Minutes - Council - 01/10/2006 - Laserfiche WebLink

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City Attorney Goodrich suggested a work session discussion regarding the City's interest in breaking even with these types of buildings. Councilmember Jeffrey agreed this issue should be discussed further at a work session, including who will bear the costs and how the costs will be covered. Motion by Councilmember Elvig, seconded by Councilmember Jeffrey, to enter into a lease agreement with K & K Sharp, LLC, a Minnesota Limited Liability Company in the attached form contingent on City Attorney approval and the City Attorney further defining the lease. Further discussion: Councilmember Olson inquired about the square feet of office space in the building. City Administrator Norman indicated the Council Update will include a market sheet with information on the building. Councilmember Elvig asked if Economic Development/TIF Specialist Sullivan will be working on this case. City Administrator Norman replied Mr. Sullivan will be in charge of coordinating this case. Councilmember Jeffrey stressed that a work session discussion be scheduled to discuss the larger issues associated with the office space. Motion carded. Voting Yes: Mayor Gamec, Councilmembers Cook, Elvig, Jeffrey, Olson, Pearson, and Strommen. Voting No: None. Case #5: Consider Authorization of Development/Purchase Agreement with River's Bend Holdings Co., LLC City Administrator Norman reviewed that the consideration of this purchase agreement dates back to 1980, in a land exchange agreement between the City and Arthur Raudio and Rick Foster. The Council considered this case on February 8, 2005, and approved the Purchase Agreement at that time. The Purchase Agreement still has not been executed. Rick Foster is now requesting an additional small amount of land that is separated from the park and waiver of the City's trunk storm sewer, sanitary sewer and water fees when he develops the parcel. City Attorney Goodrich advised Mr. Foster has indicated he would like the City to waive the development fees of approximately $70,000 and an additional 2 ½ acres of land. The land would then equal 7 to 7 ½ acres with a waiver of the development fees at approximately $10,000 per acre, for a total of an additional $70,000. Mr. Goodrich indicated he has included in the purchase agreement that he wants to be certain this land is not in any way dedicated as park. Councilmember Strommen requested clarification that since the last agreement Mr. Foster will be paying the City an additional $10,000, but will be gaining an extra 2.5 acres of land and $70,000 worth of fee waivers. City Attorney Goodrich responded in the affirmative. Councilmember Strommen stated she has a serious issue with this proposal. She also had a serious issue with the original proposal and giving the parkland away, even if it is not dedicated as parkland, without working with the Park Board and the neighbors. City Council /January 10, 2006 Page 8 of 18