Minutes - Council - 02/26/2013 - Laserfiche WebLink

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Councilmember LeTourneau disclosed that Pro Power Sports & Marine had sponsored the equipment he used when participating in the Mayor's Trail Run. He indicated he did not realize this item would be considered by the Council tonight and had not discussed it with the Pro Power Sports manager, but felt uncomfortable participating and would recuse himself from this decision. Fire Chief Kapler stated this building is on the municipal water system and asked the Council to provide flexibility for the City Attorney to include a lease clause to provide access to the fire hydrants at the back of the lot. Motion by Councilmember Backous, seconded by Councilmember Kuzma, to authorize staff to draft and execute Lease with Pro Power Sports, Inc., as revised to require the lease to provide access to the fire hydrants at the back of the lot and subject to final approval as to legal form by the City Attorney. Motion carried. Voting Yes: Mayor Strommen, Councilmembers Backous, Kuzma, Elvig, Riley, and Tossey. Voting No: None. Abstain: Councilmember LeTourneau. 7.02: Request by TK Entertainment (DBA Ramsey Raceway) to Amend Lease Agreement Management Analyst Brama reviewed the staff report and request by TK Entertainment (dba Ramsey Raceway) to amend its lease agreement for 14550 Armstrong Boulevard, to coincide with the approved Interim Use Permit (IUP) term that is set to expire May 16, 2016. TK also requested elimination of the early termination provision that allows the City to terminate the agreement with a six -month notice without penalty. Management Analyst Brama presented staff's recommendation that the Lease be amended to have a term coincide with the IUP with an expiration date of May 16, 2016, and that the early termination provision be retained but that the six -month notice required by the City be extended to a twelve -month notice. He advised the property will be taxed at $40,000 and under this lease be the responsibility of TK Entertainment. City Attorney Goodrich stated this case was discussed previously. The rent is proposed to be $100 /month plus the City receiving 50% of the profits and payment of taxes. Development Services Manager Gladhill explained it would be difficult to revise and align the IUP to meet the lease since no terms of the IUP have been violated. The Council discussed and indicated support for the lease terms noting, however, that the City was being asked to make concessions but receiving nothing in return for that consideration. The Council agreed the City enjoyed a good partnership with Ramsey Raceway, which provided contributions for Happy Days. During discussion, support was expressed for a standard 12- month lease term with a six -month early termination clause in the event the Armstrong Boulevard interchange project moves forward. The Council next considered the payment of property taxes (estimated at $40,000) and debated whether it should be deducted from profits prior to calculating the City's 50% share. City Council / February 26, 2013 Page 5 of 10