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RESOLUTION NO 12-097 CITY OF NEW BRIGHTON COUNTY OF RAMSEY STATE OF MINNESOTA UTION TO ENTER INTO A LEASE AGREEMENT BETWEEN CITY OF NEW BRIGHTON AND SUBWAY REAL ESTATE, LLC. there has been a desire to add a food and beverage vendor at the New Brighton Community Center. A food and beverage vendor would be an asset because it would benefit those coming to participate in the Fitness Center/Parks and Recreation activities and programs as well as all those in the community center who lease space. It enables all constituents to have access to a food and beverage vendor without having to leave the facility; and New Brighton City staff met with the Director of Parks and Recreation with the City of Maplewood, toured the Maplewood community center, where a franchise and lease agreement is in place with Subway, and reviewed and used Maplewood's lease agreement with Subway as a starting point for New Brighton's lease agreement with Subway; and S, as part of these negotiations, co -applicants Silver Tower Subs, Inc. and the Parks and Recreation Department attended the November 20, 2012 Planning Commission meeting. A public hearing was held to request a Special Use Permit for an amendment to the Civic Campus Comprehensive Sign Plan governing signage at the Community Center. The Planning Commission provided recommendations to amend the Civic Comprehensive Sign Plan. A parking exception, concerning off-street parking was considered; approval was recommended for the current parking arrangements at the Community Center for the anticipated visitors with the addition of a Subway Restaurant; and the lease with Subway has a base amount or a percentage of their sales, whichever is higher. The rent shall commence when Tenant opens for business or June 1, 2013 whichever occurs first, which shall be the fust date of the "Term" of the Lease. Estimated minimum rent will be as follows: 2013 (June -Dec.) 2014 2015 2016 (Jan. -May) Revenue (min.) $5,950 $10,550 $11,150 $4,750 the lease highlights are as follows: 1. It a three (3) year lease, with options to renew three (3) consecutive periods of three (3) years each. 2. Sv t iway will pay rent based off a base rate or a percentage of monthly sales, whichever is greater. The b rate is $850 for the first year, $900 for the second year and $950 for the subsequent years of the ag r -ement. The percentage of monthly sales would be 7% of Subway's gross sales. 3. S way would have exclusive use of approximately 234 square feet for the customer service area and approximately 72 square feet for the storage area. 4. S way and New Brighton Community Center would have shared access of the kitchen.