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Mr. Heppleman noted a portion of Highway 10 has to be reconstructed to fit in the ramps. There <br />will be an added cost to bring in fill. A noise analysis has not yet been completed. <br />Mayor Ramsey questioned if Highway 10 stayed where it is now and was not raised, whether the <br />decibel would change. <br />Mr. Heppleman explained there would be an impact on the south side as it is raised. Much of it <br />is exposed currently and he didn't think it would be a major change. <br />2) Bury & Carlson Parcel — Sale Opportunity for Prospective Business <br />Economic Development/Marketing Manager Backman reviewed the staff report and introduced <br />Jeff LaFavre of Integrust Advisory Group. Mr. Backman stated he toured the Bury & Carlson <br />site and found there is less aggregate than he anticipated. He had a meeting earlier in the day <br />with Chris Bury on their expectations. He also had a follow up meeting with Jeff Mulrooney. <br />He noted there is a 10 year lease when Bury & Carlson can exercise on that site and it is the third <br />year of that agreement. As the agreement continues, there is less of a penalty in exercise <br />opportunities. The cost would be $440,000 if the lease were ended this year. The total cost to <br />the City would be $2.2 million. <br />Mr. LaFavre commented there would not be a penalty cost if the parcel were split. They asked <br />for 10 acres. It doesn't seem to be an option to have them move their operations to the south side <br />of the parcel, or swap it. <br />Mayor Ramsey stated he would support paying Mr. LaFavre for the services he has provided so <br />far. He has no interest in marketing the property for any other use. <br />Councilmember Elvig clarified whether the parcel could be split. <br />Mr. Backman explained the business would want to utilize the full 20 acres, but agreed they <br />would need a minimum of 15 acres. However, due to the lease agreement, it was decided the <br />parcel could be split 10 acres for each entity. This would alleviate the penalty cost. <br />Councilmember McGlone agreed with Mayor Ramsey to not market the property any further. <br />He doesn't want to sell the property, necessarily, but he indicated he would want to sign a <br />contract for this deal, which is a commissionable event. This proposition was brought to the City <br />and he would not want Mr. LaFavre working to set up another deal should this one fall through. <br />He requested writing a contract to include this type of language. <br />Mr. LaFavre agreed to tie his work to this specific location. The contract could be terminated <br />earlier if the deal is done, or is dropped. <br />Mr. Backman noted the existing lease agreement with Bury & Carlson states the City has to give <br />them a 12 month written notice. The City asked to proceed on a faster notification, and Mr. Bury <br />said he would like notification no later than March. He starts buying product seasonally and <br />would need to know for storage reasons. <br />City Council Work Session / February 15, 2011 <br />Page 3 of 6 <br />