Agenda - Council - 12/13/2011 - Laserfiche WebLink

Home

and whether the church moved in the last six years is irrelevant as they could move tomorrow. He emphasized he has no issues with this being a church. Councilmember Wise spoke to Councilmember McGlone issue regarding the EDA funds. He challenged that this relates to the community's vitality. He did not think the building would be demolished soon, and any upgrades to Highway 10 were a long way off. He said he would vote against any RALF properties in the future, as the State has "pulled the rug" out from under them. He noted that the marketability of this property after the church moves out having had the fire suppression opens it up to a lot more uses. Councilmember Strommen agreed with Councilmember Wise, noting this building has been vacant for a number of years and the proposed use is good balance of maintaining policy on Highway 10 properties. This is an incubator for the church to get off the ground. Motion by Councilmember Strommen, seconded by Councilmember Backous, to approve the proposed fire suppression system needed for the City -owned property at 6701 Highway. 10 because this investment in a sprinkler system would permit the leasing of 4,820 sq. ft. of the west office space in the building to Northern Light Church; to approve the four-year lease, contingent upon the sign -off by the Metropolitan Council, to Northern Light that amortizes the approximately $90,000 costs of the fire safety and water main extension project and with the Minnesota Annual Conference of the United Methodist Church guaranteeing the performance of the lease; and, to approve the use of the EDA Fund to front the costs of the fire suppression system and watermain extension, that an Interfund loan be established with a 2.0% annual interest rate, and that the EDA Fund be repaid with the proceeds of the lease revenue with the first year's interest being applied to the remaining three years. Further discussion: Councilmember Tossey stated he would oppose the motion but wished the church well in the community. He indicated he cannot justify the use of $90,000 of taxpayers' money on a property the City wants to get rid of. Councilmember Backous pointed out the money would be recouped if it was guaranteed and that was the tipping point for him. Mayor Ramsey stated he has issues with this and will be opposing the motion for some of the same reasons as Councilmembers Tossey and McGlone mentioned. He said he does see some benefit to the church coming and thinks it will do well in the community. Mayor Ramsey welcomed the church into the community. Motion carried. Voting Yes: Councilmembers Strommen, Backous, Elvig, and Wise. Voting No: Mayor Ramsey, Councilmembers McGlone and Tossey. City Administrator Ulrich noted there were no bids so this will be discussed at the next regular meeting. 8. MAYOR, COUNCIL AND STAFF INPUT City Administrator Ulrich noted the following items: City Council / October 11, 2011 Page 16 of 17