CR 2014-036 Revised-44M
March 24, 2014 City o(' llopkia8 Council Report 2014-036
Approve Parking Lot Lease Agreement — City Parking Lot 750
Proposed Action.
Staff recommends adoption of the following motion: Move that City Council
approve a parking lot lease agreement between the City of Hopkins and Sidal
Realtv Co. LLLP for the leasina of citv parkina lot 750.
Overview
The owners of the Gallery Flats apartments are in need of additional tenant
parking to help meet an expected short term demand until the Green Line
Extension Light Rail is operational. They approached the City to determine if
there were any parking lots/areas that could be leased to them for the next five
(5) years. Currently, City parking lot 750 is scarcely used and has 37 parking
stalls. The lot has a 3 -hr parking limit or all day with a permit. City staff
negotiated a 5 -year parking lot lease agreement, the terms are shown below.
The City Attorneys' office has made revisions to the agreement to address
concerns that came up at the March 18 City Council meeting. Sidal Realty has
concurred with these revisions. A copy of the revised agreement was provided to
Dr. Bob Hersman, one of the Professional Building owners, on March 18.
Primary Issues to Consider
• Agreement terms and conditions
• Revisions since 3/24City Council meeting
Supporting information.
• Proposed parking lot lease agreement
• Aerial view and photos of parking lot 750
Steven J. Stadler, Public Works Director
Analysis of Issues
• Agreement terms and conditions
The lease term is five (5) years from October 1, 2014 — Sept 30, 2019. The rent
is $23,500/year + 100% of real estate taxes and assessments. Tenant would
have exclusive use of the parking lot for parking of non-commercial vehicles for
occupants or guests of the Gallery Flats development. The tenant is responsible
for all parking lot maintenance. The tenant must provide up to 5 parking stalls to
the owners of the adjacent Professional Building at 29 9th Ave N at a cost of
$300/stall + retain one of the existing handicap parking stalls. The City can
terminate the lease by giving a 180 -day written notice in the event that a
redevelopment project is being considered which impacts this property.
• Revisions since 3/24 City Council meeting
Paragraph 5 of the agreement, Use of Premises, has been revised as follows:
- first sentence revised to restrict parking to "non-commercial passenger
vehicles"
- The statements: "There shall be no storage of inoperable or unlicensed
vehicles on the Premises"; and "No long term parking (30 consecutive days or
longer) shall be permitted" were added.
- Additional language added which states: "Tenant shall not cause or permit any
nuisance in or about the Premises nor shall Tenant permit any debris to be
placed or left upon the Premises"
- Regarding the agreement to sublease to the Professional Building owners: the
following statement was added: "... provided such agreement shall permit the
Professional Building Owners to rent five parking stalls... throughout the term of
this lease with annual renewals for each individual parking stall."