Council approves 5-year lease renewal with Hellebuch Bicycles LLC for Trailhead building

City Manager Gunderson presented the lease renewal for the Milford Trailhead building and recommended council authorize the city to enter the contract.

Gunderson said the packet includes the full contract and that the renewal arises from an existing lease that provides the lessee an initial five-year term and a written option for an additional five-year renewal. The contract in the packet shows a one-time 15% increase applied to the existing monthly rates (reported in the packet as $3.75 per month for May'August and $1.50 per month for September'April for the present rate schedule), and staff recommended drafting and approving the ordinance to grant the lessee the contract renewal provided the lessee met the lease's notice requirement.

A councilmember confirmed the lease requires the lessee to provide no less than 30 days'written notice of intent to renew; Gunderson confirmed the lessee had provided notice. Councilmember Parrish moved to draft the ordinance realizing the lease provision and the motion was seconded and approved.

Later in the meeting the city read Ordinance 25-410, "An ordinance authorizing a lease agreement with Hellebuch Bicycles LLC," and council suspended the rules and read by title only. Council then moved to adopt the ordinance; the motion passed on a voice vote with all present members recorded as voting in favor. The ordinance text cites sections 12.03, 12.05 and 12.07 of the Milford City Charter as authority and states the ordinance becomes effective immediately upon passage.

No council member recorded a nay vote on the ordinance in the transcript, and no amendments to the lease terms were made during the public discussion.