RES 2012-27 - 14990RESOLUTION NO. 2012 - 27
A RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF THE AMENDED AND
RESTATED LIQUOR STORE LEASE BETWEEN CITY OF FRIDLEY AND ZCOF TL FRIDLEY, LLC
WHEREAS, the City of Fridley has an existing lease for its warehouse liquor stare with ZCOF TL Fridley,
LLC, a.k.a. Tri-Land Developments, Inc. of Westchester, Illinois located at 248 57th Avenue NE, Fridley,
Minnesota; and
WHEREAS, Tri-Land Developments is in the process of finalizing redevelopment plans for the shopping
center which currently houses the City's liquor stare and Cub Foods; and
WHEREAS, the redevelopment plans will change the location, layout and size of the liquor stare. The new
footprint will resemble a more traditional strip mall size and shape by providing a narrower storefront width
and a deeper stare depth. The new liquor stare will be approximately 2,760 feet smaller allowing for more
efficient operations and a more controlled flaw of customers through one entrance rather than the current two
entrances; and
WHEREAS, the terms of the lease are similar to the existing lease and provides for the current annual lease
rate of $109,980.75 through October 31, 2013, and an additional five -year lease beginning November 1, 2013
through October 31, 2018 at an annual rate of $126,777.81, with the option of two additional five -year terms
that include fixed rent adjustments; and
WHEREAS, the liquor stare experienced a decrease in sales since Gander Mountain vacated the space next to
the liquor stare, the redevelopment plan provides for additional tenants which should help the liquor stare
regain last sales; and
WHEREAS, the City was able to negotiate a monthly $1,000 rent rebate into the lease to help insulate the
City against the rent increase if the shopping center does not achieve its anticipated 75% occupancy for the
first five -year term from 2013 to 2018; and
WHEREAS, the new lease provides for a $50,000 renovation allowance for relocating the cooler and
associated condensers, signage and decorating expenses; and
WHEREAS, the common area maintenance services will be provided by Tri -Land Developments and the
liquor stare shall only be responsible for its prorated share of the shopping center; and
WHEREAS, the lease is contingent upon Cub Foods signing a new lease; and
WHEREAS, subsequent to the liquor stare lease approved by Council on February 13, 2012, Tri-Land
Developments has requested changes to the lease to accommodate final financing approval; and
WHEREAS, Sections 23, 2.4, and Exhibit D - Section 1.1 have been amended to terms agreeable to bath the
City and Tri-Land Developments; and
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Fridley hereby approves the
amended and restated liquor stare lease between the City of Fridley and ZCOF TL Fridley, LLC, located at
the new address of 264 57th Avenue NE, Fridley, Minnesota, authorizes the execution of the lease by the
Mayor with the stipulation that the lease not be delivered to the landlord until evidence of a new Cub Foods
lease is received.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 9TH DAY OF
APRIL 2012.
ATTEST:
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Debra A. Skagen Clerk
Scott J. Liffid, Mayor