Minutes - Council Work Session - 02/05/2013

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Mr. Corsted stated the request was made some time ago in a letter but the 18 month period represents a significant amount of overhead for the company and it does not take 18 months to wind down this operation. They would prefer to wind down the operation this construction season. City Administrator Ulrich stated the tax liability is one issue to consider, which is the reason for the 18 -month notification period. He noted that at this point, the City does not really need the property and if acquired earlier than 18 months, the City will need to determine the timing to ask for tax exempt status. He acknowledged that B &C has worked well with the City, been a good tenant and that has helped in many cases with the City's Public Works operation. City Administrator Ulrich suggested additional negotiation on an acceptable time period and what B &C has for resources that could be beneficial to the Public Works operation and transferred to the City. It was noted that with the City's emphasis on road reconstruction, there will be a need for those materials so it is possible that a union would accomplish what B &C wants and meet some needs of the City. However, March 31 is not a date that works for the City because it takes longer to get tax exempt status. Mr. Corsted stated it would be a good outcome for B &C if the Council would direct staff to work with them to come up with a proposal for termination at the best opportunity. Mayor Strommen asked about the option to terminate an additional ten acres with negotiation on the other issues. City Administrator Ulrich suggested not taking the entire site off the table if it is not tax exempt. He explained if B &C said today they wanted to terminate the lease, that would be in 18 months and the City would then want the entire property in tax exempt status. He noted another option is to consider a phased approach. The consensus of the Council was to direct staff to negotiate with B &C for the terms of an early termination and possible use of B &C resources. 2.02: Review 2013 Parks Capital Improvements Parks and Assistant Public Works Superintendent Riverblood introduced Park & Recreation Commissioners in attendance. He reviewed the staff report and noted the Park Trust Fund has an approximate balance of $2.4 million and the Lawful Gambling Fund approximately $164,000. Finance Director Lund advised there will be a public hearing on the Capital Improvement Project (CIP) on Tuesday so that Council's packet will include all of the information. The consideration tonight is the 2013 Parks CIP. Parks and Assistant Public Works Superintendent Riverblood displayed a PowerPoint presentation highlighting proposed projects for 2013 and staff's recommendation related to each. He requested direction relating to the status of the 2013 Park's Capital Improvement projects and next steps. City Council Work Session / February 5, 2013 Page 5 of 18