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Home My WebLink About5B - Shepherd's Path Park-and-Ride-Lot MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ISSUES: 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT April 3, 2006 5B Kelly Meyer, Assistant to the City Manager CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A LEASE AGREEMENT WITH SHEPHERD OF THE LAKE CHURCH FOR THE USE OF A PORTION OF THEIR PARKING LOT AS THE LAKER LINES PARK.AND.RIDE. Historv: Since 1993, the City of Prior Lake has leased the parking lot at 4635 Colorado Street, Prior Lake, MN. Originally, the parking lot was used for public parking and overflow parking to serve the VFW. In January 2002, the parking lot was designated as the park-and-ride location for the Laker Lines express commuter service. In August 2005, in recognition that additional parking would be needed in the Downtown area for redevelopment to continue, the City Council authorized the purchase of the Colorado Street lot for public parking, and directed staff to relocate the park- and-ride location. Current Circumstances: At this time, Premiere Dance has proposed a new building on Colorado Street, making the need for the lot for public use even more critical. By re-Iocating the park-and- ride, 63 spaces that are currently used by commuters who leave the area during the workday become available for customers utilizing Downtown businesses. At the same time, in June 2005, Laker Lines implemented a new route into Downtown Minneapolis that utilizes the 169 corridor. Laker Lines is the only express operator taking advantage of this corridor. By moving the park-and-ride facilities to the north, the route is that much closer to 169. This should translate to faster routes and commuters having to spend less time on the bus. Staff solicited feedback from current Laker Lines riders and began brainstorming possible sites for re-Iocation of the park-and-ride lot. Ultimately, given the route corridor and the potential to partner in the future with Shakopee as they develop additional express services, as well as Shakopee and the County as more regional facilities are developed, locating the park-and-ride in the northwest part of the City seemed the best alternative. Using a portion of the Shepherd of the Lake Church parking lot appears appropriate both in its location, and from a compatibility standpoint. In addition, the Church has been very accommodating and receptive to this idea. Conclusion: Staff has worked closely with Kermit Mahlum of Shepherd of the Lake Church to facilitate the move. The Shepherd of the Lake Board has approved the Lease Agreement that we now submit to the Council for consideration. A copy of the proposed Agreement is attached. There has been some resistance to changing the park-and-ride lot from a few of the current riders. At the same time, a survey conducted in October of 53 current Laker Lines riders indicated that (1) 27 believed the Shepherd of the Lake location would meet their park-and-ride needs, and (2) 30 believed that traveling between 2-5 miles to reach a park-and-ride is reasonable. With respect to the lot itself and the lease agreement, there are no significant issues. In fact, this location has several advantages: www.cityofpriorlake.com IICOUNCILIAGNRPTSI2006\040306 Shepherd of~~~IJIMt~Q / Fax 952.447.4245 1. The size of the park-and-ride lot would be expanded from 63 stalls to 110 stalls, which would address the park-and-ride needs for the future expansion of the Laker Lines service. 2. The location of the lot is closer to the new Highway 169 route, which means the route should be quicker and riders will spend less time on the bus. 3. The cost to lease the 11 Q-stalllot will be no more than the lease cost for the current Colorado Street space in the first year. 4. The Shepherd of the Lake Church Board believes this is a good utilization of currently unused space. Specifically, the lease contains the following provisions: 1. Term: Two years beginning April 1 , 2005. 2. Renewal: Upon mutual agreement of the parties, the lease may be renewed for an additional two-year term. 3. Rent: $3600 in year 1 and $3750 in year 2. 4. Limitation of Hours of Use: Recognizing that the Church's peak use of the facility is on weekends, the hours of operation for the park-and-ride shall be limited from 6am to 8pm, Monday - Friday. Since Laker Lines is an express commuter service, this limitation does not cause any reduction in the service. 5. Imorovements: The City may make at its cost improvements to the lot, including signage, bus shelters, or benches, subject to approval by the Church. 6. Maintenance: The City's only responsibility for maintenance is limited to sweeping, and snowplowing that portion of the lot utilized as park-and-ride, repairs to any signage and/or shelters or benches, and refuse collection at the site. The Church shall be responsible for lighting, bituminous repair and landscaping consistent with the maintenance provided to the remainder of its parking lot. FINANCIAL IMPACT: Except for any amenities (shelter, benches, signs that the City may choose to install, the cost to lease the park-and-ride portion of the lot is the same amount that we paid for the lease on the Colorado Street lot ($3600) for the first year. The City will have some additional on-going costs in the form of sweeping, snowplowing and refuse clean-up at the site. Overall, the costs are minimal and will be dedicated from the Transit budget. ALTERNATIVES: The Council has two alternatives: 1. Adopt the attached resolution authorizing the Mayor and City Manager to enter into a Lease Agreement with Shepherd of the Lake Church for the lease of a portion of its parking lot property to be utilized as the Laker Lines park-and-ride facility. 2. Take no action and direct the staff accordingly. RECOMMENDED MOTION: Alternative #1. Reviewed by: /l I 1:\COUNCILIAGNRPTS\2006\040306 Shepherd of the Lake Lease Agreement.DOC 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 06-XX A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A LEASE AGREEMENT WITH SHEPHERD OF THE LAKE CHURCH FOR USE OF A PORTION OF THEIR PARKING LOT TO BE USED AS THE LAKER LINES PARK & RIDE. Motion By: Second By: WHEREAS, the 2020 and 2030 Vision and Strategic Plan call for the continued redevelopment and revitalization of Prior Lake's Downtown community; and WHEREAS, the Downtown Area Parking Study identifies a need for additional public parking; and WHEREAS, the relocation of the Laker Lines park & ride lot from Colorado Street was directed by the City Council in August 2005 in order to address the growing need for parking in the Downtown area; and WHEREAS, the City has negotiated in good faith the terms and conditions for the lease of a portion of the Shepherd of the Lake Church parking lot located at 13760 McKenna Road to be used as the Laker Lines park & ride lot; and WHEREAS, the property owners have indicated acceptance of the terms of the lease by executing a lease agreement; and WHEREAS, the Council believes the terms and conditions are appropriate. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA that: 1. The recitals set forth above are incorporated herein. 2. The Mayor and City Manager are hereby authorized to enter into the proposed Lease Agreement with Shepherd of the Lake Church for use of a portion of their parking lot at 13760 McKenna Road, Prior Lake, MN, to be used as the Laker Lines park & ride. 3. The funding under the terms of this agreement shall be made from the Transit budget, including lease payments, improvements (if any), and maintenance costs. PASSED AND ADOPTED THIS 3rd DAY OF APRIL, 2006. YES NO Haugen Haugen Dornbush Dornbush Erickson Erickson leMair leMair Millar Millar City Manager, City of Prior Lake 1:\COUNCIL\RESOLUTI\ADMINRES\06-xx Laker Lines park & ride lease DOC www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 Laker Lines Park & Ride Lot Lease March 2006 Modified standard lease agreement City of Prior Lake, Minnesota LEASE AGREEMENT This LEASE AGREEMENT is rnade and entered into this 1st day of March, 2006, by and between the CITY OF PRIOR LAKE, MINNESOTA, a Minnesota rnunicipal corporation (hereinafter referred to as "CITY"), and SHEPHERD OF THE LAKE LUTHERAN CHURCH, a Minnesota corporation (hereinafter referred to as the "CHURCH"). In consideration of the mutual covenants and promises hereinafter set forth, the sufficiency of which are not disputed, the CITY and CHURCH do hereby agree as follows: 1. DESCRIPTION OF THE PREMISES. CHURCH does hereby lease to CITY and CITY does hereby lease and take from CHURCH a portion of certain prernises consisting of 111 parking spaces at the westerly rnost portion of the existing CHURCH parking lot located at 13760 McKenna Road, Prior Lake, MN 55372 (the specific location of the premises is as outlined and delineated on the attached Exhibit "A") (hereinafter referred to as "Leased Prernises"). 2. TERM. This Lease Agreernent shall be for a terrn of two (2) years cornrnencing on the 1st day of April, 2006, and terrninating on the 31st day of March, 2008. 3. USE OF PREMISES. The Leased Prernises shall be used by CITY solely for Laker Lines cornrnuter parking purposes during the hours of 6am to 8prn, Monday through Friday, and for no other purpose, and such use and occupancy shall be in compliance with all applicable federal, state and local laws, statutes, ordinances and governrnental rules and regulations. 4. CITY RESPONSIBILITIES FOR IMPROVEMENTS TO LEASED PREMISES. CITY rnay improve, at its sole cost and expense, the Leased Prernises with signage and a bus shelter, subject to the approval of the design and location(s) by the CHURCH, which approvals shall not be unreasonably withheld. The CITY shall have the right, at its own risk and expense, to place signs within the Leased Premises. CHURCH reserves the right to approve the design and location of all signs. Said signs shall not be erected without the written prior approval of the CHURCH, which approval the CHURCH will not unreasonably withhold. CITY agrees to maintain the sign(s) in good repair, to remove such sign(s) at the end of the term or any extended term of this Lease. Failure of CHURCH to approve the design or location of signage proposed by CITY shall be grounds for CITY to terrninate this Lease; in which case all rents paid to CHURCH shall be refunded to CITY. 5. RESPONSIBILITY OF CHURCH REGARDING LEASED PREMISES. The CHURCH shall be responsible for making any normal repairs and maintenance to the Leased Premises consistent with the repairs made to the remainder of its parking facility. (See Paragraph 8). The CHURCH shall pay any and all insurance which CHURCH desires ot insure its own property which is located and situated on the Leased Prernises. The CHURCH shall be responsible for applicable taxes. 1:lAgreementslBuilding Leases\Laker Lines Park & Ride at Shepherd of the Lakedoc1 Laker Lines Park & Ride Lot Lease March 2006 Modified standard lease agreement 6. RENT. CITY shall pay to CHURCH annual rent in the arnount of Three Thousand Six Hundred and no/100 Dollars ($3,600.00) for the first year; and Thousand Seven Hundred Fifty and no/100 Dollars ($3,750.00) for the second year of the terrn of this Lease Agreernent. Rent payrnents shall be rnade annually on April 1st. All rents required hereunder shall be paid to the CHURCH at 13750 McKenna Road, Prior Lake, MN, 55372, or such other place as deterrnined by the CHURCH. The first year's rent shall be paid at the tirne the Lease Agreernent is signed by both parties. 6. INSURANCE. The CHURCH shall maintain in full force and effect during the term hereof, its policy of liability insurance consistent with the coverage that is provided for the remainder of the parking lot and the CITY shall be named as an additional insured. CITY shall be responsible for the payrnent of any and all other insurance which it desires. THE CITY agrees to keep the Leased Prernises in a clean and orderly condition and will neither do nor perrnit to be done therein anything which is in violation of insurance policies on the Leased Prernises or that is contrary to any State or local law, ordinance or regulation thereof. The CITY will neither commit nor suffer waste to the Leased Prernises. 7. MAINTENANCE. The City's sole responsibility for the rnaintenance and repair of the Leased Prernises is lirnited to sweeping, snowplowing, repairs to any signage and/or bus shelter, and refuse collection. CITY will keep the Leased Premises in as good a condition as when turned over to CITY, reasonable wear and tear excepted. The CHURCH shall, at its own expense, keep in good order, safe condition and repair, the Leased Prernises (including, but not limited to parking lot lighting, biturninous repair, and landscaping), except where repairs to the structural parts are required due to the fault or negligence of the CITY, its ernployees or invitees, in which case the CITY shall be responsible for reimbursing the CHURCH for the costs of such repairs. 8. APPEARANCE AND ACCESS. CITY, to the extent obligated herein, and CHURCH rnutually agree to keep the grounds and the Leased Premises in a condition of good repair and appearance as their respective responsibilities and rights require. 9. ASSIGNMENT. The CITY shall not have the right to assign its interest in this Lease Agreement or to sublet the Leased Prernises, or any part thereof without the prior written perrnission of the CHURCH. 10. BREACH OF LEASE TERMS. If the CITY or CHURCH shall default hereunder and such default shall continue for a period of fifteen (15) days after written notice frorn the other of such default, then either party upon written notice to the other may terminate this Lease Agreement; provided that if the default be of such a nature that it rnay require rnore than fifteen (15) days to cure, the period to cure rnay be extended in writing at the rnutual agreernent of the parties. The CITY and CHURCH shall cure any default with due diligence and within the time period provided herein. 11. ALTERATIONS. Except as provided in paragraph 4 herein, the CITY shall not rnake any alterations to the Leased Prernises without the prior written consent of the CHURCH. The CHURCH shall not rnake any alterations to the Leased Premises without prior written notification to the CITY. If the CITY shall desire ot rnake any such alterations, an accurate description shall first be subrnitted to and approved by the CHURCH and shall be done by the CITY at its own expense. Approval shall not be unreasonably withheld. CITY agrees that all such work shall be done in a good, workmanship-like manner, and in conformance 1:lAgreementslBuilding Leases\Laker Lines Park & Ride at Shepherd of the Lakedoc2 Laker Lines Park & Ride Lot Lease March 2006 Modified standard lease agreement with applicable building codes, and that no liens shall attach to the Leased Prernises by reason thereof. The CITY shall and will in each instance save the CHURCH and said Leased Premises forever harmless and free of all costs, darnages, losses and liabilities of every kind and character which rnay be clairned, asserted or charged, and will preserve and hold the CHURCH and said Leased Prernises forever free and clear frorn liens for labor and rnaterial furnished. Any such alterations shall becorne the property of the CHURCH as soon as they are affixed ot the Leased Prernises and all right, title and interest therein of the CITY shall irnrnediately cease unless otherwise stated in writing at the time of the approval. The CITY however, shall own any installed signage, and shall have the right to rernove such signage at the expiration or termination of this Lease Agreernent, so long as the Leased Prernises is restored to its original condition. Any alterations to Leased Premises shall be restored to their original condition at the terrnination or expiration of this Lease Agreernent and subject to the provisions provided in paragraph 5 herein. 12. MECHANIC'S LIEN. Should any rnechanic's or other liens be filed against any portion of the Leased Prernises by reason of CITY's acts or ornission or because of a clairn against CITY, CITY shall cause the sarne to be canceled and discharged of record by bond or otherwise within ten (10) days after receipt of notice frorn the CHURCH. Failure to cornply with the provisions of this paragraph shall be grounds for the CHURCH to imrnediately terrninate this Lease Agreement. 13. TERMINATION. Upon termination of this Lease Agreement, CITY shall deliver up the Leased Premises to the CHURCH in as good a condition as said Leased Prernises shall be in as of the date of tender of possession subject to ordinary wear, tear and decay, the CITY agreeing not to leave the Leased Prernises in an irregular or unkernpt rnanner. Any alterations to Leased Prernises shall be restored to their original condition at the terrnination or expiration of this Lease Agreernent and subject to the provisions provided in paragraph 5 herein. 14. NOTICES. All notices, consents, dernands and requests which rnay be or are required to be given by either party or the other, shall be in writing and sent by United States registered or certified rnail, with return receipt requested, addressed to the CHURCH at 13750 McKenna Road, Prior Lake, MN 55372, and to the CITY at 16200 Eagle Creek Avenue SE, Prior Lake, MN 55372. The date which said registered or certified rnail is rnailed by the CHURCH shall be conclusively deerned to be the date on which a notice, consent, dernand or request is given or made. The above address of a party rnay be changed at any tirne, or frorn tirne to tirne, by written notice given by said party to the other party in the rnanner herein above provided. 15. RENEWAL TERM. Provided that CITY is not in default under the terrns and conditions of this Lease Agreement, the Lease term may be renewed by mutual agreement of both parties for an additional two-year term. 16. HOURS OF OPERATION OF LEASED PREMISES. CITY shall utilize the Leased Prernises only during the hours of 6arn to 8prn, Monday through Friday, except during the instances of extrerne weather where it rnay be necessary to utilize the Leased Prernises outside the norrnal business hours. In no instance shall the Leased Premises be operated during the weekend, except with express written consent of the CHURCH. 17. ENTIRE AGREEMENT. This Lease Agreernent represents the entire and integrated agreernent between the parties hereto and supersedes all prior negotiations, representations or agreernents, either written or oral with respect to the use of the Leased Prernises. 1:lAgreementslBuilding Leases\Laker Lines Park & Ride at Shepherd of the Lakedoc3 Laker Lines Park & Ride Lot Lease March 2006 Modified standard lease agreement 19. HEADINGS. The headings herein are inserted only for reference and shall in no way define, lirnit or describe the intent of this Lease Agreement. 20. GOVERNING LAW I JURISDICTION. The laws of the State of Minnesota govern all questions and interpretations concerning the validity and construction of this Lease Agreernent. 21. SEVERABILITY. If any provision of this Lease Agreernent is held invalid, illegal or unenforceable by a Court of cornpetent jurisdiction, the rernaining provisions will not be affected. 22. EXHIBITS. This instrurnent contains all of the agreernents rnade between the parties and rnay not be rnodified orally or in any rnanner other than by agreernent, in writing, signed by all parties to this Lease Agreement. The following Exhibits listed below are rnade part of this Lease Agreernent as if fully set forth herein: Exhibit A - Map delineating Leased Prernises IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed the day and year first above written. CHURCH: SHEPHERD OF THE LAKE L JHERAN CHURCH CITY: CITY OF PRIOR LAKE By: Its; By: Jack G. Haugen, Mayor By: Frank Boyles, City Manager 4 EXHIBIT "A" (MAP DELINEATING LEASED PREMISES) MCKENNA RD r~,:".;>'._.- J'::::;:; I ~, l~ \ .~ L.. ,$;;" lj.. ............' ""-.-- Laker Lines Parking Lot Lease December 1, 2005 Modified standard lease agreement ~ "tr'il1i ,_,.,...-J! <' \' . 'J \ ;1' _...--,...~<-, , 1---' .r J i /,:~/'-' -~- ,~--/--~, - J rj>~";~; · ~:-<1 '1 _j / 5