Agenda - Council - 03/09/2010 - Laserfiche WebLink

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7.05: Consider Offer to Lease Property Located at 7550 Sunwood Drive NW City Attorney Goodrich reviewed the staff report. Motion by Councilmember Wise, seconded by Mayor Ramsey, to execute the Lease Agreement contingent upon City Attorney approval as to legal form. Further discussion: Councilmember Elvig expressed concern about the City not having enough space in the future and the wear and tear on the building, but he would not oppose the motion. He expressed concern that the City had no option to end the lease after the five -year period. Councilmember Look also had the same concern. City Attorney Goodrich responded this was negotiable, but he did not believe the County would agree to a less than five -year lease. Councilmember Dehen stated he would like to limit this to one five -year option. Councilmember Elvig recommended after the first five years with two -year renewals options. Motion by Councilmember Dehen, seconded by Councilmember Look, to amend the motion to have a five -year increment and have it be looked at two -year renewals thereafter at the City's option to renew. Further discussion: Councilmember Wise asked if this amendment would affect the County renting the space. City Administrator Ulrich stated one of the concerns he had heard was that the City was not in this for the long -term so he believed there might be some concern about the five - year term. He believed a ten -year term might be more appropriate. Councilmember Wise stated he was in favor of a ten -year lease. Councilmember Look stated he was in favor of the amendment, but the direction was a five -year lease with an option of five -year renewals at either party's choice. Mayor Ramsey expressed concerns that if the amendment was passed, the County would not approve it. He stated he would like to see an initial five year term with an option for five -year renewals at the option of either party. Amended Motion failed. Voting Yes: None. Voting No: Mayor Ramsey, Councilmembers Dehen, Look, Elvig, and Wise. Absent: Councilmembers Jeffrey and McGlone. Motion by Councilmember Look, seconded by Councilmember Elvig, to amend the motion for a five -year rental period with the option to renew the lease for five -year extensions with the option of either party to cancel. Further Discussion: Councilmember Elvig asked if the City could terminate the lease if the building was not properly cared for by the tenant. City . Attorney Goodrich pointed out the exhibits that addressed what the tenant was responsible for. Councilmember Wise expressed concern about the five -year term not being long enough for the County. He believed the County should be given a ten -year lease. Councilmember Look noted this was not a wear and tear issue for him. He stated he was worried about the growth of the City being too great and the City not having enough space. City Attorney Goodrich recommended the Council hold off on further remodeling until the lease was approved by the County as he did not believe the County would agree to these terms. Mayor Ramsey believed this was a good fit for the County, the City, and City Council / February 23, 2010 Page5of9