Title
Authorizing the City of Saint Paul to enter into a lease agreement with the Saint Paul Port Authority to lease 830 Barge Channel Road for the Police Department's Impound Lot.
Body
WHEREAS, in 1975 the City of Saint Paul ("City") entered into a lease agreement ("Existing Lease") with the Port Authority of the City of Saint Paul ("Port Authority") to use 3.8 acres of Port Authority land at the Southport Barge Terminal Industrial Park for storage and processing of impounded vehicles, said land located at 830 Barge Channel Road in Saint Paul ("Impound Lot"). In 1984 0.5 acre of adjacent land was added to the leased area; in 1985 a 2.9-acre parcel a quarter mile northwest of the Impound Lot was added; and in 2002 1.9 acres immediately west of the main Impound Lot was added, for a total leased area of 9.1 acres; and
WHEREAS, over the years the Existing Lease has been renewed, most recently in 2006 for an additional 10 years expiring September 30, 2016, and the City and Port Authority again desire to renew the Existing Lease and have negotiated a New Lease, as provided in Exhibit A attached hereto; and
WHEREAS, the New Lease includes key terms and conditions as follows:
1) 20-year term, beginning May 1, 2014 and ending December 31, 2033;
2) Options to renew for two 5-year terms;
3) Initial rental rate consistent with current rate, with approximately 2% annual increases in first five years and 3% annual increases in second five years. A new rent schedule will be negotiated for the remaining 10 years of the term;
4) Reduction of the Tonnage Rent (per-car fee) from the current $8.50 per car to $2.00 per car;
5) Indemnities and standard conditions applicable to other Port Authority tenants.
NOW, THEREFORE BE IT RESOLVED, that the Council of the City of Saint Paul does hereby authorize the City to enter into the New Lease with the Port Authority, in a form and content substantially as set forth in Exhibit A attached hereto, and the proper city of...
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