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Red Wing Port AuthorityAn Economic

Development

Agency

TO: Red Wing Port Authority Board

FROM: Shari Chorney, Interim Director

Agenda Item No.: 9.A.

Meeting Date: January 10, 2017

ACTION REQUESTED: Approval of Addendum to Bulkhead Operator Lease between

the Red Wing Port Authority and Landfill Services.

BACKGROUND:

John Edison, City Attorney and myself met with the owners of Landfill Services on December14, 2016. The purpose of the meeting was to clarify the expiration of the existing lease betweenthe Red Wing Port Authority and Landfill Services. The attached addendum is a clerical issue

that specifically states the lease term expires on December 31, 2017.

In addition at the January 6, 2017, Harbor Commission Workshop, I included the attachedaddendum for their review. I explained at the workshop that Landfill Services is interested incontinuing as the bulkhead operator. I also suggested as part of our due diligence that the PortAuthority may want to look at putting out a Request for Proposal (RFP) to see if there are otherinterested parties and to get the most competitive pricing. I have also contacted other portauthority' s to see if they use any type of consultants to help them maximize their terminals orbulkheads. I was given a name of a consultant that I will be contacting for additionalinformation.

ATTACHMENTS:

Addendum to Bulkhead Operator Lease

RECOMMENDATION:

To approve the Addendum to Bulkhead Operator Lease between the Red Wing PortAuthority and Landfill Services.

315 West 4th St

Red Wing, MN 55066Website:

www.redwingportauthority.orgPhone: 651. 385. 3638

ADDENDUM TO BULKHEAD OPERATOR LEASE

This Addendum is made this day of 20 , by and between the RedWing Port Authority, a Minnesota Economic Development Agency (hereinafter referred to asLessor") and Landfill Services of Minnesota, Inc., a Minnesota corporation (hereinafter referred

to as " Lessee"). Lessor and Lessee are collectively referred to as " the Parties."

WHEREAS, Lessor and Lessee entered into a Bulkhead Operator Lease (" Lease") on May 19,2005;

WHEREAS, Lessee leases the Little River Bulkhead, as described in the Lease, (" Leased

Premises") in furtherance of its stevedoring operations;

WHEREAS, the Lease provided for an initial five-year term running from January 1, 2005 toDecember 31, 2009, as well as the possibility of three subsequent five-year extensions to benegotiated by the Parties;

WHEREAS, the Parties amended the Lease on November 29, 2012 to add certain compliance

requirements and Lessee has continued to use the Leased Premises up to the date of thisAddendum; and

WHEREAS, the Parties intended for the November 29, 2012 amendment to operate as a five-

year extension of the Lease;

NOW, THEREFORE, IN CONSIDERATION OF the mutual promises contained in this

Addendum and other good and valuable consideration, the sufficiency of which isacknowledged, the parties agree as follows:

1. Terms and Conditions of Lease. Except as noted in this Addendum, the Lease, as

amended in 2012, shall remain in full force and effect.

2. Lease Term. The term of the Lease will automatically expire on December 31, 2017.The Lease term will not be extended beyond December 31, 2017 unless the Parties agree,

in writing, to an extension upon mutually agreeable terms and conditions.

SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties have entered into this Agreement on the dates shown

below.

RED WING PORT AUTHORITY LANDFILL SERVICES OF MINNESOTA,

INC.

By: By:Its President Keith Dahn

Its Chief Executive Officer

By: Date:

Its Executive Director

By:Its Secretary

Date:

RASW: 76057