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5.g Amendment to Lions Lease for the Annex Staff Report Date of Meeting: April 17, 2018 To: Scandia City Council From: Brenda Eklund, Deputy Clerk Re: Amendment to the Lease with Scandia-Marine Lions for the Annex (former Fire Hall) Background: The Lions have used the Annex (old Fire Hall) at 14800 Oakhill Road for storage and for the office for their charitable gambling activities for many years. The Boy Scouts also use part of the building. At this time the building is not used for any municipal function. In 2008, the City of Scandia and the Lions Club entered into a lease agreement to help offset utility costs with a monthly payment of $100.00. An amendment to the lease was made in 2011 which increased the rent to $150.00 a month. The Lions voluntarily made an increase to $200 a month approximately four years ago. Issue: The Lions Club has proposed to increase the rent payment to $250 per month effective on May 1, 2018. Proposal Details: An amendment to the lease should be formally approved by the City Council. Fiscal Impact: The annual utility costs for natural gas and electric at the Annex are as follows: 2016: $1,358.50 2017: $1,506.23 The rent more than adequately covers the utility costs for the building. Options: 1) Approve the Amendment to the Lease and authorize the Mayor and Administrator to sign on behalf of the city. 2) Approve a different monthly rent amount. 3) Do not approve the Amendment to Lease. Recommendation: Option 1). AMENDMENT TO LEASE This Amendment to Lease is made and entered into this 17th day of April, 2018, between the City of Scandia, 14727 209th Street, Scandia, MN 55073 (“Landlord”) and Scandia Marine Lions Club, P. O. Box 151, Scandia, MN 55073 (“Tenant”). 1. For good and valuable consideration, the Landlord and Tenant agree that Paragraph 3 of that certain Lease (“Lease”) dated January 1, 2009 made and entered into between them for the rental of the old City Fire Hall/Annex, and as Amended on October 18, 2011, is hereby amended as follows: 3. Rent. Commencing with the rental due May 1, 2018, the rent for the premises shall be $250.00 per month payable in advance on or before the first day of each month during the term of the Lease. 2. Except as herein amended, all of the terms and conditions of the Lease shall remain in full force and effect. IN WITNESS WHEREOF, the Landlord and Tenant have signed this lease this 17th day of April, 2018. LANDLORD: TENANT: City of Scandia Scandia Marine Lions Club By:_________________________________ By:_________________________________ Christine Maefsky Lynette Welsch Its: Mayor Its: President By:_________________________________ By:_________________________________ Neil Soltis Bruce Swenson Its: Administrator Its: Gambling Manager