Consider Lease Agreement for 6811 Hwy 10 by TMBC, LLC, dba Crystal Pierz Marine

Crystal Pierz Marine wishes to lease City-owned property located at 6811 Highway 10 NW in Ramsey. This L-shaped parcel located on the north side of the Highway does not have a building and is being used solely as a parking lot and outdoor storage facility. In August 2009 the City purchased this property from Pro Sporting Goods or PSG, LLC at a cost of $757,700. During the same month the City leased the property back to PSG for $1,600 per month. PSG, LLC leases the adjacent building to the east (See attached site map) to TAM, LLC. TAM, LLC in turn has a sub-lease for a portion of the building used by Crystal Pierz Marine. The past lease for this parcel expired last fall. Neither PSG nor TAM wish to lease this lot, therefore the logical tenant is Crystal Pierz Marine.

Since getting responsibility for resolving this lease issue (end of February 2011), the Economic Development/Marketing Manager has been in negotiations with the parties involved. Crystal-Pierz Marine has expressed a willingness to accept a one-year lease of the property commencing April 1, 2011 and terminating March 31, 2012. The monthly rate would be $1,600 per month. The permitted use would remain the same and the tenant would be leasing the property "as is".

City staff recommends that the City Council consider approving the proposed lease with TMBC, LLC dba Crystal Pierz Marine. It would be beneficial to lock in this agreement as soon as possible.

Maintenance of the parking lot would be the responsibility of the tenant.

Move forward with considering the proposed one-year lease at the next Regular City Council meeting.