7.2.
CC Regular Session
- Meeting Date:
- 01/10/2017
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title
Approve Amendment to Lease Agreement with M&G Trailer Sales for Use of City Owned Land Located at 7443 Highway 10
Purpose/Background:
On April 22, 2014 the city entered into a 5-year Lease Agreement with M&G Trailer Sales for use of 40,000 sf of vacant city-owned land. The subject property is located at 7443 Highway 10, between The COR and U.S. Highway 10, and is used by M&G for outside sales and display of trailers. The subject property was purchased via the State Right-of-Way Acquisition Loan Fund (RALF), and, therefore, the use of lease revenue is restricted. Attached to this case is the original lease agreement.
The purpose of this case is to consider a lease agreement term extension (5 years from now), and a lease agreement expansion of the lease premises (from 40,000 sf to 98,000 sf). Attached to this case is the proposed lease amendment, and a rent analysis.
From a general policy perspective, the City Council gave M&G the high-level/preliminary approval for this request in May of 2016 (CCWS case). At that time, the Council gave M&G direction to apply for the required Interim Use Permit (IUP) and work with staff to negotiate a lease amendment. Attached to this case are a list of considerations discussed with the Council in May of 2016. Included in this meeting agenda (01/10/2017) is a separate M&G case, to approve a IUP for this proposed use (which was recently reviewed by the Planning Commission).
The purpose of this case is to consider a lease agreement term extension (5 years from now), and a lease agreement expansion of the lease premises (from 40,000 sf to 98,000 sf). Attached to this case is the proposed lease amendment, and a rent analysis.
From a general policy perspective, the City Council gave M&G the high-level/preliminary approval for this request in May of 2016 (CCWS case). At that time, the Council gave M&G direction to apply for the required Interim Use Permit (IUP) and work with staff to negotiate a lease amendment. Attached to this case are a list of considerations discussed with the Council in May of 2016. Included in this meeting agenda (01/10/2017) is a separate M&G case, to approve a IUP for this proposed use (which was recently reviewed by the Planning Commission).
Notification:
NA
Observations/Alternatives:
Highlights:
- 5 year lease term extension
- 58,000 sf expansion (98,000 sf total)
- Outside storage sales and display use
- 6 month termination clause for city
- $10,000 deposit for city to remove improvements if needed
- No signs/ messages displayed on site allowed w/o City approval
- All staff concerns were outlined in May of 2016
- Lease generally complies with City's lease policy
- Amendment drafted/ reviewed by attorney
- Staff adjusted lease rate slightly up to get into market (based on input from Premier Commercial and comparison to other leases)
Funding Source:
NA
Recommendation:
NA
Action:
Motion to:
Approve the attached Amendment to existing Lease Agreement with M&G Trailer Sales for Use of City Owned Land Located at 7443 Highway 10; subject to final review and amendments by the City Attorney.
Approve the attached Amendment to existing Lease Agreement with M&G Trailer Sales for Use of City Owned Land Located at 7443 Highway 10; subject to final review and amendments by the City Attorney.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 01/05/2017 03:29 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 12/09/2016 05:34 PM
- Final Approval Date:
- 01/05/2017