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M:\MasterFiles\1999 thru 2010\2001\City Council\Council Packets\03-26-2001 Council\Item 10H--Eller Billboard Lease--Kathleen Miller.doc Item No.10H Type of Business: CB WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Kathleen Miller, City Administrator Item Title/Subject: Review and Authorize the Execution of the Lease Agreement with Eller Media Company Date of Report: March 26, 2001 Background The Mounds View City Council reviewed this item at its March 27, 2000 City Council Meeting and approved Resolution No.5419 Approving an Interim Use Permit to Allow The Installation of Six Outdoor Advertising Signs on Bridges Golf Course Property in Accordance With the Eller Media Proposal. The City Council also reviewed the Lease Agreement With Eller Media Company and voted “to authorize the Mayor and Acting City Administrator to execute the Lease Agreement, following the insertion of information into the blank spaces contained in the first and eighth paragraphs of the document.” I have attached a copy of: • The lease agreement the City Council considered on March 27, 2000, • The minutes of the March 27, 2000 City Council meeting, and • The lease agreement that is proposed today. This item is before you this evening because the City Attorney and I believe that the changes to the new lease are substantial enough to warrant your reconsideration and approval before execution of the documents can occur. The most noteworthy change results from the submittal of six separate lease agreement rather than one lease agreement. Under number 6. titled Rent on the second page of the lease document that was approved at the March 27, 2000 City Council Meeting, it read, “The base rent for the property shall be $41,000.00 per billboard site, for a total of $246,000 per year.” The new agreements read, “The base rent for the property shall be $41,000.” The former suggests a lump sum of $246,000, annually; the new lease agreement infers that if only one billboard is constructed the rent would be limited to that individual site, resulting in a substantial reduction in rent from the $246,000. If all six billboards are constructed this would of course be a moot point, however the way this agreement currently reads there is no guarantee that six billboards would be constructed. Staff is seeking Council’s review and direction on this matter. Recommendation