Approve Amendment to Lease Agreement With Pact Charter School for Storage Space at 6701 Highway 10
 

On July 23, 2013, the City Council approved the original lease agreement with Pact Charter School for the leasing of 420 square feet of heated storage space and 5,040 square feet of cold storage space at 6701 Highway 10 for the storage of 10 Pact School buses.  The lease price was for $1.00 per square foot which calculated to $5,460, per year or $455.00 month.  The agreement also called for any improvements that Pact made to the site - garage door openers, would remain the property of the city when  the lease has terminated.





 

The city's property manager, Marty Fisher of Premier Properties, notified the city that Pact would like to lease additional cold storage space at 6701 Highway 10.  Per  Mr. Fisher,  Pact wishes to add additional space to the existing lease at the same rate ($1/sf) and for the same existing / remaining term which is July 31, 2014.
 
The space consists of the balance of door number 1 that goes over to the secured/heated storage.  This space is 12’ x 104’ or 1,248 sf or $104 / month additional money.  They would also like the portion of Bay 5, which would be 12’ x 50’ or 600sf and an additional $50 / month.  They would like to add another bus and store a self standing shelving unit where they would store bus supplies such as filters, extra oil and other vehicle supplies  they understand they would not have access through door 5 and they know the supplies will be out in the open.  They will not be adding any further electrical operators for the door nor any further electric.
 

Summary of Lease and Amendment #1 to Lease:

Premises:  7,308 square feet (420 heated, 6,888 square feet cold storage)
Term:  One year term, beginning August 1, 2013 and ending July 31, 2014
Rent:  $609/mo; $7,308 Annual
Property Taxes:  Will remain tax exempt.  City and Pact Charter are both tax exempt
Permitted Use:  the subject Property will be used and occupied by tenant solely for the purpose of storage of 11 school buses and maintenance supplies with Tenant's primary business operation located at 6701 West Highway 10.

Staff recommends council authorize Amendment #1 for the lease of Pact Charter School at 6701 Highway 10, as they currently occupy some of the cold storage space, and there have been no other offers for the vacant cold storage space.  Premier has been marketing this site for a couple of months.

Right-of-Way Acquisition Loan Fund (RALF) funded.  Rent revenues are to be used within the RALF guidelines.

Motion to approve Amendment #1 to lease with Pact Charter School for Cold Storage Space at 6701 Highway 10.