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December 11,2012 Page 6 of 8 City Planner Gundlach explained the City of New Brighton Parks and Recreation Department and Silver Center at 400 10th Suet NoTower Subs,Inc.was requesting consideration of a"special circumstance regarding off street parking and a NW R lut o No.l12 096 Special Use Permit governing signage at the New Brighton Community Center. Staff has been working with Dan O'Bresky,a Subway franchisee,regarding the installation of a Subway sandwich kiosk within the New Brighton Community Center. These requests relate to the zoning approvals needed in order to open a Subway within the Community Center. Staff finds that based on the current parking situation,with the recent parking lot expansion at the Community Center,that the request to waive the off-street parking stall requirement be approved. City Planner Gundlach reviewed the amendment proposed for the Comprehensive Sign Plan in detail and recommended approval. It was noted the Planning Commission considered this request and held a public hearing on November 20,2012. The Commission recommended unanimously that the Council approve the off-street parking exception and Special Use Permit requests. Councilmember Jacobsen asked if a wall sign would be posted on the interior of the building. City Planner Gundlach stated the Comprehensive Sign Plan only covers exterior and monument signs. She noted Subway would be allowed to place a menu sign on the interior of the building. Councilmember Burg was pleased that Subway would be moving into the Community Center. Councilmember Samuelson asked for the proposed hours of operation for Subway. Dan O'Bresky,Subway franchisee,commented he owned and operated 18 Subways in the metro area. He stated this Subway would be open only during current Community Center hours. He noted this Subway would have a full menu,in addition to yogurt smoothies. He then discussed the anticipated number of visits for this location. He stated he was extremely excited to be locating a franchise at the Community Center. Councilmember Samuelson asked how many employees this Subway would have. Mr.O'Bresky anticipated he would be hiring seven to eight staff members. Motion by Councilmember Jacobsen,seconded by Councilmember Burg to approve an off-street parking exception and a Special Use Permit amending the Civic Campus Comprehensive Sign Plan concerning the New Brighton Community Center at 400 10th Street NW. 5 Ayes,0 Nays-Motion Carried 6.Consideration of 6. Consideration of Lease Agreement between the City of New Brighton and Lease Agreement Subway Real Estate, LLC, for a Subway Franchise at the New Brighton between the City of CommunityCenter. Report No. 12-304. Resolution No. 12-097. New Brighton and p Subway Real Estate, LLC,for a Subway Parks and Recreation Director Breuer stated in November of 2011 she attended the National Franchise at the New Park and Recreation Congress in Georgia. This was where she first heard about the SubwayBrighton Community g g Center. Report No. kiosk restaurant. Staff finds that a food and beverage vendor would be an asset to the 12-304. Community Center in a variety of ways. In 2012, she approached the corporate headquarters Resolution No. 12-097 and met with an individual in the metro area in April of this year. Since that time, Staff has been working with Dan O'Bresky on a lease agreement. Jason Hicks reviewed the lease agreement in detail noting it would run for three years. An option to renew the lease for three consecutive periods of three years was written into the proposed lease. Mr. Hicks explained the Council could set the amount of rent to be charged for the space, or charge a certain percent of gross sales, whichever is greater, with the set amount increasing each year for the first three year term. Staff anticipated that Subway would be operating in the Community Center by June 1, 2013. The proposed location for the kiosk was discussed with the Council and Staff recommended approval of the lease agreement between the City of New Brighton and Subway Real Estate, LLC. Councilmember Jacobsen requested comment on the lease agreement from City Attorney LeFevere. City Attorney LeFevere explained he was pleased with the agreement language stating it was a unique situation. He stated the City would be protected if Subway were to go bankrupt. Councilmember Burg asked if the kitchen space at the Community Center would be shared