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ity of <br /> <br />iver <br /> <br />Item 5.2. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />Mayor & City Council <br /> <br />Pat Klaers, City Ad~rator <br />December 7, 1998 <br /> <br />SUBJECT: <br /> <br />Consider Lease Between the City and <br />the Boys and Girls Club for Property <br />Within Lions Park <br /> <br />Attached for your review and consideration is the Elk River Ground Lease <br />between the Boys and Girls Club of Elk River, Inc., and the City of Elk River. <br />Attorney Dave Sellergren has been working on this project on behalf of the <br />city. This item is before the City Council at this meeting as it is the desire of <br />the local financial institutions and the Boys and Girls Club to have the City <br />Council approve this lease as soon as possible in order to help them both <br />move this project forward for groundbreaking in December 1998. Aside from <br />this ground lease, John Weicht has been working with the city on submitting <br />the necessary material in order to obtain a building permit, but all of the <br />material has not yet been received at City Hall. <br /> <br />As previously discussed, the land which is to be leased to the Boys and Girls <br />Club is in the southeast corner of Lions Park and the lease terms are for $1 <br />per year. Attached are sketches of the area requested to be leased. One <br />sketch also shows the proposed building footprint. I am not sure what the <br />area dimensions are or how they were determined, but it seems that the <br />proposed leased area could be smaller (less area on the west side of the <br />building which would exclude the city trail) and it may be in the city's best <br />interest to lease as small of a parcel as possible and to expand the leased <br />area later, if necessary. However, the proposed area is consistent with what <br />the Council reviewed when the CUP was approved on May 18, 1998. <br /> <br />Boys and Girls Club Director John Fitzgerald will be present at this meeting <br />to discuss two issues in the lease. These two issues are policy issues which <br />need to be decided by the City Council. The first issue is the length of term of <br />the lease (Page 2). Currently the draft ground lease is set up as a 30 year <br />lease with two 10 year options. Fifty (50) years seems like a long time to me, <br />but the Boys and Girls Club desire a longer term lease. <br /> <br />13065 Orono Parkway * P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />