Agenda Packets - 2000/02/14 - Laserfiche WebLink

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Mounds View City Council March 22, 1999 Regular Meeting Page 34 Council Member Marty inquired if the Children’s Home Society would take the playground equipment with them. Assistant to the City Administrator Schmidt stated they could do so, as long as they do not default on the contract. Council Member Marty stated it was his impression that anything that is permanently affixed to the property, becomes the property. City Administrator Whiting stated this was a good point. He explained that if the Children’s Home Society was to leave prior to the five-year period, and take the playground equipment with them, he would suspect the City could either attempt to purchase this equipment at a discount, or attempt to negotiate for new playground equipment with the new tenant. He stated the Children’s Home Society had made the entire decision regarding the type of playground equipment at the facility, and he was not certain it would be anything the City would want, although it is new, and looks good. City Administrator Whiting stated the main concern he has had, in acting as a negotiator on this matter over the last two or three years, has been in terms of getting them into the building, keeping them in, and securing the cash flow for the operation of the facility. He stated this was the primary concern, and the penalties that this agreement imposes, compared to the conditions of the first agreement, are an attempt to secure that cash flow for the facility. City Administrator Whiting during consideration of this matter by the previous Council, there was some recognition that simply having the Children’s Home Society services available was a benefit to the community. He commented that this was something they would continue to have to make a judgment on, however, this had opened the door to considering an alternative to the initial agreement. Mayor Coughlin interjected that at this time they had approximately 23 minutes left of the meeting, and although he did not wish to rush the people’s business, he would like to move forward, so they could get as much dealt with as possible by the 10:00 deadline. Council Member Stigney stated he had two questions, one pertaining to the rent. He stated the original contract specified that the Children’s Home Society was going to for the year, in advance, however, it would now be paid quarterly for the first year, and monthly thereafter, along with a contingency regarding the number of children at the facility. He stated they were no longer paying in advance, therefore, the City should be charging them interest for the delayed payments. He indicated this money was not going into the City’s coffers, adding that any bill he pays late, or on a monthly basis, he is charged interest on. City Administrator Whiting stated he had created this understanding with the Children’s Home Society because they had expressed they would have a difficult time coming up with $30,000 in advance, and they had discussed doing this for the last three or four months. He stated in regard to whether or not interest should be charged on what might be interpreted to be a late payment, it should be noted that with the original agreement, and in the preceding years of this agreement, they would be paying one month in advance. He explained that on January 1, they would pay $2,500, for the entire month of January.