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CC Work Session 2. 2. <br />Meeting Date: 05/28/2013 <br />Submitted For: Kurt Ulrich By: Bill Goodrich, Administrative Services <br />Title: <br />Consider terms for Bury & Carlson's (B&C) request to terminate Lease Agreement. <br />Background: <br />This issue was considered by the City Council at its February 5, 2013 work session. The direction of the City <br />Council at that time was to direct staff to negotiate with B&C for terms of an early termination and possible use of <br />B&C resources. <br />Since February 5, staff has met with B&C on several occassions and an agreement as of this writing appears to have <br />been agreed upon. Tentative terms of the Agreement include the following: <br />1. Termination of lease effective as of July 1, 2013. A July 1, 2013 termination with notification to the County <br />prior to July 1, 2013 will allow the entire property to be tax exempt effective January 1, 2014. <br />2. The City will retain at no cost to it the bunker blocks along the north and west sides of the property. <br />3. The City will retain at no cost to it the bottom two rows of bunker blocks along the east side of the property <br />and will purchase 125 bunker blocks on the east side at $30/block in order to have a more effective <br />barrier/fence on that side of the property. <br />4. City will purchase from B&C 80 bunker blocks at $30/block in order to level off the North wall. <br />5. City will purchase from B&C up to 100 tons of the boulders/rocks on the site at $25/ton for its park use etc. <br />6. City will purchase 500 ton of con -bit (class V) for its road construction purposes at $5.00/ton. B&C has <br />made an offer to sell its entire 20,000 ton inventory of con -bit to the City. Our public works department is <br />evaluating that offer. <br />7. Per the original purchase agreement, the small scale and the tan scale shack building will remain on the site. <br />The large scale on the site will be removed by B&C. The City will be responsible for removal of the large <br />scale foundation etc. at an approximate $4,000 city cost. This is a negotiated agreement in making certain <br />the bunker blocks on the west and east side of the site stay on the site. <br />8. As of this writing there is still some issue on payment of the rental/property taxes. <br />Notification: <br />Observations/Alternatives: <br />Recommendation: <br />Funding Source: <br />NA <br />Council Action: <br />Based on discussion. <br />Form Review <br />