Agenda - Council - 10/13/2020 - Laserfiche WebLink

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CC Regular Session Meeting Date: 10/13/2020 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development Information 5. 16. Title: Adopt Resolution #20-233 Approving Lease Agreement of 6701 Hwy 10 NW; Case of Mille Lacs Motor Sports II (Portions of meeting may be closed to the public) Purpose/Background: Note: this case is listed with the potential to discuss in closed session. The City Council can request that this case be pulled for discussion and moved into closed session if so desire. However, if the City Council is comfortable moving forward without discussion, this can remain on Consent Agenda. Mille Lacs Motor Sports (Power Lodge) has requested use of an area behind the building at 6701 Hwy 10 NW for temporary storage of boats and inventory for its business for 3 temporary lease periods. The lease periods are October 15, 2020 - November 15, 2020, April 1, 2021 - May 31, 2021 and October 1, 2021 - November 30, 2021. The business continues to grow and the use of this area for the time periods requested increases efficiencies for the operation of that business. The lease rages from $0.59-$0.61 which is considered market rate for outside storage. Staff has worked with the City Attorney, Premier Commercial Properties and Mille Lacs Motor Sports to draft the attached lease agreement. Notification: N/A Observations/Alternatives: Observations: City Staff is still working on the exact square footage and area of the property available for the lease. The final lease calculation will be adjusted (if needed) and the square footage rate will be applied to area. The Terms of the lease are straight forward. Here are some of the specifics based on 7,182 SF lease area : 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 NW (PID 34-32-25-12-0009) (the Leased Area). 2. Term. The Lease consists of three Lease Periods: October 15, 2020-November 15, 2020, April 1, 2021 - May 31, 2021 and October 1, 2021-November 30, 2021. 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 NW. A 15-foot-wide through lane between the rear of the building at 6701 Highway 10 NW 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.