Agenda - Council - 05/13/2025 - Laserfiche WebLink

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CC Regular Session 5. 11. Meeting Date: 05/13/2025 By: Sean Sullivan, Community Development Title: Adopt Resolution #25-095 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 use makes sense with Mille Lacs also requesting to lease the rear 18,200 SF for their operations. The timing of lease works well with the proposed improvements coming to Hwy 10 as it concludes just after its completion. Power Lodge is also trying to figure out a permanent solution here in Ramsey and this extension allows them the time needed to crunch some numbers. The City has negotiated directly with the Tenant and have agreed to the lease under consideration. The City Attorney has approved this lease as to form. Staff supports the request to assist a growing Ramsey business that would possibly expand in Ramsey. Notification: N/A Observations/Alternatives: Observations: The terms of the lease are straight -forward and include a 3% increase from the previous lease. 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 - June 1, 2025 —January 31, 2026 - $428.98 / month 3. Maintenance responsibilities are clearly outlined. 4. No political signage allowed. 5. Early termination clause with 90 days notice included. 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 (RACE). Recommendation: Staff supports the proposed lease agreement as presented and recommends adoption of Resolution #25-095 as presented; subject to City Attorney review. Action: