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<br />Attorney Goodrich explained that the purchase does not need to be made with the lease and the <br />. City could choose to move to another piece of property, or the City could state that they did not <br />want to buy the land with the lease att~ched. <br /> <br />Councilmember Elvig stated that while the lease was not known regarding the property, it would <br />give the City an opportunity to generate some income. He did not want to see the City exploit <br />that opportunity and cause the current business additional hardship. <br /> <br />City Administrator Ulrich stated. that rent revenue would go back into the RALF program, with <br />the exception of the administrative fee. <br /> <br />Councilmember Wise agreed with the comments made by Councilmember Elvig. <br /> <br />Councilmember Dehen questioned the goal with the property. whether it was to foster business <br />or to lease the property at a market rate. He thought that no matter what is done in the situation <br />the Council would need to think of future situations and how to maintain consistency. He <br />thought that the risk of going below market rate was that people might come to expect that, <br />which may cause problems for other property owners attempting to gain market rate. <br /> <br />City Administrator Ulrich stated that in the past a goal has been to purchase this type of property <br />for the expansion of right-of-way, yet maintain business vitality in the corridor. He noted that in <br />this case, the below market value price is not being disruptive.as it continues the amount of a <br />present lease and could be renegotiated at market rate in approximately one year. <br /> <br />Councilmember Look thought it was important to replenish funds into the RALF program and <br />help, the community advance. He stated that there had been interest in leasing back the property <br />when the sale of the property had been discussed. <br /> <br />Mr. Deal stated that if the City wanted to renegotiate the lease with TAMM, they definitely. could <br />and he could then negotiate from there. He thought that this was the easiest method of resolving <br />this issue for the short term. <br /> <br />Councilmember Look was concerned that the lease amount is below market value. <br /> <br />Economic Development Coordinator Sullivan advised that this would be the low end of market <br />value and he thought that would be sufficient in the short term. He stated that further research <br />could be done in the next year to determine a mid-level market value. <br /> <br />Mayor Ramsey questioned where the $2,300 value came from, <br /> <br />Economic Development Coordinator Sullivan stated that it was truly a middle number from the <br />other two options. <br /> <br />Councilmember Dehen had concern with the method of appraisal. He had been told that the <br />value of property along Highway 10 was stable and had not been affected by the economy. He <br />was concerned whether the right amount of research had not been done. <br /> <br />City Council! July 28, 2009 <br />Page 7 of 13 <br />