Item Description:
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Lease Agmt A2311991 with David Bennyhoff d.b.a. Minnetonka Drive-In for rental of HCRRA property in Spring Park, 01/01/24-12/31/28; (recv $1,499, first three years)
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Resolution:
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BE IT RESOLVED, that Lease Agreement A2311991 with David Bennyhoff d.b.a. Minnetonka Drive-In for rental of 1,850 square feet of Hennepin County Regional Railroad Authority property located north of Shoreline Drive (CSAH 15) and east of the Seton Channel in the city of Spring Park, from January 1, 2024 through December 31, 2028, in the receivable amount of $1,499 per year for the first three years, with a rate adjustment in the fourth year, be approved; and that the Chair be authorized to sign the agreement on behalf of the Authority; and that the Controller be authorized to accept and disburse funds as directed.
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Background:
David Bennyhoff owns and operates the Minnetonka Drive-In restaurant on Shoreline Drive (CSAH 15) in Spring Park. The restaurant is a 1950s style restaurant with microphones mounted on posts to place orders and a drive-up window at the back of the restaurant building. Since 1999, Mr. Bennyhoff has leased a 185 foot by 10-foot portion of the railroad corridor for better vehicle access to one of the microphone stations and pick-up window, as well as for material storage. This lease was assigned to HCRRA when the Dakota Rail corridor was purchased in 2001.
Consistent with HCRRA’s Land Use Management Plan, the lease agreement will establish the term for five years, from January 1, 2024, through December 31, 2028, with a leased area of approximately 1,850 square feet, and an annual rental charge of $1,499 with an adjustment after three years according to the Consumer Price Index. David Bennyhoff d.b.a. Minnetonka Drive-In will pay a personal property tax payment directly to Hennepin County for use of the property. Either party may terminate the lease by giving a 30-day written notice.
Current Request:
This request is for Lease Agreement A2311991 with David Bennyhoff d.b.a. Minnetonka Drive-In for a five-year term from January 1, 2024 through December 31, 2028, with an annual rental charge of $1,499, with an adjustment in the fourth year.
Impact/Outcome:
Approval of this request allows for a new five-year lease with David Bennyhoff d.b.a. Minnetonka Drive-In.
recommendation
Recommendation from County Administrator: Recommend Approval