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Councilmember Jeffrey questioned whythe City would not be able to use the land in Outlot B for <br />commercial use and sell it off as a revenue stream for the City. He stated there are some unique <br />opportunities for that space. <br /> <br />Mr. Feges explained the original agreement designated the parking ramp as one super ramp, and <br />it is now split into two lots that take up mOre land that could have been sold. This agreement can <br />be reviewed again to make Sure it is fair. He noted there was also discussion about the City <br />competing with the private sector. . <br /> <br />Councihnember Elvig indicated he agrees with :Councilmember Jeffrey's concerns. The reason <br />this was looked at initially was to find a ~way to pay for the maintenance on the parking ramps. <br />He still maintains that is worth Pursuing. -He is very willing to go forward, but would like to <br />have that pursued. <br /> <br />Mr. Feges explained one of the reasons they entered into the idea of the cinema was that it really <br />is complimentary to the ramp and the revenUe that could be generated is substantial. <br /> <br />City Administrator Norman noted staff would recommend the site be ground-leased to a <br />pro fessional cinema corporation. <br /> <br />Councilmember Strommen stated it is impOrtant for the Council to have a discussion about the <br />cinema a~d use of this land, as they are getting into a slippery slope of the City running the core <br />of Town Center. <br /> <br />Mr. Lasher indicated LSA Design completed a project with the city of Apple Valley that included <br />transit station and a movie theater. The city put together a ground lease with Carmike Cinemas <br />and Minnesota Valley Transit Authority t0 share the parking and help share costs with the t~vo <br />entities. Carmike Cinemas ended up buying their building, paid fee title, and the parking stayed <br />under thc city's control. There are variable ways of how this type of situation could work. <br /> <br />Councihncmber Strommen expressed concern that the City could be constrained in what it is able <br />to build duc to the requirement in the Option Agreement not to create a remnant parcel. <br /> <br />Mr. Feges commeuted this is a responsibilit_y on both parties. <br /> <br />City Attorney Goodrich questioned if it W°Uld be feasible for a theater to purchase the land if the <br />City does not want to ground-lease the cinema site. <br /> <br />Mr. Feges responded in the affirmative. He explained this option preserves the opportunity for <br />the City; it does not tie the City into anything. <br /> <br />Councilnmmber Elvig left the meeting at 9:28 p.m. <br /> <br />Parking Maintenance .Agreement: :. <br />Mr. Lasher reviewed the Parking Maintenance Agreement. <br /> <br /> City CoUncil work 8e, ssion/February 15, 2005 <br /> Page 5 of 6 <br /> <br /> <br />