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City Council Minutes Page 2 <br /> March 18,2019 <br /> ----------------------------- <br /> 4.5 Pinewood Management Agreement No. 19-08 <br /> Mayor Dietz confirmed some details of the agreement including termination notice <br /> and who is responsible for maintenance costs. <br /> Mayor Dietz asked Mr. Singer if he has the list of equipment replacement costs he <br /> mentioned during the discussion in February. Mr. Singer indicated he has the list and <br /> thought he sent it over but will send it again. <br /> Mayor Dietz explained he is comfortable with the lease but has concerns about <br /> equipment replacement costs. He questioned if the Council has an interest in <br /> obtaining an appraisal to see what the course is worth. Councilmember Ovall <br /> indicated it may be difficult to get an appraisal without showing income history. <br /> Councilmember Wagner questioned if Mr. Singer would still come before the <br /> Council for equipment purchases. Mr. Porti-ler indicated the Council would have full <br /> discretion when reviewing the Pinewood budget each year. <br /> Councilmember Ovall stated as part of the agreement the city pays Elk River Golf <br /> Club a management fee and the Golf Club gets the profits. He questioned if some of <br /> the capital improvement costs could be covered with profits from Pinewood. <br /> Mr. Singer explained the Golf Club is already taking a risk on day-to-day expenses <br /> and if treated like a rental unit the owner would be responsible for maintaining the <br /> property. <br /> Mayor Dietz stated Elk River Golf Club is doing a great job managing Pinewood and <br /> he is comfortable proceeding with the lease and covering capital expenditures. He <br /> noted the agreement can be revisited if necessary. <br /> Councilmember Westgaard indicated if the Council is interested in selling Pinewood <br /> it could be discussed at a future work session. He noted Elk River Golf Club will <br /> need to begin preparing for golf season so he's hesitant to delay the agreement. <br /> Mr. Singer questioned if the Elk River Golf Club would be notified immediately if <br /> the city considered putting Pinewood up for sale. Mayor Dietz indicated he would <br /> Eke the Golf Club to be notified any time the Council is discussing Pinewood. <br /> Moved by Councilmember Westgaard and seconded by Councilmember Ovall <br /> to approve Agreement 19-08 Pinewood Management Agreement. Motion <br /> carried 5-0. <br /> S. Open Forum <br /> No one appeared for Open Forum. <br /> UREJ <br />