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City Administrator Ulrich stated the urgency of Public Works' need for the site is short term. <br />The City's concern is that this property is now taxable so if the City takes it now, it would be <br />liable for taxes on the south ten acres. The City would need the property tax exempt, which may <br />not be possible until payable 2014. <br />Greg Corsted stated he represents B &C who is asking the Council's approval of their request to <br />terminate the lease on the property that the City acquired from B &C. The concern the company <br />has is that since the time this lease transaction was entered into, the business of recycling has <br />changed significantly within Ramsey to the point where the business model the City asked the <br />company to have no longer works. He stated this business has operated since established in 1992 <br />with a highly - developed, well- operated facility with significant curb, gutter, berming, and <br />screening, a significant and permanent facility. However, this is no longer the business model <br />for this industry in Ramsey. They believe the model for this industry in Ramsey now has much <br />less in the way of permanence and infrastructure. As a consequence, it is difficult for this <br />company's business to continue. Based on that, the company is asking the City to allow the <br />lease to be terminated as of the end of March 2013. Mr. Corsted stated it is their belief that it <br />would be in the City's best interest to terminate the lease right away since their business model <br />does not work and based on the fact that a number of competitors have been allowed to operate <br />with much less overhead, regulation, and a lower investment. Failing termination of the lease, <br />the proposal from the Public Works Development is of interest to the company. In addition, the <br />company has some resources at the property that could be beneficial to the City as Public Works <br />takes over that site. <br />Councilmember Backous asked Mr. Corsted to be more specific relating to the types of <br />regulatory requirements making the business model change. <br />Mr. Corsted explained the difficulty is that it is a commodity business and every time you handle <br />the product or have equipment on site on a permanent basis, or make site improvements, you <br />change your cost of the commodity and purchases are done on the basis of competitive bids. He <br />stated their business model is to have the lowest possible cost of doing business; however, <br />competitors are being allowed to conduct a permanent business on a temporary basis and get <br />permits after - the -fact. This makes it difficult to compete as a permanent business. <br />Councilmember Riley arrived at 5:42 p.m. <br />Mr. Corsted stated competitors have come into Ramsey, started a recycling business and got <br />contracts without first getting a City permit. In addition, they received permits with less <br />standards than required of B &C, have fewer employees, and conduct business on a job specific <br />basis. <br />Councilmember Backous stated Mr. Corsted is indicating there is not an "even playing field" and <br />asked staff to comment. <br />City Administrator Ulrich stated the City has issued violations and taken action when brought to <br />their attention to assure the business comes into compliance. None the less, businesses have <br />City Council Work Session / February 5, 2013 <br />Page 2 of 18 <br />