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<br /> <br />Item 5.2. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor and City Council <br /> <br />FROM: <br /> <br />Patrick Klaers, City~ministrator <br />March 14, 2005 i/j;-- <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />Bailey House Lease <br /> <br />The City Council needs to review the lease agreement for the Bailey house. This lease (see <br />attachment) is between the city and Harvest Evangelism, Inc., dba, Love Elk River. <br /> <br />The lease began on May 15, 2004 and is good for a one-year period. A 60-day written notice must be <br />provided to terminate the lease. The agreement provides for a lease amount of $450 per month from <br />May 15, 2005 through May 15,2006. The tenants at the Bailey house have not been a problem for <br />the city or the library. The city invested some money in the Bailey house (i.e. refrigerator) prior to <br />leasing it to Love Elk River. A second year of lease revenue will help recover some of these <br />expenses. <br /> <br />It is recommended the City Council continue with this lease agreement until spring 2006. Assuming <br />the library expansion project will take place in 2007, the city should plan for the Bailey house to be <br />demolished and for the parking lot to be expanded in the summer/fall of 2006. In this manner, <br />adequate parking will be provided while the library expansion takes place. <br /> <br />It should be noted that 5th Street, in front of the Bailey house property, will be part of the 2005 <br />pavement rehabilitation program. <br /> <br />Recommendation <br />It is recommended that the city continue the existing lease agreement with Harvest Evangelism Inc. <br />for the Bailey house. (The City Council can determine the actual termination date of the lease in <br />February or March of 2006.) <br /> <br />S:\Council\Pat\200S\ Worksessions\Bailey House 02 14 OS.doc <br />