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Further discussion: Interim Engineer Nelson answered questions of the Council relating to this <br />required regulation and possibility that additional changes may be required due to future State <br />and/or Federal regulations. Councilmember Tossey stated his intent, on principle, to oppose this <br />ordinance as it is dictated to the City by other agencies. <br />A roll call vote was performed by the Recording Secretary: <br />Councilmember Tossey nay <br />Councilmember Riley aye <br />Councilmember LeTourneau aye <br />Councilmember Backous aye <br />Councilmember Elvig aye <br />Councilmember Kuzma aye <br />Mayor Strommen aye <br />Motion carried. <br />7.04: Consider Policy for Leasing City - Owned Land <br />Management Analyst Brama reviewed the staff report and presented the draft policy that would <br />develop consistent and fair leases, provide staff formal support, and a baseline in which leases <br />are negotiated. Staff recommends a third -party opinion be obtained from a real estate <br />professional on private sector lease rates with that rate being considered the mean rate and staff <br />negotiating a lease as directed and supported by the Council. Management Analyst Brama asked <br />the Council to provide direction on the lease rate. <br />City Administrator Ulrich indicated this case was scheduled for a Work Session but tonight the <br />Policy is before the Council and recommended for adoption. <br />The Council discussed the draft Policy, noting it goes a long way to maintain a structure of <br />fairness when considering leases. <br />With regard to payment of property taxes, Management Analyst Brama explained most leases <br />include property taxes within the base rent. Staff proposes a base rent with a tax rate calculated <br />and together it would equal the rent. The City would take a monthly check and would then pay <br />property taxes to Anoka County. <br />The Council discussed the amount of staff time consumed by lease negotiation and option to <br />instead use a professional leasing agent. City Administrator Ulrich indicated a cost analysis of <br />staff time spent in this effort will be presented at the March 12, 2013, Council meeting; however, <br />the proposed Policy would be helpful regardless. <br />Motion by Councilmember Elvig, seconded by Councilmember Backous, to direct staff to draft a <br />Lease Policy that is business friendly. <br />City Council / February 26, 2013 <br />Page 7 of 10 <br />