Minutes - 1999/03/22 - Laserfiche WebLink

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Mounds View City Council March 22, 1999 Regular Meeting Page 37 City Administrator Whiting reiterated that the body of this document has already been agreed to, however, the entire agreement had to be redrawn because according to legal opinion, the original agreement did not allow for amendments. He the issue of the Children's Home Society's ability to cash flow had come before the previous Council, and this matter was brought forward in light of those specific concerns, and not for the purpose of reopening the entire agreement. He stated this was simply not something he had anticipated, when carrying out that directive. Council Member Marty stated that with the exception of a couple of questions he had at the beginning of the discussion, this was his only concern. City Administrator Whiting stated this was a five year agreement, and is something that staff could certainly look at in the future. He indicated there were provisions in the instrument that would allow the City to bring the agreement to an end if for example, they found a better paying tenant, however, that would likely have to be addressed at the time it came forward. He noted he knew of none at this time, and when the discussion regarding this matter commenced, staff certainly contemplated that point. Council Member Marty inquired if there would be any problem with continuing this matter, and having staff research these points, and bring it back to the Council Work Session. He inquired if they were under any time constraints. City Administrator Whiting stated they were not, although they were hoping to have this finalized by the first of the year. He explained that currently, the Children's Home Society is simply paying the City $2,500 per month, and he was not aware of a legal situation, however, the City would probably want an agreement with them fairly quickly. He stated he would follow the Council's direction. Council Member Marty stated he would like to insure that the City recoup the cost of inflation, if nothing more. Mayor Coughlin stated these were minor changes to an agreement that has already been approved. He stated there is some question with regard to interest, however, this is rent, and he would go so far as to say he would move approval of the resolution as it stands. MOTION/SECOND: Coughlin/Thomason. To Approve Resolution 5324, a Resolution Authorizing the City to Enter into a New Lease Agreement with the Children's Home Society. Council Member Stigney stated he would like to amend the motion to incorporate a cost of living interest adjustment factor as discussed. Council Member Marty stated he would like to address this as well, because this would represent 15 percent in the fifth year, which is somewhat substantial, on $30,000 per year. City Administrator Whiting advised that the initial discussions, and the reason they formulated this type of an agreement in the first place, came from an understanding of what it would actually cost to improve the building, in order to accommodate the Children's Home Society. He stated there was really nothing else to base this on, except possibly the rent that is charged for other similar facilities. He indicated that he had attempted to correlate that fact that the City desired to