Adopt Resolution #23-094 Approving Lease with Mille Lacs Motor Sports II, Inc. for Rear 18,200 Square Feet of Building at 6701 Hwy 10 NW
 

Mille Lacs Motor Sports II, Inc. has presented an offer to lease the rear 18,200 square feet of 6701 Highway 10 NW from June 1, 2025 - January 31, 2026.  The timing of lease works well with the proposed improvements coming to Hwy 10 as it concludes just after its completion.  Power Lodge is also trying to figure out a permanent solution here in Ramsey and this extension allows them the time needed to crunch some numbers.   The City has negotiated directly with the Tenant and have agreed to the lease under consideration. The City Attorney has approved this lease as to form.  Staff supports the request to assist a growing Ramsey business that would possibly expand in Ramsey. Mille Lacs Motor Sports II, Inc. currently leases space in 6781 Hwy 10 NW, 6745 Hwy 10 NW and 6701 Hwy 10 NW and has proven to be a reliable tenant. 

N/A

The duration of the lease works well with Hwy 10 construction as it terminates January 31, 2026.  This timing would allow for the property to be put for sale on the open market after the improvements to Hwy 10 are completed.  The extension of the lease includes a 3% increase from the previous lease.  The City Attorney has reviewed the lease and approves it as to form. 

Key Lease Terms
Location: 6701 Hwy 10 NW - Cold Storage (Rear 18,200 SF)
Lease Duration: June 1, 2025 - January 31, 2026
Lease Rate :
                       Lease Period -  (6/1/25 through 1/31/26): $6,639.20 / month 
                                                               
Utilities: Tenant paid
Snow Plowing / Sidewalks: Tenant paid (Tenant has agreed to paying "pro-rata" share)
Maintenance responsibilities are clearly outlined.
No political signage allowed.
Early termination clause with 90 days written notice included. 

Alternatives:

1. Approve Resolution #25-094 as presented; subject to City Attorney review.
2. Approve Resolution #25-094 with changes; subject to City Attorney review.
3. Something else.

Staff recommendation is to approve Resolution #25-094 as presented.

Motion to adopt Resolution #25-094 Approving Lease with Mille Lacs Motor Sports II, Inc. for Rear 18,200 Square Feet of 6701 Hwy 10 NW (as presented); subject to City Attorney review.