Minutes - Council - 01/14/2014 - Laserfiche WebLink

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7.02: Consider Request for Lease Amendment; Request of M & W Holding Company, LLC, Wiser Choice Liquor, 14590 Armstrong Boulevard NW City Administrator Ulrich reviewed the terms of the lease agreement, options available, and recommendation to direct staff to execute a modified termination provision of the lease that would allow a 90 -day termination, but eliminate the requirement that the tenant purchase City - owned property, or an existing liquor store in the City. The tenant would be responsible for all current year taxes. Councilmember Riley stated associated with this case is a lot of history and less than a year ago it was fully negotiated, both parties were represented by attorneys, and nothing has changed so he is not sure why the City would consider a change at this time and take on additional liability. Councilmember LeTourneau agreed this involved a lot of discussion and resolved the needs of both sides but the thing that has changed is time and a tenant in a position of dire straights. He stated the request is to accommodate that loss of time but he is not comfortable with that request as it exposes the City to greater liability. Mayor Strommen, Councilmembers Tossey, Kuzma, and Johns spoke in support of staff's recommendation as it was the Council's original intent to not couple this lease to purchase of property within the City and it protects the City with a 90 -day termination. Motion by Councilmember Johns, seconded by Councilmember Kuzma, to direct staff to execute a modified termination provision of the lease that would allow a 90 -day termination, eliminate the requirement that the tenant purchase City -owned property or an existing liquor store in the City, and that the tenant would be responsible for all current year taxes. Motion carried. Voting Yes: Mayor Strommen, Councilmembers Johns, Kuzma, and Tossey. Voting No: Councilmembers LeTourneau and Riley. Absent: Councilmember Backous. 7.03: Review Draft Ordinance Proposing an Amendment to the City's Charter City Attorney Langel presented the draft ordinance modifying the City Charter with respect to franchise fees and to place parameters around a franchise fee in the event such a fee is approved by the Council. Mayor Strommen reviewed the Council's discussion during tonight's Work Session and issues that will be presented to the Charter Commission for its consideration. Councilmember Tossey stated he is opposed to franchise fees for reasons he has previously stated. The Council discussed the ordinance language and agreed the bottom line is that there is a funding shortfall for road reconstruction that needs a long -term funding solution. City Council / January 14, 2014 Page 9of12