Adopt Resolution #18-225 Approving Lease Agreement with Todd Bialon (EZ Auto)

The City entered into a 5 year lease with Todd Bialon (EZ Auto) on November 3, 2011 and this lease is attached for review. This lease was amended to extend two years beyond the Initial Term on November 3, 2016 and is attached for review.  The two year extension ends on November 2, 2018.  The City has since developed a new lease template that it has used for its new leases.  This template has been reviewed by the City Attorney.  Staff has met with Mr. Bialon and has reviewed the new terms of the proposed five year lease.

Attached to this case is a new/updated lease agreement. Below are some of the terms of the proposed lease:

• Lease for for five years 11/3/18-11/2/23
• Rent increased / adjusted to market, increases over future years included
• Rent covers taxes and base rent (Tenant responsible for all other costs)
• Tenant responsibile for maintenance / operations cost
• Clause included not allowing for polical signs
• Clause included to cover major "damage / destruction" situations (i.e. the City wont be liable)
• Tenant required to have Insurance
• Use: vehicle sales on paved lot on Lease Property
• Clause to allow early termination included

The attached lease agreement has been drafted / reviewed by the City Attorney. To date, Todd Bialon (EZ Auto) has been a good tenant.  Revenue generated by this property covers, property taxes, city costs associated with its management and supports the RALF program. The lease allow the City to retain an exsting Ramsey business.  One potential drawback to the this lease agreement is the use of city owned land for outside sales and display for a long period of time.  However, this lease does not expand the existing use and the Tenant has demonstrated the ability to keep the sales of vehicles on the paved parking lot to comply with city rules.

Motion to Adopt Resolution #18-225 Approving Lease Agreement with Todd Bialon (EZ Auto)

Motion to Adopt Resolution #18-225 Approving Lease Agreement with Todd Bialon (EZ Auto)