Adopt Resolution #23-098 Approving Lease Agreement of 6781 and 6745 Highway 10 NW with Mille Lacs Motor Sports II

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.  Their existing lease will expire in May 31 2023. Mille Lacs Motor Sports II would like to extend their lease with the city by two years. Mille Lac Motor Sports II is a growing business and has expressed a willingness to remain and grow in Ramsey.  Staff has worked with Premier Commercial Properties to negotiate a market rate lease for the Premises as defined in the lease.
 

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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 the City's property management company, Premier Commercial Properties. A lease rate $1.00 / square foot has been negotiated by City Staff and Premier Commercial Properties and is considered market rate for this type of space. 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 1- June 1, 2023 – May 31, 2024 - $5,242.47 / month
• Lease Period 2 – June 1, 2024 – May 31, 2025 - $5,551.32 / month

Maintenance responsibilities are clearly outlined.
No political signage allowed.
Early termination clause included. Per the City's agreement with Premier Commercial Properties, a 5% commission payment will be made to Premier for this lease agreement.

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).

Adopt Resolution #23-098 Approving Lease Agreement of 6781 and 6745 Hwy10 NW with Mille Lacs Motor Sports II; subject to review by the City Attorney.

Motion to Adopt Resolution #23-098 Approving Lease Agreement of 6781 and 6745 Hwy10 NW with Mille Lacs Motor Sports II; subject to final review by the City Attorney.