Agenda Packets - 2004/07/12 - Laserfiche WebLink

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Mounds View City Council June 28, 2004 Regular Meeting Page 15 Economic Development Director Backman stated to qualify for exempt status, two things must 1 happen – the Chamber would need to lease directly from the City of Mounds View and the 2 Chamber would need to file an application with the state by July 1, 2004. The Mermaid has 3 indicated it would be willing to pay the city’s legal fees to revise the lease agreement for the 4 Chamber. The City’s attorney indicates that it would be a fairly easy process to modify the 5 Chamber’s lease agreement. 6 7 Economic Development Director Backman stated it is staff’s recommendation that the City 8 Council direct staff to develop a revised Lease Agreement, subject to changes by the City 9 Attorney, between the Twin Cities North Chamber of Commerce and the City of Mounds View. 10 11 Council Member Stigney asked whether in redrafting the contract if they could change any terms 12 of the contract. 13 14 Economic Development Director Backman stated the only change contemplated is that the 15 payment would go to the city instead of the Mermaid. 16 17 Council Member Gunn asked about future bookings. 18 19 Economic Development Director Backman stated that there is no obligation on their part for 20 bookings going out to 2005/2006. 21 22 City Attorney Riggs stated that that was correct. 23 24 Economic Development Director Backman stated in the second to last paragraph it states that the 25 exact amount of money paid to the City of Mounds View from the Chamber of Commerce would 26 then be reduced off the amount of rent charged to the Mermaid. 27 28 Council Member Gunn stated she did not go along with that, and that their contract was $6,000. 29 30 Mayor Linke stated that that was correct, and he would want the City Attorney to look at that. 31 32 City Clerk/Administrator Ulrich stated the option at this point is to leave it the way it is, and then 33 the Chamber ends up paying the property taxes. He stated that the Mermaid has the rights to the 34 Chamber’s rent at this point as long as the city has the contract with them, and then the money 35 belongs to them, so they couldn’t unilaterally reduce it or change it or take money away from 36 them. 37 38 Mayor Linke stated there is no way he would want to reduce that $6,000 because he thought that 39 was low to begin with. 40 41 Economic Development Director Backman stated he is not prepared to look at a redraft of the 42 existing Mermaid agreement. He stated it is not very complicated to redraft the one for the 43 Chambers. 44 45