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M&G TRAILER SALES REQUEST <br />EXISTING LEASE <br />M&G Trailer Sales and Service began leasing 40,000 square feet of city -owned land located at 7443 U.S. <br />Highway 10 in April of 2014 ("Original Lease"). The Original Lease has a five year term (April 22, 2019), <br />does not have a built-in option for renewal, allows for the outside storage of trailers, is considered <br />market -rate rent, and does include a provision for early termination in favor of the city (if property is <br />needed for U.S. Highway 10). <br />REQUEST <br />The request before the council is two -fold. (1) amend Original Lease to include an additional 40,000 <br />square feet of space (total of 80,000 square feet) —for additional outside storage. (2) amend Original <br />Lease to allow for an option to renew (additional five years, April 22, 2024). <br />M&G TRAILER SALES <br />Steve Jung took over M&G Trailer Sales in 2011. Since then, the company has rapidly grown year after <br />year. Now, M&G Trailer sales is the largest trailer sales dealership in Minnesota, based on volume. <br />M&G expanded onto city -owned property in 2014. They are currently in active negotiations to purchase <br />and redevelop a former used -car lot in Ramsey (would be used for specialized products, storage, and <br />maintenance). <br />ADMINISTRATION OF LEASE <br />From the City's perspective, M&G Trailer Sales has been a good lease tenant. Rent is always paid in full, <br />and on time. This tenant takes very little monitoring or trouble shooting. This tenant takes care of all <br />maintenance and upkeep on their property. M&G has been a major contributor to Happy Days and the <br />Ramsey PD events/ initiatives. Staff has received positive comments from customers that have used <br />M&G Trailer Sales. <br />Staff believes M&G does need to correct/ address the two items below. At this point, both items have <br />been violated on various occasions (and perhaps outstanding). <br />• Making sure the tenant does not utilize non -leased property (and a non -authorized second <br />access point) for staging of equipment/ deliveries. <br />• Making sure the tenant does not utilize non -authorized green -space areas to display product. <br />City Code requires 20' green space from ROW. The M&G perimeter fence is presumably located <br />at the edge of ROW. The M&G parking lot set back 20' from the M&G fence, to accomplish 20' <br />setback. <br />