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<br /> <br />REQUEST FOR ACTION <br /> <br />To <br />Ci Council <br />Agenda Section <br />W orksession <br />Item Description <br />Consider Resolution Approving Lease Agreement Between the <br />Economic Development Authority of the City of Elk River and <br />the Young Men's Christian Association of Metropolitan <br />Minneapolis and the Ground Lease Between the City of Elk <br />River and the Economic Development Authority of the City of <br />Elk River <br /> <br />Meeting Date <br />Ma 7, 2007 <br /> <br />Item Number <br />6.3. <br />Prepared by <br />Lori ohnson, Ci Administrator <br />Reviewed by <br /> <br />Reviewed by <br /> <br />Action Requested <br />The City Council is asked to review and consider the Resolution approving the Lease Agreement (Lease) <br />between the Economic Development Authority (EDA) and the Young Men's Christian Association of <br />Metropolitan Minneapolis (YMCA) and the Ground Lease between the City of Elk River and the <br />Economic Development Authority for the City of Elk River. <br /> <br />Background/Discussion <br />This project has been progressing very well with work going on simultaneously in several areas including <br />the architectural design and preparation for bidding and city planning approvals. Two of the other items <br />we have been working on are the Lease and the construction manager contract. <br /> <br />Legal Counsel and staff from both the YMCA and city have been working to draft a lease for <br />consideration by the City Council, EDA, and YMCA for the construction of a facility by the EDA to be <br />used by the ThlCA for providing YMCA programs and services. The Lease is based on the <br />Memorandum of Understanding (MOU) approved in December 2006, Council action and discussion <br />since that document was approved, and current information regarding the project. The Lease is formally <br />between the EDA and the YMCA because the EDA is the body issuing the bonds; however, since this is <br />a project undertaken and lead by the City Council, the Lease requites the consent of the city. The Lease <br />is scheduled to be on the EDA's May 14 meeting agenda. YMCA executives have reviewed the Lease as <br />presented; formal approval from the YMCA will happen following Council action. <br /> <br />A copy of the Lease is attached for your review. I will not go through each section of the Lease in detail <br />in this memo; however, there are several items of importance that are outlined below including items that <br />the Council has discussed before and items on which Council gave staff direction at earlier meetings. <br /> <br />. <br /> <br />The term of the lease is 31 years, automatically renewing after that point with a ten-year <br />termination clause. The initial term was increased by one year because the lease starts one year <br />before the building is open for operation. <br /> <br />. <br /> <br />The lease requites the construction of a full-size gymnasium of approximately 8,000 square feet <br />including an office for city recreation staff. The city has guaranteed use of the gym for a <br /> <br />S:\Council\Lori\2007\ YMCA Lease Approval.doc <br />