Agenda - Council Work Session - 04/27/2010

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K & K Sharp, LLC 10907-93rd Avenue North r~apie csrove, r~N 55369-4199 " We discussed the payment of taxes with Sean Sullivan and Marty Fischer as to the portion we would pay for the attached pole buildings under our lease and agreed to accept 40% of the taxes being paid by us and 60% to be paid by any tenant occupying the primary portion of the structures. Since we had substantial investment in equipment for moving and stacking boats and pontoons we decided to try to increase our storage fees to cover the added costs. Bill Goodrich sent us his breakdown of the added rent and we have been paying that amount since June of 2008. Now we have received the attached letters from the City Attorney which showed increased taxes for 2008, payable in 2009(see attached). In pulling the property account summary I noticed we have been paying the full tax on 6701 Hwy 10 and have been since June of 2008(19 months, see attached). I have met with Sean Sullivan and John Leone(Anoka county appraiser) on March 3, 2010 and was told "the taxes levied on 6701 Hwy 10 are only for that portion of the building in our lease, the balance of the structure is tax exempt since it is empty or rented by a tax exempt entity." The total taxes for 6701 in 2009 are $24,713.89 The total taxes for 6745 in 2009 are $27,782.42. In September 2005, 6701 sold for $1,800,000. In August 2006 6745 sold for $1,734,000. These, I assume were arm length transactions and show almost identical value that a buyer is willing to pay for the properties. One year later in 2007 the taxes were $22,012.39 for 6701 and $19,947.88 for 6745(we have no property values) Then in 2008, payable in 2009 the values I received from John Leone are: PHONE (763) 424-6520 FAX (763) 425-6428