Mark Loden and Laura Lackey
City of Tamarack
The city of Tamarack is currently feeling the heat from the state of Minnesota and the
federal government is making sure that we are following all environmental and health
guidelines with the mining facilities and operations. All of the current dirt roads must be
paved and maintained to improve the air quality. We also would like to see some
restoration done to the old mining sites to make them more appealing for
tourists. Tourists are a major part of income for the city so we need to accommodate this
as much as possible.
Twin Lakes Mining Company knows that things have to be done to restore the
relationship between the company and the city. As a company, we are willing to make
changes to benefit the city as long as the city agrees that these changes would also help
benefit the company as well.
An issue we are facing as a company is higher tax rates. Our mine is outside the city
limits and our plant lies in the city. But we have to pay a higher tax rate even though half
of our business is located outside the city limits. We believe that we are paying too much
on taxes and since we help employ sixty percent of Tamaracks’ population and help their
economy, we believe that the city should decrease tax rates.
Twin Lakes is on board with the idea of paving the roads to help air pollution and we as a
company are planning to pay for that. Our only concern is when winter comes, road
maintenance must be done and since we are covering the expenses for the paving of new
roads, we feel like the city should help us out with maintenance fees in the winter to
make them safer for the citizens of Tamarack and for business operations to run better.
We are in need of one day being able to expand our company in Tamarack and are
currently looking around for locations with the assistance of the city of Tamarack. Instead
of ignoring and letting the consumed mines just lie there abandoned, Twin Lakes would
like to restore those consumed mines and expand their company there. Both parties would
be able to benefit from this with Twin Lakes finding their new location and the
restoration of those consumed mines that would make the city more attractive for tourists.
The City of Tamarack appreciates your understanding on these important matters. With
Twin Lakes agreeing to pave the roads, the City of Tamarack agrees to cover
the maintenance required as tourists use them as well. We will also offer a 20% tax
reduction for Twin Lakes as you are agreeing to rehab and make the old mines more
attractive due to the high level of tourists.
We, Twin Lakes Mining Company, agree to this deal with both parties being able to
benefit from these changes. We appreciate your cooperation and your understanding of
our needs and desire to grow as a company and look forward to working together more in
the near future.
Negotiation Log Sheet:
1. How much time was spent in relationship-focused talk or “schmoozing”?
Twin Lakes and City of Tamarack already had a good relationship set from doing
a lot of work before, so there was no need to waste a lot of time on the
relationship, it was just important to maintain the good relationship that we
already had.
2. Were any pre-procedure guidelines set?
Yes we discussed the logistics of time and place to meet as well as what was on
the agenda for the meeting and who would be in attendance.
3. What team presented the problem to be negotiated?
Laura presented herself as the city of Tamarack and Austin presented himself as
the mining company
4. What team was first to make the opening statement.
City of Tamarack
5. How far apart were the opening offers?
They weren’t too bad. Both teams presented their problems and were able to
make concessions
6. How many concessions were made by each side?
Each side made 2 concessions.
7. What was the average size of concessions?
They didn’t have to give up too much
8. How many items were categorized?
Three
9. How many categories were used?
Three- high, medium and low importance
10. What was the total length of time of the complete negotiation process?
2 days
11. What percentage of the total time was actually spent on the negotiation
bargaining process?
95% was spent on Negotiating since we already had a relationship built after the
City working with the Twin Lakes many times before.
12. What were the RESULTS of the agreement reached or why one Walk Away?
The city of Tamarack agreed to take care of the maintenance on the roads in the
winter and lower the tax rates while the mining company agreed to renovate the
abandoned mines to make the city look a lot better for tourists.
13. Was your BATNA achieved? Yes or No
Yes
14. If yes, how much more was obtained?
Each party was able to give up concessions in order to come to an agreeable
outcome.