Title
Resolution to Enter a Lease with Huron River Holdings, LLC for Seasonal Parking for Argo Park ($102,031.00 / 6 yrs.) (8 Votes Required)
Memorandum
This resolution approves a one-year lease with up to 5 automatic renewals with Huron River Holdings, LLC for use of the parking lots at 412 and 416 Longshore Drive. The popularity of water recreation and the Cascades has resulted in a lack of parking at Argo Park at peak times during livery season. These parking lots have been used to accommodate overflow parking needs at Argo since 2012 and help to reduce the amount of street parking in the neighborhood.
The lease allows the City to use the approximately 40 spaces in the west parking lot for park use 7 days per week, 8 a.m. to sunset. An additional 6 spaces in the west parking lot that are marked reserved and approximately 12 spaces in the east parking lot will be available for park use on weekends and holidays only. The term of this lease is April 15, 2023 - October 25, 2023 (livery season) each year. The lease automatically renews for up to 5 additional years unless one party opts out.
Budget/Fiscal Impact
Each additional year of the lease includes a 5% rental increase. It is expected that revenue from user fees will continue to offset the cost of leasing these parking lots. Funding is available in the approved FY2023 Parks & Recreation Services General Fund operating budget and will be contained annually in the Parks & Recreation Services General Fund for future years of the lease.
2023 $15,000
2024 $15,750
2025 $16,538
2026 $17,365
2027 $18,233
2028 $19,145
Total $102,031
Since the total amount of the lease may exceed $50,000, an appraisal is required by section 1:321 of City Code unless, upon the recommendation of the City Administrator, Council adopts a resolution specifying why an appraisal is unnecessary. The City Administrator recommends that the City not expend money on an appraisal report, because the new lease amount is similar to the prior ...
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