Laserfiche WebLink
CC Regular Session <br />Meeting Date: 04/25/2023 <br />Submitted For: Sean Sullivan, Community Development <br />By: Sean Sullivan, Community Development <br />Information <br />Title <br />Adopt Resolution #23-079 Approving Lease Agreement of 6745 Hwy 10 NW with RM Golf Carts <br />5.8. <br />Purpose/Background: <br />PURPOSE: <br />Approve the attached lease agreement with RM Golf Carts for use of city owned cold storage space located at <br />6745 Highway 10 NW. <br />BACKGROUND: <br />RM Golf Cart's primary location is 7039 Hwy 10 (also a city owned property being leased). RM Golf Carts has <br />been leasing cold storage space at 6745 Highway 10 NW for 7 years. Their lease at 6745 is set to expire May 31, <br />2023. RM Golf Carts would like to extend their lease at 6745 by two years. <br />This property was purchased using RALF funds to secure land for the future improvements to Hwy 10. All rent <br />proceeds are applied city costs for annual property management, property taxes and property maintenance. Any <br />remaining rent is returned to the RALF program. <br />Notification: <br />N/a <br />Observations/Alternatives: <br />The attached lease agreement is generally consistent with the city's other lease agreements and policy for leasing <br />city owned property. The attached lease agreement template was drafted by the City Attorney and reviewed by <br />Staff and the City's property management company - Premier Commercial Realty. Specific notes below: <br />• Terms/ conditions and language has been updated to be consistent with recent lease agreements. <br />• Includes rent payments that are market rate. (increase of 5% from previous lease with 5% inflator for year 2) <br />• Maintenance responsibilities are clearly outlined. <br />• No political signage allowed. <br />• Early termination clause included. <br />• Per the City's agreement with Premier Commercial Properties, a 5% commission payment will be made to <br />Premier for this lease agreement. <br />• This lease agreement is being brought forward in conjunction with another future lease agreement, for <br />Mille Lacs Motor Sports II. RM Golf Carts and Mille Lacs Motor Sports II (formerly known as Power <br />Lodge) worked together, as a group, with City Staff and Premier Commercial Properties, to come up with <br />this solution. <br />Alternatives: <br />1) Adopt Resolution #23-079 approving Lease Agreement of 6745 Hwy 10 NW with RM Golf Carts (as <br />presented); subject to review by the City Attorney. <br />2) Adopt Resolution #23-079 approving Lease Agreement of 6745 Hwy 10 NW with RM Golf Carts (with <br />changes); subject to review by the City Attorney <br />3) Something else <br />