Approve Cold Storage Lease Agreement with RM Golf Carts for 6745 Highway 10

Purpose:
Approve Lease Agreement with RM Golf Carts for 6745 Highway 10

Background:
RM Golf Carts currently leases 7039 Highway 10 from the City of Ramsey for the operation of a golf cart sales and repair center.  RM Golf Carts recently made a request to the City to utilize a very small portion of 6745 Highway 10 for the purpose of cold storage (to supplement their business operations at 7039 Highway 10).

Attached to this case is the proposed lease agreement.  Here are the major terms:

• Rent covers taxes and base rent (tenant responsible for all other costs)
• This is a "below market" lease due to the poor condition of 6745, and poor access
• Tenant responsible for all maintenance/ operations costs
• Clause included not allowing for political signs
• Clause included to cover major "damage/ destruction" situations (i.e. the City won't be liable)
• Tenant required to have insurance
• Use: cold storage of golf carts/ recreation vehicles sales
• Clause to allow early termination included

The attached lease agreement has been drafted/ reviewed by the City Attorney.  To date, (when considering their existing lease with the City at 7039 Hwy 10) RM Golf Carts has been a high quality tenant (maintains property, always pays rent on time, zero issues resulting in costs to the City to-date, works well with Staff).  This lease allows property taxes to be generated.
 

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Motion to:
Approve the attached lease agreement with RM Golf Carts for 6745 Highway 10