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<br />Item No: 8C <br />Meeting Date: Dec 22, 2008 <br />Type of Business: Consent <br />Administrator Review : ___ <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: James Ericson, Clerk - Administrator <br />Item Title/Subject: Resolution 7386 Approving the Assignment of the <br />Creative Kids Lease Agreement <br /> <br />Introduction: <br /> <br />Tracy Sonterre, the owner and operator of the Creative Kids Childcare center operating out <br />of the Community Center, has requested City consent to an assignment of her lease. She is <br />considering a sale of the business and according to the lease, a sale of the business—even <br />if no other changes would be proposed—would require City Council approval. <br /> <br />Discussion: <br /> <br />I have met with the two individuals who have agreed to purchase the business from Ms. <br />Sonterre; they are professional and have extensive business experience. No material <br />changes to the lease were requested or proposed—all terms would remain as they are <br />presently and the existing staff would be asked to remain. The new owners are excited to <br />take over the business and to assume the assigned lease agreement. <br /> <br />To ensure proper assignment, I asked Kennedy & Graven to prepare an assignment <br />document and resolution to effectuate the assignment. The resolution stipulates that the <br />assignee (the new owners) shall be required to reimburse the City for its costs associated <br />with the preparation of the assignment agreement and the resolution. Ms. Sonterre indicates <br />that satisfaction of the purchase agreement conditions is a prerequisite for Council action. <br />Thus, if we learn that the buyer has not fully satisfied all terms of the acquisition, staff will pull <br />the item from the agenda. <br /> <br />Recommendation: <br /> <br />Approve Resolution 7386, a resolution approving the assignment of the Creative Kids lease <br />agreement, subject to satisfaction of purchase agreement conditions and payment of city <br />costs related to the preparation of the assignment documents. <br /> <br />Respectfully submitted, <br /> <br /> <br /> <br />________________________ <br />James Ericson <br />Clerk - Administrator <br /> <br /> <br /> <br />