07-11-1994 CC MIN - Laserfiche WebLink

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City Council Minutes July 11, 1994 Page 2 e 6. Accept Donation of an Office Buildinq from the Chuba Company Peter Beck explained that a lease agreement was drafted and sent to the Chamber for their review. He stated that the lease agreement includes a bill of sale from the Chuba Company to the City of Elk River, and that the Chamber will lease the building from the City. Council member Holmgren questioned whether or not the property would be considered tax exempt, once the City enters into a lease. Peter Beck stated that the lease agreement provides that if the property is not tax exempt, the Chamber will be responsible for paying the taxes. He noted that the City will only be leasing the westerly portion of the property that the Chamber building occupies. COUNCILMEMBER MOVED TO ACKNOWLEDGE RECEIPT OF THE BUILDING DONATED BY MR. CHUBA OF THE CHUBA COMPANY. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 3-1. COUNCILMEMBER HOLMGREN ABSTAINED. 7. Consider Surface Water Manaqement Proqram Mayor Duitsman indicated that he would like to start the Storm Water Impact Fee 20 percent higher than the proposed $600, with a 3 percent increase at a later date. e He stated that the City needs approximately $330,000 a year in Surface Water Management fees, in order to payoff the financing and to complete other projects, such as County ditch system improvements. Mayor Duitsman suggested the following rates: Government - $4.00/acre Commercial/Industrial - $15.00/acre Residential - $2.00/unit Multifamily - $15.001 acre Undeveloped - $1.00/ acre Mayor Duitsman indicated that based on his calculations, this would generate approximately $332,250 a year. Lori Johnson explained that the government classification for city, church, school, state, etc., presently includes parks and building sites. Lori stated that the proposed ordinance excludes parks, but if parks are included, it is suggested that they billed at the undeveloped rate, along with recreation fields. Building sites would be included under the Government rate. e Lori Johnson indicated that there may some property that will be deleted from the government rate. She explained that the City would pay approximately $2,300 per month for all its properties based on a rate of $3.50 per acre. Also, the State of Minnesota property may be exempted, which totals approximately $700 per month. Lori noted that the Historical Society has property including the Kelley Farm which is included in the Government rate.