10.02 - Chamber Building Lease - Laserfiche WebLink

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"I'railsicic builcling Icasc agr°ccmcnt, Cl��ltnbci- con�ments: Asst�n��tions to co�7siciez- abotit why an agreement is iz1 the best interest of both parties for revie�� to est�iblish why we �u-e discussing the lease �nd services providecl thro�lgh tlae building and Cl�amber stai�f: • Both parties agree the facility is a positive asset for the City and the Chamber. • The initial loan amoLUZt was for � 130,000 t0 C011St1'L1Ct 117C UL111C�111b in 1999 (nol szu°e if� Che�°e tivcas crn czdclitioi�c�l clown payi�zent,'l) • The City acquired a loan for the construction and the Chamber repaid tl�e loan through lease payments. • The building's purpose was to enhance the location along the trail, provide visitor information services, upgz�aded Clzamber oflices, 1nd public restrooms for the community. • Tlze City o�vns tl�e land where the buildinb is located, after acquiring a Quit Claiin Deed ii-on1 the Mn DNR. • The deed describes that tl�e property is to be used for public pLU�poses associated with a trailside in%i•znational center, restrooms, rest area, picnic area, and parking facilities. (1 he cleed suggests azzy chanbes to use require the �vritten approval of the DNR con�missioner). • T1ze origizaal lease gave the Cllamber the opportunity to ptiirchase the builcling for $1 after the lease payments were satislied however the City has determined it cannot sell the pro�erty based on the Deed restrictioils. - • "l,he Chamber acicnowledbes it does zlot want to o�vn ihe building lon; tenn. • The Chamber does not pay for water usage, since the agreement with the City that addressed overpayment oi water usabe in the north pax-t of the park. • 1 he Chamber has been responsible for all facility mzinienance, insurance, and utilities, since constr-uction was completed, e.g. paizzt, mecllanical systems, landscaping, general upkeep etc. Iz� additioi�, the Chanzber invested $32,000 rernodelinb the buildin� in 2009. o The City mows and .maintains the exterior libhting, and has an agreement with the Mn/DNR to plow the trail parking lot that also serves the building. • The Chamber provides professional staff to serve the pLrblic. Chamber coniments regarding tl�e proposed lease: 1. City responsibility for the si�i�hliess�ge board is welco�i�e. 2. A lon� term lease witl� renewal options is preferred to ensure long term occupancy for the Chainber. 3. The annual operating expenses for t11e facility (eYCluding stafF and communication expenses) averaged $10,285 a year for the past five years, or $g68 per montll; refei• to detail provided. a. We recoinmend that the city pay for items outlined in their initial proposal �s well as utilities. b. We support the $450 per month lease payment, wllich is halP of the annual operating and capital expenses associated with pz�oviding public service. c. We propose that the City provide the building insurince. Tlze Cl�amber will provide liability insurance for its operations. 4. Maintenance comments: a. New water heater installed three years abo. b. Many of the autoinited faucet and toilet controls have been replaced in the past Cwo years. c. A new furnace was installed December 2013.