9.B.
City Council Meeting - FINAL
- Meeting Date:
- 06/04/2013
- From:
- Jill Trompeter, Real Estate Manager
Information
TITLE:
Consideration and Approval to enter into a property management agreement for the Lease of City-Owned Property: Located at 311 W. Cherry Avenue.
RECOMMENDED ACTION:
Authorize staff to enter into an Agreement with Core Realty for property management and leasing services of a City-owned property located at 311 W. Cherry, Flagstaff, Arizona.
Policy Decision or Reason for Action:
Through authorization of this agreement, the City will be able to lease this property through a property management broker allowing more ease of completing the application and qualification process in leasing this parcel as well as the management tenants/property and collection of rents.
Core Realty will comply with Charter regulations in the advertisement and leasing of this property.
The subject property is a three bedroom, two bath, one car garage, Single Family residence, located in the heart of downtown. This property was purchased in 2002 as part of the Rio De Flag project and remained vacant from 2002 until 2011. This is the second year this property will be leased.
Core Realty will comply with Charter regulations in the advertisement and leasing of this property.
The subject property is a three bedroom, two bath, one car garage, Single Family residence, located in the heart of downtown. This property was purchased in 2002 as part of the Rio De Flag project and remained vacant from 2002 until 2011. This is the second year this property will be leased.
Financial Impact:
All costs associated with the marketing and lease of this property will be offset through the lease.
Connection to Council Goal:
Effective governance
Has There Been Previous Council Decision on This:
Yes. 2011-2012 this property was leased through Catholic Social Services.
Options and Alternatives:
Option A –Authorize Core Realty to proceed in the marketing and lease of this property.
Option B – Directed Staff to conduct Property Management in-house.
Option C- Reject.
Option B – Directed Staff to conduct Property Management in-house.
Option C- Reject.
Background/History:
The property was purchased in 2002 as part of the relocation of the Rio De Flag. The property remained vacant from 2002 until 2011, when the parcel was leased to Catholic Social Services (CSS). The lease with CSS has since expired and CSS has chosen not to renew the lease.
By leasing this property through Core Realty, marketing, management and collection of rents will be handled by the property management company.
The term of this agreement is for five one year increments, with each year being renewable upon agreement of both parties. Depending on the season, the rental rents are expected to range from $1,650.00 to $1,800 per month.
By leasing this property through Core Realty, marketing, management and collection of rents will be handled by the property management company.
The term of this agreement is for five one year increments, with each year being renewable upon agreement of both parties. Depending on the season, the rental rents are expected to range from $1,650.00 to $1,800 per month.
Key Considerations:
Historically this property has remained vacant. Through this lease, the property is generating revenues and will be maintained by the lease.
Expanded Financial Considerations:
Historically, general annual maintenance of this building cost approximately $1,600.00. An additional fee of 10% of the lease amount will be charged for the management and marketing of this property. Through the proceeds of the lease income, any and all maintenance, marketing or management fees will be offset. Any remaining proceeds will be applied to the Rio de Flag account.
Community Benefits and Considerations:
With the exception of this being an income generating property, the hiring of a local realtor and paying into the tax base, there are no direct benefits to the community.
Community Involvement:
Inform