05/12/1986 Council Minutes - Laserfiche WebLink

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076' COUNCIL MEETING May 12, 1986 Page Eleven CONSIDERATION OF WILLIAM PIRRUNG'S REQUEST TO PURCHASE A LOT ON MAPLE STREET - LOT PRESENTLY OWNED BY THE CITY Mr. Schumacher explained the location of this property on Maple Street and noted that the City is not holding it for public pur- poses such as parks or utilities. In the past the City has ad- vertised such lots for sale and taken bids. Mr. Marier moved to advertise this lot for sale and take bids. Mr. Bohjanen seconded the motion. Motion carried unanimously. DISCUSSION OF FIRE STATION PROPOSAL Mr. Schumacher explained that the City has the opportunity to purchase the Village Plumbing property on Lake Drive for use as fire station #2 in the Centennial Fire District. The Fire Comm- ission has reviewed this proposal and has decided that it does not have a regional effect on the fire district and therefore the purchase and improvement of the property is the sole responsibility of Lino Lakes. Mr. Marier asked what constitutes a regional faci- lity and Mr. Benjamin, Commissioner for Lino Lakes, explained the uage in the joint powers agreement, but felt the language was are directed to Centerville rather than Lino Lakes. Mr. Ben - 'n did note the method of allocating costs of running the dis- was based on equipment and personnel,not buildings. The district is responsible for upkeep of buildings but not the purchase of the buildings. Mayor Benson said it was his understanding when the district was formed that Lino Lakes would have to build a sta- tion and pay for it. Mr. Marier said this part of the joint powers agreement needed to be defined better. Mr. Hawkins said that when the joint powers agreement was drafted this portion related to building or buying a new station. Mr. Schumacher explained that there are four options for purchasing the Village Plumbing building. One option is purchase the property with General Fund money, second option; call a referendum and issue general obligation bonds, third option; lease purchase agree- ment and the fourth option; contract for deed. His recommendation would be contract for deed if a quick and easy method is needed or if the City is looking as a long term investment he recommended the lease purchase plan which is geared for a longer term payback. The lease purchase option could include the financing of a public works building which is in the capital improvements plan. Mayor Benson explained the contract for deed option would allow the City to budget this purchase over the next five years. Mr. Marier asked that the need for additional public works facilities be reviewed at this and balance the cost of bonding against the cost of the contract for deed. 1