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Regular City Council Meeting <br /> Monday, May 6, 2024 <br /> Page 9 <br /> Mayor Roe noted of the things that Mr. Trudgeon brought up was the staff work <br /> that needs to be done, regardless whether attorneys are used for agreements or <br /> consultants to help with construction management. Some of the requirements do <br /> require City staff time to make sure things are submitted properly and the City has <br /> an annual requirement to approve a budget for the project,which would be Council <br /> time as well. He did not know to what extent those communities have expressed <br /> anything about their experience as to the burden on staff <br /> City Attorney Fiorini thought many of the projects she has been involved in or the <br /> firm has been involved in had been a real partnership. The staff time or the budget <br /> time might have been more of a cooperative type of project to begin with where the <br /> City and non-profit are doing something together, so she did not have any feedback <br /> about how much staff time it took specifically. <br /> Councilmember Etten explained that thinking about the long-term implications <br /> may be more than the yearly implications. Part of the request for Council action <br /> (RCA) and City Attorney Tierney's letter talks about the ability to sell the property <br /> if the Kids in Need Foundation ceases to exist or cannot meet the obligations set <br /> out by the State. The property can be sold and the first part of the money goes back <br /> to the State but the next paragraph states "to make sure that potential future buyers <br /> or lenders of the facility are aware of the limitations imposed". This seems to <br /> suggest that if the City is twenty years in and supposed to go thirty to forty years, <br /> and the property is sold at twenty years, whoever buys it next still has to use it for <br /> the project even though the State has been paid back. <br /> City Attorney Fiorini thought if the non-profit ever goes out of business, there was <br /> still a long-term lease and a long-term declaration recorded against the property that <br /> it has to be used for these purposes for one hundred twenty-five percent of the useful <br /> life, which would be somewhere between forty to fifty years. She thought at that <br /> point, it is important to remember that the City's interest is a ground lease so what <br /> is talked about being sold is a ground lease interest, long-term. She thought if the <br /> non-profit goes away there would be a number of things the City would need to do. <br /> The first thing is to find someone else to operate that governmental program. What <br /> the City received the money for, and she did not know if that was going to be <br /> possible at that point, it was probably going to take some conversations with the <br /> State. Then the City would need to make a finding that the property would no <br /> longer be able to be used for the governmental program. Again, with the State <br /> support. At that point, the City would be going through the process with the State <br /> of potentially selling the property and the State would potentially be willing to <br /> remove that declaration as well. She thought there would be some uncertainty with <br /> multiple parties, such as a lender, that would need to be satisfied at that point. She <br /> thought MMB (Minnesota Management& Budget)would be heavily involved and <br /> have their own requirements and process they want to go through when a project is <br /> sold. She thought there might be some complexity, but she did think the option <br /> would be there that the property could be sold for a different use if there is no way <br />