Minutes - 2001/05/29 - Laserfiche WebLink

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Mounds View City Council May 29, 2001 Regular Meeting Page 10 Director Ericson stated that Council would need to direct Staff how to negotiate the lease. He then indicated that it was up to Council to determine whether the major focus was to eliminate the billboard or to generate revenue for the City. City Attorney Riggs clarified that right now it is an easement in perpetuity and can continue forever. He then noted that the City is entirely at the mercy of what Ellers Media would agree to as they do not have to negotiate a lease with the City. Mayor Sonterre noted that Ellers Media had provided a lease with a term of fifteen years that included the exterior changes to the sign and incorporated the welcome to Mounds View theme. Council Member Stigney stated he felt that if Ellers Media proposed fifteen years the City should counter with ten years. He then stated he felt there had to be a way around the issue. City Attorney Riggs stated that the City is trying to extinguish the easement and create a lease for the City that would provide revenue and a sunset clause for when the billboard would be taken down. Council Member Quick asked if there was an estimated revenue amount for the City. Mayor Sonterre indicated the billboard would generate $32,000 per year for the fifteen years of the lease. • MOTION/SECOND: Quick/Marty. To Direct City Administrator Miller to Negotiate a Lease with Ellers Media and Bring the Contract to Council for Consideration. Council Member Stigney stated that the motion seemed to be directing Staff to negotiate the contract for the fifteen years and he feels that Staff should be countering with ten years. Council Member Thomas stated she did not feel Ellers Media would go less than ten years on the lease and suggested a friendly amendment to the motion to direct Staff to counter will ten years and negotiate the lease not to exceed fifteen years. Council Members Quick and Marty accepted the friendly amendment. Director Ericson noted that, if a new billboard would be built, then it would fall under the interim use code which includes a sunset clause. City Attorney Riggs stated that from the standpoint of interim use the City is amortizing the use of the easement and noted that should a future Council wish to renegotiate and continue the lease they have the power to do so. Council Member Marty noted that a monument style billboard could enhance the area. Council Member Stigney asked what size the billboard would be.