Fiscal Note
This lease would allow Metro to provide Park & Ride facilities at the East Transfer Point on property zoned C3L and for which a park & ride lot is a permitted use. Metro agrees to pre-pay a ten-year capital lease payment of $112,500 $120,000, for which provision is made in Metro's 2006 Capital Budget (Ref. Project 3, Account 815006). Metro will provide for on-going maintenance of the Park & Ride lot during the periods used for transit Park & Ride purpose from its operating budget. During the term of the agreement, the capital lease covers the period January - September. Provision is made in the agreement for month-by-month lease during additional months of each year, as the parties may mutually approve. Those monthly leases will be paid through Metro operating budgets at rates agreed to in the lease agreement. Provision is made for renewal of this ten-year lease agreement for one subsequent five-year term and for renewal thereafter for one-year terms upon agreement of the City and Swiss Colony. They City is covered under its current insurance policies; therefore, the resolution will not result in increased premiums.
Title
SECOND SUBSTITUTE - Authorizing the Mayor and City Clerk to execute a ten year lease with the Swiss Colony Cheese Company for a Park and Ride Lot at Metro Transit's East Transfer Point; and to transfer surplus City of Madison right of way to the Leo Ritter and Company. 15th Ald. Dist.
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PREAMBLE
Metro Transit has long desired to locate Park & Ride facilities at its Transfer Point locations. Various reports including the 1998-2002 WisDOT Transportation Development Plan, 1999 WisDOT District 1 Park and Ride Study, the first Transport 2020 Study, and Metro's Strategic Annual Plans for the past four years have identified the special need for Park & Ride lots at Metro's Transfer Points, and specifically at the East Transfer Point (ETP). In 2003, the City approved the lease of property at the North Transfer Point for this purpose. When the lot opened in 2004, it was filled by users within a few weeks and has been used extensively by transit patrons in the North-side since that time. Transit ridership from the North Transfer Point increased dramatically following introduction of the lot.
For the past two years, Metro has worked with City Real Estate and Planning to establish a Park & Ride at the ETP. The unusual nature of the lease - the nine month period of occupancy - reflects the fact that Swiss Colony needs to see how much parking it will need on the entire lot during the period of its seasonal demand for employees from October through December. Opportunity is provided in the agreement for additional lease arrangements for the period October - December by annual agreement of Metro and Swiss Colony. Rates for this purpose are identified in the lease agreement and are calculated on the same basis as the rest of the year. It is anticipated from past observation that Swiss Colony will be able to lease the lot to Metro during many if not all of the months (Oct-Dec) in question during much of the contract period. While this arrangement is not perfect, this location is perfect for Metro as it is adjacent to the East Transfer Point and has been designed as a very attractive Park & Ride lot for Metro patron use most (if not all) of the year. Metro will alert its patrons, in advance, of the status of the lot during the October - December period.
The design plan for the Park & Ride lot provides for 83 parking stalls. The Lessor is responsible for installation of all parking lot improvements, at its expense, in accordance with plans approved by appropriate agencies and shall complete all such improvements no later than three months from approval of this resolution by Common Council. These design plans have been reviewed by City Planning staff.
Funding for the capital lease is included in Metro's 2006 Capital Budget. The cost of the lease to Metro is based solely on the cost of improvements to the currently unimproved Swiss Colony site and is based on occupancy and use by Metro riders for nine months of the year from January - September. The cost to Metro is very reasonable by City Real Estate standards. There is no charge to Metro/the City for the lease of the land as this is provided for in a transfer of surplus City of Madison right- of-way to the Leo Ritter and Company, consistent with past Madison Plan Commission action.
Approval of this lease is the first element required in the development of a Park & Ride lot at this site.
WHEREAS the transit utility has long desired a Park & Ride facility at the East Transfer Point located at 3660 Milwaukee Avenue;
WHEREAS Swiss Colony Cheese leases a 13 acre property located at 3650 Milwaukee Avenue from the Leo Ritter Company and agrees to sub-lease 83 stalls of parking to the City of Madison for use by Metro Transit as a Park & Ride Lot;
WHEREAS the lease would provide parking stalls for East Transfer Point customers during the months of January through September, when the need for parking on the 13 acre site is minimal, and also provides for an opportunity for additional lease arrangements by annual agreement of Metro and Swiss Colony at pre-established rates;
WHEREAS Metro Transit will pre-pay the ten-year capital lease using federal grant funds available for the purpose on an 80% federal/20% local basis for the annual lease period January through September at the beginning of the ten-year lease period; and Metro Transit will pay monthly, as part of its annual operating budget, for each additional month leased during the ten-year contract period at rates established in this lease agreement;
WHEREAS, the lease may contain indemnification provision negotiated by and acceptable to the City Attorney and the Risk Manager;
WHEREAS this lease agreement will begin following approval by the City Council and upon completion of Park & Ride lot improvements made by Swiss Colony pursuant to plans approved by the Madison Plan Commission; as a result, in the event the initial term is for a period of less than ten years, prepayment will be made in the amount of the pro-rata share due for the period calculated from the start date;
WHEREAS the City of Madison in further consideration of the sub-lease arrangement agrees to transfer by Quit Claim Deed a strip of unused right of way along the east side of Corporate Drive to the Leo Ritter Company for use in additional landscaping and to provide access to Corporate Drive - consistent with past Plan Commission action;
NOW, THEREFORE, BE IT RESOLVED that the Mayor and City Clerk are authorized to sign any and all documents necessary for the transfer of the unused right of way to Leo Ritter and Company and for executing a ten-year lease with Swiss Colony Cheese (lessor) for the Park & Ride lot to be used by Metro Transit customers of the East Transfer Point;; and the Transit General Manager is authorized to sign annual lease agreements for any extended use of the premises for October, November, and/or December of each year of the agreement.
BE IT FURTHER RESOLVED that the lease may contain indemnification provisions negotiated by and acceptable to the City Attorney and the Risk Manager; and that the Risk Manager is instructed to purchase appropriate insurance to protect the City from the risk imposed by such indemnification provisions in the event it is concluded that such is not already covered under existing policies as an insured contract.
BE IT FURTHER RESOLVED that Madison Metro shall annually report on the utilization of this lot including the proportion of users that are using Metro Transit.