06-10-87 Council Minutes - Laserfiche WebLink

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P1I~IUTES City Council June 10, 1987 Bingo !~lylie informed the Council that the term of the LCC6 lease is 3 years, (Cont.) with 2 years left to run. The term of the newly negotiated lease is 5 years. ldylie reported that his charities are concerned with being obligated to leasing the premises for 5 years. There was also concern about the financial viability of operating bingo due to other concerns. tdylie stated that his charities preferred a lease with 1-year options, or a two-year lease, but not a 5-year lease. Also, under the new lease the landlord gains the concessions, which were the right of LCCB under their lease. Scalze asked what relationship ~~Jylie had to the new lease since his charities have not applied for relicensing. I+lylie reported that his clients, DAC, Lions, Humane Society and MRID are interested in reapplying and he is their attorney for purposes of negotiating a lease. l~lylie requested that action on the license applications before the Council be tabled until the next Council meeting so give his clients an opportunity to negotiate a new lease. Fahey pointed out that P1r. Babel has reported that the financial concerns involved with the new lease have been resolved, and Babel feels the new lease is appropriate. Fahey stated that he needs to hear from ulylie where the overriding erroneous provisions of the new lease are before he would take action to table the matter. Fahey pointed out that the experts say the new lease is acceptable, and it does not appear to be a bad lease. Fahey felt that a 5-year lease was more beneficial to the charities than a lease with 1-year options. LaValle again commented that rotation should be a part of any approval. LaValle also felt that a 5-year lease would be less expensive for the charities. LaValle commented that it was his understanding that the 5-year lease was basically the same as the lease LCCB had with Movers ~larehouse, but less than what LCCB was charoing the charities. i,~ylie agreed that the lease was basically the same as the LCCB lease. However, l4ylie explained that LCCB was charging the charities an amount above the lease for providing services to the charities which will still probably have to be provided in some form. This covered utilities and maintenance. Wylie also pointed out that under the new lease Mr. Short gains the income from concessions. Glylie stated that his point is that the matter should be tabled at this time to allow his charities to take a harder look at the lease and the matter considered at the June 24 Council meeting. It was noted that the State Gambling Control Board meets on June 29th. Scalze pointed out that the proposal before the Council is for 5 nights of bingo, which would leave only 2 nights open. Mr. Wylie has 4 clients who are interested in operating bingo in Mr. Short's building. Blesener pointed out that with regard to the admissions charge that LCCB collected for payment of utilities and maintenance, the charities Page -6-