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City Administrator Norman stated he couldn't agree more but attorneys are saying recent case <br />law has come out that are very liberal to whoever has the space. He stated the only thing the <br />City can do, once it knows the highway is coming, is to work out a renegotiated relocation rather <br />than a pay-out relocation. <br /> <br />Mayor Gamec asked whether the City would have to pay relocation if the City owns the building <br />and leases the space back with a year-to-year lease. Then the City could let the lease run out. He <br />noted the Council had asked for a letter from the Metropolitan Council. <br /> <br />City Administrator Norman stated the City did receive an e-mail from the Metropolitan Council. <br /> <br />Mayor Gamec suggested the City keep that letter on file because with the Highway 212 project <br />and other highways, it was considered a donation and the City did not recoup their expenses. <br /> <br />Councilmember Strommen stated that is a key issue as well as what Councilmember Cook said <br />about assuring the lease payments cover the bond. <br /> <br />Councilmember Jeffery pointed out that some of the lease payment needs to go into an escrow to <br />offset relocation costs. He suggested that cost be built into the lease payment. <br /> <br />Councilmember Strommen agreed and suggested costs also be factored in should the space be <br />empty for a while. <br /> <br />Mayor Gamec asked about the business on Sunfish Lake Boulevard. <br /> <br />City Administrator Norman stated the City is a ways apart from what that owner wants and can <br />only pay what the appraisal says the property is worth. <br /> <br />Mayor Gamec noted the rent has to stay within the market rates; otherwise it will not be rented. <br /> <br />Councilmember Strommen stated the rent has to at least cover the bond payment and some <br />escrow for relocation. <br /> <br />Finance Director Lund asked how far down on the debt limit the City wants to go. <br /> <br />Mayor Gamec stated he understands some things don't go against the debt limit. <br /> <br />Finance Director Lund stated those items are capital equipment costs, the municipal center, the <br />fire station, and anything that does not have backing behind it like the Sunfish property and <br />Anchor's Away building. She advised that $11 million remains for the Cityto workwith. <br /> <br />The Council discussed the need to cover costs including the bonding. <br /> <br />Councilmember Cook suggested the type of business be considered to determine if it will <br />maintain itself. <br /> <br />City Council Work Session / December 5, 2005 <br /> Page 3 of 10 <br /> <br /> <br />