09-24-1984 Council Packet - Laserfiche WebLink

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Reuben Palo stated that he had called Bud Andrus t,ecouse he had some questions regarding the financial net worth of Woods Academy, the background of the school and whether or not someone would be willing to pay or sign an agreement that would guarantee the lease payments. Bud An:._ -us responded with the following data: Woods Academy is two years old. The first year they had 62 students at the beginning cf the year and 85 students by the end of the year. By the end of their second year they had 185 students and 220 are coming this fall and they had to turn people away. As far as their money situation, they are collecting tuition to carry them but they did have a fund raising drive and made $45,000 in addition to their tuition. They have $30,000 in cash and $10,000 in stock warrantf Which are their only assets. Mr. Andrus stated that there were parents who might bE able to guarantee the first 035,000 in the event that Woods Academy would be unable for some reason to establish themselves as a school in the Maple Plain buildinc;. Bud Andrus said he didn't have any doubts that they would succeed. Discussion ensued regarding ability to guarantee the first payment, insurance coverages, number of years involved in the lease/Sale, maintenance and upkeep and outright purchase. In response to the outright purchase, Mr. Andrus stated that he was authorized in the beginning to either lease or sell and in his opinion Woods Academy may not want to buy a building at this time. Mr. Andrus said he thought the Board should try to solidify the lease at this point. Reuben Palm MOVED, Kitty Crosby seconded, that the, Board accept the proposal from Woods Academy as set forth with the following exceptions: (1) that the balance due of $202,000 would be paid in cash in 1990 and (2) that Woods Academy accept total maintenance of the building with verification by the Orono School District that it is done properly. Reuben Palm MOVED, Kitty Crosby seconded, to amend the motion to include the fact that the first 2 payments as outlined, $8,000 and $35,000, be guaranteed by individuals or organizations of substance. Bill Levering MOVED, Reuben Palm seconded, to amend the motion to eliminate the number $202,000 and state that the b,%lance due at the time of the exercise of the option would be paid int cash. Jim Franklin MOVED, Dave McKown seconded, to amend the motion to include that a satisfactory agreement oust be reached between the 3 entities - Woods Academy, the city of Maple Plain and the Orono School District, with regard to use cf the grounds Discussion ensued regarding the grounds issue and the obligation, if any, on the part of the School District to insure the use of the grounds for the city of Maple Plain and whether or not Maple Plain should be in-luded in negot.ations in rtaard to the land. Jim Franklin withdrew t,is amendment and Dave McKown withdrew his second Jim Franklin MOVED, Bill Levering seconded, to amend the motion ttiat in the 3 t