Agenda - Council Work Session - 05/24/2016

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(2) Would the Council consider an amendment to our lease policy to allow the leasing and temporary development of land which is slated for acquisition as identified in MNDOT's U.S. Highway 10 Access Planning Study? Consider the following policy issues: • Allow, or don't allow, further expansion of temporary outside display/ sales area on city -owned land (pending negotiation of various details such as landscaping, fencing, pavement, etc.). Staff would like to confirm, that the Council is still generally comfortable with expansions of this type in land proposed to be acquired under the Highway 10 plan. • Require, or don't require, a provision in our lease policy to require a deposit from the tenant, to cover the cost to remove all improvements they have made to a leased property. The purpose of this would be to eliminate the City's (or MnDOT's) future costs to complete improvements to U.S. Highway 10. • Require, or don't require, strict adherence to conditions of lease that would regulate items on display in spaces that are designated as green space in city code. Perhaps provide for additional penalties/remedies beyond what normal City code enforcement would provide. • Allow, or don't allow, tenants to have renewal options beyond the initial lease term (e.g., 5 year renewal options are common), or • Require, or don't require, a sunset provision on all leases that are located on property between Armstrong Boulevard and Ramsey Boulevard (for example, 5 years out). Based on the Highway 10 Access Planning Study, plans for the Armstrong Interchange project, and concept plans for the Ramsey Boulevard project, these properties are called for full acquisition (and elimination of users). Staff believes leasing city -owned property in this specific area is a direct conflict to several of the city's other goals/ initiatives. If the Council does not address this item via a policy, staff believes requests for leasing in this area will continue to occur until the State is able to purchase all of the properties. The pending M&G Trailer request, attached, prompted re -consideration of this policy. This particular request can also potentially open up discussion that could span beyond the city's lease policy, and, for example, get into broader corridor development and image issues. However, for the sake of simplicity, staff has limited the policy questions to those listed above.. Funding Source: NA Recommendation: Please see observations section. Action: Please see observations section. Policy for Leasing City Owned Property (2013) Northern Light Church Request MG Trailer Sales Request Attachments Form Review