Minutes - Council - 07/11/2006 - Laserfiche WebLink

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Councilmember Cook commented on the need for comparisons of office leases in this area to be able to determine whether they are staying at fair market value for these leases. He questioned if the City would still be required to pay relocation fees if the property owner leases the site after selling it to the City. City Attorney Goodrich responded in the affirmative. He explained with this site and with a couple of other sites the tenant leases out space to other tenants, so there are other tenants on this property that the City will be liable to relocate. Relocation would not be required for new tenants after the property is purchased by the City. Councilmember Cook stated these properties will not get any cheaper and they should be purchased now with the opportunity and the RALF funds that are available, but the fair market value needs to be determined for these leases. Motion by Councilmember Jeffrey, seconded by Councilmember Strommen, to table approval of a purchase agreement and loan agreement for the purchase of property located in the Highway 10 Corridor (7751 Highway 10 NW) to a work session for further discussion. Further discussion: Councilmember Pearson requested staff to include information on comparisons of rental property in this area with the work session discussion. City Administrator Norman indicated Marty Fisher will be asked to attend the work session, and staff will request that he provide this type of information. Mayor Gamec suggested the leased rate for Ramsey Sports Center be researched. City Attorney Goodrich asked whether the Council would be in agreement if the property owner would like to proceed with the purchase agreement. Consensus of the Council was that the purchase agreement and the loan agreement should be tabled to the work session. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Jeffrey, Strommen, Cook, Olson, and Pearson. Voting No: None. Absent: Councilmember Elvig. Case #7: Authorize Lease of 6590 _1418t Avenue NW City Administrator Norman stated this lease is similar to the lease with Perkins Contracting. On June 27, 2006, Council authorized the City to acquire 6590 - 141st Avenue NW. As part of that transaction it is necessary to allow the current owner to remain there for two months. The two month time period would allow the owner ample time to move its possessions out of the building located on the subject property. This lease would have a term oftwo months. Motion by Councilmember Jeffrey, seconded by Councilmember Cook, to authorize the City to enter into a General lease with Anna M. Parks pursuant to the terms and conditions outlined in the attached General Lease, contingent on City Attorney approval. Motion carried. Voting Yes: Mayor Gamec, Counci1members Jeffrey, Cook, Olson, Pearson, and Strommen. Voting No: None. Absent: Councilmember Elvig. City Council / July 11, 2006 Page 11 of 13