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<br />I <br /> <br />1 <br /> <br />1 <br /> <br />Council Meeting Minutes <br />November 12, 1991 <br /> <br />Page 3 <br /> <br />Council Business, continued <br /> <br />Childs presented a request from Antique Car Run, Inc. (ACR) to lease the <br />old municipal liquor building to store antique automobiles. <br /> <br />The building has been vacant since December 1990, while the City <br />anticipates redevelopment of the site and surrounding properties. Because <br />there are no immediate plans, the site could be used temporarily to store <br />cars. However, the City would retain the right to vacate the building and <br />redevelop the site on short notice. <br /> <br />ACR proposes to install two garage doors, remove non-bearing walls, and <br />make improvements to the plumbing and mechanical systems. ACR will <br />make the improvements, pay the building's operating costs, carry a short <br />term lease and vacate the building within 60 days. The improvements are <br />limited to $10,000, however, ACR could spend more, but the City is not <br />responsible for improvements in excess of $10,000. <br /> <br />The terms of the lease gives the City the flexibility it needs to pursue <br />redevelopment in addition to giving City support to la community event at <br />no cost to the City. Any revenues generated by ACR from use of the <br />building will go to promoting the community through the Run. <br /> <br />Motion by Gunderman, seconded by Larson, to AUTHORIZE <br />PREPARATION OF LEASE BY AND BETWEEN THE CITY AND ANTIQUE <br />CAR RUN, INC. FOR THE USE OF THE MUNICIPAL LIQUOR BUILDING <br />AND EXECUTION OF LEASE BY THE CITY MANAGER AND MAYOR. <br /> <br />4 Ayes - 0 Nayes, Motion Carried. <br /> <br />Childs presented Builders Development and Finance Inc. (BD&F) donation <br />of 11.5 acres on the northeast corner of 10th Street and Old Highway 8. <br /> <br />As part of a bankruptcy reorganization plan, the parcel is conveyed to <br />BD&F for donation in exchange for its value as a tax deduction. BD&F's <br />only restriction is that the City pay the property taxes ($77,222.21) which <br />include 1991 and delinquent taxes and penalties from previous years, and <br />costs incurred for an environmental review. The City's costs for the total <br />site is 15 c/square foot or 35 c/square foot for the buildable area. Recent <br />transactions for similar properties in the City were in the $2.00- <br />3.00/square foot range. <br /> <br />Childs said the Corps of Engineers permits which were in place on the site <br />a year ago have expired and the wetland regulations have tighten from <br />last year. The change in regulations will limit the developable acreage to <br />about 4 of the 11 acres. <br /> <br />Motion by Larson, seconded by Williams, to AUTHORIZE STAFF AND <br />CITY ATTORNEY TO PREPARE THE NECESSARY DOCUMENTS NEEDED <br />TO ACCEPT THE DONATION OF THE PROPERTY IN THE NORTHEAST <br />CORNER OF OLD HIGHWAY 8 AND 10TH STREET NORTHWEST. <br /> <br />4 Ayes - 0 Nayes, Motion Carried. <br /> <br />Council Business <br /> <br />Powerhouse <br />Building Lease to <br />Antique Car Run <br />Report 91-238 <br /> <br />Property Donation <br />at NE 10th St. & <br />Old Hwy 8 <br />Report 91-239 <br />