|
Mounds View City Council March 27, 2000
<br />Regular Meeting Page 13
<br />
<br />attorneys. He stated the language of this paragraph is basically the same, however, the dollar
<br />amount has increased by $5,000 per sign, and adds $30,000 per year for the City. He explained
<br />that the previous lease agreement indicated $36,000 per year, per billboard site, for a total of
<br />$216,000 per year, and it is now at $41,000 per year, per billboard site, for a total of $246,000.
<br />He pointed out that this represents a $450,000 gain to the City, over 15 years. He indicated that
<br />Eller Media’s original proposal included some discussion that they would provide advertising
<br />services to the City, however, after considering this, staff felt it would be cleaner from a
<br />procedural standpoint, to take this in the form of a cash payment.
<br />
<br />City Attorney Long stated paragraph 6c indicates that Eller Media will pay the City an additional
<br />$50,000 up front, within one week of the date the permits are obtained, and that is in lieu of the
<br />advertising services they offered. He stated the second sentence indicates there would be
<br />escalating payments in the amount of $12,000 per year for the first five years, $14,000 per year
<br />for the next five years, and $16,000 per year for the last five years. He advised that those
<br />amounts would not be subject to the CPI indexing of the actual rental payments, therefore, the
<br />total rental compensation has been increased to $710,000. He noted the original proposal stated
<br />the marketable value of the advertising services Eller Media had offered was approximately
<br />$540,000, therefore, the City was coming out ahead with these cash payments, and not having to
<br />take this in the form of advertising.
<br />
<br />City Attorney Long stated paragraph 8 specifies the amount the lessee will pay to reimburse the
<br />City for its costs including legal fees, landscape and architect fees, and other costs incurred with
<br />this project. He stated there is a blank space in this paragraph, and staff was attempting to
<br />compile the final bills, after which the total would be inserted, and Eller Media would pay that
<br />amount prior to execution of the document. He advised that this amount would be paid first,
<br />followed by the $50,000 payment one week later when the permits are obtained, and the first
<br />rental payment dates will commence on July 1, 2000.
<br />
<br />Superintendent Hammerschmidt pointed out that the July 1 date may be pushed back a bit, in
<br />light of the timing of this matter.
<br />
<br />City Attorney Long stated this was correct. He indicated the lease agreement is essentially as it
<br />was originally presented, with the changes the Council suggested at the Work Session
<br />incorporated therein. He advised that if the Council is comfortable with this, they could move to
<br />authorize the Mayor and the Interim Administrator to execute the document, once the final
<br />information is inserted into the blank spaces of the document.
<br />
<br />Council Member Stigney stated at the previous Work Session he had brought forward a question
<br />pertaining to a changeable or movable type of billboard face, however, this did not appear to be
<br />addressed in the lease agreement.
<br />
<br />Superintendent Hammerschmidt indicated this has been addressed in Item 3 of the document.
<br />City Attorney Long advised that the last sentence of the third paragraph, which contains the
<br />language “tri-vision signs or other multi-faced signs…” was an attempt to address the concerns
<br />Council Member Stigney had brought forward.
<br />
<br />Council Member Stigney inquired if electronic type billboards would be permitted.
|