4.4. SR 12-21-1998iity of
Item #4.4.
iver
MEMORANDUM
TO:
Mayor and City Council
FROM:
DATE:
Patrick D. Klaers, City A, ~istrator
December 21, 1998
SUBJECT: Boys and Girls Club Update
Councilmember Thompson is the Chair of the Board of Directors of the Elk
River Boys and Girls Club. The Lions Club is working with this organization
for the construction of a facility in Lions Park. The Boys and Girls Club is
moving forward with its fund raising efforts in order to provide money for the
construction of the facility and the operation of the club. Most recently, a
$10,000 matching grant has been offered by the General Mills Foundation, so
it appears that progress continues in the fundraising efforts.
Earlier this month, the Boys and Girls Club Executive Director John
Fitzgerald was before the City Council to discuss the draft ground lease
agreement between the Club and the city. This lease needs to be approved
and signed prior to the banks finalizing their financial commitment to the
project. The City Council approved the ground lease subject to the legal
description for the leased area being acceptable to staff. The discussion on
the leased area was the building footprint plus a small area around the
perimeter to allow for maintenance and then cross easements over the
entrance and parking area for joint use by the city and the Boys and Girls
Club. Action on the lease was taken at the December 7 City Council meeting
(see attached minutes). At this time the survey and legal description still
have not been provided to staff. Therefore, the lease has not been finalized
or signed.
Councilmember Thompson will be in attendance at this meeting and should
be able to provide everyone with an update on the progress that is being
made with this project. A Boys and Girls Club Board of Directors meeting
was recently held and I believe the goal still is to break ground this year
rather than waiting for spring.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 44t-7425
$.2. Consider Lease Between Ci~/and Boys and girls Club for Propedy in Lions Park
City Administrator Pat Klaers indicated that the city is proposing to lease land in
the southeast corner of Lions Park to the Boys and Girls Club. City Attorney Dave
Sellergren reviewed the terms of the ground lease agreement.
Boys and Girls Club Director John Fitzgerald indicated that there were three issues
that he wished to discuss with the City Council in regard to the lease agreement.
The first issue relates to the length of term of the lease. The ground lease is set up
for a 30 year lease with two 10 year options. John Fitzgerald reque.sted that the
City Council consider extending the term of the lease to a time period of more
than 50 years. Mr. Fitzgerald suggested a time of 50 years with two 20 year
extensions.
It was the consensus of the Council that the 50 year time period stand as
indicated in the lease agreement.
The second issue relates to the right of first refusal. Mr. Fitzgerald indicated that he
is requesting the right of first refusal only if the city sells the property to a private
Elk River City Council Minutes
December 7. 1998
Page 6
party. If was the consensus of the council that this change be made in the lease
agreement.
Mr. Fitzgerald noted that the third issue relates to conflicting comments on page
15 and Exhibit D. Attorney Dave Sellergren indicated that these conflicting
comments would be corrected.
City Attorney Dave Sellergren noted that the legal description was not included
on the Exhibit. Discussion was held as to what the legal description of the leased
property would entail. Staff and Council supported leasing the smallest amount
of property possible.
COUNCILMEMBER DIETZ MOVED TO APPROVE THE GROUND LEASE AGREEMENT AS
REVIEWED AND SUBJECT TO THE LEGAL DESCRIPTION BEING ACCEPTABLE TO STAFF.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
6. Other Business
There was no other business.
7. Staff Updates
There were no staff updates.
8. Adjournment
There being no further business, Mayor Duitsman adjourned the meeting at 8:17
p.m.
Res,~/ectfully submitted,