Item Description:
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Consent to and Assignment of Lease granting Minnetonka Industrial Portfolio, LLC permission to assign Lease Agmt A2110961 to UP MINCO, LLC for rental of HCRRA property in Minnetonka
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Resolution:
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BE IT RESOLVED, that the Consent to and Assignment of Lease be approved granting Minnetonka Industrial Portfolio, LLC permission to assign Lease Agreement A2110961 to UP MINCO, LLC for rental of 5,352 square feet of Hennepin County Regional Railroad Authority property located west of Interstate 494 in Minnetonka, during the period of March 1, 2022 through February 28, 2029, in the receivable amount of $3,923 per year; and that following the review and approval by the County Attorney’s Office, the Chair be authorized to sign the Consent to and Assignment of Lease on behalf of the Authority; and that the Controller be authorized to accept the funds as directed.
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Background:
Minnetonka Industrial Portfolio, LLC currently leases an 11-foot strip of the Hennepin County Regional Railroad Authority’s (HCRRA) Hopkins to Victoria corridor in Minnetonka that encompasses 5,352 square feet. The strip is paved and used for parking. The lease originated in 2002 when the previous tenant redeveloped its building adjacent to HCRRA’s corridor and needed additional parking to fulfill zoning requirements. Minnetonka Industrial Portfolio LLC is planning to sell the building to UP MINCO, LLC and has requested to assign the lease with HCRRA accordingly.
Consistent with HCRRA’s Land Use Management Plan, Section IV, Subsection C - Use of Property, the proposed Consent to and Assignment of Lease grants Minnetonka Industrial Portfolio, LLC permission to assign Lease Agreement A2110961 to UP MINCO, LLC for rental of HCRRA property in Minnetonka and permits UP MINCO, LLC to accept the assignment. Either party may terminate the lease by giving a 90-day written notice.
Current Request: Authorization to approve the Consent to and Assignment of Lease permitting Minnetonka Industrial Portfolio, LLC to assign HCRRA Lease Agreement A2110961 to UP MINCO, LLC for rental of HCRRA property in Minnetonka, 03/01/22 - 02/28/29, with an estimated annual receivable of $3,923.
Impacts/Outcomes: Approval of this request allows for the assignment of HCRRA Lease Agreement A2110961 and protects HCRRA’s interest in the property.
recommendation
Recommendation from County Administrator: Recommend Approval