Agenda - Council - 05/11/2021 - Laserfiche WebLink

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CC Regular Session 5. 11. Meeting Date: 05/ 11 /2021 By: Sean Sullivan, Community Development Information Title Adopt Resolution #21-125 Approving Lease Agreement with RM Golf Carts for 7039 Highway 10 Purpose/Background: Purpose: Approve Lease Agreement with RM Golf Carts, Inc. for 7039 Highway 10 Background: The City has leased 7039 Highway 10 NW to RM Golf Carts, Inc. since 2011. The Current Lease Agreement is set to expire in June of 2021. RM Golf Carts has made a request for the City to extend their lease agreement by another three year term. In three years, it is likely that that the final Highway 10 plan will be complete (and perhaps under construction) and the City may be in a position to begin selling RALF held properties if they are no longer needed for right of way. Based on recent iterations of this plan, it is likely that this parcel could be available for sale in the future. Notification: NA Observations/Alternatives: Observations: Attached to this case is a updated lease agreement. Here are the major terms: • Rent is considered market with 3% increases over future years included (See below) • Rent covers taxes and base rent (tenant responsible for all other costs) • Tenant responsible for maintenance / operations costs • Clause included not allowing for political signs • Clause included to cover major "damage/ destruction" situations (i.e. the City won't be liable) • Tenant required to have insurance • Use: golf carts/ recreation vehicles sales/ temporary storage/ display • Clause to allow early termination included $2 250.00 per month on June 1, 2021 and a like amount on each first day of the month thereafter through May 1, 2022; and $2 318.00 per month on June 1, 2022 and a like amount on each first day of ' the month thereafter through May 1, 2023; and $2 3 87.00 per month on June 1, 2023 and a like amount on each first day of the month thereafter through May 1, 2024; and The attached lease agreement has been drafted/reviewed by the City Attorney. To date, RM Golf Carts has been a good tenant (maintains property, always pays rent on time). This lease allows property taxes to be generated on this property and retains a Ramsey business. The tenant has expressed an interest to purchase this property if it ever becomes available for sale. Alternatives: