Agenda - Council - 04/28/2020 - Laserfiche WebLink

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CC Regular Session Meeting Date: 04/28/2020 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development 5. 9. Information Title: Adopt Resolution #20-081 Approval of Lease of 6701 Hwy 10 NW to Mille Lacs Motor Sports II (Power Lodge) Purpose/Background: Mille Lacs Motor Sports (Power Lodge) has requested use of an area behind the building at 6701 Hwy 10 for temporary storage of boats and inventory for its business for 60 days. The request stems from impacts of COVID-19 and its customers not picking up boats during the usual time frames due to a number of other factors. This is a temporary request for a temporary issue. Staff has worked with the City Attorney, Premier Commercial Properties and Mille Lacs Motor Sports to draft a lease agreement for a 60 period. The market rate for this lease would be $420.00 for the area and time period needed. Due to the temporary nature of this lease, current COVID-19 impacts, the fact that this company currently has a lease with the City and is in good standing, Staff is recommending that the $420.00 cost of the lease to be refundable if the tenant abides by the terms of the lease. Due to the unique nature of COVID-19 and is impacts to businesses in Ramsey, Staff is comfortable granting this request for the lease to be rent free. The rent payment can be seen as a security deposit to ensure the site is restored to original condition. Notification: N/A Observations/Alternatives: Observations: The Terms of the lease are straight forward. Here are some of the specifics: 1. Lease. Landlord leases to Tenant the area outlined in Exhibit A along the rear property line of the property located at 6701 Highway 10 (PID 34-32-25-12-0009) (the Leased Area). 2. Term. The term of this Lease is from April29, 2020, through June 30, 2020, unless extended by written agreement executed by both parties. 3. Use. The Leased Area may only be used for storage of Tenant's inventory and/or customer's boats. The Leased Area may not be used for employee parking or any other use without Landlord's written permission. No signage shall be installed by Tenant in or on the Leased Area. Tenant shall conduct its business and control its agents, employees, invitees and visitors in such a manner as not to create waste, odors, nuisance, or interfere with, annoy or disturb any other tenant of Landlord or Landlord's employees and agents in its operation of the 6701 Highway 10 property. Tenant acknowledges that the Leased Area is not fenced except along the rear of the property or otherwise secured in any manner and Landlord makes no representations as to the security of the Leased Area. 4. Access. To the extent reasonably practicable, the Leased Area shall be accessed by Tenant through the gate on the east fence of Outdoor Storage Area D located at the rear of 6745 Highway 10. A 15-foot-wide through lane between the rear of the building at 6701 Highway 10 and the Leased Area must be maintained at all times for emergency vehicle access and for City access to the rear of the 6701 building. 5. Rent. A lump sum fee of $420.00 shall be paid by Tenant to Landlord upon execution of this Lease in full payment of rent for the full term of the Lease. Landlord shall refund the lump sum fee if Tenant is completely vacated from the Leased Area by the end of business on June 30, 2020. The Leased Area must be clear of all inventory, customers boats and refuse. If the Leased Area is not fully vacated as provided herein, the lump