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City Attorney Fred Snook presented the February 6 meeting of the Salmon City Council with a draft addendum to the present lease between the city of Salmon and the Library Association.

There are 63 years remaining on the 100 year lease between the city and the Library Association. The city owns the 3000 square feet of land under the library building and charges the association $1 per year for its use. The association owns the building. Snook explained that under terms of the draft addendum, when the library association decides to sell the building the city will have the first right of refusal to purchase the building. That right would exist for a time-frame of six months during which the city could decide whether or not to buy. If the decision was to buy, payment would be required within 60 days of the six month time-frame which basically would give the city eight months to arrange for payment.

If the city decided not to purchase the building it would notify the association and the city would allow the land to be sold with the building in exchange for the amount at which the land is appraised at that time. If the city decided to buy the building, the price would be based on an appraisal of the structure in the time-frame of sale, as per state code. The present lease would be terminated upon sale.

State codes dictate the properties would be offered by the city and association at public auction with a minimum bid based on each party’s minimum bid amount.

Snook included descriptions of an old section of building behind the library which belongs to the city but is being used by the library. He said he did that to clarify the original 1939 city building for the benefit of future officials. The addendum includes details of how any future sale is to be advertised and conducted and names the selling party as being responsible for obtaining an appraisal which meets state criteria.

The only thing that is an actual change to the 100 year lease agreement has to do with the books. The 1976 lease reads that if the library association were to move out of the building they can take the fixtures but not the books. That has been changed to read they can take the fixtures as well as the books.

The present lease agreement between the city and the Library Association will remain in effect until the association decides to sell the building. The additions discussed by the council will be added to the draft addendum and presented for a vote at the next council meeting.

The need for a new agreement came up several months ago when the Library Association approached the city with an offer to buy the city owned land under the library building. It was felt that without the land ownership the association would not have as viable a property to sell in order to recoup enough of its long term investment in the building to fund a new library facility.

In researching further it was learned the old lease states that if the Library Association ever vacates the building the building reverts to the city therefore, if the city sold the land under the building to the association the city could end up owning a building but not the land under it which is precisely the situation the library is in now. All parties agreed the lease needed to be re-negotiated by way of addendum.

Ann Loucks of the Library Association thanked the city staff and council for their consideration of the association and all the work put towards getting this far.

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