ITEM: 3.1 EDA ITEM - Bryan K. Schafer, Planning and Community Development Director
Title
APPROVING A LEASE AGREEMENT WITH CLEAR CHANNEL OUTDOOR, INC. FOR THE EXISTING BILLBOARD AT 9003 UNIVERSITY AVENUE
Background
The EDA purchased 9003-9011 University (dcMusic) in 2008 and removed the building shortly thereafter. The site however contains an older, smaller style billboard operated and owned by Clear Channel Outdoor, the same company that owns the new billboards on the Aquatore site. The current lease for the billboard expires at the end of April with a lease rate of $1,500/year.
Staff has been negotiating a new lease with the goal of a) keeping the term short to not complicate future redevelopment and b) to the extent possible raise the level of revenue generated for the EDA. The proposed lease agreement runs for five (5) years, which is longer than staff had originally proposed. Clear Channel has indicated however that the sign is in need of maintenance that they would do if a longer term could be part of the agreement.
The proposed lease agreement calls for:
· $2,500 per year in Years 1and 2 |
· $3,500 per year in Years 3, 4 and 5 |
· The lease contains the same language as the Aquatore billboards in terms of the type of advertising that is not allowed (alcohol, tobacco, nudity, political campaigns) |
· The EDA has clear right to redevelop the property as long as the view of the sign from University Avenue is not blocked |
Staff is supportive of the new lease, which would expire in 2017, based on the terms and the location of the sign. It is in very close proximity to University Avenue and generally within the site's front yard building and parking setbacks. Therefore it is not in an area where it would be in the way of redevelopment, should it occur within the five year timeframe.
Recommendation
By motion, approve the Resolution to authorize execution of a lease between Clear Channel Outoor, Inc and EDA.
Attachments
Location Map
Picture of Billboard
Lease Agreement
Body
BE IT RESOLVED by the Board of Commissioners (the "Board") of the Blaine Economic Development Authority (the "EDA"), as follows:
WHEREAS, the Blaine EDA owns the parcel at 9003-9011 University Avenue, which contains an outdoor advertising structure subject to an existing lease with Clear Channel Outdoor, Inc.; and
WHEREAS, Clear Channel Outdoor, Inc., desires to retain the use of the existing outdoor advertising sign on the parcel owned by the EDA, and
WHEREAS, Clear Channel Outdoor, Inc is proposing to enter into an Agreement with the EDA for continued use of their sign facility for a period not exceeding five (5) years, and
WHEREAS, the proposed Agreement has been reviewed and is recommended for consideration by the EDA.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Blaine Economic Development Authority, City of Blaine, Minnesota, that the President and Executive Director of the Blaine Economic Development authority are hereby authorized to approve a lease agreement with Clear Channel Outdoor, Inc. for the existing billboard at 9003-9011 University Avenue.
PASSED by the Blaine Economic Development Authority this 5th day of April 2012.