Agenda - Council - 04/27/2021 - Laserfiche WebLink

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CC Regular Session 5. 18. Meeting Date: 04/27/2021 By: Sean Sullivan, Community Development Information Title Adopt Resolution #21-117 Approving Lease Agreement of 6745 Hwy 10 NW (front) with Mille Lacs Motor Sports II Purpose/Background: PURPOSE: To consider a lease for the front portion of 6745 Hwy 10 NW. BACKGROUND: Mille Lacs Motor Sports II's primary location in Ramsey is at 6781 Hwy 10. They also currently lease a portion of 6701 Hwy NW and the rear portion of 6745 Hwy 10 NW. This company is growing and needs additional space to operate efficiently. Independent Auto recently vacated the front portion of the building and the parking lot at 6745 Hwy 10 NW. Mille Lacs Motor Sports II has expressed an interest in leasing the building and the fenced in area and has provided a Letter of Intent dated April 21, 2021. The leases premises would be used to conduct repairs on boats and ATV vehicles and the fenced in area would be used for outside storage of product for its business (ATV's, boats, etc.). The front portion of the building is in poor condition and has a number of items that need to be addressed in order to allow for occupancy. Building and Fire conducted an inspection of the building on April 6, 2021. A summary of improvements needed to be done to occupy the building was put together by Building Official Szykulski.(See attached) The proposed tenant has indicated that he is willing to complete the improvements needed on the list by the Building Official at his own cost before occupying the building. He has also offered to paint and replace bad wood panels on the front portion of building, remove the Hwy 10 sign and to generally clean up the outside of the building and grounds. The tenant is looking to have this lease term mirror his existing lease at 6781 Hwy 10. The proposed lease would be from May 1, 2021 - May 31, 2023. The Pit area of the building (Between the office area and the 3 Back Bays) has been an area of concern for a good number of years. Staff believes that the empty oil tanks should be removed in this are should be filled in with sand. Once this area is deemed safe and is covered, Staff is open to this area being leased to the tenant at a later date. Notification: N/A Observations/Alternatives: The terms of the proposed lease are attached on in the Letter of Intent provided to the City on April 21, 2021. If the City Council is amenable to terms and conditions within and is willing to lease out additional space at 6745 Hwy 10 NW to Mille Lacs Motor Sports II, Staff will work with the City Attorney and Premier Commercial Properties to draft a lease consistent with standard city lease terms and unique ones specific to this property (In Bold) outlined below: • Terms, conditions and language has been updated to be consistent with recent lease agreements. • Includes rent payments that are market rate. • Maintenance responsibilities are clearly outlined. • No political signage allowed.