Minutes - 2001/07/09 - Laserfiche WebLink

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Mounds View City Council July 9, 2001 Regular Meeting Page 14 eliminated this time around, and include real numbers when the lease is due again. His suggestion was to not increase the amount the first year, but an accurate CPI can be determined for future years. Council Member Marty agreed with Mayor Sonterre's suggestion to omit the CPI for now and set the base rate. City Administrator Miller suggested a base rent be established, and on July 1 of each year, determine what the CPI is. The lease offers two ways of paying. One option is a percentage of the previous year's analyzed rent, and another is an amount equivalized to the CPI and pay the greater of the two. Tracy Sonterre, applicant, received a copy of the lease at 11:30 a.m. today. She would like to contact her lawyer before agreeing with the lease. She had a question in regard to the base rent, due to the fact that she cannot raise her rates on child care to maintain the lease. In addition, she will have to maintain a 4-5 percent raise for staff wages for incentive for them to stay on with her center. She said she was reassured many times that this was to be as much of an even break as possible. She felt that if the lease is being increased, it could be a hardship in the long run. City Administrator Miller stated it was not intended that the rate would gradually increase. Mayor Sonterre explained that while increases are to be expected, the City would try to keep them surmountable. Ms. Sonterre noted that the business of child care can be costly. Council Member Stigney questioned whether a CPI factor is involved and what the policy is for leases for the YMCA, and such organizations. Ms. Sonterre stated that her organization is not a private corporation nor an organization supplemented by the state. She requested leniency to get the business started and maintain employees. Her goal is to be in the community a long time. Ms. Sonterre's business is at capacity in Anoka and is a good business. She felt she could build the same type of business in Mounds View. Mayor Sonterre stated it was worth noting that the Council's time has been remarkably tied up as of late. Originally, the Council was working towards an August 1 start date for a new provider, but realizes it will be difficult to have the center open by August 1. He suggested the word "greater" be changed to "lesser" in the contract under 2.1 (a). Council Member Stigney stated he was under the impression that this was a negotiated lease and now he learned that the applicant needs to consider the lease with the lawyer. He requested our staff and attorney look at our contract. City Attorney Riggs responded that the Council does have that discretion. Mayor Sonterre remarked that this is not a working document. The goal is to present an officially approved lease. This lease is much the same as the predecessor's, except for a few points.