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the City could not unreasonably withhold its approval. He explained that a concern may be <br />related to traffic or pollution, or hazardous activities (fireworks /explosives), but it appears there <br />are no issues with this tenant. <br />Councilmember McGlone stated the need for fairness had been raised earlier tonight and that is <br />his concern with RALF properties that the City leases, at a cost to the City, and creates an <br />unfairness in the market. He noted it is not fair for a business to operate in a building for tax <br />value or less when the next building has a mortgage in addition to taxes. Councilmember <br />McGlone felt this issue dovetails with the previous TIF conversation about fairness. He noted <br />that when properties are acquired with RALF, it also comes with demolition money so maybe the <br />City should demolish this portion of the building so it would not need to hire a person to manage <br />the buildings. <br />Mayor Ramsey asked whether there are any special requirements or permits for this property to <br />serve as a vehicle impound lot. <br />Development Services Manager Gladhill explained the Code would restrict salvage operation or <br />outdoor storage of inoperable vehicles. However, if the vehicle is towed for inside storage, it is a <br />permitted use. Eddy's Auto Body has restrictions on outside storage, as an example. <br />City Attorney Goodrich advised that the current lease with the landlord, the master lease, says no <br />outside storage is allowed. He indicated that any subtenant could not do more than allowed in <br />the master lease. <br />Councilmember Strommen asked City Attorney Goodrich if he had reviewed the sublease and <br />found that it is consistent with the master lease terms. <br />City Attorney Goodrich answered in the affirmative. <br />Management Analyst Brama stated the sublease alludes to the current lease of the master tenant <br />and says it must follow those terms. <br />City Attorney Goodrich stated the potential option for two years has rent capped at 3% annually <br />for those two years so if the term is going out five years, the two years after that cannot be <br />increased by more than 3 %. He stated the City should always assure the leases cover taxes. <br />Councilmember Tossey asked whether taxes would be covered. <br />Management Analyst Brama answered in the affirmative. <br />Councilmember Tossey asked if there is a way out of the master lease in case the Highway 10 <br />project moves forward. <br />City Attorney Goodrich advised the lease contains a one -year provision with notice no mater the <br />term of the lease. <br />City Council Work Session / November 13, 2012 <br />Page 4 of 10 <br />