Agenda - Council - 05/09/2023 - Laserfiche WebLink

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CC Regular Session 5.13. Meeting Date: 05/09/2023 By: Sean Sullivan, Community Development Information Title: Adopt Resolution #23-096 Approving Lease with Mille Lacs Motor Sports II, Inc. for Outside Storage at 6701 Hwy 10 NW Purpose/Background: Mille Lacs Motor Sports (Power Lodge) has requested extension of the lease behind the building at 6701 Hwy 10 for temporary storage of boats and inventory for its business. The timing of lease works well with the proposed improvements coming to Hwy 10 as it concludes just prior to its completion. Staff has worked with Premier Commercial Properties and Mille Lacs Motor Sports to negotiate a lease agreement for a two-year period. The proposed initial lease rate is $0.66 / SF with 5% annual inflation built in for year 2. It should be noted that year one of the lease was an option that was exercised and the rate was set. The use makes sense with Mille Lacs also requesting to lease the rear 18,200 SF for their operations. The City Attorney has approved this lease as to form. Staff supports the request to assist a growing Ramsey business. Notification: N/A Observations/Alternatives: Observations: The Terms of the lease are straight forward. Here are some of the specifics: 1. Lease. Landlord leases to Tenant the area outlined in Exhibits A and B along the rear property line of the property located at 6701 Highway 10 (PID 34-32-25-12-0009) (the Leased Area). 2. Term and Rent. Lease Period I - June 1, 2023 — May 31, 2024 - $3 96.66 / month Lease Period 2 — June 1, 2024 — May 31, 2025 - $416.49 / month 3. Maintenance responsibilities are clearly outlined. 4. No political signage allowed. 5. Early termination clause included. Per the City's agreement with Premier Commercial Properties, a 5% commission payment will be made to Premier for this lease agreement. Alternatives: 1. Approve Lease Agreement, as presented 2. Approve Lease Agreement, with modifications 3. Something else Funding Source: Lease Revenue. The revenue received from the lease is applied to City administrative costs, property maintenance and to reimburse the Right -of -Away Acquisition Loan Fund (RALF). Recommendation: Staff supports the proposed lease agreement as presented and recommends adoption of Resolution #23-096 as presented; subject to City Attorney review.