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<br />I <br /> <br />I <br /> <br />I <br /> <br />Council Meeting Minutes <br />February 26,1991 <br /> <br />Page 6 <br /> <br />Council Business. continued <br /> <br />Champps' holds the contract and the lease. however, the Engelsma Trust <br />has secured a personal guarantee for Dean Vlahos, Champps' principal <br />owner, as added insurance to them. Vlahos would extend the personal <br />guaranty to the City in the event that the City reclaimed the lease. <br /> <br />Rebalein said if rental rates rose, the occurrence of default would be <br />minimized. leFevere said a default by Engelsma Trust would be caused <br />by a failure by Champps' to make payments. The City is not bound to <br />continue with a lease upon default, and could terminate at any time. <br /> <br />If Council accepts the subordination agreement, LeFevere recommends the <br />agreement be conditional on the extension of Mr. Vlahos' personal <br />guaranty to the City. <br /> <br />Motion by larson, seconded by Williams, to AUTHORIZE THE EXECUTION <br />OF THE SUBORDINATION. NON-DISTURBANCE AND ATTORNMENT <br />AGREEMENT ON THE CONDITION OF MR. VLAHOS EXECUTION OF A <br />PERSONAL GUARANTY TO THE CITY. <br /> <br />5 Ayes - 0 Nayes, Motion Carried. <br /> <br />In regards to Report 91-44, Shafer Contracting lease, Rebelein questioned <br />if the concrete crushing operation would cause a dust problem for <br />homeowners and travelers on 1-694. <br /> <br />locke said similar activities were performed on the site two years ago. <br />Because the previous operation caused dirt accumulation on Old Highway <br />8, the new lease requires Shafer to perform street sweeping and site <br />maintenance. <br /> <br />Rebelein noted the agreement requires the area be watered to control <br />dust, and questioned whether the watering would be adequate. Locke <br />said Shafer appears to be very cooperative in keeping the area clean. <br /> <br />Orv Kraus, 1252--12th Avenue NW, confirmed that concrete crushing <br />. does produce large amounts of dust and suggested an addition to the <br />agreement referring to clean-up and dust control. <br /> <br />Council proposed the following changes in Condition Two: tenant shall <br />water and or take whatever actions necessary on the oremises or Old <br />Hiahwav 8 as needed to control dust from truck traffic or the crushinCl <br />ooeration. <br /> <br />Motion by Williams. seconded by Benke, to APPROVE THE AMENDED <br />lEASE BY AND BETWEEN THE CITY OF NEW BRIGHTON AND SHAFER <br />CONTRACTING COMPANY, INC., AND TO AUTHORIZE THE MAYOR AND <br />CITY MANAGER TO EXECUTE THE lEASE. <br /> <br />5 Ayes - 0 Nayes, Motion Carried. <br /> <br />Council Business <br /> <br />Champps' Lease <br />Report 91-53 <br /> <br />Shafer lease <br />Report 91-44 <br />