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

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Considerations/ Concerns Discussed with Council in May of 2016. Council provided general direction to move forward with this lease extension/expansion in 2016. CONSIDERATIONS: Listed below are items to consider RE this particular lease request,which were discussed with Council in May of 2016. A. Leasing out RALF properties keeps properties on the tax rolls. B. M&G Trailer Sales is paying a market rate rent.The City is able to place proceeds from this lease into our general RALF account.Which,then,can be used for various RALF property expenses (maintenance,cleanup,3rd party property manager). C. M&G has a good track record for being a good tenant,strong community supporter,and respected Ramsey business(great products and good customerservice). D. M&G is creating and retainingjobs,and drawing people into the City of Ramsey.M&G utilizes other Ramsey businesses fortheiroperations,and hires locally. E. M&G is in a tough spot,and have indicated to staff: they want to relocate to a permanentfacility in Ramsey.However,they can't do that until theysell their existing property.Itis very challenging to get a market rate offeron their property due to the looming U.S.Highway 10 improvements. Therefore,they are essentiallystuck,until the State purchases theirproperty.Because they are stuck,they need to make due on their existing site. The proposed expansion is the best wayfor them to moveforward. F. M&G iswillingto putdown a large deposit on the proposed second lease,to ensure the site will be cleaned up upon termination.M&G is willingto meetall zoning/land use requirements and processesforthe proposed expansion. Thiswasa concern raised by staff. G. RALF dollars cannot be used for anything outside of RALF properties,specifically includingthe city's own administrative costs.The city's time and effort related to RALF properties is voluntary(i.e. the Economic Development Manager'stime).These rules are gu ided bythe MetCouncil. Lease Agreementsdotake up significant amount of staff time.In 2015,the Economic Development Manager(alongwith supporting staff)negotiated,drafted,and executed 13 lease agreements/ amendments.The Citytypically has about 10 active lease agreements.Most lease agreements are RALF properties.Even when utilizinga 3rd party property manageron leasesthattend to be the mosttime consuming,the Economic Development Managerstillspends asignificant amount oftime with leases. H.The original intent/purpose of buying RALF properties is to remove directaccess pointsfrom U.S. Highway 10, and to acquire propertythatwill be needed forfuture ROW(link).The practice of leasing back properties is a voluntary initiative made by the City of Ramsey. Further expanding M&G Trailer Sales use on 7443 Highway 10, and furtherextendingtheoriginal lease agreementtermwill not improve safetyand reduce congestion along U.S.Highway 10,and will work againstthis larger initiativeto improve US Highway 10.