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

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• Early termination clause included.Per the City's agreement with Premier Commercial Properties, a commission payment will be made to Premier for this lease agreement. All outside storage within the fenced area will be screened. • The front portion of the building (Old Siding) will be repaired and repainted by the Tenant at the cost of the Tenant. • The Pylon Sign will be removed from the site by Tenant at the cost of the Tenant. • The Tenant and contractors may enter the building to conduct repairs and work required by the Building Official to bring the building into a condition to permit occupancy. • The Tenant cannot occupy or operate out of any portion (except for the pit area) of the leased premises until all required improvements by the Building Official are complete and the Building Official has granted occupancy for the Leased Premises. (See attached Building Official Memo) • The Lease will be from May 1, 2021 - May 31, 2023. The lease will not be extended and no new leases will be entered into on this property after May 31, 2023. • The Square footage of the lease will be adjusted based on the usable space to the Tenant (i.e.exclusion of the Pit area) The Tenant is agreeing to invest about $12,000 into the building and grounds to ensure it is a safe and aesthetically pleasing property on Highway 10. Alternatives: 1) Adopt Resolution #21-117 Approving Lease Agreement of 6745 Hwy 10 NW (front) with Mille Lacs Motor Sports II and to authorize Staff to obtain bids to fill and pave/cover the pit area. 2) Based on the poor condition of the building, existing safety issues, and its high visibility, the City Council could choose not to lease the front portion of the building out and to begin work to demolish the structure. 3) Something Else. Funding Source: Lease Revenue, RALF. Recommendation: Staff recommendation is to approve Resolution #21-117 and (included in draft Resolution) 1) Commit to a lease end date of May 31, 2023 and to not extend or renegotiate future leases at 6745 Hwy 10 NW 2) Authorize Staff to obtain bids to fill and pave/cover the Pit Area. Action: Motion to: Adopt Resolution #21-117 Approving Lease Agreement of 6745 Hwy 10 NW (front) with Mille Lacs Motor Sports II; subject to review by the City Attorney. Site Location Map ACTION - Resolution #21-117 Lease Reference Map Letter of Intent Building Official Memorandum 4.6.21 Attachments Form Review