02-24-1993 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117 -1600 (612) 484 -2177 / FAX: (612) 484 -4538 MEMORANDUM TO: Mayor Hanson & Members of the City Council FROM: Joel Hanson, City Administrator DATE: February 19, 1993 RE: Pioneer Park Concession Stand Lease MAYOR Raymond G. Hanson COUNCIL Beverly Scalze Jim LaValle Steve Morelan Bob Peclersen ADMINISTRATOR Joel R. Hanson Attached is a letter we received from Jim and Chris Olson relative to their concession stand lease at Pioneer Park. (A copy of the lease is also attached for your review.) As the letter indicates, the stand has been operating in the red and the requirement to pay 10% of gross profits to the City does not make this venture worthwhile for them at this time. As a result, they would like us to eliminate the rent requirement. They are also asking that we relieve them of the requirement related to the provision of worker's compensation insurance. Based on the 10% of gross profits, the City collected $470.23 in 1992. The Parks and Recreation Director and I share the opinion that by having the Olson's available at the building, we provided stability to the environment at Pioneer Park. They are also there to open and close up the building which would have to be done by someone else if they were not using the facility. We also believe that their presence contributes to a reduction in the potential for vandalism. Given these factors, it would seem the rent generated could be waived given the other benefits the City has accrued. As a result, it would be our recommendation that we amend the lease agreement reducing the rental amount to zero until the business increases warrant a charge with an evaluation of this arrangement to be done on a year to year basis. The City Attorney is evaluating the worker's compensation issue. The main concern here is that the City does not incur any liability should an injury occur. The City Page 45