Minutes - Council - 04/24/2007 - Laserfiche WebLink

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rarely received when things go well, but more so when things do not go well. However, he received many phone calls from the residents in appreciation of the efforts that were made and the low traffic that resulted in their neighborhood. The retailers sold a lot of product last year and they will likely be glad to have notice about the event this year. Motion by Acting Mayor Elvig, seconded by Councilmember Jeffrey, to authorize staff and Northern Lights Soccer Association to proceed with application and planning to host the MY SA North District Tournament for 2007. Motion carried. Voting Yes: Acting Mayor Elvig, Councilmembers Jeffrey, Dehen, Look, Olson, and Strommen. Voting No: None. Absent: Mayor Gamec. Case #3: Consider Lease for Property at 6701 Highway 10 (former NAU Building) City Attorney Goodrich reviewed that the City has purchased the property at 6701 Highway 10, known as the NAU building through the RALF Funds Program. Currently the building is being leased by both Youth First and K & K Sharp. Endurance Sports, LLC dba Healthquest has expressed interest in leasing half of the front portion of the building. Mr. Goodrich reviewed the negotiated terms of the lease for 4,820 square feet of the building located at 6701 Highway 10. He advised a demising wall and a new vestibule are needed to divide the front portion of the building. In addition, a new ventilation system needs to be installed to accommodate the fitness use for the building. The cost of building and demising wall and vestibule is.$3,250 and that cost would be shared on an equal basis with Healthquest and the City. The cost of the ventilation system is $6,879.00 and will be paid by the tenant. A fire alarm system has been installed and the City will perform maintenance on the fire extinguishers. It should be noted that the net proceeds will be remitted to the Metropolitan Council, and that Council has previously agreed that to the extent possible, these leases need to be at market rate. Councilmember Jeffrey requested clarification that the City's expenses, including fees and rental expenses, ar~ taken out before the rent proceeds are forwarded to the Metropolitan Council. City Attorney Goodrich replied yes; the City will have the ability to charge administrative fees with this as well. Acting Mayor Elvig requested clarification that the City will be reimbursed for the funds they are fronting. City Attorney Goodrich replied yes; each time one of these properties is purchased there is a fund that goes to the City for expenses incurred. Acting Mayor Elvig commented taxes will be paid by the tenant. He questioned who will. be monitoring that liability insurance is being carried by the tenant. City Attorney Goodrich indicated the City only carries property insurance for hazards such as storms and fire. Staff periodically checks on the status of the insurance. City Council / April 24, 2007 Page 27 of 38