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CASE # <br />Consider Lease of Property at 6131 Highway 10 (former Premier Commercial Properties) <br />By: William K. Goodrich, City Attorney <br />Sean M. Sullivan, Economic Development Coordinator <br />Background: <br />As Council is aware, the City has purchased the property at 6131 Highway 10, known as the former <br />Premier Commercial Property site (the "Subject Property") through the RALF Funds program. The <br />Subject Property is vacant unimproved property. City Staff has entered into negotiations with <br />Ramsey JR Partners, LLC, the owner of the adjacent real estate which is occupied by the Outpost <br />and Well's Catering to lease the Subject Property. The terms of the proposed lease are listed below <br />and a copy of the lease is attached. <br />1. Leased space: 26,722 square feet <br />2. Term: five year lease. <br />3. Rent: $1.00 /year. <br />4. Property Taxes: The Subject property is exempt and therefore there are no property taxes <br />for this parcel. However, if Anoka County determines at some future date that property <br />taxes are required to be paid, the lease provides that the tenant shall pay any of said taxes. <br />5. Parcel Paving: The City will pave the site and Ramsey JR Partners, LLC will reimburse the <br />City in the amount of $4,000.00 of the $5,000.00 cost, payable in two equal annual <br />installments to assist in the cost of paving. <br />6. Insurance: Tenant will maintain public liability insurance in at least the amount of <br />$1,000,000.00 per occurrence, naming the City as an additional insured. <br />The City Council has made an effort to try to clean-up the parcels that are owned by the City on <br />Highway 10. This site has been utilized as overflow parking for the Outpost and Well's Catering <br />Service the past few years but it is not paved. 'City Code requires that the parking area must be <br />paved. The cost to pave the Subject Property is $5,000.00. Ramsey JR Partners has agreed to pay <br />for $4,000.00 of the cost if they are allowed to utilize the Subject Property for overflow parking. <br />The recommendation to keep the Subject Property tax exempt is due to the fact that it will be used <br />only for "overflow" parking. The $1.00 /year lease is put in place to aid in protecting the City from <br />liability issues. <br />Recommendation: <br />Approve the attached lease with Ramsey JR Partners, LLC. <br />Council Action: <br />Motion to approve the attached five year lease with Ramsey JR Partners, LLC, for the property <br />located at 6131 Highway 10. _ . <br />Review Checklist• ilk <br />Administrat <br />Community Dever ment irector <br />CC: 10.23.07 <br />-173- <br />