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Motion by Councilmember Tossey, seconded by Councilmember McGlone, to move to closed <br />session. <br />Motion carried. Voting Yes: Acting Mayor Wise, Councilmembers Tossey, McGlone, Backous, <br />and Elvig. Voting No: None. Absent: Mayor Ramsey and Councilmember Jeffrey. <br />The Special Council meeting moved into a closed session at 5:35 p.m. <br />The closed session ended at 5:47 p.m. <br />4.02: Consider Bialon RALF Purchase Agreement/Lease Agreement Terms <br />City Attorney Goodrich reviewed the staff report. <br />Acting Mayor Wise stated he is not in agreement with the subject's proposal. He said he <br />disapproves of a lease that does not build in sufficient funds for taxes and maintenance. <br />Councilmember McGlone noted the purchase agreement price has been negotiated and set. The <br />Council and the seller are now working on coming to terms with the lease portion. He asked if <br />the City can tell the seller that he needs to remove cars from the property. <br />City Attorney Goodrich explained the seller does not want to sell. He has not yet signed the <br />purchase agreement and will not unless he gets the easement he requests. <br />Councilmember Elvig stated he cannot see why the City would go into perpetuity on the lease. <br />He suggested it be approached as it is a five -year lease, and the taxes can be flat for those five <br />years. The lease cannot be transferable. <br />Councilmember McGlone pointed out the City cannot control what the County would do with <br />taxes. <br />Acting Mayor Wise explained the City would project the costs and losses and balance it out as <br />best it could with the understanding it could be a loss for the City at a later point. He said he <br />thought the City would buy it when the Armstrong Boulevard alignment went through <br />Public Works Director Olson responded the current plan has the road shifted enough that the <br />City no longer needs this property to complete the Armstrong Boulevard interchange. <br />Acting Mayor Wise questioned why the City is still interested in buying it and asked if the City <br />can back out of the proposal. <br />City Attorney Goodrich explained the City has not yet presented a purchase agreement. The <br />process has come so far, and the City has made a commitment, which is why the proposal is <br />being discussed. He directed Councilmembers to discuss paragraph J of the proposed lease <br />agreement. He noted the City had already paid for Parcel 1, which enhances Parcel 3. <br />Special City Council Meeting / March 8, 2011 <br />Page2of4 <br />