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<br />He is not interested in leasing the building if they have to pay the taxes and other costs until <br />August 151 of next year when the lease ends, at which time they start leasing out for the following <br />year and can determine the amount of rent needed per square foot. <br /> <br />City Attorney Goodrich noted the Council informed him in August that Mr. Sharp should pay the <br />taxes on the new building. <br /> <br />Mr. Sharp stated he was willing to sign the same lease he signed on the NAU building for $1.25 <br />per square foot until August 1, 2007. That was supposed to be negotiated this past August and <br />he had not heard anything. <br /> <br />City Attorney Goodrich stated he sent a letter to Mr. Sharp's son in July informing him they <br />would need to pay the taxes on the property. <br /> <br />Economic Development Coordinator Sullivan explained in November of every year the City <br />receives their Truth in Taxation notices. At that point staff will know the taxes for the following <br />year. An estimate can be calculated based on this year's rates, but they will not have an exact <br />figure. <br /> <br />Councilmember Cook commented if they agree to Mr. Sharp's request they will begin getting the <br />taxes on this property in August of 2007, and they do not have anyone else knocking on the door <br />to use this property this year. This lease can cover some of the expenses and be renegotiated <br />next year. <br /> <br />Councilmember Elvig concurred. He indicated the City is trying to generate revenue for the <br />State at this point, and the leasing agent should be negotiating this o1;1t and bringing it to the City. <br />The City does not have any guarantee with Mr. Sharp for next year or the long term. He would <br />suggest agreeing to Mr. Sharp's request on the lease and engaging the leasing agent to ensure <br />they are getting the best use of the space. <br /> <br />Councilmember Cook noted the Council has discussed the importance of being fair to everyone <br />else in the community that is renting property for commercial use. <br /> <br />Community Development Coordinator Sullivan advised Premier Commercial Properties is the <br />property management team for this property. The rate of $1.25 per square foot was discussed <br />and determined to be commensurate with what it should be. What is being seen now is an <br />increase in market value on properties located on Highway 10, which results in an increase in <br />property taxes. In bringing this forward the City Attorney is ensuring that the City will be <br />covered when the taxes kick in next year. <br /> <br />Motion by Councilmember Cook, seconded by Councilmember Elvig, to approve the leases for <br />Midwest Car Care, LLC and K & K Sharp, LLC, and that staffbe directed to get information out <br />very early in order for Mr. Sharp to get a determination on costs next year with the increase on <br />the taxes and insurance in order to make a determination for the leasing next year. <br /> <br />City Council / September 26, 2006 <br />Page 35 of 38 <br /> <br />P55 <br />