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-3- unavailability of the G & G Body Shop building area for the develop- ment may force the group planning the construction of the building to reduce their plans for an eight-story building to a smaller structure which might be more acceptable to neighboring residents. The City is not a participant in the development, but the proposal will have to follow the usual procedure of review by the Planning Board at a public hearing where the neighbors may react to the pro- posal , he assured Councilman Ranallo. He said the property is presently zoned as R-1, which will require a zoning change; and there will also probably be variances for height, density, and park- ing also required. George Marks, Chairman of the Planning Board, was present and questioned whether the development should not be considered in conjunction with the planning for that area being developed in the City' s Comprehensive Plan. Mr. Fornell said it is unlikely the proposal will be brought before the Board before its November meeting and formal plans will probably not be ready before December, especially since construction will probably not start before spring. Councilman Sundland anticipated the density of the proposal would also be of interest to the neighbors. Motion by Councilman Sundland and seconded by Councilman Sauer to accept the September 24 recommendations of the Public Works Director and approve payment of $14 ,314 from the Water Utility Fund to Arcon Construction Company for encasement of the water line on Highway 88 under Water Project 1979-003. Motion carried unanimously. • Motion by Councilman Sundland and seconded by Councilman Letourneau to grant a heating license to Master Mobile Home Service. Motion carried unanimously. Motion by Councilman Letourneau and seconded by Councilman Sauer to grant a vehicle starting and towing license to Dick 's Standard. Motion carried unanimously. John Haugland of the Treasure Island Amusement Company, Duluth, was present to discuss his company' s request that they be allowed to take over the operation and be granted licenses for fourteen pinball and video type games and four children 's type games in the Apache mall. Although he said he doubted it was general practice in similar cases, Mr. Haugland said his company was willing to reimburse the present license holder for the balance of the value of his license if the Council desires this reimbursement be made . No additional games will be placed in the center, he promised. Dennis Cavanaugh, of the C. G. Rein Company, the Apache owners, said there was no opposition to the proposal voiced at the September 15 meeting of the Board of Directors of the Apache Merchants Association, and he requested the licenses be issued as requested. Mayor Haik told of one "well reasoned" letter of opposition to the games which she had received from a New Brighton parent. SMotion by Councilman Sundland and seconded by Councilman Sauer to grant the licenses requested by the Treasure Island Amusement Company for the operation of the existing games in the Apache mall . Motion carried unanimously.