06-B-Lease - 1231 N. Main - Laserfiche WebLink

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AGENDA INFORMATION SHEET PROJECT: Consider a resolution awarding a lease on property located on part of Lots 6 and 7, City Block 25 lA, being number 1231 N. Main Street. BACKGROUND: The City has for a period of time owned a portion of Lots 6 and 7 in City Block 25 lA, located at 1231 N. Main Street. The property was originally obtained for and will eventually be used for street expansion purposes. In the meantime, the City had leased the property out to interested property owners and it has primarily been used as an automobile sales lot in the past. The previous tenant at the location was Mr. Larry Richardson. The Lease with Mr. Richardson subsequently came to an end, and Mr. Richardson no longer wanted to continue his use of the property. Consequently, following established procedure, the City Council on December 11, 2000, adopted Resolution No. 2000-176 authorizing advertisement for competitive bids on the lease of the property. No bids were received in response to the City's advertisement. Subsequent to the advertising process, Mr. Allen Phillips approached the City proposing to lease the property, again for an automobile sales lot. DESCRIPTION: The proposed lease agreement contains terms similar to prior leases for this property. The duration of the lease is for a one (1) year term, with three (3) annual renewal options available to the Lessee, for a total possible term of four (4) years. The first two (2) years would be at a rental of $250.00 per month, or $3,000.00 per year. In the third year, the rent would escalate $25.00 per month to a total of $3,300.00 for the year, and in the fourth year of the lease the rent would again escalate to $300.00 per month or $3,600.00 per year. COST: No additional cost is anticipated to be incurred by the City; this agreement should result in revenue to the City. LOCATION: The property is located at Lots 6 and 7, City Block 25 iA, 1231 N. Main Street. RECOMMENDED ACTION: Consider approval ofthe resolution authorizing the lease agreement. STAFF CONTACT: Larry W. Schenk, City Attorney SCHEDULE: The term of the lease provides that Mr. Phillips' occupancy will begin April 15,2001, at which time his first rental payment will be due. COUNCIL DATE: Consider for approval at City Council's special March 26, 2001, Council meeting. ADDITIONAL MATERIAL: See attached copy of proposed resolution and accompanying lease agreement.