Agenda - Council - 04/13/2010 - Laserfiche WebLink

Home

CONSIDER LEASE PROPOSAL FOR 7157 HIGHWAY 10 NW FOR OUTDOOR SALES OF ACCESSORY STRUCTURES IN THE OFFICIALLY MAPPED AREA By: Tim Gladhill, Associate Planner Bill Goodrich, City Attorney Background: As Council is aware, the City has purchased the property located at 7157 Highway 10 NW, the former Holiday gas station and convenience store, through the Right -of -Way Allocation and Loan Fund (RALF) Program. The City has received a lease proposal for the Subject Property from Justin Stevens, representing Dean's Sheds for $1,000 per month. The timeline for the term of the lease is negotiable, and Mr. Stevens appears to be looking for a short term lease. The proposed hours of operation would be 7 a.m. to 8:00 p.m., Monday through Friday. The proposed lease is for the parking area only, not the building. If the proposed use were not to exceed 60 days, a transient merchant license could be issued to authorize the proposed use. If the proposed use is to exceed 60 days, the lessee would need to lease the building portion of the Subject Property in order to make it the primary use and satisfy zoning requirements. The proposed lease itself will need to be revised and reviewed by the City Attorney as to proper form. The revised lease, should City Council direct Staff to proceed forward, shall include terms related to the amount of square feet leased, specified term, property tax payment, and insurance responsibilities. All items for display for sale will need to be stored on an appropriate surface (paved areas only). The proposed lessee may be entitled to relocation benefits, depending on the term of the lease. Other items to note include that all lease revenues generated from the lease will be remitted to the RALF Program, administered by the Metropolitan Council. In addition, Staff is seeking direction from the City Council as to whether or not the City Council feels the aesthetics of a primarily outside sales use of small accessory structures is an appropriate use in this area. Total taxes due for 2010 are $27,447.75 which the lease does not recoup property taxes for the parcel. Recommendation: Direct Staff to negotiate a lease for the property located at 7157 Highway 10 NW. Funding Source: Case # di • Review of the proposed lease is being handled as regular staff duties. Funding for purchase of the Subject Property came from the RALF program. Council Action: Motion to direct staff to negotiate a revised lease for the property located at 7157 Highway 10 NW, based on the provisions listed above and subject to City Attorney as to legal form. Review Checklist: CC: 04.13.2010 Attachments: City Administrator Deputy City Administrator/Director of Community Development Planning Manager a) Request from Justin Stevens b) 2010 Property Tax Information