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Mayor Coughlin stated there is some benefit from having a payment on a monthly basis. The <br /> additional benefit is helping these people stay viable. <br /> Motion/Second: Coughlin/Thomason. To approve resolution 5324, Children's Home Society ! <br /> agreement. <br /> Mr. Stigney would like to make a stipulation to incorporate a cost of living and interest <br /> adjustment factor. <br /> Mr. Marty stated after five years, 15%which is substantial on$30,000 a year. <br /> Mr. Whiting commented when going back to the beginning of this relationship the initial <br /> discussion on how we ended up with this kind of agreement in the first place came out of an <br /> understanding what it would actually cost to have the building improvement made to <br /> accommodate the new building. Seeing as the City was looking to have a tenant of this sort and <br /> that the cash flow from this tenant would help the operations of the building, in relationship to <br /> the cost of the improvements for the property were correlated as much as possible. <br /> Improvements to their portion of the building was something like $80,000 to $90,000. At the <br /> time, we were looking for an agreement that would recover 100% of that cost. The reality of <br /> their nature of business was that they could see themselves in one location for 15 years or more <br /> in one agreement. We were attempting to get them to lock in for that entire time period. The <br /> basis for coming up with these figures was to try to get the value that the City put into that <br /> building recouped, but in reality it would have to be cash flow from the building. The value of <br /> the building has been incurred when it was constructed,that it doesn't have an inflation value, <br /> except in terms of its market. That was the logic discussed and used to negotiate. So the <br /> inflation part clause is on tuition. <br /> Mr. Marty proposes a possibility of changing this from a five year contract to a two year <br /> contract. <br /> Mr. Whiting stated we want the longest agreement with them. <br /> Motion/Second: Stigney/Coughlin. To approve amendment of resolution 5324, Children's <br /> Home Society agreement. Amendment to incorporate a cost of living adjustment. <br /> Mayor Coughlin is opposed to add anything. <br /> Ayes - 1. Nays - 3. (Stigney is in favor). <br /> Motion/Second: Coughlin/Thomason. To approve resolution 5324. <br /> Ayes - 3. Nays - 1. (Stigney opposes). <br /> 20 0:\CARIS\COUNCIL\MINUTES\MVCC22.MAR <br /> j <br /> ;.i <br /> Ali <br /> i�f <br />