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

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5. 12. CC Regular Session Meeting Date: 05/13/2025 Primary Strategic Plan Initiative: Promote economic growth and development. Title Adopt Resolution #25-096 Approving Lease Agreement of 6781 and 6745 Highway 10 NW with Mille Lacs Motor Sports II Purpose/Background: PURPOSE: Approve the attached lease agreement with Mille Lacs Motor Sports II for use of city owned storage space located at 6745 Highway 10 and 6781 Highway 10. BACKGROUND: Mille Lacs Motor Sports II's primary location in Ramsey is 6781 Highway 10. Mille Lacs Motor Sports II has been leasing storage space from the city for several years. 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 Time Frame/Observations/Alternatives: The attached lease agreement is generally consistent with the city's other lease agreements and policy for leasing city owned property. The attached lease agreement template was drafted by the City Attorney and reviewed by Staff and includes a 3% increase for the 7 month term. Specific notes below: Description of Lease Area: Indoor and outside storage space located at 6781 and 6745 Hwy 10 NW and depicted as "Area A, B, C, D and E" (the "Lease Space") Lease Terms/Rate : . Lease Period - June 1, 2025 — January 31, 2026 - $5,717.85 / month Maintenance responsibilities are clearly outlined. No political signage allowed. Early termination clause with 90 days written notice included. 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: Adopt Resolution #25-096 Approving Lease Agreement of 6781 and 6745 Hwy10 NW with Mille Lacs Motor Sports II; subject to review by the City Attorney. OutcomeAction: