During the design and construction of the Downtown Transit Transfer Center (DTTC), MET Transit had the opportunity to build a number of  automobile parking spaces for future use.  Currently, MET Transit has no immediate need for the parking spaces and has already leased 13 spaces to Yellowstone County, which Council approved on November 23, 2009.  With the start of construction on the new Federal Courthouse project, McKinstry Montana, LLC has requested the opportunity to lease 10 vehicle parking stalls, located on the southwest side of the DTTC.  McKinstry Montana, LLC plans to utilize the stalls as the location in which they will park their construction site office trailer. The term of the Lease shall be for 10 months with the option to extend it on a month-to-month basis for an additional 12 months.  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 Agreement with McKinstry Montana, LLC for 10 parking stalls; or
• Not approve the Lease Agreement with McKinstry Montana, LLC for 10 parking stalls.

The Lease will generate $500 per month for a total of $5,000 over the initial term of the Lease.  This will be considered operating revenues for MET Transit. The amount of $50 per space, per month is the same as currently being charged to Yellowstone County in their Lease.

Staff recommends that City Council approve the Lease and authorize the Mayor to execute the 10 month DTTC Parking Space Lease with McKinstry Montana, LLC.