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#04 Authorize to renew lease of 700 S Jackson for 2 years with Cindy Pelton Economic Development Department Memorandum December 12, 2011 TO: City Council FROM: Vic Grassman, Economic Development Director SUBJECT: Authorization for the City Manager to Renew a Lease of City- Owned Land Located at 700 S. Jackson Street with Cindy Pelton, owner of the 708 Club for a Period of Two Years. Executive Summary On November 12, 2007, the Janesville City Council adopted Resolution No. 2007-448 approving a lease with Cindy Pelton, for city owned property located at 700 S. Jackson St. (SW corner of Rockport Road and South Jackson St.). Ms. Pelton owns an adjacent property known as Club 708 and wanted to use the City property for customer parking. The current two year lease will expire on December 31, 2011. The lease rate is $65.00/month and the lessee is responsible for garbage pickup, snow removal and general maintenance. The Lessee is asking for a third two-year renewal to begin January 1, 2012 and end December 31, 2013. Staff Recommendation Staff recommends renewal of this lease for another two year period. City Manager Recommendation The City Manager recommends approval. Suggested Motion I move to authorize the City Manager to renew the lease with Cindy Pelton for . City-owned land located at 700 S. Jackson Street for a period of two years Background The City acquired the land at 700 S. Jackson Street approximately 30 plus years ago as part of a long-term strategy to reconfigure the intersection of Jackson Street and Rockport Road. The City owns land at three (3) of the four (4) corners of this intersection. The City has no immediate plans for this site. Analysis This lease renewal is for the city-owned land at 700 S. Jackson Street to provide off-street parking for an adjacent commercial business, Club 708 owned by the Lessee. It is for the north 60 feet of Lot 16, Riverside Addition, except of the portion used for street right-of-way. The lease renewal would continue at the previous rate of $65.00/month and the lessee would be responsible for maintenance as well as keeping the leased premises in good and responsible repair. The lessee will also hold the lessor harmless against any claims, lawsuits, payments or demands due to injuries and/or damages. Because the City does not have any immediate plans for the property, it would be appropriate to continue the lease with Ms. Pelton thus generating monthly income and avoiding maintenance costs. cc: Eric Levitt Jacob Winzenz