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is neither tax exempt nor 100% taxable. A $40,000 valuation was assigned to the Subject Property; which <br />results in an estimated $1,232 annual property tax due. The County did not indicate a need to pay back <br />taxes (2011-2012); and referred to 2013 as the first year property taxes will be due. <br />Moving forward it will be the responsibility of the lessee to pay for property taxes due on the Subject <br />Property, not the City. <br />Alternatives <br />1. Authorize Staff to draft and execute lease agreement revisions with TK Entertainment to have a lease term <br />ending date of May 16, 2016, and a twelve-month notice for early termination. <br />As mentioned, Staff believes the request to extend the term of the existing lease with TK Entertainment to <br />coincide with the existing IUP on the Subject Property is reasonable. Considering the City will still retain a <br />twelve (12) month termination clause, risk and liability regarding the proposed amendment is minimized. <br />Looking back at leases the City has executed for properties along Highway 10, the early termination clause is <br />generally one year. Under almost any circumstance, the City would have a safe window of one year to notify <br />a business that its lease was being terminated for the construction of a road/interchange. <br />2. Deny TK Entertainment's request to amend their existing lease. <br />Staff does not foresee any benefit to the City by denying the proposed amendment to the lease with TK <br />Entertainment. NOTE: the termination clause in the lease would change from six (6) to twelve (12) months if <br />approved. <br />3. Direct Staff to move in a different direction. <br />Recommendation: <br />1. Staff recommends that the Lease be amended to have the term coincide with the interim use permit (IUP) with an <br />expiration date of May 16, 2016. In addition, staff recommends that the early termination provision be retained, <br />but that the six-month notice required by the City be extended to a twelve-month notice. <br />Funding Source: <br />N/A <br />Council Action: <br />Motion to authorize Staff to draft and execute Lease revisions with TK Entertainment to have the Lease term <br />expiration date be May 16, 2016, and a twelve-month Lessor notice for early termination. <br />Attachments <br />Anoka County Correspondence <br />Ramsey Raceway Lease Agreement <br />Ramsey Raceway Proposed Amended Lease Agreement <br />Res #11-05-102 <br />Form Review <br />Inbox Reviewed By Date <br />Bill Goodrich Bill Goodrich 02/20/2013 06:35 PM <br />