MET Transit has a number of parking spaces at the Downtown Transfer Center, and MET has not identified a specific need for their use at this time.   MET Transit has been leasing these spaces to generate additional revenue to help offset the costs of operating the Downtown Transfer Center.  Yellowstone County has leased thirteen spaces located on the northwest side of the Downtown Transfer Center for the past three years.  Their current Lease was for two years, with an additional year on a month-to-month basis.  That Lease will expire on September 30, 2012. Yellowstone County has requested another two-year lease with the option to extend it for one additional year on a month-to-month basis.  The Lease identifies that the lessee is responsible for maintaining the leasehold, and includes the appropriate insurance coverage requirements and indemnification language.     

The Council may:

• Approve the Lease with Yellowstone County for thirteen parking spaces; or
• Not approve the Lease with Yellowstone County for thirteen parking spaces.

The Lease will generate $650 per month, for a total of $15,600 for the first two-year term of the Lease. If the Lease is extended into the third option year, then the Lease allows for a rate adjustment.

Staff recommends that Council authorize the Mayor to execute the Downtown Transit Transfer Center Parking Space Lease with Yellowstone County.