09-24-07 Item 8B, Sheehy Property Recommendation

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~ /],\~HILLS MEMORANDUM DATE: April 4, 2007 Agenda Item: 7 A TO: Honorable Mayor and City Council Michelle Wolfe; City Administrator FROM: 1'1'r, Michelle Olson, Parks and Recreation Manager .tI,U, SUBJECT: Sheehy Tennis Court Lease Agreement Backz/'olllld In March 2006, City staff received a phone call from a resident inquiring why the tennis court located at 3168 Ridgewood Road was locked and posted as operated by Arden Hills #3 Association. At that time, due to the questions regarding why the Association was using this court exclusively, the City placed a lock on the court and posted a sign that stated, for more infol111ation about this coul1, please contact the City of Arden Hills. Staff was then contacted by Todd Albertson, Board Member of the Arden Hills #3 Association. He stated that the association had a lease agreement to have exclusive use of the courts and asked for the courts to be unlocked. The City Attorney and the Arden Hills #3 Association both forwarded to staff a copy of a lease agreement that had been approved by the Arden Hills City Council on October 3, 1996. Under the tel111S of the agreement, the Association was to pay the City of Arden Hills $10.00 annually to rent the facility. The lease agreement was for a term of five years, renewable for an additional five years per language stating that unless either party gave written notice of cancellation at least twelve months prior to tel111ination of the initial five year lease, it automatically renewed. The Association was responsible for the maintenance of the facility and all improvement costs would be their responsibility. In addition, the Association was rcquired to maintain comprehensive general liability coverage in an amount not less than $600,000 for each occurrence and $600,000 for personal injury. A copy of the expired lease is included for your reVIew. Further research discovered that the $10.00 annual fee had never been paid and the City did not have any record of the required insurance from the previous ten years. Mr. Todd Albertson does assure the City that the association did carry the required insurance and each year, submitted this to the City. Staff has been unable to locate this documentation. Association #3 did submit a check on April 10,2006 for $100 for the past due amount in the lease agreement and provided updated proof of insurance. The City unlocked the court at that time until October, 2006, when \\Metro-inet.us\ardenhills\PR&PW\Parks\Memos\Council Memos\Sheehy Tennis Court Lease Agreement.doc