Minutes - Council - 08/05/2002 - Special

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Motion by Councilmember Kurak, seconded by Mayor Gamec, to authorize the lease agreement between the City and BMA Associates for property lease by Northstar Commuter Coach Park and Ride facility with a term of $750 per month. Further discussion: Mayor Gamec asked if the lease needs to address negotiations with the County. City Administrator Norman stated the motion deals with the BMA Associates lease and the County negotiation is an issue under Case #2. Councilmember Hendriksen noted the lease agreement is 18 pages and not been read by the Council. He asked if the lease would require the City to put the property back into the prelease condition. City Attorney Goodrich stated it does not and that issue has not been negotiated so this is not the final document. Councilmember Hendriksen asked how many extensions it provides for. City Attorney Goodrich stated it provides for one five-year extension or a total of ten years. He noted Section Two relates to the term and it is his understanding that not withstanding anything in the lease to the contrary, either party could terminate the lease agreement upon a one year prior written notice. Councilmember Hendriksen asked if this one-half million dollar facility could be built and one year later they could give notice to terminate the lease. He asked if that is how the City wants to spend its money. City Attorney Goodrich stated that is a policy decision for the Council to make. Councihnember Zimmerman stated that is a legitimate concern and asked what the life expectancy would be of the Park and Ride facility. Principal Engineer Olson stated it would be 20 years at a minimum. Councilmember Zimmerman suggested that the State is not going to kick in $400,000 and expect that to just go for five years He stated he would expect it to go longer and thinks the City needs to get its act together more. Councilmember Zimmerman stated that this is not a good expenditure of tax payer's money to lease for only five years. Councilmember Hendriksen stated he attempted to discuss this with MnDOT and quite frankly didn't find them too interested in coming up with any kind of negotiation or discussion. He stated he asked simple questions on issues like the minimum number of parking spaces to consider it a Park and Ride facility but did not hear any answers coming back. He stated he would like Len Levine involved since residents have indicated there are not enough parking spaces and the area is gravel. He stated the amount of time it takes to get from the equivalent location on Armstrong Boulevard to this parking area at 45 miles per hour is 25 seconds; other Park and Ride facilities are significantly farther off the main road. He stated the suggestion that ridership will not accept a 25-second detour is unreasonable in what they are demanding when they are demanding the City spend $100,000 and possibly up to $600,000 if the facility is relocated. Councilmember Kurak stated the value of the property that will be tarred without structures is quite valuable to become a permanent parking lot. John Feges stated the cost associated with the site and value of the property is pretty substantial. He stated he is interested in the lease to participate with the demonstration program that is underway to gather information to show there is ridership with the idea that the master plan for the Town Center would include mixed use and a transportation hub or even just congregate parking for people in the community to engage in services. He stated that additional parking spaces will be incorporated in the master plan so that it is part of the master plan to accommodate parking for multimodal transportation. He stated they are looking at the plan to incorporate the train station if it comes or not but that would be privately funded, not publicly funded. Currently, the lease for this site and the payment is a minor cost in regard to City Council/August 5, 2002 Page 7 of 11