Minutes - Council - 12/14/2021 - Laserfiche WebLink

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Mayor Kuzma aye Motion carried. 7.01a Adopt Resolution #21-352 Approving Youth First Community of Promise Lease Agreement (previously Item 7.6) Economic Development Manager Sullivan reviewed the staff report and recommendation to adopt Resolution #21-352 approving the Youth First Community of Promise Lease Agreement in the amount of $1 per year for a term of two years. Councilmember Howell asked Economic Development Manager Sullivan if the City will be paying for the snow removal. She also asked if that has always been the case or if Youth First has been responsible for it in the past. Economic Development Manager Sullivan replied the City has been leasing this property to Youth First and a number of other tenants since 2007 and how the snow removal has been handled has changed over the years. Around 2016, the lease was changed to read that Youth First would not be responsible for snow removal through the end of the lease ending 2030. Economic Development Manager Sullivan commented that he was not on Staff during that time and was unclear why it was formalized in the lease. Councilmember Musgrove asked Economic Development Manager Sullivan to speak to the utilities and cost breakdown along with the payment agreement. She stated the case notes indicate there is cost sharing among the three tenants and asked if that includes the utilities. Economic Development Manager Sullivan confirmed this and stated the utilities are prorated between the three tenants. The fees are collected by property management through Marty Fischer to make payments. Councilmember Musgrove referenced the staff notes which indicate the City has a snow plowing contract for all of 6701, and the bill is split three ways. She asked if the snow removal was part of it or not. Economic Development Manager Sullivan replied that snow removal has been treated differently according to the lease. The bill is split three ways but the portion that Youth First would be paying, the City is paying, likely through RALF funds collected through the lease so it is RALF dollars, not City dollars. Councilmember Musgrove asked if the City has to pay back those RALF dollars. Economic Development Manager Sullivan replied the RALF process is very complicated and the City Attorney will be consulted to determine what is going to occur when sales of the properties start. When these properties were purchased, the City received loans from the Met Council to acquire them for highway purposes. In the interim, rent has been collected for these properties with the money being used to maintain the properties. When the properties are sold back, RALF City Council / December 14, 2021 Page 12 of 19