Memorandum No. __03-53_________

Date: April 9, 2003

To:      Mayor and City Council

Thru:  Walt Wrede, City Manager

From: Dean W. Baugh, Finance Director

RE:      Mary McCubbins Lease

Attached is a lease agreement with Mary McCubbins and the City of Homer to lease a portion of lot 9, City of Homer Industrial No. 3 to operate a mobile foodservice trailer.The lease term is from May 17, 2003 through September 3, 2003.  The lease rate is $210.00 per month , plus tax.  In addition, McCubbins shall pay the City additional rent equal to five percent (5%) of McCubbins's Gross Sales ("Percentage Rent"). Percentage rent shall be averaged across the entire lease period not to exceed $540.00 per month.

RECOMMENDATION:Homer City Council approval of the attached lease agreement between the City of Homer and Mary McCubbins.