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Mounds View City Council November 8, 2010 Regular Meeting Page 3 whole negotiation process. MOTION /SECOND: Mueller /Hull. To Waive the Reading and Adopt Resolution 7697, Authorizing Retroactive Health Insurance Adjustments to Public Works Bargaining Group and Non -Union Employees. Ayes 4 Nays 0 Motion carried. B. Resolution 7689, Approving Lease and Access Agreement with Dell -Comm. City Administrator Ericson stated the City owns a land locked parcel adjacent to the south boundary of the Townsedge Terrace manufactured home park, accessible from Mustang Circle via property owned by Dell -Comm at 4860 Mustang Circle. The parcel had been the site of the original municipal water tower and presently is improved with one of the city's civil defense siren. City Administrator Ericson indicated in 1994, the City Council approved a resolution authorizing a development agreement regarding a building expansion with Wolf Associates, the property owner at the time of the adjacent property south of the manufactured home park. The resolution was conditioned on three points, one of which that Wolf Associates enter into a lease agreement for the use of the former water tower site. While Wolf Associates ultimately opted against moving forward with their expansion, they did begin to use the City's parcel, however no lease was executed. At some point subsequent to 1994, Wolf Associates sold to Dell -Comm, who continues to use the City's parcel, believing that Wolf had secured the requisite approvals. It was not until earlier this year that the City ascertained that no lease had ever been approved for the private usage of the public property. Staff recommends the Council consider approval of a resolution authorizing a lease and access license agreements between Dell -Comm and the City of Mounds View. The lease and license agreements have been reviewed by Kennedy Graven. Council Member Hull questioned where the revenues from this parcel would be placed. City Administrator Ericson stated this was a Council decision but he would recommend the general fund. Council Member Stigney asked what the parcel was currently being used for. City Administrator Ericson indicated the site was used for parking and exterior storage. Mayor Flaherty questioned if the parcel had any hazardous materials being stored on the parcel. City Administrator Ericson noted he was not aware of any hazardous storage. Council Member Stigney felt the lease rate was too low and asked about the size of the parcel. City Administrator Ericson stated the parcel was approximately 16,000 square feet. City Administrator Ericson remarked that the parcel had very limited appeal and the lease rate was the best the City could get, at this time.