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<br />Mayor Gamec questioned the mix of a 24 hour operation with the authorized use by Youth First <br />in this building. He noted there might be a security conflict on the site with the 24 hour use. <br /> <br />Councilmember Jeffrey noted regarding the 24 hour use and security, there would likely be less <br />activity to be concerned about due to the additional traffic on the site. He pointed out Snap <br />Fitness has a pattern of use, there would likely be more morning and evening traffic than <br />anything, which would not likely conflict with Youth First. Access onto Highway 10 at 5:30 in <br />the afternoon will be difficult for any of these locations. <br /> <br />Mr. Fisher indicated there is a definite pattern with fitness centers with peak hours of 6 to 8 a.m. <br />and 4 to 6:30 or 7 p.m. <br /> <br />Councilmember Olson commented the only likely conflict time would be the after work crowd <br />that would be using the gym when the kids are there for Youth First. <br /> <br />Councilmember Elvig stated there is not a cash flow issue or a sense of urgency to rent this <br />space. Secondly is the issue of $10 versus $12 an hour; there are like businesses in the <br />community and it would be a terrible precedent to drop that square footage rate. If they were to <br />consider any type of break he would look at the property as a potential business opportunity for <br />an incubator type situation for a new business coming into the community that may want the <br />space for 6 months to a year until they build a new building. He expressed concern regarding <br />HealthQuest's implications that they are working with the City exclusively with Town Center, <br />and that this may be a stepping stone. HealthQuest needs to run their business and their clientele <br />as they see fit, but they should not imply that the City is working on their behalf. The statements <br />HealthQuest has posted in their front office are worded carefully, but it implies they are working <br />with the City. Any arrangement with them at a discounted rate on this property would imply <br />there is some type of arrangement. <br /> <br />Councilmember Dehen asked if a higher per square foot price would be out of the negotiations. <br /> <br />Mr. Fisher replied the letter of intent is an offer. HealthQuest knows what list is and letters of <br />intent are used to identify the user and the landlord; it is a document that is nonbinding on either <br />party that is used to negotiate. From a landlord's perspective, which is the City, there are two <br />choices; they can negotiate on this document and make a counter offer or outright reject it. It <br />would be his job to go back to the tenant and communicate the Council's wishes. <br /> <br />Councilmember Elvig stated his initial position would be that this use will not generate a great <br />amount of jobs and there are traffic concerns. He also has concerns about the marketing <br />HealthQuest is doing with implications of an arrangement with the City. <br /> <br />Councilmember Dehen questioned if the Council should turn a tenant down based upon possibly <br />getting another tenant. He questioned whether there would be a very good viable tenant in the <br />middle portion ofthis building that would create many jobs due to the tenants in the front and the <br />back of the building. <br /> <br />City Council Work Session / January 9, 2007 <br />Page 3 of 7 <br />