Agenda - Council Work Session - 09/27/2011

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It is recommended that the City Council consider fire suppression requirements that may be needed for the City -owned property at 6701 Hwy 10. This investment in a sprinkler system would permit the leasing of the building to Northern Light Church and open up the building to other users. Funding Source: It is suggested that the City Council consider utilizing approximately $15,000 a year from the lease revenue with Northern Light Church to amortize the cost of installing the fire protection system. This would still allow the City to pay expected taxes and administrative costs associated with the lease and that portion of the building. A 2 1/2 year lease would thus generate $37,500 to offset the investment. The difference of $64,055 could potentially be paid by the City using the EDA Fund. If the church would extend the lease then more of the costs of the fire protection system would be amortized over time. The installation costs associated with the portion of the office occupied by Youth First should not be borne by the Northern Light lease. Moreover, the water line would benefit the whole building. Other office users coming in would already meet fire suppression system requirements. Council Action: Provide guidance to City staff regarding the proposed investment of City resources for a fire suppression system in 6701 Hwy 10. 6701 Hwy 10 Bldg. 6701 Water Line Options Attachments Form Review Inbox Reviewed By Date Kurt Ulrich Kurt Ulrich 09/22/2011 02:59 PM Form Started By: Aaron Backman Started On: 09/22/2011 10:13 AM Final Approval Date: 09/22/2011