City Council Minutes 2015 10 06 - Laserfiche WebLink

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City Council Meeting Minutes October 6, 2015 Page 8 of 26 City Attomey Light stated the language generally begins with the Landlord's absolute discretion, but tenants want some consideration on the issue. He explained the primary issue of going into disputes of whether consent is given or withheld are the financial viability of the tenant; whether there can be an expectation of performance and the uses. Council could authorize staff to negotiate revisions to the contract more favorable to the landlord. Council member Lipton was concerned over the length of the lease term. He stated the City is making a major investment in the Highway 42 Plan and his concern centered on the City's discretion on subletting to a subsequent tenant. Council member Leh agreed and stated there should be some expectation of performance and criteria, which covers the land use and the financial viability. Mayor Muckle asked if the City Council was comfortable with having staff negotiate changes to the contract. Council member Stolzmann addressed Section 23.12 Right of First Refusal to Purchase Premises. She felt the language was too specific with respect to a third party offer and requested the language be broad or be totally taken out. She did not believe this section addresses the issue of selling the property. City Attorney Light stated Section 23.12 is a matter of negotiation. He explained right of first refusal offered to a tenant is a limitation on the landlord's flexibility to dispose of the property. The contract language is narrowly written and has a clear and direct timelines on what would have to occur. The contract was written as a one -time right of first refusal. Council member Lipton stated the contract does not put great limitations on the City should it be decided to sell the property. The City could put restrictions on the zoning of the property. If the City decided to sell the property the lease would go with the sale of the property. MOTION: Mayor Muckle moved to approve Resolution No. 69, Series 2015, seconded by Council member Keany. City Attorney Light stated Section 2 of the Resolution authorizes the Mayor to execute such Lease Agreement on behalf of the City, and the Mayor and the City Manager, or either of them, are hereby further granted the authority to negotiate and approve such revisions to said Lease Agreement as the Mayor or City Manager determines are necessary or desirable for the protection of the City, so long as the essential terms and conditions of the Lease Agreement are not altered. Council member Stolzmann inquired if Council member Lipton was satisfied with language in Section 2 of the Resolution. Council member Lipton was willing to take the