10.02 - Chamber Building Lease - Laserfiche WebLink

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City of Pequot Lakes — _ AGENDA ITEM #10.02 REPORT TO CITY COUNCIL Report Prepared by: Sandy Peine, City Clerk Date: February 3, 2014 Subject: Chamber Building Lease Agreement Re ort: The Chamber of Commerce currently leases the chamber building from the City. The Chamber made the loan payments to the City for the building during the past 14 — 15 years and the building is now paid in full. During the time the Chamber made the loan payments, lease payments were not required. The existing lease agreement will end on August 31, 2014. The Chamber requested a meeting with the City in August, 2013, to discuss a new lease agreement. Since that date the City and Chamber have met several times to work out a fair solution. The Building Committee, Mike Loven, Council Member Gardner, and Council Member Sjoblad, met to review the proposals on both sides. I have included a table with this memo which lists the Chamber's current responsibilities, the City's current responsibilities, and a proposal from the City. This proposal is drafted by the City and is considered a compromise following several meetings with the Chamber. The City is proposing to take over many of the responsibilities that were being handled by the Chamber and in turn to charge the Chamber a lease payment which would be a reduced amount of the actual cost to the City to account for the Chamber making the payments on the building in the past.