Agenda - Council - 01/10/2017 - Laserfiche WebLink

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CC Regular Session 7.2. Meeting Date: 01/10/2017 Submitted For: Patrick Brama,Administrative Services By: Patrick Brama,Administrative Services Information Title Approve Amendment to Lease Agreement with M&G Trailer Sales for Use of City Owned Land Located at 7443 Highway 10 Purpose/Background: On April 22,2014 the city entered into a 5-year Lease Agreement with M&G Trailer Sales for use of 40,000 sf of vacant city-owned land. The subject property is located at 7443 Highway 10,between The COR and U.S. Highway 10,and is used by M&G for outside sales and display of trailers. The subject property was purchased via the State Right-of-Way Acquisition Loan Fund(RALF), and,therefore,the use of lease revenue is restricted. Attached to this case is the original lease agreement. The purpose of this case is to consider a lease agreement term extension(5 years from now),and a lease agreement expansion of the lease premises(from 40,000 sf to 98,000 sf). Attached to this case is the proposed lease amendment, and a rent analysis. From a general policy perspective, the City Council gave M&G the high-level/preliminary approval for this request in May of 2016 (CCWS case). At that time, the Council gave M&G direction to apply for the required Interim Use Permit(IUP)and work with staff to negotiate a lease amendment. Attached to this case are a list of considerations discussed with the Council in May of 2016. Included in this meeting agenda(01/10/2017)is a separate M&G case, to approve a 1UP for this proposed use (which was recently reviewed by the Planning Commission). Notification: NA Observations/Alternatives: Hi2hli2hts: •5 year lease term extension •58,000 sf expansion(98,000 sf total) •Outside storage sales and display use •6 month termination clause for city •$10,000 deposit for city to remove improvements if needed •No signs/messages displayed on site allowed w/o City approval •All staff concerns were outlined in May of 2016 •Lease generally complies with City's lease policy •Amendment drafted/reviewed by attorney • Staff adjusted lease rate slightly up to get into market(based on input from Premier Commercial and comparison to other leases) Funding Source: NA Recommendation: