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Mayor Gamec asked if the lease agreement would be for two years with renewal for another two <br />years. <br /> <br />City Attorney Goodrich replied the renewal would be for two or three years. <br /> <br />Mayor Gamec questioned if renewals should be longer than year to year after the first two years. <br /> <br />City Attorney Goodrich explained the lease has been drafted to require the renter to vacate with <br />one year notice. <br /> <br />Motion by Councilmember Cook, seconded by Councilmember Olson, to approve and authorize <br />signature of the purchase agreement, loan agreement and lease agreement for the Ralph's Pawn <br />Shop owned by R & D Properties (Ralph Nissen) at 6101 Highway 10 NW. <br /> <br />Further discussion: Councilmember Elvig noted there is not a management element being <br />utilized in this lease. He suggested a work session discussion of when and where to utilize that <br />management tool. Councilmember Jeffrey inquired how the value of the City's management fee <br />is being recognized before the proceeds are sent to RALF. City Attorney Goodrich replied the <br />City Administrator has developed a plan for the Finance Officer to track staff time related to the <br />lease, and there will be an accounting to RALF. Councilmember Jeffrey questioned if this is <br />acceptable to RALF. City Attorney Goodrich responded in the affirmative. Councilmember <br />Elvig inquired if a management fee has been added to the purchase price in the past. City <br />Attorney Goodrich replied this has not been done yet. The City's expenses will be taken off the <br />top prior to sending the net revenue to RALF. Councilmember Jeffrey verified there will be a <br />monthly accounting. City Attorney Goodrich advised the motion should be contingent on the <br />lease being subject to City Attorney approval as to form and content. <br /> <br />Motion amended as follows: to approve and authorize signature of the purchase agreement, loan <br />agreement and lease agreement for the Ralph's Pawn Shop owned by R & D Properties (Ralph <br />Nissen) at 6101 Highway 10 NW, contingent on the lease being subject to City Attorney <br />approval as to form and content. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Cook, Olson, Elvig, Jeffrey, <br />Pearson, and Strommen. Voting No: None. <br /> <br />Case #10: Report from Finance Committee <br /> <br />Councilmember Strommen stated the Finance Committee recommended approval of the <br />following four cases, which were all included in the 2006 budget. <br /> <br />1) Review and Adopt 2006 Economic Development Authority Operating Budget <br /> <br />Adoption of a resolution Adopting the 2006 Economic Development Authority Operating <br />Budget, and adoption of Resolution #06-01-015 Amending the 2005 Economic Development <br />Authority Operating Budget. <br /> <br />City Council / January I0, 2006 <br />Page 13 of 18 <br /> <br /> <br />