10-22-1990 Council Packet - Laserfiche WebLink

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Actiou Report; Meeting: LAKE MINNETONKA CONSERVATION DISTRICT Water Structures and Environment Committee Saturday, October 13, 1990, 7:30 a.m. Shorewood City Hail Members Present: Douglas Babcock, Vice Chair, Spring Park: Jan Boswinkei, Minnetonka Beach; David Cochran, Greenwood; JoElien Hurr, Orono; Robert Pillsbury, Minnetonka; Robert Rascop, Shorewood; Thomas Reese, Mound; Robert Slocum, Woodland. Also present: Rachel Thibault, Administrative Technician; Eugene Strommen, Executive Director. The meeting was called to order by Vice Chair Babcock at 7:30 a.m, 1. Chapman Place Commercial Marina Agreement Review The committee received Charles LeFevere’s review of a revised license agreement between Chapman Place Association, Inc. and Scenic Lawn and Landscape, Inc. LeFevere questioned whether Chapman Place is operating a bona fide commercial marina operated by an independent licensee under an arms length commercial transaction, or whether the proposed relationship is merely a subterfuge in which the licensee is simply an operating agent for an outlet association facility. LeFevere noted there have been changes in the license agreement. His review of the agreement led him to state that he is not comfortable in recommending that the proposed license agreement to be in order. Robert T. Cuthill, President, Chapman Place Association, responded to LeFevere with a letter to the Executive Director in which he responded to the five changes detailed in LeFevere’s letter. Cuthill further provided a statement of income and operating expenses for 199U. The Committee received a memorandum, dated ih ’J-Dn. fr<:'m the Executive Director containing the results ol his meeting with Cuthill and discussion with LeFevere. Cuthill presented photos of the dock area to show improvements to the dock and .shoreline area, making •^•vory effort to conform to LMCD requirements. He insisted he has no intent of dealing in subterfuge or deception, has always operated openly and attempted to build a trust with LMCD. Cuthill went on to explain that the original marina operator, Waterfront Specialties, Inc., refused a contract renewal at the end of the first year. Chapman Place was thus forced to buy the docks. as specified in the operator agreement, to be assured of being in operation for 1990. It was their decision tc purchase the docks. They also were put in a position of preparing an operator agreement which would include some assurance of operating solvency. Chapman Place does not believe there ever has been a reference that the applicant could not own the docks. Originally they did own the docks the former operator left on the premise.s. Cuthill also noted that the docks are t.axed separately a.s a commercial marina at $5,000/slip. He could n'.»t see wlieie there was any difficulty. - continued