Minutes - Council Work Session - 01/10/2012

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Councilmember Strommen stated she preferred a lease arrangement on Highway 10, a gateway into Ramsey, and someone occupying space to having the building vacant. She noted this is a good opportunity for a Ramsey business to grow and create jobs; hopefully, growing to the point of needing a larger building. Councilmember Strommen stated she supports the proposed lease arrangement. Councilmember Backous stated he also likes that the City can offer the ability for a Ramsey business to stay and grow. He stated that while he appreciates Councilmember McGlone's point, the City wants to attract and keep business and grow its tax base. Councilmember Backous asked about the "out" terms of the six -month lease. Economic Development/Marketing Director Backman indicated there was a 60 day out. City Attorney Goodrich added there was a one -year out with the Highway 10 improvement and the lease can renew after a six -year period. Mayor Ramsey stated he also agreed with the benefit of keeping the buildings occupied but the Council needs to be cognizant of the type of environment being created with current business owners. He noted the proposed lease numbers are not that far off and asked about the rate charged to Car Quest. Economic Development/Marketing Director Backman indicated the final year rate for Midwest Car was $9.60 /sq. ft. and had been negotiated in 1997. Midwest Car left the beginning of November when its term ended and they removed their personal property. Councilmember Wise pointed out that electric wiring is a leasehold improvement. City Administrator Ulrich explained that during the walk - through, the electricity was functioning and the plumbing, heating, and pneumatic systems were in place. Staff does not know when the conduit was taken, which could have occurred when the car wash left. Councilmember Elvig stated he is involved in negotiating a lease for another firm, and plumbed, heated, and electrically served shop space is going for $2.50 sq. ft. to $4.00 sq. ft. The consensus of the Council was to support the proposed lease agreement for 6745 Highway 10 by Independent Auto Service and to not require the hoist/lift to remain but electric wires pulled through the conduit will remain as a leasehold improvement. 4) Review Council Organizational Resolution City Administrator Ulrich reviewed Mayor Ramsey's recommended Committee appointments for 2012. Councilmember Backous asked why he was removed from the Public Works and Finance Committees. He stated he was more than willing to serve on those Committees and felt he had a lot to offer based on his 20 -year background in personnel and finance. City Council Work Session / January 10, 2012 Page 5 of 13