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515 Little Canada Road, Little Canada, MN 55117-1600 <br />(651) 766-4029 / FAX: (651) 766-4048 <br />www.ci.little-canada,mn.us <br />MEMORANDUM <br />MAYOR <br />John Keis <br />COUNCIL <br />Rick Montour <br />Michael McGraw <br />Tom Fischer <br />Christian Torkelson <br />ADMINISTRATOR <br />Joel R. Hanson <br />TO: Mayor Keis & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: October 23, 2015 <br />RE: Rental of Former Public Works Building <br />Given the delays in completing the sale of the former Public Works Building to Mr. Schwalbach, <br />I contacted him to see if he would be interested in a rental arrangement to enable usage of the <br />building prior to closing. He said that would be beneficial from a business standpoint. <br />Therefore, staff is proposing we enter into a lease arrangement that will allow Mr. Schwalbach <br />use of the building prior to closing. I would further propose we charge rent of $2,500 per month <br />plus a damage deposit of $2,500. As long as the transaction closes, any amounts received will be <br />applied to the sale price. The City would retain all amounts paid if closing does not take place. <br />I'm assuming that closing likely won't occur until the end of November or earlier December <br />given the title and survey work needing to be completed. Mr. Schwalbach would also be <br />responsible for any insurance and utility costs during this time. <br />I will put together a draft lease agreement for your consideration at Wednesday's meeting. <br />