ITEM: 12.4 ADMINISTRATION- Clark Arneson, City Manager
Title
AUTHORIZING THE CITY MANAGER AND MAYOR TO ENTER INTO A LEASE AGREEMENT WITH THE METROPOLITAN AIRPORTS COMMISSION (MAC) FOR PROPERTY KNOWN AS AIRPORT PARK
Background
For the past 30 years, the Metropolitan Airports Commission (MAC) and the City of Blaine have partnered to provide recreational facilities for residents and visitors. Airport Park, located on 49 acres of MAC land on the corner of Radisson Road and 105th Avenue, is home to 15 soccer fields, and 4 baseball fields. It is one of the most used parks within the City during summer months. For roughly three decades, the City has leased that land from MAC for the purpose of providing recreational programming, at a cost of $600 annually.
In 2002, MAC stated that instead of subsidizing reliever airports with funds from the Minneapolis- St. Paul airport, airports such as the Anoka County-Blaine airport were to find alternative ways of becoming self-sustaining. In 2006, MAC officials met with City staff and indicated they were looking at developing some vacant property and reviewing the lease rates for the property the City was leasing from them. In 2008 MAC officials indicated that they were moving forward with FAA approval to lease the land at market rates. The land on which the soccer fields and baseball fields are located is highly valuable due to the location and proximity to a busy intersection. The City's concern was the potential loss of soccer fields, baseball fields and recreational programming if MAC chose to develop their site in order to create revenue for the airport.
In 2009, staff briefed Council on the discussions with MAC regarding the future of Airport Park. In 2010, MAC obtained a release from the FAA and had an appraisal done on the property. Between 2010 and 2012, staff worked with MAC to develop a term sheet that would continue to allow the City to use the property for recreational purposes and that addressed several common issues between MAC and the City for use of the property. Services addressed in the term sheet included Fire Service, resurfacing of Xylite Street, sewer and water maintenance on the Anoka County-Blaine Airport property, a land lease for Airport Park and the Blaine Soccer Complex. The term sheet also addressed possible future redevelopment of two MAC owned parcels. The term sheet was a general agreement which Council approved on March 15, 2012.
Council must now formally consider several documents related to the approved term sheet. The first document Council must consider is the Athletic Fields Lease Agreement. The other documents that will be considered under separate cover are:
· Fire Contract between the City of Blaine and MAC.
· Amendment to Contract to Furnish Fire Protection Services to the Cities of Blaine, Mounds View and Spring Lake Park
· Addendum to the Joint Powers Agreement for Fire Protection Services
The terms of the Athletic Fields Lease agreements are summarized below:
· MAC agrees to lease the property for a period of three years, with two one-year renewals at the City's and MAC's mutual option. (Commencing January 1, 2012 - December 31, 2014)
· Annual rent of $50,000 for 2012 and 2013, and increasing at a rate of 2% per year thereafter.
· City shall pay for all water, sanitary sewer, gas, electricity, storm sewer charges, telephone, refuse collection, environmental or other similar charges used on or attributable to the property.
· The City shall maintain insurance against public liability and property damage.
· The City agrees to cooperate with MAC in the redevelopment of an approximately 5 acre parcel in the northeast portion of the property (Commercial Parcel) with the City having First Right of Refusal.
Recommendation
By Motion, Authorize the City Manager and Mayor to enter into an agreement with the Metropolitan Airports Commission to lease property known as Airport Park.