Approve Lease Agreement with RM Golf Carts for 7039 Highway 10

Purpose:
Approve Lease Agreement with RM Golf Carts for 7039 Highway 10

Background:
The City entered into a 5-year lease agreement with RM Golf Carts for the use of a City owned property located at 7039 Highway 10 in 2011 (attached).  Said Lease Agreement is set to expire in May of 2016.  RM Golf Carts has made a request for the City to extend their lease agreement by another 5-year term.

Attached to this case is a new/ updated lease agreement.  Here are the major terms:

• Rent increased/ adjusted to market, increases over future years included
• Rent covers taxes and base rent (tenant responsible for all other costs)
• Tenant responsible for 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: golf carts/ recreation vehicles sales/ temporary storage/ display
• Clause to allow early termination included

The attached lease agreement has been drafted/ reviewed by the City Attorney.  To date, 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 on this property and retains a Ramsey business.  The only potential drawback to this lease agreement is use of City owned land for outside sales and display for an extended period of time.  However, unlike other situations the Council has recently reviewed (i.e. M&G), the RM lease does not physically expand said use (it maintains the existing footprint).
 

NA

NA

NA

NA

Motion to:
Approve the attached Lease Agreement with RM Golf Carts for 7039 Highway 10