Item Description:
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Approve Lease Agmt A2613517 with 301 Water Street Holdings, LLC for rental of HCRRA property in Excelsior, 09/01/26-08/31/31, (recv $5,691)
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Resolution:
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BE IT RESOLVED, that Lease Agreement A2613517 with 301 Water Street Holdings, LLC, be approved for rental of 855 square feet of Hennepin County Regional Railroad Authority (HCRRA) property located east of Water Street in the city of Excelsior, from September 1, 2026, through August 31, 2031, in a receivable amount of $5,691 per year for the first three years, with a rate adjustment in the fourth year; that the Chair be authorized to sign the agreement on behalf of the Authority; and that the Controller be authorized to accept funds as directed.
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Background:
The building, located at the corner of Third Street and Water Street in Excelsior, encroaches on the north side of the HCRRA’s Hopkins to Victoria corridor. The owners of this property have leased a strip of the railroad corridor for driveway, parking, and building purposes since 1986. 301 Water Street Holdings, LLC took over this lease in 2021 and operates a restaurant out of the encroaching building.
Under HCRRA’s Land Use Management Plan, the lease agreement will establish a five‑year term, from September 1, 2026, through August 31, 2031. The lease covers an area of 855 square feet, with an annual receivable of $5,691, subject to a Consumer Price Index adjustment after three years. 301 Water Street Holdings, LLC will pay personal property taxes directly to the Hennepin County Treasurer. Either party may terminate the lease by providing one year’s written notice.
Current Request: This request is to approve Lease Agreement A2613517 with 301 Water Street Holdings, LLC for a five-year term from September 1, 2026, through August 31, 2031, with an annual receivable of $5,691, and a rate adjustment in the fourth year.
Impacts/Outcomes: Approval of this request allows for a new five-year lease with 301 Water Street Holdings, LLC for property located in Excelsior and protects HCRRA’s interest in the property.
This request funds services that are: core services
recommendation
Recommendation from County Administrator: Recommend Approval