you argue that storm sewer qualifies as a "utility." Whether storm sewer is or is not <br />a utility does not matter because Bury & Carlson is not obligated to pay for all utilities; Bury & <br />Carlson is obligated to pay only for gas (none), electricity, municipal water (none) and sanitary <br />sewer service (none). The specific utility services for which Bury & Carlson is responsible ~re <br />carefully and expressly set forth in that section of the Lease. Storm sewer is excluded. <br /> <br />Further, Section 3.5 ofthe Lease describes operating expenses payable by Bury & Carlson. That <br />paragraph states that except as set forth above in the Lease, Bury & Carlson is not obligated t() <br />pay the City any operating expenses. There is no obligation above (or below, for that matter) in <br />the Lease to pay storm sewer fees. <br />
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