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<br />Item No: 07B <br />Meeting Date: Nov 8, 2010 <br />Type of Business: CB <br />City of Mounds View Staff Report <br /> <br />To: Honorable Mayor and City Council <br />From: James Ericson, City Administrator <br />Item Title/Subject: Resolution 7689 Approving a Lease and Access License <br />Agreement with Dell-Comm, Located at 4860 Mustang Circle <br /> <br />Introduction: <br /> <br />The City owns a land-locked parcel adjacent to the south boundary of the Townsedge <br />Terrace manufactured home park, accessible from Mustang Circle via property owned by <br />Dell-Comm at 4860 Mustang Circle. The parcel had been the site of the original municipal <br />water tower and presently is improved with one of the city’s civil defense siren. <br /> <br />Discussion: <br /> <br />In 1994, the City Council approved a resolution authorizing a development agreement <br />regarding a building expansion with Wolf & Associates, the property owner at the time of <br />the adjacent property south of the manufactured home park. The resolution (attached) was <br />conditioned on three points, one of which that Wolf & Associates enter into a lease <br />agreement for the use of the former water tower site. While Wolf & Associates ultimately <br />opted against moving forward with their expansion, they did begin to use the City’s parcel, <br />however no lease was executed. At some point subsequent to 1994, Wolf & Associates <br />sold to Dell-Comm, who continue to use the City’s parcel believing that Wolf had secured <br />the requisite approvals. It was not until earlier this year that the City ascertained that no <br />lease had ever been approved for the private usage of the public property. <br /> <br />In February, staff contacted Jim Freichels, president of Dell-Comm, and met on-site to <br />discuss potential lease options. Amenable to a formal agreement, staff and Dell-Comm <br />worked on various terms and financial considerations. Once a tentative agreement on the <br />terms had been reached, staff asked Kennedy & Graven to prepare the required <br />documentation—a lease and an easement document—which were then reviewed and <br />modified by Dell-Comm’s attorney. The revisions were deemed mutually acceptable and <br />thus were ready for Council consideration. <br /> <br />Lease terms <br /> <br /> Three year lease, inclusive of 2010 <br /> One-year automatic renewals <br /> Dell-Comm responsible for property taxes on the site <br /> Annual rent $1,000, 3% annual inflator <br /> Dell-Comm provides access license so City can access its parcel <br /> <br /> <br />