Minutes - Council - 12/11/2012 - Laserfiche WebLink

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concerned with the tax liability, which seems high for property without a building. Because of that, he was reluctant to move forward until more information is provided to assure it will not run a deficit. Councilmember Tossey stated he supports the 12 -month term or matching the term with the IUP but would want it to terminate at any time if the overpass project moves forward. He was also concerned with tax liability and that it had been presented at the last minute. Motion by Councilmember Tossey, seconded by Councilmember Backous, to amend the motion to add language that the City can terminate the lease for any reason and at any time for the road project. Further discussion: The Council discussed the lease terms. Carl Jansen,. TK Entertainment (dba Ramsey Raceway), stated the IUP already indicates that if the overpass or road comes in, they have to vacate. He stated they are not asking for anything to be rewritten but want the lease to coincide with the IUP. Mayor Ramsey stated support for the amendment but noted there was a distinction between this case and when moving an existing business (Wiser Choice Liquor). Councilmember Elvig spoke against the amendment motion, preferring a one -year notice to give this business time to relocate and that the City will know well in advance if the road project is moving forward. Councilmember Backous felt the point was one of consistency and setting precedent in negotiating a lease mid -term, giving concessions, and receiving no consideration in return. City Attorney Goodrich advised the Council can amend the lease, but would need the cooperation of TK Entertainment (dba Ramsey Raceway). Amendment motion carried. Voting Yes: Mayor Ramsey, Councilmembers Tossey, Backous, McGlone, and Strommen Voting No: Councilmember Elvig. Abstain: Councilmember Wise. Further discussion: Mayor Ramsey stated there is a distinction because it is a friendly deal with TK Entertainment (dba Ramsey Raceway) but with Wiser Choice Liquor the City could use condemnation. Mayor Ramsey and Councilmember McGlone advocated for the request, finding it to be a great venue and they were not worried about the potential tax liability because it is a TIF District and the City gets some of the taxes back. Councilmember Strommen stated she supports the use but remained concerned with the potential tax liability so she would support tabling action to the next meeting when all of the information can be presented and the Council can make an informed decision. She indicated she cannot vote in support of the amended motion until it can be evaluated with full information. City Administrator Ulrich stated the total lease revenue from the start of the lease in June of 2011 was $8,110 and taxes are currently estimated at $8,000 /year. Finance Director Lund reviewed past property values and payable taxes. Councilmember Tossey indicated that in light of this new news related to tax liability, he would oppose the motion because he would not subsidize this use. Motion by Councilmember Elvig, seconded by Councilmember Strommen, to postpone consideration to the next meeting. Further discussion: City Attorney Goodrich clarified the City is not in a legal partnership with this business for liability purposes. The relationship is landlord and tenant only. City Council / December 11, 2012 Page 6 of 13