SUBJECT:
Action regarding Lease agreement for property at 301 S. Saginaw Boulevard (Depot Property)
BACKGROUND/DISCUSSION:
The City owns the Depot building located at 301 S. Saginaw Blvd. but not the land it sits on. The City leases the property from BNSF. The original ten year lease began in 2000. We did an extension of the lease in 2010 for another ten years. The lease is now due for renewal with some changes. BNSF is doing a rail expansion project that requires some of the land the building sits on. It does not affect any of the buildings or our operations there. The new ten year lease reduces the property footprint from 2.53 to 1.8 acres and reduces our annual rent from $7,725 to $5,466. BNSF will also be constructing a fence between the tracks and the buildings as shown on Exhibit A in the amendment. The lease amendment has been reviewed and modified by the City Attorney and agreed to by BNSF.
FINANCIAL IMPACT:
Reduction in annual rent from $7, 725 to $5,466.
RECOMMENDATION:
Staff recommends approval of the second amendment to the lease agreement. |