5.8. SR 01-02-2007
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Consent anua r2,2007
Item Description
Authorize Legal Services \vith Stephen Bubul of I<.ennedy and
Gra,ren for Draftin YlVICA Lease
Item Number
5.8.
Prepared by
Lori ohnson, Ci Administrator
Reviewed by
Introduction
Iv1r. Stephen Bubul of J<.ennedy & Gra-ven assisted the city \vith researching the financing options for the
YlVICA and resolving legal issues related to the financing. No"\v that the city, EDA, al1d YlVfCA ha,re
signed the IvIemorandum of Understanding (IYfOU), the next step is to draft a lease bet\veen the same
three parties. City Attorney Peter Beck and I are recommending that the city engage Mr. Bubul to draft
the lease because of his familiarity \vith the financing issues of this transaction. YlVICA representati~les
pre'rlously stated they "\vere comfortable having Mr. Bubul dxaft the lease.
Discussion
Iv!r. Bubul is proposing to charge the city $195 per hour for his services and $90 an hour for law clerks
and paralegals. The final cost \vill depend upon several factors including how many meetings are required
\vith the YlVICA before the lease is ready to be presented to the Council for consideration. Further,
although the major issues have already been addressed through the :tvrou, there may be other items that
surface as \ve get into the fine details of the lease tllat may affect the time in,rolved in and cost of drafting
the lease.
Financial Impact
This is part of the $12,000,000 project cost.
Attachments
None
Action Requested
The Council is asked to authorize the city to engage Stephen Bubul of I<.ennedy and Gra,ren to draft a
lease bet\veen the City of Elk Ri\rer, the Elk Ri,rer Economic Development Authority, and the YlVfCi\.
Council Action
1\.fotion by _
Second by _
\lote
Follow Up
s: \ Council \Lori \2007\Auth Legal Services for '11\1 CA Lease. doc