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take a closer look at this issue and had planned a meeting to consider whether the community really wanted <br />development to be built out to the curb. <br /> <br />Mayor Piercy thanked the members of the LTD Board for attending. <br /> <br />B. WORK SESSION: <br />Approval of Lease with Option to Purchase 858 Pearl Street for Network Charter School <br /> <br />Executive Director of the Central Services Department, Kristie Hammitt, recalled that staff had brought a <br />proposal to declare the building located at 858 Pearl Street surplus and to allow it to be sold to the council <br />for approval during the previous spring. She reported that the City had placed the building on the market <br />three months earlier and, to date, had received two offers that were well below the asking price. She said <br />since then the City had been approached by the Network Charter School with a proposal for a lease/ <br />purchase option, a two-year agreement that would provide $4,000 in rent plus 50 percent of any rental <br />revenue they would receive from surplus office space in the building and an offer to purchase the building at <br />the end of two years for $1.5 million. She said staff had asked that the school give an indication of whether <br />it did intend to purchase the building after 18 months of occupancy. She stated that the lease to the school <br />was as is. She related that the City had disclosed all of the information about the building and the school <br />had agreed to be responsible for the costs associated with that. <br /> <br />Mr. Ruiz noted that the business neighbors of the building had expressed support for the school’s tenancy in <br />the building, as had the downtown police officers. <br /> <br />Mr. Clark recalled that during the Budget Committee proceedings they had discussed surplus property. He <br />had put a motion on the table to use any monies that came from surplus property toward additional police <br />officers. He said he was still looking for when the council would have that discussion about what they <br />would do with surplus properties to afford additional police officers. He hoped they would have the <br />discussion before the end of the year. <br /> <br />Mr. Ruiz said the money from the lease would have to be appropriated by the council. <br /> <br />Ms. Hammitt stated that the first Budget Committee was scheduled for November, 2009. Mr. Clark <br />responded that he had hoped that the council would address this in the current budget year and not Fiscal <br />Year (FY) 2010. <br /> <br />Mr. Zelenka agreed that the council needed to have a discussion about a building sale, but he thought they <br />should wait until there was one that had a buyer. He believed that this lease proposal would not constitute a <br />sale. <br /> <br />In response to a question from Mr. Zelenka, Mr. Ruiz stated that the City was not currently in negotiation <br />for any property sales. <br /> <br />Mr. Brown thought it was a great project and a great reuse of the building. He asked if the list of <br />comparables that had been used in the appraisal was available. Ms. Hammitt responded that she would find <br />out and provide it for him. <br /> <br />Mr. Brown asked if the building deficiencies that had been discussed included that it was not built to current <br />seismic standards. Ms. Hammitt was not certain. <br /> <br /> <br /> <br />MINUTES—City Council Work Session September 30, 2009 Page 5 <br /> <br />