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Mounds View City Council June 28, 2004 <br />Regular Meeting Page 15 <br />profit agency and therefore subject to property taxes. The Chamber apparently is viewed as a <br />qualified exempt entity, however, due to the structure of the lease the space is disqualified as <br />exempt. <br />Economic Development Director Backman stated to qualify for exempt status, two things must <br />happen -the Chamber would need to lease directly from the City of Mounds View and the <br />Chamber would need to file an application with the state by July 1, 2004. The Mermaid has <br />indicated it would be willing to pay the city's legal fees to revise the lease agreement for the <br />Chamber. The City's attorney indicates that it would be a fairly easy process to modify the <br />Chamber's lease agreement. <br />Economic Development Director Backman stated it is staff's recommendation that the City <br />Council direct staff to develop a revised Lease Agreement, subject to changes by the City <br />Attorney, between the Twin Cities North Chamber of Commerce and the City of Mounds View. <br />Council Member Stigney asked whether in redrafting the contract if they could change any terms <br />of the contract. <br />Economic Development Director Backman stated the only change contemplated is that the <br />payment would go to the city instead of the Mermaid. <br />• Council Member Gunn asked about future bookings. <br />Economic Development Director Backman stated that there is no obligation on their part for <br />bookings going out to 200512006. <br />City Attorney Riggs stated that that was correct. <br />Economic Development Director Backman stated in the second to last paragraph it states that the <br />exact amount of money paid to the City of Mounds View from the Chamber of Commerce would <br />then be reduced off the amount of rent charged to the Mermaid. <br />Council Member Gunn stated she did not go along with that, and that their contract was $6,000. <br />Mayor Linke stated that that was correct, and he would want the City Attorney to look at that. <br />City Clerk/Administrator Ulrich stated the option at this point is to leave it the way it is, and then <br />the Chamber ends up paying the property taxes. He stated that the Mermaid has the rights to the <br />Chamber's rent at this point as long as the city has the contract with them, and then the money <br />belongs to them, so they couldn't unilaterally reduce it or change it or take money away from <br />them. <br />Mayor Linke stated there is no way he would want to reduce that $6,000 because he thought that <br />was low to begin with. <br />