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<br />~ <br />~~HILLS <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />April 4, 2007 <br /> <br />Agenda Item: 7 A <br /> <br />TO: Honorable Mayor and City Council <br />Michelle Wolfe; City Administrator <br /> <br />FROM: Michelle Olson, Parks and Recreation Manager "il1Cr; <br /> <br />SUBJECT: Sheehy Tennis COlui Lease Agreement <br /> <br />Backf!/'olllld <br />In March 2006, City staff received a phone call from a resident inquiring why the tennis court <br />located at 3168 Ridgewood Road was locked and posted as operated by Arden Hills #3 <br />Association. At that time, due to the questions regarding why the Association was using this <br />cOUli exclusively, the City placed a lock on the court and posted a sign that stated, for more <br />info1111ation about this court, please contact the City of Arden Hills. Staff was then contacted by <br />Todd Albertson, Board Member of the Arden Hills #3 Association. He stated that the <br />association had a lease agreement to have exclusive use of the courts and asked for the courts to <br />be unlocked. <br /> <br />The City Attorney and the Arden Hills #3 Association both forwarded to staff a copy of a lease <br />agreement that had been approved by the Arden Hills City Council on October 3, 1996. Under <br />the tenns of the agreement, the Association was to pay the City of Arden Hills S I 0.00 annually <br />to rent the facility. The lease agreement was for a term of five years, renewable for an <br />additional five years per language stating that unless either party gave written notice of <br />cancellation at least twelve months prior to termination of the initial five year lease, it <br />automatically renewed. The Association was responsible for the maintenance of the facility and <br />all improvement costs would be their responsibility. In addition, the Association was required to <br />maintain comprehensive general liability coverage in an amount not less than S600,000 for each <br />occurrence and S600,000 for personal injury. A copy of the expired lease is included for your <br />reVIew. <br /> <br />Further research discovered that the S I 0.00 annual fee had never been paid and the City did not <br />have any record of the required insurance from the previous ten years. Mr. Todd Albertson does <br />assure the City that the association did carry the required insurance and each year, submitted this <br />to the City. Staff has been unable to locate this documentation. Association #3 did submit a <br />check on April 10, 2006 for S 1 00 for the past due amount in the lease agreement and provided <br />updated proof of insurance. The City unlocked the court at that time until October, 2006, when <br /> <br />\\Metro-inet.us\ardenhills\PR&PW\Parks\Memos\Council Memos\Sheehy Tennis Court Lease <br />Agreement.doc <br />