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LAKE ELMO CITY COUNCIL MINUTES AUGUST 19, 2014 <br />Page 7 of 8 <br /> <br />Mayor Pearson asked how to address those concerns in this motion. City Attorney Snyder responded that <br />Council could approve the lease “subject to staff revision of CAM and other related costs.” <br />Council Member Nelson asked about limiting the scope of staff review. City Attorney Snyder stated that staff <br />would bring the lease back if they got to an issue that they couldn’t resolve. Council Member Smith was <br />comfortable with that notion. <br />MOTION: Mayor Pearson moved TO APPROVE THE FIVE YEAR LEASE WITH LAKE ELMO ASSOCIATES, LLP FOR CERTAIN RENTAL SPACE OF 2,461 SQUARE FEET IN A <br />BUILDING LOCATED AT 3880 LAVERNE AVENUE NORTH FOR THE PURPOSES OF IMPROVING OFFICE EFFICIENCY FOR THE GENERAL ADMINISTRATION FOR THE <br />CITY OF LAKE ELMO, SUBJECT TO STAFF REFINEMENT OF CAM RELATED CHARGES. <br />Council Member Nelson seconded the motion. <br />Council Member Bloyer spoke about bonding in 2005. The City bonded for a new City Hall, but one was <br />never built. Finance Director Bendel stated that that bonding money was used to pay down the debt on the <br />loan that was taken out in 2005. Mayor Pearson suggested that Council Member Bloyer work with Staff on <br />this issue. <br />City Administrator Zuleger stated that the needs the City has are for additional meeting space, more privacy, <br />and more space for the building inspector to look at plans. <br />Council Member Smith voiced her concerns about spending $30,000 a year right now while trying to have a <br />zero based budget. <br />Council Member Nelson understands that the City needs more space. He spoke about having some friends of <br />his also look at the lease and they thought it was a good deal. He also stated that he has looked around the <br />City for other places that may suite our needs and this is the best deal. He felt that leasing the space gives the <br />City 5 years to make a decision about what to do about a new City Hall. <br />Mayor Pearson spoke about the downsides of the Annex. He believes that the building next door would be <br />better than using the Annex. His concern is that when the growth comes, if that space has been leased by <br />someone else, then the City will really be in trouble as far as space goes and may have to do something <br />reckless. <br />Council Member Smith agreed that the five years gives us time. She asked if there was any way to keep the <br />Annex and let Washington County use it rather than getting rid of it and have to pay it all off at once. City <br />Administrator Zuleger responded that it could be used, but the HVAC has issues and it is an expensive <br />building and it does not level well anymore. There are some structural integrity issues. <br />Mayor Pearson reminded Council that they do not need to decide tonight about what to do with the Annex. <br />He also stated that the Annex is a usable space but that there is an expense to keep using it. Council Member <br />Smith would like to see a spreadsheet of the costs to keep using the Annex. <br />MOTION PASSED 4-0. <br />Council Member Bloyer spoke about paving the park aprons. He believes it needs to happen before fall. City <br />Administrator Zuleger stated that with the late spring the City has fallen behind a bit. <br />STAFF REPORTS AND ANNOUNCEMENTS <br />City Administrator Zuleger: Finance Committee meeting tomorrow night. Handed out agenda for next week’s workshop. Working with developers on final touches, Ryland on construction of 50th Street and <br />Lennar on their second addition plat. Working with Jack and Nick on downtown drainage solution. Did some <br />code enforcement, and working on 5th street median design.