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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. Portner 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 />like 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 />NATURE <br />