Minutes - 2004/06/28 - Laserfiche WebLink

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Mounds View City Council June 28, 2004 Regular Meeting Page 16 Economic Development Director Backman stated he is not prepared to look at a redraft of the existing Mermaid agreement. He stated it is not very complicated to redraft the one for the Chambers. Council Member Stigney asked the City Attorney to comment. City Attorney Riggs stated that the only way that it returns to a nontaxable status is if there is a direct relationship between the City and a nonprofit entity like the chamber. He stated that it's clear that if you leave it all alone, the Mermaid is responsible for taxation payments. If it's the Chamber, payment is made by the Mermaid. If it's the Mermaid, that payment is made by the Mermaid. He stated if they did nothing, it moves forward for the remainder of the year. Council Member Stigney stated if they are going to do a new contract, he would like to see something built in there for a cost of living adjustment rather than just signing on for flue years at a flat rate. Economic Development Director Backman stated that it actually does increase over time. He stated the rate is $1,160 from 2004-2005, and it goes up to $1,210 for 2006-2008. City Attorney Riggs stated that if they are looking for $6,000, it is $6,000. It's just that some of it is from the Mermaid and some is now directly from the Chamber. He stated it simplifies matters if the City would have a lease directly with the Chamber. Council Member Stigney asked if the Chamber could then apply for tax exempt status, and City Attorney Riggs answered yes. City Clerk/Administrator Ulrich stated there would be a year delay, until July 1 of next year, where the City would have that tax liability. Mayor Linke stated he would support revising the lease. He stated that they are still only getting the $6,000, but overall they would have control of that area then. MOTION/SECOND. Linke/Gunn. To authorize staff to revise the lease agreement with the Twin Cities North Chamber of Commerce and to negotiate with the Mermaid. Council Member Stigney asked whether staff or the City Attorney had any additional comments as to where they were going and whether it sounded feasible and practical. City Clerk/Administrator Ulrich stated he was just asking the City Attorney whether this would give the Chamber enough to get the exemption by July 1St City Attorney Riggs stated there were various provisions in Dan Hall's letter that they hadn't agreed to, so really they were negotiating that section still obviously, and that is the way he was taking it, and he thought that that was what they meant. Mayor Linke stated that is what he meant.