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Date: February 19, 2019 Item No.
HERITAGE LIQUOR STORE LEASE AMENDMENT WITH
EREP HERITAGE COMMONS 1, LLC
Proposed Action
Staff recommends adoption of the following motion: Move to approve a lease amendment with
EREP Heritage Commons 1, LLC for the Lakeville Liquor Heritage Store.
Overview
The Lakeville Liquor Heritage Store lease with EREP Heritage Commons 1, LLC is due to expire
July 1, 2019. Staff negotiated a three-year lease extension at the existing location that included a
limited increase in the lease rate from $16 to $17 per square foot (an impact of $8,859 per year)
and a minor increase in the cap for CAM costs from 2% to 5% (an impact of $3,210.70 over the
three-year life of the lease). All other conditions of the existing lease remain the same.
Primary Issues to Consider
Why is the lease extension for only a three-year period?
In 2019 the city will be completing a market study that will include a review of the Heritage Store
location. The three years lease will provide the time needed to complete the market study and
prepare a long-term strategy for the Heritage Liquor store.
Supporting Information
Heritage Liquor Store Lease Amendment
Financial Impact: $9,366 (for 2019) Budgeted: Y
Source
Related Documents (CIP, ERP)
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Brenda Visnovec, Liquor Operations Director