CR 94-136 Lease-Loeffel-Engstrand
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. July 11, 1994 ~ Council Report 94-136
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LEASE - LOEFFEL-ENGSTRAND
Proposed Action.
staff recommends adoption of the following motion: Move to
authorize the Mayor and city Manaqer to execute a lease of City
propertv for parkinq purposes to Loeffel-Enqstrand. or a future
owner of the Loeffel-Enqstrand building located at 1040 South
sixth street. subject to the terms outlined in Council Report
94-136.
overview
Loeffel-Engstrand owns a building at 1040 South Sixth Street
which it is attempting to lease or sell. Based upon discussions
which Loeffel-Engstrand has had with potential buyers or lessees,
it has become apparent that the amount of available off-street
parking has raised questions in the eyes of potential users of
e the building. Currently, Loeffel-Engstrand has 14 existing
parking spaces adjacent to the alley and their building.
In order to alleviate the parking concerns, Loeffel-Engstrand
proposes to lease from the City an approximate 20 foot by 120
foot strip of land adjacent to the alley such that it may add an
additional 13 parking stalls.
city staff has reviewed this proposal with Loeffel-Engstrand and
is in a position to recommend approval of such a lease subject to
the terms outlined in this staff report. Staff and Loeffel-
Engstrand have come to agreement on the specified terms.
Staff has informed the residential property owners directly to
the east of the alley of the Council's review of this matter.
primary Issues to Consider
0 What are the general terms of the proposed lease?
Supportinq Documents
0 Maps of area in question
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Thomasv J,{ .~Harmening '.
communi~y Development Dlrector
CR94-136
Page 2
. primary Issues to consider
0 What are the terms of the proposed lease?
Based upon discussions which staff has had with
Loeffel-Engstrand, the terms of a lease would contain the
following:
- 15 year lease arrangement with renewal options as a
possibility
- Lease payment of $450 per year. This figure was
calculated based upon a $2 per square foot value with
an approximate 3% to 4% yearly increase built in over a
15 year period.
- Leaseholder to be responsible for any special
assessments or property taxes associated with the lease
property. (It should be noted that consideration has
been given to improving this alley in the near future.)
- That the lease contain a provision which provides
notice of the City's plans for making alley
improvements adjacent to the parking area.
. Furthermore, the property owner will sign a statement
that they will not appeal special assessments levied as
a part of alley improvements to be undertaken in the
future adjacent to the leased area.
- New parking areas to be surfaced with bituminous by the
leaseholder.
- Leaseholder to maintain parking area.
- Property owner lessee to maintain acceptable
property/liability insurance for the leased area with
the City named as an additional insured. The lease
agreement would detail the specific limits of
insurance. Furthermore, the lease agreement would
state that the city is held harmless from any damages
or liabilities resulting from the property owners or
leaseholders use of the property.
Please understand that the terms which I have stated in this
report are of a general nature and there may be other specific
issues which will need to be resolved as a part of the
development of an actual lease.
Alternatives
. 0 Approve staff's recommendation.
0 Do not approve staff's recommendation.
0 Continue matter for further information.
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ROBm L LOEfFEl.
1040 South Si.... ShII
MDpkins,.... 55343
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