8/29/1983 - Laserfiche WebLink

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,AUG 2 s 1983 max 54 PAcE4,06 lease the 10 acres versus what it would be if they were included in the bond issue to buy at the same figure. Under the lease arrangement, Mr. Barton stated that he would have to fund an escrow account today in the amount of $66,300 to provide the future stream of money when it was needed. Under the -outright purchase, he would have to fund an account with $64,700. He pointed out that the lease goes on for 99 years, however, and this is only using the 10 year analysis. Chairman Bird asked if we went with 20 acres, whether we could go ahead with our preliminary planning and building and hold the 10 acres in reserve for future planning. Commissioner Lyons agreed this could be done. He reported that as far as the Facilities Committee is concerned, the Graves property received their approval - where the adjoining property is, is another matter and we need to know where the City's wells are. Administrator Wright reported that we have that information, and the only well that comes into play is the one production well. Commissioner Lyons believed that the only problem with the 10 acres is the right-of-way, and Administrator Wright agreed there is a 60' right-of-way for electric transmission; the two properties, in essence, are split by the right-of-way. Administrator Wright then pointed out that there is an additional funding issue to be considered. If we lease the property, he did not believe we can include that cost ;in the bond issue because of arbitrage problems whereas if we buy the property, we can include it. Commissioner Lyons agreed there are several factors to be considered but whatever we do, he believed we should buy the Graves property. He noted there is always the possibility that we could do nothing with the Barnes 18