Minutes - Council - 03/20/2001 - Continuation of 03/13/01

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that he wag looking at what if any willingnegg there ig to help QCTV build a building in the City of Ramsey. Mayor Gamec inquired if they would be looking for someone to build the building for them and then leasing back. Councilmember Hendriksen stated that they would be looking at all options. Mayor Gamec inquired if QCTV is a for-profit company. City Administrator Norman explained that QCTV is a Joint Powers between four cities and, therefore, everyone working for QCTV is a government employee. Councilmember Anderson stated that it seems as though there are a couple givens in this situation. One is that the current building is leased at an exceptional rate, but is only half the size that they need. In the past it has been the preference, by the member cities, not to own a building, but she does not know that that is-necessarily the case now. As a Joint Powers agreement they would be able to get a mortgage, Ramsey could become a landlord and rent back to them, or QCTV could choose to go into something that is existing and empty. Councilmember Hendriksen replied that whenever the issue of owning their own building was discussed in the past it seemed like the City Manager from Anoka was not interested in buying a building for QCTV and so the issue was never really addressed. QCTV needs a building and someone is going to need to build it and being that the agreement with AT&T will be in place for the next 15 years that would make them a great tenant. Councilmember Anderson inquired as to why the City would want to be a landlord. Councilmember Kurak stated that QCTV is a tax-free entity so if they own their own building they would not pay taxes, but if they were to lease a building then they would. Councilmember Hendriksen stated that many times the City gives away things in order to attract businesses and some period of time goes by before the City benefits from the business. He explained that it is unlikely that the property would be built on in the near future and the one reason the City purchased the BMA property was to get a nicer appearance as people drove up Sunfish Lake Boulevard so it would make sense to build the building rather than having vacant land. Councilmember Kurak replied that building the building would be investing bonds and tax time. The building would also be specialized to accommodate a studio and in 15 years if QCTV leaves it would have to be rented to a studio or make it economical to lease it to someone else or sell it. She inquired as to who would manage the property if the City leases the building. Ms. Kurak stated that if the City were going to spend the money on a building she would prefer to see the City Council/March 20, 2001 Page 9 of 12