1980 Crystal Bay Correspondence - Laserfiche WebLink

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_ ` 'I'elephone 473-7357 x-, �:K: t� �{r� ��=4�h� � � CITY of ORONO Yost Office Hox 66•Crystal Bay, Minnesota 55323•Municipal Offices t On the North Shore of Lake Minnetonka e - • s August 18 , 1983 Mr . Roger W. Lemieux, Real Estate Specialist Field Real Estate Building Office P. O. Box 69069 St. Paul, Minnesota 55169 Dear Mr . Lemieux: The Orono City Council, staff, and I have been reviewing the Crystal Bay Post Office operation since the building was originally purchased by the City of Orono September 20 , 1979 . December l, 1980 , the City negotiated a month to month tenancy with the now retired Head of Postal Department Real Estate Mr . R. W. Van Sickle subject to sharing of the quarters with the City of Orono, (one-half postal operations, one-half City functions) . On August 2 and August 4 , 1983 , I met with you to formulate a plan to share this housing to facilitate required office space for our staff. At that time , it was brought to my attention by you, that the postal service could not share office space as originally agreed to in 1980 . In our discussions, you related to me the postal department ' s concern with the present condition of the building, roof, service drive , and interior . My estimate to complete this work is $12 ,000 or 75$ of the original building cost. After reviewing this capital funding and a complete detail of actual income and expenditures for the 1982 calendar year, we have a loss of $2 , 650 . 15 per year . If I disregard the depreciation factor of l00 �nd capital expenditures, our net in rent is less than our return on the money, if it were invested at today ' s interest rate . Several factors cause the City to reconsider the present monthly rental arrangement: l. The postal service department ' s decision not to reduce its present space requirement from 914 sq. ft. to 250 sq. ft. as originally agreed to by Mr. Van Sickle .