Agenda - Council - 04/25/2023 - Laserfiche WebLink

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CC Regular Session Meeting Date: 04/25/2023 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development Information Title Adopt Resolution #23-080 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 5.9. 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 2023. RM Golf Carts has made a request for the City to extend their lease agreement by another two year term. The building is in good condition. This property was purchased using RALF funds to secure land for the future improvements to Hwy 10. All rent proceeds are applied city costs for annual property management, property taxes and property maintenance. Any remaining rent is returned to the RALF program. Notification: NA Observations/Alternatives: Observations: Attached to this case is an updated lease agreement. Here are the major terms: • Rent is considered near market with 5% 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 per month on June 1, 2023 and a like amount on each first day of $2,506.35 the month thereafter through May 1, 2024; and per month on June 1, 2024 and a like amount on each first day of $2,631.66 the month thereafter through May 1, 2025; and