10-13-1986 CC MIN - Laserfiche WebLink

Home Browse Search

Page 6 City Council Minutes October 13, 1986 tit Mayor Hinkle questioned whether or not it would be feasible to impose a penalty clause in the lease agreement if the City were not able to occupy the building by the established date. Mr. Klaers stated that this would be possible if agreed upon by both parties. Mr. Klaers also noted that proof of financing and the length of the lease contract should be considered. Mr. Sellergren stated that any of those type of concerns could be negotiated in a lease and suggested that a date be set after which the Council would be unwilling to accept the building for lease. It was the consensus of the City Council that the staff and City Attorney begin negotiations for a lease agreement with REP, Ltd, including design requirements, term of the lease, proof of financing, date of occupancy, etc. and that a draft lease be presented to the City Council as soon as possible for their consideration. COUNCILMEMBER TRALLE MOVED TO RESCIND THE OCTOBER 8. 1986 MOTION MADE BY THE CITY COUNCIL. AUTHORIZING STAFF TO BEGIN NEGOTIATIONS FOR A LEASE AGREEMENT WITH THE SHERBURNE LODGE. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. e It was the consensus of the City Council that staff be directed to send a letter to the representatives for the Sherburne Lodge, Assembly of God Church and GarSan building, thanking them for the time and effort spent on their proposals. Mr. Santwire expressed his clients' proceed with site work, foundation negotiation process, as they wished concern that they be allowed to and preparation of plans during the to get started as soon as possible. The Council expressed their agreement that they did not wish to slow down the project. Request for Leasing Lower Portion of City Hall Ms. Lori Johnson explained the request by Mr. Wes Anderson of Princeton to lease the lower level of the City Hall that is presently unoccupied. Ms. Johnson stated that Mr. Anderson wishes to lease the 2,600 square feet to operate a weight lifting facility. She explained that if a reasonable rent could be agreed upon, he was willing to make the necessary improvements in the rental space to make it useable. Ms. Johnson further explained that the rent would be calculated to include utility costs. She also noted the Mr. Anderson felt the concerns expressed by the Police Department could be worked out. Chief Zerwas stated that the senior high parents should be given some advance notice to get their things moved out of space in question. e Mr. Klaers stated that he felt the longest lease term that could be given would be 18 months. Ms. Johnson stated that Mr. Anderson has indicated that he would be willing to accept such a short term lease, as he is anxious to get his business started in Elk River right away and then later get his own building.