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<br />Al Tinklenberg, The Tinklenberg Group, provided a report on the meeting regarding the Boike <br />property, which is the parcel of land that would likely be impacted by the proposed northwest <br />bridge crossing. Mr. Boike is interested in selling, and is a willing and cooperative seller; he has <br />been talking with the City and the County for some time. The County is also an interested <br />partner and is willing to work with the City to make this purchase happen to preserve the <br />crossing corridor. This issue has been complicated due to the uncertainty of the plans for the <br />alignment by the City of Dayton. <br /> <br />City Administrator Norman reviewed that the purchase of the Boike property was discussed at <br />the Council level, and the issues are twofold. First of all there are budget implications, and it is <br />difficult to make a commitment without knowing where next year's budget will be. The second <br />issue is the housing market and the cooling off in the market place. In the recent meeting with <br />Mr. Boike he was asked what the City proposes. He responded that the $1,000,000 down <br />payment needs to be reduced, and suggested something more like 10% of the purchase price, and <br />that the City needs more time to get past the budget process. The question was raised of whether <br />the City would be willing to put down some type of earnest money. <br /> <br />Council and staff discussed the possible purchase of the Boike property, including official <br />mapping of the corridor in the future, whether RALF funding would be available in the future, <br />budget implications from the purchase, and conditions if earnest money were to be offered. <br /> <br />Consensus of the Council was to authorize the City Administrator to proceed with further <br />discussions regarding the Boike property, including authorization to offer earnest money based <br />on a time continuum refundable period that would go into a trust. <br /> <br />City Attorney Goodrich reviewed that during the Council meeting of July 11, Council considered <br />a purchase agreement and loan agreement for the property located at 7751 Highway #10 NW, <br />known as EZ Sales, owned by Todd Bialon. Mr. Bialon subleases various units to a series of <br />vendors. Jodi Ruehle of The Tinklenberg Group has negotiated a purchase price of $1,242,900 <br />for the property, which MnDOT has approved. Mr. Bialon wants a five-year lease with five <br />additional one-year options with the right to renew. <br /> <br />City Administrator Norman indicated the second issue is the lease price; Council has questioned <br />how market rate leases are determined. The lease rate for the EZ Sales property has been <br />proposed at $53,000 annually, which is approximately 5% of the $1,243,000 purchase price; <br />MnDOT has recommended a lease return rate of 8%. Marty Fischer of Premier Properties and <br />Al Tinklenberg of The Tinklenberg Group are present to discuss Highway #10 leases with <br />Council. <br /> <br />Marty Fischer, Premier Properties, informed the Council market rate leases are arrived at through <br />comparables in the market, and there are different categories of rental rates within the market <br />place. <br /> <br />City Council Work Session / July 18,2006 <br />Page 3 of 6 <br />