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Case #5:. Consider Offer to Lease Property Located at 6701 Highway 10 NW <br />Deputy City Administrator Nelson reviewed the staff report. <br />Councilmember Dehen asked if they had done less than a market leaseback in the past. He stated <br />he was trying to get some consistency. <br />City Attorney Goodrich responded Council had done a leaseback less than market rate, but that <br />was only because there was a lease in place. He noted this was a different circumstance. <br />Councilmember Jeffrey- asked if this had storefront space. <br />1Vlarty Fisher described the bay was on the south end. He stated this was the first offer that had <br />come forward. He noted this was a little small for a typical industrial user, but instead was along <br />the lines of a storage unit. He indicated utilities were included as separating off the bay would <br />be cost prohibitive. <br />Councilmember Jeffrey stated the only .benefit the City got was taxes and asked whether this <br />would be taxable. <br />Deputy City Administrator Nelson responded the status would be changed to taxable property. <br />Councilmember Wise stated he supported somewhere between their offer and market. He <br />indicated he did not know any lease that included maintenance and also expected them to pay for <br />$600-700 for automatic door openers. <br />Mr. Fisher responded they had calculated this on what an industrial lease rate would be. He <br />stated he had checked with Acorn Mini Storage in Blaine and this type of space was $216.00 per <br />month, unheated. <br />Councilmember Elvig stated he believed they would have to go with market rate. <br />Mayor Ramsey believed this was low, especially with utilities. He stated they had to get at least <br />market rate and he would push for more than market rate if it included everything. <br />Councilmember McGlone asked who was calculating the market rate. <br />Mr. Fisher stated there was an industrial rate reference in the case study and he also had the <br />perspective from a mini storage lease. <br />Council consensus was reached to direct. staff to negotiate a market lease price for the property <br />located at 6701 Highway #10 NW. <br />Case #6: Adopt Ordinance to Add City Code Section 9.17 to Permit Wind Energy <br />Conversion Systems as a Conditional Use; Case of the City Ramsey <br />City Council /September 8, 2009 <br />Page 18 of 23 <br />