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CC Regular Session 5.15. <br />Meeting Date: 05/09/2023 <br />By: Sean Sullivan, Community Development <br />Information <br />Title <br />Adopt Resolution #23-098 Approving Lease Agreement of 6781 and 6745 Highway 10 NW with Mille Lacs <br />Motor Sports II <br />Purpose/Background: <br />PURPOSE: <br />Approve the attached lease agreement with Mille Lacs Motor Sports II for use of city owned storage space <br />located at 6745 Highway 10 and 6781 Highway 10. <br />BACKGROUND: <br />Mille Lacs Motor Sports II's primary location in Ramsey is 6781 Highway 10. Mille Lacs Motor Sports II has <br />been leasing storage space from the city for several years. Their existing lease will expire in May 31 2023. Mille <br />Lacs Motor Sports II would like to extend their lease with the city by two years. Mille Lac Motor Sports II is a <br />growing business and has expressed a willingness to remain and grow in Ramsey. Staff has worked with Premier <br />Commercial Properties to negotiate a market rate lease for the Premises as defined in the lease. <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 Properties. A lease rate $1.00 / square <br />foot has been negotiated by City Staff and Premier Commercial Properties and is considered market rate for this <br />type of space. Specific notes below: <br />Description of Lease Area: Indoor and outside storage space located at 6781 and 6745 Hwy 10 NW and depicted <br />as "Area A, B, C, D and E" (the "Lease Space") <br />Lease Terms/Rate : <br />. Lease Period 1- June 1, 2023 — May 31, 2024 - $5,242.47 / month <br />. Lease Period 2 — June 1, 2024 — May 31, 2025 - $5,551.32 / month <br />Maintenance responsibilities are clearly outlined. <br />No political signage allowed. <br />Early termination clause included. Per the City's agreement with Premier Commercial Properties, a 5% <br />commission payment will be made to Premier for this lease agreement. <br />Funding Source: <br />Lease Revenue. The revenue received from the lease is applied to City administrative costs, property maintenance <br />and to reimburse the Right -of -Away Acquisition Loan Fund (RALF). <br />Recommendation: <br />