CC_Minutes_2009_0112 - Laserfiche WebLink

Home

Regular City Council Meeting Monday, January 12, 2009 Page 14 cilmembers that staff and the property owner had a good relationship, and he thought further negotiations were possible. Councilmember Pust spoke in support of the location of the License Center; how- ever, advised that she was not going to support the lease extension with the terms outlined in the staff report, noting that the landlord was also experiencing the eco- nomic issues and would need to fill that space as well, if the City were to relocate, and asked that this be factored into his good faith negotiations with the City. Councilmember Pust noted that average commercial rates for leases under current economic times were more in the line of three percent rather than five percent. Councilmember Roe echoed similar concerns, in addition to his concern of being able to get out of the lease, since a new license center is addressed in the City's Capital Improvement Plan. Councilmember Roe questioned whether the CIP was a long- or short-term projection, and whether a lease renewable on an annual benefit was more beneficial. Mr. Miller advised that the four year lease term allowed the City to pursue other options in finding a permanent home. Mr. Miller noted that staff had been rec- ommending, as outlined in the CIP presented in mid-2008, relocating or building a facility to house multiple City services; however, with what has transpired over the last six months with the economy, staff advised that it was not prudent to build a stand-alone license center, and that other uses needed to be re-evaluated, but didn't appear viable in the near future. Councilmember Ihlan questioned the staggered increases, annual averaging, and how it compared to previous leases. Mr. Miller advised that the terms were comparable, however, noted that they were higher than the terms when the original lease was entered into in 1999, based on different circumstances. Mr. Miller noted that the shopping center was struggling at that time, and the City was anxious to relocate from their existing site, allowing for a fair amount of leverage. Mr. Miller reiterated that staff was comfortable go- ing back to the landlord to discuss City Council concerns, potential for a shorter term, and more favorable rate increases. Public Comment John Kysylyczyn, 3083 N Victoria Street Mr. Kysylyczyn provided a history of the site; and opined that the City relocating the License Center to that site had proven beneficial and increased traffic for the landlord. Pust moved, Roe seconded, NOT authorizing staff to approve afour-year lease extension between the City of Roseville and the owners of the Lexington Shop- ping Center for purposes of operating the City's License Center, as detailed in the