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kVJ6FAf+E Request for Council Action Date: August 28,2000 Item Number: F-1 Department Approval Manager Approval Agenda Section Reports & Recommendations Item Description: Authorization of Agreement with the Minnesota Wildlife Rehabilitation Center for the Lease of Land at the Harriet Alexander Nature Center Background The proposed land lease to enable the Minnesota Wildlife Rehabilitation Center to construct a 17,000- 19,000 square foot building at the Harriet Alexander Nature Center,has been the subject of a joint meeting of the Roseville City Council and the Roseville Parks and Recreation Commission on May 2, and reviewed by the City Council at the Regular Meeting of July 24, 2000.At the July 24th meeting, the City Council directed staff to prepare a final lease agreement protecting the City from budget impacts and liability exposure, before this proposed activity. Numerous meetings have occurred between City staff, attorneys and representatives of the Wildlife Rehabilitation Center (WRC) and the agreements presented at the August 28th meeting represent a resolution of all issues for final City Council consideration. Policy Objective There appears to be no policy precedent for consideration of a land lease similar to what is proposed with the WRC. However, the City does have a long history of collaborative efforts with not-for-profit organizations that have a mission consistent with those of the City. The grant of a land lease for$1 per year for 50 years represents a considerable value being transferred to the WRC. This value and concerns about future financial exposure are outlined in a memo dated August 25, 2000 from Finance Director Ed Burrell. Given the considerable value for this land lease (as outlined) the objective of our negotiations has been to specifically eliminate any financial exposure to the City as well as establish an understanding that future cooperative efforts shall not result in any additional financial commitment by the City. Financial There is value being provided to the WRC with this land lease. However, there is a corresponding value to the community and to the City's mission by this collaboration with the WRC. The relative "value" versus the "cost" is something for the City Council to consider in your final review of the proposed ground lease. Clearly, there are no direct cash contributions or budget implications as a result of this ground lease and every effort has been made to protect the City from future financial obligations. Staff Recommendation The following are major changes from the previous draft for City Council review: • The WRC should pay all reasonable and customary building permit fees consistent with what has been charged to other not-for-profit and public organizations. • The term of the lease has been modified to 50 years.