Mayer Tram RenewalMAYER TRAM ROW LEASE RENEWAL
Public Works Department
Development Services
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Policy Question
Should Council Approve the Mayer’s Right of Way Lease Agreement for a third term on a portion of 53rd Avenue SW?
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Background Information
Mr. Kurt Mayer owns water front property adjacent to 53rd Avenue SW.
The only access to the property is through a dirt path on the unopened portion of 53rd Avenue SW and a tram system constructed by Mr. Mayer on a leased portion of the unopened 53rd Avenue
SW.
The original lease was approved by the City Council on March 15, 2005, extended to March 23, 2015 and again to March 23, 2020.
The total right of way leased by Mr. Mayer was 3426 sq. ft.
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Background Continued
Original cost of annual rent of $1.00 per square foot per year for a total of $17,130.00 for the first five years plus 12.84% leasehold excise tax.
The second lease was adjusted for inflation to $17,917.98 plus a 12.84% leasehold excise tax.
The third lease was again adjust for inflation to $18,292.47 plus a 12.84% leasehold excise tax.
Mr. Mayer wishes to extend this lease agreement for an additional 5 years. See attached lease amendment. The new right of way lease cost, adjusted for inflation and excise tax, for
the next five years is calculated at $21,142.81.
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TRAM LOCATION
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TRAM LOCATION
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TRAM LOCATION
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TRAM LOCATION
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Mayer House
Auxillary Building
TRAM
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The options before Council are:
Authorize the Mayor to execute the attached lease agreement extension.
Reject the lease agreement extension and have staff instruct Mr. Mayer to remove the existing improvements from the public right of way.
Direct staff to any other option the committee would like staff to evaluate.
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Mayor’s Recommendation
The Mayor recommends forwarding Option 1 to the February 16, 2021 Council Consent Agenda for approval.
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Questions?
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