Agenda - Council - 11/14/2006 - Laserfiche WebLink

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Background: Consider Leases For Property at 6745 Highway 10 (Anchor's Away Building) By: William K. Goodrich, City Attorney Sean M. Sullivan, Economic, Development Coordinator CASE # 13 As Council is aware, the City has purchased the property at 6745 Highway 10, known as the Anchor's Away building through the RALF Funds Program. Two businesses are interested in leasing space in the building from the City. Midwest Car Care, LLC, A Minnesota Limited Liability company, 2618 Clearview Avenue, Mounds View, MN 55112, would like to lease the Lube and Carwash portion of the building. The remaining part of the building is cold storage for Boat/RV storage and K & K Sharp,. LLC would like to lease this area. The Quick Lube Lease would be with Midwest Car Care, LLC Council approved the two leases in concept on. September 22, 2006. Marty Fisher has been negotiating the actual lease terms. In drafting the actual leases, a conflict has arisen in that Midwest Car Care desires space for 25 cars in the fenced in area. K & K Sharp is unwilling to share the fenced in area. Neither party at this time is willing to compromise. Car Care says the inability to have the 25 spaces is a deal breaker and K & K Sharp says giving Car Care spaces is a deal breaker. Without a compromise by the parties, we are at an impasse. Car Care states that it is willing to lease the entire site from the City and pay the property taxes if we are unable to negotiate a lease with K & K Sharp. As you know, K & K Sharp has leased the adjacent NAU building from the City and use of the Anchor's Away building cold storage area is important to its operations. Enclosure: Aerial photo showing 25 parking spaces in the fenced in area. Recommendation: Direct staff on how to proceed in resolving the current impasse. Council Action: Based on Council discussion. Review Checklist: City Administrator