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6.2. SR 10-18-1999 rei ----'\) ( ); tli< Item # 6.1... River TO: MEMORANDUM FROM: Mayor & City Council Michele MCPherso~ector of Planning DATE: October 13, 1999 SUBJECT: Approve BMX Lease Agreement Request BMX of Elk River requests approval of a lease agreement for a portion of ERYAC facilities for a BMX facility. Location ERY AC facilities adjacent to 165th Avenue . Zoninq/Land Use R1a (Single Family Residential)/LR (Low Density Residential) Attachments . Location Map . Parking Concept . BMX Layout . June 9, 1999 Park and Recreation Commission Minutes . September 8, 1999 Park and Recreation Commission Minutes . Lease Agreement Overview A local group headed by Margo Foster has requested use of the ERY AC facility for a BMX track. The track would be similar in nature to the one in St. Michael Minnesota with jumps, a racecourse, and other activities. They propose to lease a portion of the ERYAC facility for five years at $1.00 per year. . 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 Memo to the City Council/BMX Lease October 18, 1999 Page 2 . Park and Recreation Commission Review and Recommendation At its June 9, 1999 meeting, the Commission reviewed the proposal and voted to recommend approval of the use of the ERY AC facilities. They also voted to authorize expenditures up to $2,000 for water and electric hookups. On September 8, 1999, the Commission reviewed a conceptual site plans developed by staff for the arrangement of the BMX facility with parking and future recreation fields. Two concepts were reviewed and the Commission selected the attached arrangement as the most desirable. The arrangement allows for the BMX facility, parking, and three additional soccer/football fields if necessary. While the BMXers would like to construct their own parking facility, the consensus of the Commission was that they could use the existing parking area at the ERY AC facility. This recommendation by the Commission is not agreeable to the BMXers. Lease Details Based on the St. Michael lease agreement, staff drafted the attached lease agreement for the use of ERY AC by BMX. Attorneys for both the City and the BMX group have reviewed the document. Details of the lease include: . 1. 2. 3. 4. 5. 6. The lease is for five years. The rent is $1.00. BMX is required to obtain liability insurance with the City as an additional insured in the amount of $600,000 per occurrence. BMX is responsible for improvements for the bicycle track. Establishes hours of operation as 8:00 a.m. to 9:00 p.m. or dusk, whichever is earlier. Either party may terminate the lease with a 30 day written notice. BMX will have 60 days to restore the site to its original condition after notice of termination. The lease also prohibits for-profit commercial operations at the site with the exception for the sale of refreshments. BMX has requested that vendors selling bike parts be permitted for sales during races. This would allow the quick repair of broken bikes, allowing the racers to continue to participate. If the sales were limited to race events and vendors were required to obtain proper transient merchant licenses, this would be an acceptable addition to the lease. Recommendation Staff requests that the City Council provide direction regarding the inclusion of the following items in the lease agreement: . . . . Memo to the City Council/BMX Lease October 18, 1999 Page 3 1. Permission for for-profit commercial operations. These would be limited to vendors selling bike parts during events only with the proper City license. Permission for the BMXers to construct an additional parking area adjacent to 165th Avenue. 2. Staff recommends that the City Council approve the lease agreement with BMX for a five-year period for the ERY AC facility with either or none of the desired amendments from above. 1t2 - -I + +~+~ + ~: I I I I ~ RIa I ~I ~I t 3 I ~} ( ); City of ~ Ell{ River LOCATION MAP N 13065 Orono Parkway. P.O. Box 490 Elk River, MN 55330 CASE: BMX Lease Agreement I o o w ::> z w > <( ~ C ..J W u::: m I I- . - (~ r en a: '1 ~ .-.": '" ~ ~ C") II) j ~ ,.. L - :::r- ~ C) Z ~ a: ~ . "-l~" 0 W .1tt . o 0\ :r: l- ll') (!) ..- U') ~ r.-) ,..... U') N \ W to- g (i) ~ ~ m ,.. ,. .. ", .' z ~ "--" ,...-,. to ~ (f) ~ z 00 00... :, , I I, , i ~ ~ .- ~ - ca a....... "C CD ~ - Q. Q. <C .c - , I I , \ .. , , \ , , ," W<( $:(f) , I \ \ \ - \ \ - \ - \ \\ .. \ ", .., ' C") C ..J W u::: , \ \ \ ~ : ~ " \ , I \ , , I I . <i::' d?I ,: "1 I i; " :. \, I I - \ - \ I "" :;c () I \ \ \ , N C ..J W u::: l- lL. Zd <( (f) ; ------.-----.. ~~ ~ ~ 0')- r-- . .. ' 0') ~ ~g ~ :;1\ , " , 1: I '" ...'" u -. 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';"':I~t.. /' /. /' /' /' Part< & Recreation Commission Minutes June 9, 1999 Page 2 . 6. BMX Site Recommendation ~) Staff report by Steve Wensman. Margo Foster was present to represent the BMX group. Steve asked Ms. Foster if the group was comfortable with the Elk River Youth Athletic Complex (ERYAC) site. Ms. Foster indicated that they were. Commissioner Kuester asked how long the lease would be. Steve Wensman indicated that they are asking for a 5 year lease. Phil Hals indicated that the cost to provide water to the site is approximately $500 - $1,000,. but if they required potable water, a well would need to be drilled at a cost of approximately $3,500. Ms. Foster indicated they did not need to provide drinking water at this time. Phil explained that a sand point could be put in for the water or he could pipe the water from the ERY AC site. Commissioner Dana Anderson felt that it would be best to have the shallow well put in (sand point). Phil indicated that Connexus Energy has estimated the cost to provide electric at $500 - $1,000. COMMISSIONER DANA ANDERSON MOVED TO RECOMMEND APPROVAL OF LOCATING THE PROPOSED BMX TRACK AT THE ELK RIVER YOUTH ATHLETIC COMPLEX SITE WITH THE FOLLOWING STIPULATIONS: THAT THE INITIAL LEASE NOT EXCEED 5 YEARS THAT THE CITY CONTRIBUTE UP TO $2,000 FOR COSTS ASSOCIATED WITH PROVIDING WATER AND ELECTRIC. . COMMISSIONER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 7. Trails in School View Addition near Ice Arena Phil Hals indicated that he has had discussions with the school district regarding the trail between the School View Addition and the ice arena. He explained that approximately 4 years ago, the trail was graded and surfaced with gravel. A problem arose with students parking in the School View cul-de-sacs. 3 hour parking signs were posted and the parking problem has improved. Phil explained that it has been proposed to pave this trail, as well as the east-west trail along the City's easement, to Jackson. Currently, the east-west trail is simply a path through some overgrown vegetation. It has been suggested the path would provide a link in the trail system to eventually hookup with the future pedestrian bridge over Highway 169. Commissioner Kuester questioned why the issue is being brought up now. Phil indicated that the School District has concerns regarding students using the area for smoking and other nuisance problems. Phil indicated that staff felt it would be good to invite the neighbors in to express their views before making any decisions regarding the trail. Chair Huberty opened the discussion to the public. Val Williams, 11936 1901h Circle, indicated that the 20 foot wide frail runs 190 ft. . along her property line. She stated she was not aware of the trail when she ) purchased her home. Ms. Williams indicated she does not object to this trail, . . . , Park & Recreation Commission Minutes September 8. 1999 Page 4 () Emporium has scheduled bands for every weekend since August 13th and attendance has been very high. Cover charges for admittance will be used to fund the construction of a small stage. Commissioner Dana Anderson asked what was the average age of participants at these events. Ms. Bergh stated that most of the attendees are 16 years old and up. 9.B. Park/Trail Development Issues 2. BMX Conceptual Site Plan Steve Wensman reviewed two alternative parking concepts to accommodate the BMX track facilities, as well as future uses. Commissioner Dana Anderson stated that the County Highway Department may have an issue with adding more access points onto the county road. He expressed his support for concept B for future parking, but, in the interim, he felt the BMX users could use the parking at the ballfields closest to the proposed track. " COMMISSIONER DANA ANDERSON MOVED TO APPROVE PARKING CONCEPT PLAN B FOR THE BMX SITE. COMMISSIONER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 7-0. Michele McPherson stated that the adult softball and youth footbalf organizations have offered to contribute $2,000 toward irrigation of Kuss Field. Phil Hals estimates the project will cost $5,000 and requested that the system be designed in-house, but installed byan.outside contractor. COMMISSIONER DANA MOVED TO RECOMMEND APPROVAL OF UP TO $3,000 FOR IRRIGATION OF KUSS FIELDS AND CONCUR WITH STAFF'S RECOMMENDATION FOR DESIGN/BUILD. COMMISSIONER PETERSON SECONDED THE MOTION. THE MOTION CARRIED 7-0. 3. ERY AC Field Improvements Steve Wens man stated that the Streets and Parks Department has a $1,000 grant from Bauerly Brothers to pour concrete for the bleachers at ERY AC. Mr. Wensman reviewed Concepts A and B. Concept A demonstrated the existing and proposed improvements to the baseball fields. Concept B, proposed by Commissioner Dave Anderson, consisted of a raised platform with concessions and picnic tables under a canopy and the sides of the platform as bleachers. Mr. Wensman explained that Concept B would incorporate the existing utility and irrigation structures and might help control erosion problems. Bathrooms could be incorporated into the structure or separately, as with Concept A. COMMISSIONER REITSMA MOVED TO TABLE A DECISION ON THE ERY AC IMPROVEMENTS, PENDING FURTHER INFORMATION AND COSTS FOR " )' I FROM GRAY PLANT MOOTY MOOTY & BENNETT (#3) (WED) 10.13' 99 16:49/8T. 16:48/NO. 4261218975 P 2 . . . LEASE AGREEMENT This lease agreement ("Lease''), made on this day of .' , 1999, by and between the CITY OF ELK RIVER, a Minnesota municipal corporation ("City"), and , a Minnesota. non-profit corporation ("BMX") RECITALS City is the owner of certain unimproved land, legally described as set forth on Exhibit A attached hereto and made a part hereof ("Property"). BMX desires to lease the Property from the City, for the purpose of constructing, maintaining and operating a non-motorized track for BMX bicycles and related improvements including parking facilities and fencing (hereafter '"Bicycle Track"). City is willing to lease the Property to BMX for the construction and operation of the Bicycle Track, subject to the terms and conditions of this Lease. NOW, THEREFORE. the parties hereto for good and valuable consideration, receipt of which is acknowledged, hereby agree as follows: 1. Lease of Property: The City does hereby demise, let, and lease the Property to BMX under and according to the terms and conditions of this Lease. 2. Ownership and Property Use: The o\Wership of the Property shall remain with the City. The Property shall be used by BMX solely and exclusively for the operation of a Bicycle Track subject to the further terms and conditions of this Lease. 3. Term of Lease: The term oftbis Lease shall be for (5) five years, commencing on the date set forth above subject to: (a) the right of either party, at any time, to terminate this Lease pursuant to Paragraph 22 hereof prior to the end of the Lease term; and (b) the right of the parties to mutually agree to renew this Lease. 4. Rent: BMX shall pay as and for rent to the City, the sum of$1.00 for the term of this Lease. S. Non-Transfenble: BMX shall not sell, transfer, convey, or assign its interest in this Lease, or sublet any part of the Property, without the prior, written consent ofllie City, which consent may be withheld by the City for any reason, at the City's sole discretion. 6. Exclusivity: 8MX shall have the exclusive use of the Property for the operation of the Bicycle Track during the term of the Lease. City shall not grant permission to other groups or organizations to use the Property without the written permission of BMX. 7. Insurance: BMX shall procure at its expense and maintain in full force and effect at all times during the term of this Lease a policy of liability insurance naming the City as an additional insured and which contains liability limits for both bodily injury and/or death of six FROM GRAY PLANT MOOTY MOOTY & BENNETT (#3) (WED) 10.13' 99 16:50/8T. 16:48/NO. 4261218975 P 3 . hundred thousand dollars ($600,000) per occurrence. BMX shall provide to the City a Certificate of Insurance in a form as approved by the City. If at any timc during the term of this Lease, the insurance to be maintained by BMX as set forth herein shall he canceled or terminated, then this Lease shall be deemed to have been terminated and expired as of the date that such insurance coverage shall have ceased, and all rights of BMX to use the Property or operate the Bicycle Track shall cease immediately, effective as of such time and date. Bl\1X shall provide the City 30 days notice of such cancellation or termination and shall comply with the requirements of Paragraph 25 of this Lease. 8. Minimum Requirements for Construction, Maintenance and Operation of Bicycle Track: BMX shall, at its expense, and at no expense to the City: a. Construct, maintain and operate the Bicycle Track to conform to all generally recognized and accepted standards and specifications for recreational facilities of the type intended to be constructed, and in compliance with all requirements and standards promulgated and established by the American Bicycle Association and in accordance with all applicable laws, codes, and regulations. Plans and specifications for construction of the Bicycle Track shall be submitted to the City for its review, comment and approval prior to commencement of construction. . b. Establish appropriate safety rules including rules controlling the number of people using the track at anyone time, a copy of which shall be provided to the City. In addition, BMX shall have a Trained SupeIVisor as provided in Section 11 herein on the premises at aU times during hours of operation to monitor activities on the track to ensure safe riding and to ensure that the conduct and behavior of such persons is appropriately restricted to conform to the intent of this section. Further, BMX shall post signs at the entrance to the premises or track identifying the BMX as the operator and stating rules of operation. c. Enclose the entire racing area of the Bicycle Track with a secure, chain link fence with a gate capable of being locked, with a height of not less than (6) feet, so as to allow and permit BMX to control access to use of the Bicycle Track by the public at large; . d. Maintain the Bicycle Track surface to a level so that the track is well groomed at all times, es~ially after rain and water runoffhas occurred. BMX's obligation of maintenance set forth herein shall also extend to those areas bordering the Bicycle Track surface so that any and all border markings are kept visible above sWTounding grassy areas at all times that the Bicycle Track is in use; . e. Maintain adequate safety measures as necessary to maintain proper placement of spectators and Wlauthorized personnel so as to minimize the potential for inlcrfcreIlce with riders on the Bicycle Track during practices or during sanctioned races; BMX shall require all participants/entrants in practices and sanctioned races to sign a Waiver of Liability/Hold Harmless Lease in favor of the City, in a form as set forth on Exhibit B attached hereto and made a part hereof. BMX shall ensure that each entrant/participant in 2 FROM GRAY PLANT MOOTY MOOTY & BENNETT (#3) (WED) 10.13' 99 16:50/8T. 16:48/NO. 4261218975 P 4 . . . practices and/or sanctioned racing events shall provide to BMX the Waiver of Liability/Hold Harmless, signed by the parent/guardian for all participant /entrants who are mmors; f. Take all necessary action to assure that all bicycles used in practices and sanctioned races shall be periodically inspected for inclusion of proper equipmt:nt and safety devices in accordance with accepted standards for this type of use. This inspection shall also extend to the rider. so as to ensure that all riders have the necessary safety equipment for participation in BMX bike racing. The Trained Supervisor shall be responsible tor conducting the inspections. g. At all times use the Property and operate the Bicycle Track in a clean, safe and non-disruptive manor. BMX shall be responsible for all repair and maintenance of the Property and the Bicycle Track including, without limitation, maintenance of vegetation, regular and routine cleanup and disposal of refuse and garbage, and all other activities which may arise from time to time as necessary to ensure that BMX's use of the Property and operation ofthe Bicycle Track conforms with the provisions of this section. 9. Additional Improvements: BMX shall not make any additional improvements to lhe Property without the prior consent of the City. This section docs not apply to routine maintenance requirements of BMX as set forth above. a. Construction of any structures shall require a building pennit from the City. 10. Hours of Operation: No use of the Property or Bicycle Track shall be made or permitted by BMX or any other persons when the City park is closed, except during the following hours: 8:00 a.m. to 9:00 p.m., or dusk, whichever first occurs; unless otherwise approved by the Park and Recreation Commission and the City. If, in the sole opinion of the City, the hoW" restrictions provided for in tins section are insufficient to provide adequate peace and quiet to the neighborhood in the area of the Property, City may designate and impose additional restrictions on the hours of operation or duration of operation of any events to be held at the Property. 11. Trained Supervisors: BMX shall provide, at its expense and at no expense to the City, and subject to approval by the City, responsible supervision during all practices and/or racing events conducted at the Bicycle Track. At least one supervisor shall be both First Aid and CPR certified at all times during all practices and/or racing events. 12. Parking: BMX shall conduct all practices and racing events at the Bicycle Tract so as to prevent or minimize parking problems for adjacent City park uses. including the adjacent City ball fields. No vehicles shall be driven or parked off the parking area or designated vehicular use areas. 3 FROM GRAY PLANT MOOTY MOOTY & BENNETT (#3) (WED) 10.13' 99 16:51/8T. 16:48/NO. 4261218975 P 5 . . . 13. Schedule: BMX shall provide to the City a schedule of all events prior to the race season each year. 14. Cleanup: BMX shall ensure that the Property is cleaned and clear of all refuse and garbage, and any other debris after all practices and/or racing events. BMX may arrange for refuse disposal services that the City uses for the adjacent park land, but BMX shall pay for all such refuse disposal services. 15. Revenue: All revenue connected with the operation of the Bicycle Track shall be the sole responsibility ofBMX, in conjunction with its By-Laws, operating agreements. and requirements promulgated and established by the American Bicycle Association. 16. IndemnitylHold Harmless: BMX shall bear the entire and sole responsibility for all debts, damages or injuries to all persons and property, arising out of, resulting from, or in any manner connected with the construction, maintenance and operation of the Bicycle T rock on or around the Property. B:MX agrees to indemnify and hold harmless the City, its agents and employees, from all such claims includini, without limiting the generality of the foregoing, claims for which the City may be. or may be claimed to be, liable, and legal fees and disbursements paid or incurred to enforce the provisions of this paragraph, including, without limitation, reasonable attorney's fees which City may incur by reason of any such claims or demands. RMX shall obtain. maintain and pay for such ieneralliability insurance coverage as will ensure the provisions of this Section, and set forth in Section 7 of this Lease. 17. Distrimimatiun: BMX shall have the right to restrict the use of the Property and Bicycle Track to only those persons who are members in good standing of the American Bicycle Association. However. BMX shall at all times use and operate the Property and Bicycle Track in a fair and non-discriminatory manner and shall not establish any rules or restrictions with respect to the use of the Property and Bicycle Track based upon any unlawful andlor discriminatory reason. If, in the sole and exclusive determination of the City. the use and operation of the Property and Bicycle Track by B}..1X will, in any manner, result in any form of unlawful discrimination. the City may require modification ofB}..1X's policies and procedures with respect to such use so as conform with any and all applicable legal restrictions and requirements. 18. Restroom and Utilities: BMX shall provide. maintain and pay for portable toilets. BMX shall be responsible for the cost of all utility services supplied to the Property and Bicycle Track and shall arrange for such services to be billed directly to BMX by the provider thereof. 19. Controlled Substanc:es and Alcohol: The consumption and/or sale of all controlled substances (as defined by Minnesota Statutes) and intoxicating beverages of any kind, at the Property and Bicycle Track, is strictly prohibited. 8MX shall be responsible for enforcement of this prohibition. 20. Prohibition Against For-Profit Commercial Use: No for-profit commercial operation of any type or sort shall be operated upon the Property or the Bicycle Track at any time by BMX or any other party, nor shall BMX permit or authorize any third persons to conduct such for-profit commercial enterprises. Provided, however) that nothing herein shall be deemed to 4 FROM GRAY PLANT MOOTY MOOTY & BENNETT (#3) (WEDll O. 13' 99 16: 51/8T. 16: 48/NO. 4261218975 P 6 . . . prohibit BMX from engaging in the incidental sale and distribution of non-alcoholic beverages and/or refreshment type items in connection with the conduct of practices and/or racing events at The Bicycle Track (but only then upon securing such licenses and permits as may be necessary). so long as the net proceeds thereof are accounted for in compliance with BMX' s By-Laws, operating agreements, and as necessaI)' to meet requirements imposed by the American Bicycle Association. 21. Right of Entry by the City: The City shall at all reasonable times have full and complete authority to enter into and upon the Property and Bicycle Track to inspect the same for compliance with the tenns of this Lease and to otherwise enforce and all federal, state, and local laws, rules and regula lions. 22. Termination of Lease: City may at any time and for any reason in its sole discretion, tenninate and cancel this Lease prior to the end of the Lease term upon thirty (30) days written notice directed to BMX. at the address specified in Paragraph 27 below. Upon termination of this Lease for whatever reason, BMX shall within 60 days thereafter, or as soon as weather conditions permit, at its expense and at no expense to the City. completely and totally remove from the Property all improvements placed on or around the Property during the term of this Lease including, without limitation, fencing, Bicycle Track borders and tower. In addition, BMX shall restore the surrounding land, to is original state and level the Bicycle Track so that the Property is level with the surrounding land under supervision of the City Street and Parks Department. The City shall have a cause of action against BMX should it tail to comply with these requirements. 23. Successors aDd AssiIDS: This Lease shall be binding upon and shall inure to the benefit of the parties and their respective successors and pennitted assiills. 24. SUn'ival: The terms and provisions relating to B:MX's obligation to hold harmless and indemnify and provide insurance for the benefit of the City, as provided in Section 7 and 16 herein. shall survive termination of this Lea.~e. 25. Execution In Counterparts; This Lease may be executed in any number of counter parts and by different parties hereto, each of which when so executed shall deemed an original but all of which taken together shall constitute one and the same agreement. 26. Governing Law: This Lease shall be governed by and interpreted in accordance with the laws of the State of Minnesota. 27. Notices: Any and all notices required to be given pursuant to this Lease shall be given as follows: a. If to Ci1y: City of Elk River, P.O. Box 490, 13065 OTOno Parkway, Elk River, MN 55330. b. If to BMX: 5 FROM GRAY PLANT MOOTY MOOTY & BENNETT (#3) (WED) 10.13' 99 16:52/ST.16:48/NO. 4261218975 P 7 . IN WIlNESS WHEREOF, this Lease has been entered into as of the date first above written. City of Elk River By: Its: By: Its: . . 6 FROM GRAY PLANT MOOTY MOOTY & BENNETT (#3) (WED) 10.13' 99 16:52/8T. 16:48/NO. 4261218975 P 8 . WAIVER OF LIABILITYIHOLD HARMLESS AGREEMENT In consideration of the participation of the undersigned, or the undersigned's minor child or children, being permitted to participate in all ~ activities, including practices and lor racing events, at the BMX track leased from the City of Elk River, the undersigned agrees personally, and/or as the parent and natural guardian of the undersigned's minor child or children so participating, to indemnify and hold harmless the City of Elk River, its officers, employees, agents, and insurers. from any and all liability from damaees. loss or injuries, either to person or property, which the undersigned, or the undersigned's minor child or children, may sustain while engaged in any activity conducted by or in cOIUlection with the BMX track being leased from the City of Elk River. The undersigned, if making this Waiver of LiabilitylHold Harmless Agreement on behalf of a minor child or children, certify and represent that I have custody or am the, or one of the, legal guardians of said minor child or children. 1 further represent. and certify, that said minor child or children are physically able to participate in the activities taking place at the BMX track being leased from the City of Elk River, including, without limitation, all RMX bicycle practices and racing events. The undersigned further agrees to reimburse or make good any loss or damages or costs that the City may have to pay if any litigation arises on account of any claim made by the undersigned either for myself, or on behalf of any minor child or children of mine, or of whom I am legal guardian. . The undersigned acknowledges and recognizes that BMX racing and related events is a sport where there exists a potential for injury. In consideration for participation of the undersigned, or the lUldersigned's minor child or children, in BMX activities, the undersigned agrees to release the City of Elk River, its officers, employees, agents, and insurers, from all liability, including liability based on the negligent acts of the City of Elk River. for damages, loss or injuries, either to the undersigned's person or property, or to the person or property of the lUldersigned's minor child or children, which may be sustained while engaged in all}' activity conducted by, at or in connection with, the BMX track under lease from the City of Elk River. I ParticipanvParentlGuatdian (Signature) Dated: Name of Minor Child Name of Minor Child . Name of Minor Child GP;630809 v2 7 . . . 6 te . .... 11IM II... '\ 4 te 6 .. dBlI"" ..... ........ ... .......... ldirt 1 feet dirt \ s_d ..... ....... ... - .... -- \ 'J