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CITY COUNCIL MEETING, FEBRUARY -�, 1982 <br />-2- <br />5. DISPOSITION OF THE OLD CITY OFFICE BUILDING: <br />-Novak - possibly just rent one section of the building and <br />keep the garage area for storage of City park equipment. <br />--Fraser - favors selling rather than renting. Renting will <br />take City staff and Council time in rental function. Would <br />like to see what type of offers would come in on a sale basis <br />--Eder - would be interested to see what the competitive market <br />has to offer. <br />--Morgan - Favors renting the building out - prefers 1 yr lease. <br />--Mottaz - can always sell later - does not feel would get a <br />high offer in todays market. Would rather the City have a <br />choice for a couple of years. Would not oppose a 3-5 year lease. <br />Rent would be based on the number of years leased. <br />--Fraser - short term leases would be the least desirable tenant. <br />--Whittaker - lease would not include snow removal, utilities or <br />tenant improvements. Insurance would only cover what is allowed <br />under the City's General Liability aslowner of the building. <br />Mottaz and Novak agreed to have the Adrud nistrator draft a lease <br />agreement, for Council review, with rent set at $6500/yr for a <br />1 year lease and $6,000/yr for a 5 year lease, and including <br />leasee responsibility for snow removal, utilities and improvements. <br />Motion carried 4-1. Fraser opposed. <br />6. PUBLIC INQUIRIES: None <br />9. ADMINISTRATOR'S REPORT: <br />A. General Liability & Property Insurance Bids - <br />t Ghittaker-reporeported on t'e two bids received for the City's Insurance <br />renewal. Aetna and the League of Minnesota Cities were the two <br />bidders. Based on the bid information and the service received <br />in the past, Whittaker recommended continuing coverage with Aetna. <br />Whittaker explained why the City raised its coverage and the past <br />experience the City had in soliciting bid proposals. <br />M/S/P Eder/Fraser to approve Aetna Insurance as the City's <br />General Liability and Property Insurance carrier. <br />B. Lake Demontreville Access - 2 lots <br />Whittaler brought t e Council up-to-date on the status of the <br />Kubitschek/DNR/Derrick situation. As Mr. Kubitschek has defaulted <br />on his contract with Derrick, the DNR is, dearling directly with <br />Derrick on the purchase of two lots on 53rd St. N. The second <br />lot is across the street from the one being negotiated f.Qr,.with <br />Kubitschek. The DNR has asked the City's support in purchasing <br />two lots. <br />The Council did not favor the DNR acquiring two lots, anticipating <br />higher development in that area; but, since Derrick is a willing <br />seller, with the City having no say in the negotiations, the <br />Council would support the proposal provided the second lot remain <br />undeveloped. DNR has indicated they have no plans to develop the <br />second lot. <br />M/S/P Eder/Mottaz to accept the DNR proposal provided that the <br />deed from Derrick to DNR include the restriction that Lot"1, <br />Demontreville Highlands 5th Addition will not be developed for <br />DNR access purposes to Lake Demontreville. <br />Additional discussion was held with residents of the area later <br />in the meeting.:' <br />