Minutes - Council - 08/13/2002 - Laserfiche WebLink

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suggested the possibility of some of the funds that were to be used for acquisition of'the property be allocated to restore the property when the term of the lease ends. Councilmember Hendriksen replied that those funds would be used to pay for the ten-year lease on the property. He is concerned that they negotiate up front the final disposition of the improvements at the end of the lease. They need to know up front if they are going to have to include the removal of the facility. Mr. Feges replied that he would expect that the improvement would be removed and brought back to its previous state if the program fails. If the property owner asks that the facility be removed, then it should be the property owner's responsibility to restore the property. He stated that if they need to enter into language that if they choose the early opt out option that they would be responsible for removal of the facility, he would not have a problem with that. Councilmember Hendriksen inquired as to what would happen if the lease goes to its full term. Mayor Gamec replied that at that point it would probably mean the project has been a success and they would probably negotiate another contract. City Attorney Goodrich stated that the question is who would be responsible to remove the facility if the lease goes for the full term. Councilmember Hendriksen stated that they should ask that the City not be responsible at all initially. Mayor Gamec replied that they need to get the process moving forward. Councilmember Anderson stated that if someone wants to do something on the property it would be an incentive for them to do something with the facility. Councilmember Kurak inquired as to what changes should be included in the agreement. City Attorney Goodrich replied that the lease agreement should be amended so that the City is under no obligation to remove the facility if the opt out is invoked by the lessor. If the lessees opts out then the City will be responsible. If the lease goes full term, negotiate removal of the facility. There will be no expectation of cash or in-kind if they chose to opt out and rebuild a similar facility, they would accept the maintenance of the facility if they opt-out. Motion by Councilmember Kurak, seconded by Councilmember Hendriksen, to authorize a lease agreement between the City and BMA Associates for property lease by NORTHSTAR COMMUTER COACH Park and Ride facility, which lease is to be amended per the terms directed this evening and further authorizing the City Attorney to make the amendments to the lease consistent with the Council direction, the lease not to be entered into unless the City has City Council/August 13, 2002 Page 15 of 25