3.0. SR 01-31-1994 - Laserfiche WebLink

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e tit e LETTER OF UNDERSTANDING August 21, 1989 Dr. David Flannery Superintendent Independent School District #728 400 School Street Elk River, MN 55330 Dear Dr. Flannery: The following reflects the understanding between the City of Elk River (the City) and the Elk River Independent School District #728 (the School District) to construct an addition to the existing City Public Works building to lease to the School District for its use. 1. The City agrees to construct a 6,400 square foot addition to the north side of the existing public works facility, complete with office space, restrooms, break area, and upstairs mezzanine storage area (the Addition). The floor plan of the Addition would be a reduced version of the existing facility. 2. On or before September 1, 1989, the School District shall contribute to the City $150,000 as its contribution to the financing of the Addition. 3. The Addition is anticipated to be ready for occupancy on or about November 15, 1989. 4. The School District shall lease the Addition for a term of five years (the Term). The term of the lease shall commence on the date of occupancy. / 5. The School District and City may continue the lease of the Addition for up to two years beyond the Term upon mutual agreement of the parties at the rate of $15,000 per year plus expenses as set forth in paragraph 8. 6. At the end of the Term, the City would be obligated to reimburse the School District $75,000. 7. At the end of the Term and on each annual anniversary thereafter, the City will pay the School District $15,000 until the $75,000 obligation to the School District is retired. The City will use its reasonable best efforts to accelerate this