Item Description:
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Approve Lease Agmt A2613352 with Excelsior Mill LLC for rental of HCRRA property in Excelsior, 03/10/26-03/09/31, $3,518 (recv)
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Resolution:
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BE IT RESOLVED, that Lease Agreement A2613352 with Excelsior Mill, LLC be approved for rental of 1,734 square feet of Hennepin County Regional Railroad Authority (HCRRA) property located west of Water Street in the city of Excelsior, from March 10, 2026 through March 9, 2031, in a receivable amount of $3,518 per year for the first three years, with a rate adjustment in the fourth year; and that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the Lease Agreement on behalf of the Authority; and that the Controller be authorized to accept funds as directed.
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Background:
Excelsior Mill, LLC owns a retail building on the south side of HCRRA’s Hopkins to Victoria Corridor, west of Water Street in Excelsior. This building was originally constructed close to the property line to receive supplies directly from rail cars. A portion of the rail corridor has always been leased by the building’s occupant. When HCRRA acquired the corridor in 1981, it took over the lease. Since then, the building ownership has changed with several different tenants.
Under HCRRA’s Land Use Management Plan, the lease agreement will establish a term for five years, March 10, 2026, through March 9, 2031. The leased area is 1,734 square feet, with an annual receivable of $3,518 subject to a Consumer Price Index adjustment after three years. Excelsior Mill LLC will pay personal property taxes directly to the Hennepin County Treasurer. Either party may terminate the lease by giving 30-day written notice.
Current Request: This request is to approve Lease Agreement A2613352 with Excelsior Mill LLC for a five-year term from March 10, 2026, through March 9, 2031, with an annual receivable of $3,518, and a rate adjustment in the fourth year.
Impacts/Outcomes: Approval of this request allows for a new five-year lease with Excelsior Mill, LLC, for property located in Excelsior and protects HCRRA’s interest in the property.
recommendation
Recommendation from County Administrator: Recommend Approval