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he is not able to pay monthly rent of $1,612 and asked that the City keep the rent at $650 per <br />month for six months (May to October) while he negotiates another possible deal with a car <br />dealership. <br />Mr. Fisher stated he met with the business owner in the space a few weeks ago to address the <br />delinquent rent status and he alluded to the fact he has had difficulty renting the space because <br />the doors slide along the ground instead of rising so in the spring, they are difficult to open. <br />Because of this situation, he is hesitant to lease out space but during the summer months, this is <br />not an issue. Currently there are a few cars, boats, and trailers, which do not generate enough <br />income to cover the rent. The business owner has requested the rent be reduced to $650 for six <br />months, through the summer. Mr. Fisher stated he is negotiating with a car dealership that is <br />storing cars at the State Fair grounds, which have to be moved. If that proposal goes through, he <br />would submit a new proposal to the City to lease the rest of the space in his current building and <br />also lease the balance of the space at 6701 Highway 10. <br />Mayor Strommen suggested this issue come back to the Council once the business owner <br />concludes negotiation with the car dealership. <br />Finance Director Lund agreed and indicated the Council will also have to address the request to <br />lower the rent to $650 /month from May to October. <br />Mayor Strommen stated that item will be pulled from the Consent Agenda at the request of <br />Councilmember Riley. <br />Councilmember Riley disclosed that his son had a part time summer job at Independent Auto <br />Care so he will abstain from the vote on that issue. <br />Councilmember LeTourneau asked about the annualized cost for Independent Auto Care <br />compared to the PACT School, noting one is $1 per foot and the other is 69 cents per foot. He <br />asked if the Council is willing to take whatever is offered. <br />City Administrator Ulrich noted this is a short-term consideration and the front space is rented at <br />a higher market rate so the rent is lower for this accessory space. <br />Councilmember LeTourneau stated it appears the rents are randomly set. <br />Finance Director Lund stated this is the first time the City has been asked for a renegotiation <br />because most times the tenant just says they cannot pay the rent and vacates the space. <br />Councilmember Tossey stated he does not know what the lease prices should be so he relies on <br />the leasing agent. <br />Mr. Fisher stated the market for cold storage space is about $1.50 per square foot. In Ramsey, <br />the issue was raised whether the City was under cutting the market; however, these are unique <br />buildings and there is no other property offering inside cold storage. He stated tenants usually <br />make offers that are below market and the property owner negotiates, usually having to go lower <br />City Council Work Session / June 25, 2013 <br />Page 3 of 8 <br />