Council authorizes purchase of downtown parking lot; cooperative agreement with Y Not LLC in question

The City Council authorized staff to proceed to closing on the purchase of a downtown parking lot at the southwest corner of Adams and 18th Street, contingent on satisfactory title insurance and closing documents. The council approved the authorization by roll call vote. The proposed purchase price in the purchase agreement was $30,000 plus the city's documented Phase I environmental site assessment (ESA) cost up to $1,500, the staff report said. The Phase I ESA report excerpt presented to council stated, "the Phase 1 ESA did not reveal any environmental concerns" for the subject property. Council discussion focused on a previously executed cooperative agreement between the city and Y Not LLC (the seller) that had allowed use of 10 parking spaces and permitted a dumpster in the city parking lot. That agreement was originally entered in October 2022 for five years and included a provision that either party could terminate with 365 days' notice. Staff advised that, because the city is purchasing the lot, the original consideration underlying the cooperative agreement would evaporate and the agreement would likely no longer be enforceable as written. A city staff member said that if the seller no longer retained the property interest required to provide the 10 spaces, the agreement's consideration would be gone, making the contract moot. Council members discussed options: leave the agreement to run its term, formally terminate or "rip up" the agreement, or negotiate a new arrangement for the dumpster or parking designation. Council discussed whether the city should remove the 2-hour public parking signs near the senior center and whether the dumpster remained appropriate on that parcel. Action and vote: a motion (mover not specified in the record) to authorize staff to proceed to closing contingent on satisfactory title insurance was seconded and approved by roll call. Recorded votes in favor included Donald LeClaire, Mark Bittner, Shannon Derby, Bill LeClaire, Doug Brandt, Tim Petrie, Bonnie Shumulonis, Scott Seckmaster and Adam (last name varied in transcript); the motion passed. Next steps: staff said they will return with title insurance and closing documents and recommended placing a follow-up item on the next council meeting agenda to address the cooperative agreement (parking designation and dumpster). The council directed staff to provide the agreement copy and legal analysis for termination or modification options.