ITEM 2�*-ivf
Request for
Oteg0CITY OF
City Council Action
MINNESOTA
DEPARTMENT INFORMATION
ORGINATINGDEPA# TIVIENT. REQ UE F : 1EETIN DATE:
Legal Andy i iacArthur, City Atto rn ey., June 26,, 2013
PI E ENTEF s): REVIEWED BY. ITEM :
City Attorney Lori Johnson, City Administrator
AGENDA ITEM DETAILS
RECOMMENDATION:
Council approve by consensus the concept of a lease agreement on property lying just crest of City
owned property where soccer fields are being developed, for construction of a tennis and soccer facility,
subject to successful purchase of property and City project approval.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No I Na
BAS Roti DMu TIF[CATI
Del Bauer and other individuals are seeking to obtain land lying just west of the City property currently
being developed for soccer fids in order to construct an indoor tennis and soccer facility. If the lard
remains in private hands the owner would have to pay substantial property taxes based upon the
designated classification of the facility. The group has indicated that they would like to construct the
facility as soon as possible and that the property tac s could rake the project unrealistic.
One approach to this problem, which has been undertaken by a number ofcities, is to have the land
transferred to the City and then lease it back to the group with a thirty year or shorter lease. This has
been done in Lakeville with a similar facility and in Plymouth with Life Time Fitness. The lease would
require them to operate the facility and provide some incentive ordeals to the community. The actual
lease payment would be one dollar per yar.
The lease would be a fairly lengthy document that would cover all contingencies related to operation of
the facility, conditions of default, maintenance of the facility etc. The lease would be similar to those
used in Lakeville and Plymouth.
The group would still have to acquire the property and properly subdivide it, meeting all City standards.
At the time of subdivision the property owners may seek waiver of the park and trail fees based upon
the concept that this would be ars addition to the Cit} park system,
City staff viers this proposal as positive for the City, creating an additional recreational option for the
citizens and drawing additional residents to the City park.
Staff seeks consensus from the Council that this is an acceptable option that can be discussed with the
group. A written Agreement would have to be presented to the City Council for final action.
SUPPORTING DOCUMENTS: TS: ATTACHED X NONE
MOTION: (Please word motion as you would like it to appear In the minutes.)
No motion is required, to seeks Council consensus that this approach can be taken in negotiations
with the group. . I
BUDGET INFORMATION
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FUNDING: BUDGETED: a YES
NA ci NO
CTION TAKEN
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❑APPROVED AS REQUESTED p DENIED
COMMENTS:
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❑ TABLED o OTHER (List changes)